Best Annuity Plans in India 2024

The best annuity plans in India for Non-Resident Indians (NRIs) provide you with a steady income during retirement. These annuity plans offer financial security and stability, ensuring a regular income stream for NRIs even when they are not residing in India. Popular insurance companies in India, such as LIC, HDFC Life, and ICICI Pru, offer annuity plans designed explicitly for NRIs. This article will help you learn about the top annuity plans in India and their features.

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Best Annuity Plans 2023-24

Below is the list of best annuity deposit schemes to invest in India in 2023-24:

Plans Entry Age Frequency of Income Purchase Price
Aditya Birla SunLife Immediate Annuity Plan 30 - 90 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min. regular income of Rs. 1,000, Rs. 3,000, Rs. 6,000, or Rs. 12,000 for monthly, quarterly, half-yearly, and annual modes of annuity payment, respectively
Aviva Annuity Plus 18 - 80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
  • Min- Rs. 25,000 
  • Max-No limit
Canara HSBC Pension 4Life Plan 45 - 80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs. 2,00,000  Max- No limit
Exide Life New Immediate Annuity Plan 0/45/55 – 100/80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs. 1,000 per month 
Max- no limit
Future Generali Immediate Annuity Plan 40 - 80 years
  • Yearly
  • Monthly
Min-Rs. 30,000 
Max- no limit
HDFC Life Pension Guaranteed Plan 30/45 - 85 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Immediate Life Annuity- Rs. 42,076 
Immediate Life Annuity with Return of Purchase - Rs. 1,60,261 
Deferred Life Annuity with Return of Purchase - Rs. 76,046
ICICI Prudential Immediate Annuity Plan 20/30/55 - 100 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs.12,000 
Max- No upper
IDBI Federal Guaranteed Lifetime Income Plan 45/50 - 85 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs. 1,50,000 
Max- No limit
India First Immediate Annuity Plan 40 - 80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs. 3,00,000 
Max- No limit
Kotak Lifetime Income Plan 45/55 - 99 years  
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min-Rs.1,000 
Max- No limit
Max Life Guaranteed Lifetime Income Plan 45/55 - 80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs. 1,000  Max- No limit
Reliance Nippon Life Immediate Annuity Plan 20 - 80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs 1,00,000  Max- No limit
SBI Life Annuity Plus 40 - 80 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- N/A 
Max- No limit
Shriram Life Immediate Annuity Plus 0 - 85 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Rs. 3,00,000  Max- No limit
Star Union Dai-Ichi Life Immediate Annuity Plan 45 - 99 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Min- Less than 10 lakhs Max- No limit
TATA AIA Life Insurance Smart Annuity Plan 45 - 85 years
  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly
Immediate annuity plan for Life Annuity- Rs. 87, 527 
Immediate life annuity with return of purchase - Rs. 2,06,155
Deferred life annuity with return of purchase price - Rs. 1,08,303  Max-no limit
See More Plans

Features of Top Annuity Plans 

  1. Aditya Birla SunLife Immediate Annuity Plan

    It is a single premium payment policy that helps individuals keep aside their savings and provides a regular income during retirement.

    Aditya Birla SunLife immediate annuity plan includes:

    • Offers the benefit of choosing from 6 different payout options to receive annuity

    • Provides guaranteed income for your entire life

    • Choose annuity payout modes as monthly, quarterly, half-yearly, and yearly from the policy initiation date

    • No medical test required to purchase the plan

  2. Aviva Annuity Plus

    This is a traditional and one of the best annuity plans designed to provide guaranteed regular income after retirement. 

    Features of Aviva Annuity Plus:

    • Offers the advantage of choosing from 7 different annuity options per one's requirement

    • Annuity amount payable is guaranteed for policy tenure

    • Flexibility to increase the purchase amount at policy inception for a higher annuity

  3. Canara HSBC Pension 4Life Plan

    It is one of the best annuity plans where the policyholder receives a predefined instalment in exchange for a purchase price. The plan ensures a guaranteed income post-retirement.

