Annuity Plans

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Annuity plans in India are the financial products that provide you with a guaranteed, regular, lifelong income during your retirement years. These plans offer a reliable source of income, ensuring financial stability and peace of mind. Annuity plans can also provide income for a surviving spouse or dependents.

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Sameep Singh
Written By: Sameep Singh
Sameep Singh
Sameep Singh Business Unit Head - Domestic Savings
Mr. Sameep Singh is a Business Unit Head for the domestic Investment Business at policybazaar.com, holding a master's from Symbiosis School of Banking & Finance. He has played a pivotal role in crafting investment and term business strategies during his tenure at Policybazaar. His exceptional leadership has been instrumental in driving both product and business growth throughout his impressive career.
Vivek Jain
Reviewed By: Vivek Jain
Vivek Jain
Vivek Jain Head of Savings business
Mr. Vivek Jain is the Business Unit Head for Investment Business at Policybazaar.com. A graduate of the prestigious IIM Calcutta he brings over a decade of invaluable experience to his current role. In his capacity as Business Unit Head, he has been a driving force behind the success of Policybazaar's Investment business. Mr. Jain is recognized for his instrumental role in product innovation within the Savings/Investment domain. His leadership and expertise have been pivotal in scaling up the Investment business, underscoring his significant contributions to Policybazaar.com's growth and success.

What is an Annuity Plan?

An annuity plan is an insurance contract between you (the annuitant) and an insurance company to provide you with a regular stream of 100% guaranteed pension for a lifetime after retirement. This helps you to secure your life goals and create a financial net for your family.

As an annuitant, you can make payment in a suitable best annuity plan in the following two ways:

  • Regular premium payments

  • Lump sum payment

In return, the insurance company offers an annuity plan as the best investment option that guarantees a fixed stream of income at high annuity rates for your entire life.

The company further invests the premiums in different assets and pays back the generated returns to you. 

Features of the Best Annuity Plans in India

Some of the significant features of the best annuity plan in India are listed below:

Features Details
Annuity Options An annuity policy offers a range of annuity options to suit your individual preferences and requirements:
  • Single Life Annuity
  • Joint Life Annuity
  • Annuity with Return of Purchase Price
Regular Income Stream An annuity plan provides a regular and reliable income stream at high annuity rates to support your financial needs in retirement.
Pension Payout Options Monthly/ Quarterly/ Semi-annually/ Annually
Flexibility in Purchase Price You are provided flexibility in the purchase price of your chosen annuity insurance policy to invest through the following modes:
  • Lump sum amount, or
  • Regular contributions over time
Guaranteed Income The best annuity plans in India ensure that you receive guaranteed payments for your lifetime.
Nomination Facility Available
Transparency and Disclosures The best annuity plans provide clear and transparent information regarding charges, fees, and other associated costs.
Tax Benefits: You can claim a deduction of up to Rs. 1.5 lakhs on the premiums paid for your annuity plan under Section 80CCC of the IT Act, 1961
Taxation on Income Received The income earned as annuity is taxable as per your income tax slabs under the chosen old vs. new income tax regime for FY 2023-24 

Best Annuity Plans in India 2024

Below is the list of different categories of best annuity plans to invest in 2024:

  1. Regular Pay Annuity Plan

    These are the annuity plans where you make regular premium payments over a period in exchange for a guaranteed income stream at decided intervals.

    List of Best Regular Pay Annuity Plans:

    If you invest in an annuity plan at the age of 50 years with the following specifications:

    • You Invest: Rs. 2.4 lakhs p.a.

