A pension policy that is taken personally through a life insurance company is called personal pension plan. An individual’s premium contributions get invested in funds which you can choose according to your risk appetite and plans for future. Personal pension plans have no links to an individual’s employer and one can choose his/her own plan on a defined contribution basis. Let’s explore the three types of personal pension plan: 1. Deferred annuity plan In this plan, the policyholder decides the annuity. Say if the policy holder buys a plan for a term of 30 years also known as deferment period then his annuity will begin only after 30 years. Deferred annuity premiums can be paid as a ‘single premium’ or as a ‘regular premium’ as per the choice of the policy holder. 2. Immediate annuity plan In this plan the annuity commences immediately. The policy holder is required to pay lump sum and the annuity/pension starts immediately or within a period of 1 year of having paid the premium. The payment frequency for pension can be monthly, quarterly, half yearly or yearly. 3. Pension plan with /without life cover Pension plans with inbuilt life insurance cover offer full sum assured in case the policy holder dies during the accumulation stage. Without life cover pension plans, pay out is only the corpus built till date to the nominees along with the interest as decided by the insurance company in an unfortunate case of death of the policyholder during the accumulation stage.