    What the plan offers:

    • Offers an extensive range of annuity options to choose from

    • Option to receive an immediate or deferred annuity as per the plan

    • Option to receive regular payments as long as the policyholder’s spouse is alive

    • Flexibility to choose annuity instalments as a monthly, quarterly, half-yearly, and yearly mode

  4. Exide Life New Immediate Annuity Plan

    Exide Life New Immediate Annuity plan offers return of purchase price in case of the policyholder’s unfortunate demise during policy years. In addition, the plan offers guaranteed regular income after retirement as annuity. 

    Key reasons to buy this plan:

    • Guaranteed lifelong annuity payout

    • Flexible pay-out options to receive annuity

    • Large volume discount on annuity rates depending upon the purchase price range

    • No medical examinations required

    • On demise, option for a full refund of the purchase price

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  5. Future Generali Immediate Annuity Plan

    The plan secures an individual’s financial future after retirement by paying guaranteed regular income as an annuity.  The annuity is paid immediately after the policyholder pays the policy premium as lump sum. 

    Features of Future Generali immediate annuity plan:

    • Offers a fixed income for the retirement life of the insured

    • Flexibility to choose monthly or yearly payout modes

    • Provides the option to choose between 'life annuity' and 'life annuity with return of purchase price

    • Offers an annuity card for conveniently receiving the annuity amount

  6. HDFC Life Pension Guaranteed Plan

    HDFC Life Pension Guaranteed plan is a non-participating single premium annuity plan that provides a regular income for policyholder’s lifetime. 

    HDFC Life Pension Guaranteed Plan features:

    • Offers regular guaranteed income for a lifetime

    • Option to choose a deferred or immediate annuity plan

    • Life assured can purchase the plan on a single or joint life basis

  7. ICICI Prudential Immediate Annuity Plan

    The plan provides financial security to individuals in their golden years of retirement. As an immediate annuity plan, it gives life assured with a guaranteed regular income for the entire life. 

    ICICI Prudential Immediate Annuity Plan includes:

    • Pay once and get guaranteed regular income for life

    • Flexibility to receive payment at a frequency of monthly, quarterly, half-yearly, or yearly

    • Provides 12 different annuity options

    • Offers returns of purchase price in case of death, critical illness, and permanent disability due to an accident

    • Offers annuity income from as early as age 3

    • Higher annuity rates for large purchase price and deferred pension plan

  8. IDBI Federal Guaranteed Lifetime Income Plan

    It is an immediate annuity plan which offers a guaranteed regular income for life. The plan ensures a secure financial future for an individual after retirement and helps deal with any eventuality after retirement. 

    The plan includes the following:

    • The plan comes with 3 different annuity options to choose from

    • Provides the convenience of a one-time payment

    • Offers the option to receive an immediate or deferred annuity

    • Option of return of purchase price on death

    • The life assured can choose to receive an annuity in monthly, quarterly, half-yearly, or yearly mode

  9. India First Immediate Annuity Plan

    India First Immediate Annuity Plan is designed to help you maintain a good lifestyle post-retirement. It enables you to deal with rising healthcare costs and inflation. In addition, the plan offers a guaranteed return in the form of a regular annuity after retirement. 

    Features of India First Immediate Annuity Plan:

    • Pay once and get guaranteed regular income for life

    • Flexibility to receive income at a frequency of monthly, quarterly, half-yearly, or yearly

    • Life assured can purchase the plan on a single or joint life basis

    • Higher annuity rates for large purchase price and deferred pension plan

  10. Kotak Lifetime Income Plan

    It is a non-participating non-linked immediate annuity plan, which ensures a financially independent and comfortable life post-retirement. In addition, the plan provides assured income throughout your life. 

    Kotak Life Insurance Plan entails:

    • Ensures financial independence after retirement

    • Offers an extensive range of income options to cater to individual needs

    • Life assured can receive annuity in monthly, quarterly, half-yearly, and yearly modes

    • Plan offers 6 different annuity options

  11. Max Life Guaranteed Lifetime Income Plan

    This is a non-participating, non-linked general annuity savings plan that helps you start planning for your retirement early to create a retirement fund for the future. The plan offers both the option of a deferred and immediate annuity plan option. 

