Your agent is wrong both life insurance and pension plans the final proceed is tax free. Just in pension plan tax free proceed is 1/3 of total amount and for remaining you need to buy annuity.

Life Insurance Proceeds
Section 10(10D) specifies that any sum received under a Life Insurance policy is exempt from tax. Hence maturity proceeds received from an endowment plan, from a term plan with return of premium feature, from installments of a money back plan and from withdrawals of a ULIP are exempted from tax.

Pension Proceeds
Under pension plans, upto 1/3rd of the maturity amount can be commuted and withdrawn in cash. Commuted Pension is treated as tax-free. With the remaining 2/3rd amount an annuity has to be purchased amount. However, one should remember that annuity received from pension plans are not exempted from Tax.