    • Premium Payment Term: 10 years

    • Annuity Starts After: 10 years (from the age of 61 years)

    • Annuity Plan Type: Pension For Lifetime + ROP

    The list of best annuity plans in India with regular pay feature is as follows:

    Investment Plans Entry Age Premium Payment Term (PPT) Deferment Period Purchase Price (Annual) Annual Annuity Amount For Lifetime (in Rs.)
    Tata AIA Fortune Guarantee Pension 30 - 85 years 5 - 12 years Equal to PPT As per the Annuity Amount Rs. 12,000 - As per Board Approved Underwriting
    ICICI Pru Guaranteed Pension Plan Flexi 40 - 70 years 5 - 15 years 5 - 15 years As per the Annuity Amount Rs. 12,000 - As per Board Approved Underwriting
    Max Life Guaranteed Lifetime Income Plan 25 - 85 years 5 - 10 years PPT - 10 years Rs. 12,000 - No Limit Rs. 12,000 - As per Board Approved Underwriting
    HDFC Life Systematic Retirement Plan 45 - 75 years 5 - 15 years PPT - 15 years Rs. 30,000 - As per Board Approved Underwriting Rs. 12,000 - As per Board Approved Underwriting
    Bajaj Allianz Guaranteed Pension Goal
    • Immediate: 30 - 85 years
    • Deferred: 45 - 84 years
    5 - 10 years PPT - 10 years As per Board approved Underwriting Rs. 12,000 - As per Board Approved Underwriting
  2. Single Pay Immediate Annuity Plan

    In this annuity plan, you make a single lump-sum payment upfront, which immediately starts generating a regular income stream for a specified period.

    List of Best Single Pay Immediate Annuity Plans:

    If you invest in an annuity plan at the age of 60 years as per the following specifications:

    • You Invest: Rs. 10 lakhs p.a.

    • Premium Payment Term: One-Time

    • Annuity Starts After: Immediately from Next Month

    • Annuity Plan Type: Pension For Lifetime + ROP

    The following table shows the list of best immediate annuity plans in India are listed below:

    Investment Plans Entry Age Purchase Price (Annual) Annual Annuity Amount For Lifetime (in Rs.)
    Tata AIA Saral Pension 40 - 80 years As per the Annuity Amount Rs. 12,000 - No Limit
    HDFC Life New Immediate Annuity Plan 20 - 85 years Rs. 2.5 lakhs - No Limit Rs. 10,000 - No Limit
    Max Smart Guaranteed Pension Plan 30 to 85 years As per the Annuity Amount Rs 12000 - No Limit
    ICICI Pru Guaranteed Pension Plan 30 - 65 years As per the Annuity Amount Rs. 12,000 - As per Board Approved Underwriting
    Bajaj Immediate Annuity 30 - 85 years As per Board approved Underwriting Rs. 12,000 - No Limit
    Kotak Life Immediate Annuity 45 - 99 years As per Board approved Underwriting Rs. 12,000 - No Limit
    IndiaFirst Immediate Annuity Plan 40 - 80 years Rs. 3 lakhs - No Limit Rs. 12,500 - As per Board Approved Underwriting
  3. Single-Pay Deferred Annuity Plan

    In a single-pay deferred annuity plan, you make a single lump-sum payment upfront, which accumulates and grows over a specified period until it is converted into a regular income stream.

    List of Best Single Pay Deferred Annuity Plans:

    Let us say you invest in an annuity plan at the age of 60 years as per the following details:

    • You Invest: Rs. 10 lakhs p.a.

    • Premium Payment Term (PPT): One-Time

    • Annuity Starts After: 5 years

    • Annuity Plan Type: Pension For Lifetime + Return of Premiums

    You can learn the best-deferred annuity plans with the Single Pay feature from the following table:

    Investment Plans Entry Age Deferment Period Purchase Price (Annual) Annual Annuity Amount For Lifetime (in Rs.)
    LIC New Jeevan Shanti 30 to 79 years 1- 12 years Rs 1,50,00 - No Limit Rs 12000 (As per board approved Underwriting)
    Max Life Guaranteed Lifetime Income Plan 25 - 85 years 1 - 10 years Rs. 12,000 - No Limit Rs. 12,000 - As per Board Approved Underwriting
    ICICI Pru Pension for Life 30 - 85 years 1 - 10 years As per the Annuity Amount Rs. 12,000 - As per Board Approved Underwriting
    TATA AIA Pension for Life 30 - 85 years 1 - 10 years As per the Annuity Amount Rs. 12,000 - As per Board Approved Underwriting
    Bajaj Allianz Pension for Life 45 - 84 years 1 - 10 years As per Board approved Underwriting Rs. 12,000 - As per Board Approved Underwriting
    HDFC Life Pension for Life 30 - 85 years 1 - 10 years Rs. 76,046 - No Limit Rs. 12,000 - No Limit
    IndiaFirst Pension for Life 45 - 80 years 5 - 10 years Rs. 1 lakh - No Limit Rs. 12,500 -As per Board Approved Underwriting
pension-ki-no-tensionpension-ki-no-tension

Details of Best Annuity Plans in India in 2024 (Regular Pay)

  1. ICICI Pru Guaranteed Pension Plan Flexi

    ICICI Pru Guaranteed Pension Plan Flexi is a non-linked, non-participating deferred annuity plan that provides you with an assured income and the best annuity rates. This investment plan helps to ensure peace of mind during your golden years. 

    ICICI Pru is the only insurer to provide you with the Waiver of Premium (WOP) Option in annuity plans.

    Features of ICICI Pru Guaranteed Pension Plan Flexi:

    • Return of Purchase Price (ROP) Option: This annuity plan offers you the Return of Purchase Price (ROP) option along with the lifetime guaranteed annuity benefit.

    • Waiver of Premium (WOP) Feature: You can avail of the Waiver of Premium (WOP) feature with this annuity plan. This ensures that the joint life annuitant does not bear the financial burden of paying premiums in case of the demise of the primary annuitant. The joint-life annuitant, however, gets the complete benefit of the plan without paying premiums.

    • Diverse Annuity Options: This annuity plan provides you with the following Annuity options-

      • Single Life Annuity

      • Joint Life Annuity

    • Flexible-Premium Payment Term and Vesting Age: You get the flexibility to choose the premium payment term and vesting age as per your financial needs.

    • Varied Payout Frequencies: Annuity payouts are available on a monthly, quarterly, semi-annual, and annual basis as per your preference.

    • 100% Surrender value from Day 1: You can choose to surrender the policy anytime during the premium payment term and get 100% premium paid back as surrender value.

    • Exclusive Waiver of Premium (WOP) Rider: ICICI Pru holds the status of the only insurer that provides an additional rider of Waiver of Premium (WOP). In case the primary annuitant dies during the premium payment term, all future premiums are waived, and the secondary annuitant will continue to receive the regular income after the deferment period until death.

    • "Save the Date" Option: The "Save the Date" option helps you choose the date on which you wish to receive your annuity.

    • Top-Up Option for Additional Funds: You can use the Top-up option of this annuity plan to park your additional funds and get more annuity benefits on retirement.

    • Tax Benefits: You can avail of the tax benefits Section 80C and Section 10 (10D) of the IT Act, 1961.

    • Capital Gains Tax Exemption on Surrender: When you surrender the ICICI Pru Guaranteed Pension Plan Flexi, you will not have to pay any capital gains tax.

  2. Max Life Guaranteed Lifetime Income Plan

    Max Life Guaranteed Lifetime Income Plan is a non-linked, non-participating annuity savings plan. It gives you higher assured income and the best annuity rates on your retirement. Max Life is a single insurer that provides annuity plans from the age of 30 years.

    Features of Max Life Guaranteed Lifetime Income Plan:

    • A Comprehensive Annuity Plan: This annuity plan stands out in the market by providing a combination of deferred annuity and valuable death benefits.

    • Early Start Advantage: Only insurer in the industry that offers you an annuity scheme from 30 years of age.

    • High Annuity Rates: This best annuity plan offers you guaranteed assured income at high annuity rates throughout your lifetime.

    • Flexible Annuity Options: Annuity options available with this annuity plan:

      • Single Life Annuity

      • Joint Life Annuity

    • Varied Annuity Choices: You get the flexibility to choose from various income payout options under this annuity plan.