    Max Life Guaranteed Lifetime Income plan characteristics:

    • Offers guaranteed lifetime income to cater to financial needs after retirement

    • Payout options to receive annuity at yearly, half-yearly, quarterly, and monthly frequency

    • Choose between a single-life annuity or a joint-life annuity option

    • Offers multiple annuity options to choose from

    • Choice of annuity option, which provides 105% of the purchase price to the policy beneficiary after annuitant’s death

  12. Reliance Nippon Life Immediate Annuity Plan

    Reliance Nippon Life Immediate annuity plan is a non-participating, non-linked plan that guarantees a regular income after retirement. It is a single premium payment plan where one must pay a lump-sum premium amount and opt for a suitable annuity option per one's requirement. 

    Features of Reliance Nippon Life Immediate Annuity Plan:

    • Offers guaranteed whole-life income as an annuity to the life assured

    • Provides the flexibility to choose from 3 different annuity options

    • Tax benefits availed on the premium paid

    • Convert your earnings into regular income

  13. SBI Life Annuity Plus

    SBI Life annuity plus is a non-participating, non-linked plan that helps individuals celebrate their golden years without financial worries. The plan offers a comprehensive range of annuity options to choose from. 

    SBI Life Annuity Plus features:

    • Offers security through a steady retirement income after retirement

    • Option to choose from different annuity options

    • Provides a fixed annuity from the date of policy issuance

    • Annuity payout can be received on yearly, half-yearly, quarterly, and monthly frequencies

    • Option of advancing the annuity

  14. Shriram Life Immediate Annuity Plus

    It is a non-participating, non-linked immediate annuity plan which aims to provide lifetime guaranteed income post-retirement. The policyholder must pay the premium once as a lump sum to gain regular income on this type of immediate annuity plan. 

    Characteristics of Shriram Life Immediate Annuity Plus:

    • Annuity for life increases at a 3% per annum simple rate

    • Offers a guaranteed annuity with a return of 100% purchase price on the death of the life assured

    • A guaranteed annuity is provided after the completion of 5/10/15/20 years of policy and after that for life

    • Tax benefits under the Income Tax Act

  15. Star Union Dai-Ichi Life Immediate Annuity Plan

    Star Union Dai-Ichi Life’s immediate annuity plan is a good investment to better your retired life. It is a non-participating, non-linked plan aiming to provide lifetime guaranteed income post-retirement. It is a single premium payment plan where one must pay a lump-sum premium and opt for a suitable annuity option as per requirement. 

    Features of Star Union Dai-Ichi Immediate Annuity Plan:

    • Flexibility to receive an annuity in monthly, quarterly, half-yearly, and yearly instalments

    • Offers 9 different annuity options to choose from

    • Provides a single premium payment mode

    • Guaranteed lifelong income offered with three plan options

  16. TATA AIA Life Insurance Smart Annuity Plan

    It is a single premium, non-linked, non-participating immediate annuity plan that provides guaranteed regular income after retirement. It is one of the best annuity plans to safeguard one’s financial future after retirement and helps them deal with any eventualities. 

    TATA AIA Life Insurance Smart Annuity Plan entails:

    • Flexible annuity options to choose from so that an individual can fulfil their future needs

    • Offers the option of a single or joint-life annuity

    • Flexibility to choose different annuity payout modes, i.e., yearly, half-yearly, quarterly, and monthly

    • Top-up options to enhance annuity payout

    • Provides security through a steady income after retirement

Lifelong pension rate for you and your spouse Lifelong pension rate for you and your spouse

What is Annuity Plan in India?

An annuity plan in India is an NRI retirement plan that provides a regular income stream during an individual’s retirement years. 

Basic Concept of an Annuity Plan in India:

  • Annuity plan requires an individual to pay for the plan through:

    • Lump Sum/ One-Time Payment, or

    • Regular Instalments

  • Your investments accumulate and earn interest over time.

  • Upon reaching the payout phase or maturity age, the accumulated funds are converted into regular payments.

  • Payouts of this pension plan are usually done in frequencies of:

    • Monthly

    • Quarterly

    • Semi-Annually

    • Annually

  • These plans cater to your financial needs during retirement and offer a way to secure the policyholder’s family.