    • Nominee Benefits: In your absence, your nominee is provided with the benefit of 105% of the Purchase Price.

    • Tax Efficiency: You can avail of deductions of up to Rs. 1.5 lakhs from this annuity plan u/Section 80C of the IT Act, 1961.

    • If you are above 60, you can claim additional deductions of up to Rs. 50,000 from this annuity plan u/ Sec 80D of the IT Act, 1961.

    • Tax Benefits on Earnings: Tax benefits on income earned are available under/ Section 10 (10D) of the IT Act.

  3. Bajaj Allianz Guaranteed Pension Goal

    The Bajaj Allianz Guaranteed Pension Goal Plan is a non-participating, non-linked, deferred annuity plan. This investment plan aims to help you achieve your lifestyle goals during your post-retirement period.

    Features of Bajaj Allianz Guaranteed Pension Goal:

    • Guaranteed Income: This annuity plan offers guaranteed income throughout your lifetime.

    • Flexible Payout Modes: Annuity Payout Modes are available with this annuity plan on a Monthly/ Quarterly/ Semi-Annual/Annual basis.

    • Annuity Options Catered to You: You can select from a wide range of annuity options as per your financial needs.

    • Joint Life Annuity: In case of your unfortunate demise, this annuity plan provides the facility to give annuity payouts to your spouse of up to 50% or 100% as per your choice under the Joint Life Annuity option.

    • Return of Purchase Price (ROP) Option: The Return of Purchase Price (ROP) option is also available in your absence or as a survival benefit if the option has been opted for.

    • Financial Benefits on Premium: Deduction of up to Rs. 1.5 lakhs on the premium paid for this annuity plan under Section 80C of the Income Tax Act, 1961.

    • Tax-Free Income: The income received from this best annuity plan in India is tax-free u/ Section 10(10D), irrespective of the mode of payment (monthly, quarterly, half-yearly, or yearly).

  4. HDFC Life Systematic Retirement Plan

    HDFC Life Systematic Retirement Plan is an individual/ group, non-participating, non-linked deferred annuity plan that provides you with a regular income and higher annuity rates along with financial independence during your post-retirement period.

    Features of HDFC Life Systematic Retirement Plan:

    • Tailored Deferment Period: You can select your annuity deferment period as per your financial needs.

    • Diverse Payout Modes: Annuity payout modes are available with this annuity plan on a Monthly/ Quarterly/ Semi-Annual/Annual basis.

    • Lifetime Financial Security: You get a guaranteed fixed income and the best annuity rates for a lifetime upon payment of premiums for a limited period.

    • Nominee Protection: Your nominee gets the Return of the Total Purchase Price in case of your unfortunate demise.

    • Tax Efficiency: Tax Benefits with this annuity plan:

      • Up to Rs. 1.5 lakhs of the premium paid for this annuity plan can be deducted from your taxable income under Section 80C of the Income Tax Act, 1961.

      • Tax benefits are provided on the income earned u/Section 10(10D) of the IT Act, 1961.

      • If you are above the age of 60, an additional deduction of up to Rs. 50,000 can be claimed under Section 80D for the premium paid.

  5. IndiaFirst Life Guaranteed Annuity Plan

    IndiaFirst Life Guaranteed Annuity Plan is a non-linked, non-participating annuity plan that provides you with assured regular income along with the best annuity rates throughout your lifetime.

    Features of IndiaFirst Life Guaranteed Annuity Plan:

    • Lifelong Financial Security: This annuity plan provides you with guaranteed income at high annuity rates for a lifetime.

    • Tailored Annuity Options: You can choose from 12 annuity options as per your financial planning.

    • Diverse Payout Modes: Annuity payout modes that align with your financial goals: Monthly/ Quarterly/ Half-yearly/ Yearly.

    • Critical Illness Protection: The Return of Purchase Price (ROP) option is available with the annuity plan to provide protection against critical illnesses.

    • Assured Income, Even in Absence: You can choose the Annuity Certain option to get assured income and high annuity rates for the pre-determined period, even in case of your unfortunate demise.

    • Family-Centric Facilities: A Joint Life or Family Income facility is also available with this annuity plan to provide regular income to your loved ones in your absence.

    • Increasing Annuity Income: The escalating Life Annuity option provides a constantly increasing annuity income.

    • Tax Efficiency: You can avail of the tax benefits with this annuity plan under Section 80C and Section 10 (10D) of the IT Act, 1961.

Details of Best Annuity Plans in India in 2024 (Single Pay)

  1. HDFC Life New Immediate Annuity Plan

    The HDFC Life New Immediate Annuity Plan is a single premium annuity plan that provides you with a guaranteed income for life.

    Features of HDFC Life New Immediate Annuity:

    • Lifelong Financial Security: Once you purchase this annuity plan, you will receive a guaranteed income for life at the best annuity rates.

    • Tailored Payout Frequencies: Depending on your preference, the following annuity modes are available- Monthly/ Quarterly/ Semi-annually/ Annually.

    • Versatile Annuity Options: This best annuity plan in India offers you flexible annuity options-

      • Single Life Annuity

      • Joint Life Annuity

    • Tax Advantages: The HDFC Life New Immediate Annuity Plan provides a number of tax benefits:

      • Premiums paid for this annuity plan are eligible for a deduction under Section 80C of the Income Tax Act, 1961.

      • The annuity income received under this best annuity plan in India is also eligible for a deduction under Section 10(10D) of the Income Tax Act, 1961.

    • Enhanced Returns with High Purchase Price: You can explore the advantage of higher annuity rates linked to a high Purchase Price, enhancing your overall returns.

    • The Return of Purchase Price (ROP) option is available with this annuity plan for detecting death and critical illness.

  2. TATA AIA Saral Pension Plan

    The TATA AIA Saral Pension Plan is a retirement plan that offers guaranteed lifetime income at the best fixed annuity rates.

    Features of TATA AIA Saral Pension Plan:

    • Diverse Annuity Options: This annuity plan is available in two options:

      • Single Life Annuity

      • Joint Life Annuity

    • No Medicals Required: There is no need for medical examinations to purchase this best annuity plan in India.

    • Income Variability: The amount of income you receive will depend on your age, purchase amount, and the annuity option you choose.

    • Tax Benefits under Section 80C: Tax deductions on total premiums paid for this annuity plan u/ Section 80C of the IT Act, 1961.

    • Tax-Efficient Returns: Tax benefits on the income received from best annuity rates u/ Section 10(10D) of the IT Act, 1961.

    • Flexible Payout Frequencies: You can choose to receive your annuity payments monthly, quarterly, semi-annually, or annually.

    • Nominee Protection: In the unfortunate event of your demise during the policy term, the nominee will receive the higher of the sum assured or the fund value under this annuity plan.

  3. Bajaj Allianz Immediate Annuity Plan

    The Bajaj Allianz Immediate Annuity Plan is a non-linked, non-participating, immediate annuity plan that provides regular income for life with the best annuity rates.

    Features of Bajaj Allianz Immediate Annuity:

    • Guaranteed Income at Optimal Fixed Rates: This annuity plan provides a guaranteed income for life with the best fixed annuity rates, regardless of how long you live.

    • Versatile Annuity Options: You can choose from a variety of annuity options under this plan, including:

      • Single life annuity

      • Joint life annuity

      • Period certain annuity

    • Section 80C and Section 10(10D) Advantages: This is the best annuity plan that offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

    • Flexible Payout Frequencies: Annuity modes available with this plan: Yearly/ Half-yearly/ Quarterly/ Monthly.

    • Return of Purchase Price (ROP) Option: This annuity plan allows you to receive your invested amount back as a Return of Purchase Price (ROP) on death or as a Survival benefit.

  4. ICICI Pru Guaranteed Pension Plan

    ICICI Pru Guaranteed Pension Plan is a retirement-oriented insurance product. It is designed to provide you with a regular income with high annuity rates during your retirement years.