Features of Best Annuity Plans in India

Some of the significant features provided to NRIs under an annuity plan in India are listed below:

Features Details
Annuity Options Offers a range of annuity options to suit your individual preferences and requirements:
  • Lifetime Annuity
  • Joint Life Annuity
  • Annuity with Return of Purchase Price
Regular Income Stream Provide a regular and reliable income stream to support your financial needs on retirement
Pension Payout Options Monthly/ Quarterly/ Semi-annually/ Annually
Flexibility in Purchase Price Flexibility of purchase price to invest through:
  • Lump sum amount, or
  • Regular contributions over time
Guaranteed Income The best annuity plans ensure the annuitant(s) receive guaranteed payments for the chosen duration
Nomination Facility Available
Transparency and Disclosures The annuity plan should provide clear information regarding charges, fees, and other associated costs
Taxation Maturity benefits are taxed as per current income tax slabs

Types of Annuity Plans

Various insurance companies or financial institutions offer a range of annuity plans in India for NRIs. Some of them are as follows:

Type of Annuity Plan Details
Based on Payout Initiation of Time
Immediate Annuity
  • Starts providing regular income immediately after the purchase price is paid
  • Suitable for individuals who want to begin receiving periodic income right away
Deferred Annuity
  • Have an accumulation phase where individuals make contributions over a specified period
  • Payouts begin at a later date chosen by the annuitant, such as retirement age
  • Allows for the accumulation of funds and potential growth before the income payments start
Based on Payout Duration
Lifetime Annuity
  • Provides a regular income stream for the entire lifetime of the annuitant
  • Payments continue as long as the annuitant is alive
  • Ensures financial security throughout their lifetime
Annuity Certain
  • Guarantees a fixed stream of income for a specified period, regardless of the annuitant's lifespan
  • Provides a predetermined number of payments, typically monthly, quarterly, or annually, for a chosen duration
Based on Payout Types
Variable Annuity
  • Annuitants can choose to switch between different investment options based on the following:
  • Risk tolerance
  • Market conditions
  • Investment goals
  • Returns are linked to the performance of the underlying investment options chosen
Fixed Period Annuity
  • Income payments are made for a predetermined duration
  • If the annuitant passes away before the end of the chosen period, the payments may continue to the nominee or legal heirs
Increasing Annuity
  • Offers a rising income stream over time
  • The payouts gradually increase either at a fixed rate or in line with inflation
  • Protects against the impact of rising living costs
Annuity with Return of Purchase Price
  • Guarantees the return of the purchase price to the nominee or legal heirs upon the death of the annuitant
  • It provides added financial protection by ensuring that the initial investment is not lost
Based on People Benefiting
Single Life Annuity
Survivor/ Joint Life Annuity
  • Covers two individuals, usually spouses or partners
  • Income payments continue as long as either of the individuals is alive
  • Ensures that the surviving spouse receives a regular income even after the demise of the primary annuitant

Eligibility Criteria

Standard eligibility criteria for individuals are:

  • Age Requirement: 30 years – Lifetime

  • Citizenship: Indian Resident Citizens/ NRIs/ PIOs

  • Health Conditions: Insurance companies may require individuals to undergo a medical underwriting

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Documents Required

Here are some essential documents that NRIs must keep in handy to buy annuity plans in India:

Particulars Documents Required
Identity Proof
  • Valid Passport
  • Driving License
  • Aadhar Card
  • Valid Visa
Address Proof
  • Utility Bills
  • Bank Statement
  • Rental Agreement
Age Proof
  • Valid Passport
  • 10th Board Mark sheet
  • Birth certificate
Overseas Address Proof
  • Salary Slips
  • Employment Contract
  • Bank Statements (showing salary credits)

How Do Annuity Plans in India Work?

Today many life insurance companies in India provide annuity plans so you don't need to depend on somebody else during your retirement.

Therefore, it is crucial to understand the working of the annuity plans in India 2023.

  • Selection of Annuity Plan: You need to choose the type of annuity plan that suits your financial goals and requirements, considering factors such as:

    • Income Amount

    • Payout frequency

    • Duration of payments

    • Additional features or riders

  • Payment of Premium: You start an annuity plan by making a lump-sum payment or regular premium payments, depending on the chosen plan

  • Accumulation Phase: If it is a deferred annuity plan, there is typically an accumulation phase where the annuitant's contributions are invested in growing and accumulating over time

  • Annuity Payout Phase: Once the accumulation phase ends or for immediate annuity plans, the annuity payout phase begins

    • You start receiving regular income payments from the annuity plan

    • The frequency of payments can be monthly/ quarterly/ semi-annually/ annually, depending on the chosen plan

  • Payout Options: You have different payout options to choose from, such as:

    • Fixed amount for a specific period (annuity certain)

    • Lifetime income stream (lifetime annuity)

    • Combination of both

  • Additional Riders or Benefits: Some annuity plans offer optional riders or benefits that can be added for an additional cost to provide added protection and financial security. 

    These riders may include features like:

    • Guaranteed minimum income benefits

    • Death benefits

    • Long-term care benefits

Advantages of Best Annuity Plans in India for NRIs

Let us have a look at the below-mentioned advantages offered by the best annuity plans in India:

  • Provide NRIs with a reliable and regular income stream

  • Help meet your financial needs and maintain a consistent lifestyle during retirement or other stages of life

  • Choose from various payout options based on their preferences and financial goals

  • Certain annuity plans, such as fixed annuities, protect against market fluctuations

  • Best annuity plans offer optional riders or benefits that can be added with an additional cost

  • Easy to manage as the insurance company takes care of the administration and distribution of regular income payments

  • Investing in annuity plans allows NRIs to diversify their retirement portfolio, reducing dependency on other forms of investments or assets

  • Some annuity plans, such as variable annuities, offer the potential for higher returns by investing in market-linked instruments

Tips for NRIs to Invest in Annuity Plans in India

An NRI can consider the following essential points while investing in annuity deposit schemes in India:

  1. Understand your financial goals

    Before investing in an annuity plan, clearly define your financial goals, such as:

    • Retirement income

    • Long-term financial security

    • Specific income requirements

  2. Research different annuity options

    Explore the various annuity plans available in the market and compare their features, payout options, fees, and terms.

  3. Assess your insurance company

    Look for reputable insurance companies that offer annuity plans in India by considering the following:

    • Financial stability

    • Track record

    • Customer service

    • Claim settlement ratio

  4. Evaluate investment options

    Understand the risks associated with each option, consider diversification, and choose investments based on your risk tolerance, investment goals, and market conditions.

  5. Understand tax implications 

    Familiarise yourself with the tax laws applicable to annuity plans in India and the country where you reside.

  6. Stay informed

    Keep yourself updated on the latest developments in the insurance industry, regulatory changes, and any updates related to annuity plans in India.

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Wrapping It Up

Annuity plans in India offer NRIs a valuable investment option to secure a regular income stream for retirement. NRIs can make informed decisions by selecting the right annuity plan, understanding the payout options, assessing the insurance company's credibility, and considering tax implications.

FAQ's

  • What is the best annuity for 2023?

    The best annuity plans in India offered by various insurance companies in 2023 are as follows:
    • Aditya Birla SunLife Immediate Annuity Plan

    • Canara HSBC Pension 4Life Plan

    • Future Generali Immediate Annuity Plan

    • HDFC Life Pension Guaranteed Plan

    • ICICI Prudential Immediate Annuity Plan

  • What is the outlook for annuities in 2023?

    The outlook for annuities in 2023 and beyond can be influenced by various factors such as economic conditions, interest rates, regulatory changes, and market trends. These factors are subject to change and can impact the performance and attractiveness of annuity products.
  • Will annuity rates rise in 2023?

    Various factors, such as prevailing interest rates, inflation, market conditions, and insurance companies’ policies, influence annuity rates.

    It's important to note that annuity rates can fluctuate over time based on economic conditions and other external factors. 

    Changes in interest rates, investment performance, and mortality rates can impact annuity rates.

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