    Features of ICICI Pru Guaranteed Pension Plan:

    • Lifelong Financial Security: This annuity plan offers a guaranteed annual income to ensure financial stability during retirement.

    • Flexible Payout Frequencies: Under this annuity plan, you can receive the income on a monthly, quarterly, half-yearly, or yearly basis, depending on your preference.

    • Comprehensive Annuity Options: Availability of 11 annuity options designed to suit your financial requirements

    • Tailored Annuity Choices: You can choose from a variety of annuity options to meet your specific needs-

      • Single life annuity

      • Joint life annuity

  5. Tax Benefits under ICICI Pru Guaranteed Pension Plan: 

    • Tax deduction benefits on premium payment under Section 80C of the IT Act, 1961.

    • Tax benefits on income received u/ Sec 10 (10D) of the IT Act, 1961.

  6. Safety Net with ROP Option: The Return of Purchase Price (ROP) option is available in the occurrence of unfortunate death, critical illness, or accidental permanent disability.

  7. Annuity Enhancement: You can increase your annuity income through a top-up option.

  8. Nominee Protection: On your unfortunate demise, your nominee will receive a death benefit depending on the purchase amount and the annuity option you choose.

  9. Kotak Life Immediate Annuity Plan

    Kotak Life Immediate Annuity Plan is a non-linked, non-participating immediate annuity plan that provides you with a regular stream of income for life along with high annuity rates.

    Features of Kotak Life Immediate Annuity Plan:

      • Varied Annuity Options: This best annuity plan in India offers you 6 annuity options to choose from this annuity plan, as per your financial needs.

      • Maximizing Returns: You can get higher annuity rates for higher premium payments.

      • Consistent Annuity Rates: Once decided, the annuity rates remain stable during your lifetime.

      • Diverse Annuity Options: This annuity plan provides you with the option of Single Life Annuity and Joint Life Annuity.

  10. 6 Annuity Options:

    • Lifetime Income

    • Lifetime Income with Cash-back

    • Lifetime Income with Term Guarantee

    • Last Survivor - Lifetime Income with 100% Annuity to Surviving Spouse

    • Last Survivor - Lifetime Income with 50% Annuity to Surviving Spouse

    • Last Survivor - Lifetime Income with 100% Annuity to the Surviving Spouse and Cash-back on the Death of Surviving Spouse

  11. Enhanced Annuity Rates: You can get higher annuity rates on payment of the higher premium amount.

  12. Financial Advantages under Section 80C: Tax benefits are available under Section 80C of the IT Act, 1961.

Types of Annuity Plans in India

Various insurance companies offer a range of best annuity plans in India, prominent of them are as follows:

Types of Annuity Plan Details
Based on Payout Initiation of Time
Immediate Annuity
  • This annuity plan starts providing regular income immediately after the purchase price is paid.
  • Suitable for individuals who want to begin receiving periodic income with the best annuity rates right away
Deferred Annuity
  • This annuity scheme has an accumulation phase where you make contributions over a specified period.
  • Payouts begin at a later date chosen by you, such as retirement age
  • These annuity plans allow for the accumulation of funds and potential growth before the income payments start
Based on Payout Duration
Lifetime Annuity
  • This annuity plan provides a regular income stream along with the best annuity rates for your entire lifetime. 
  • Payments continue as long as you are alive
  • These annuity plans ensure financial security throughout your lifetime
Annuity Certain
  • These annuity plans guarantee a fixed stream of income and high annuity rates for a specified period, regardless of your lifespan.
  • These plans provide a pre-determined number of payments, typically monthly, quarterly, or annually, for a chosen duration.
Based on Payout Types
Variable Annuity
  • You can choose to switch between different investment options based on the following:
  • Risk tolerance
  • Market conditions
  • Investment goals
  • Annuity payments from this annuity plan are linked to the performance of the underlying investment options chosen.
Fixed Period Annuity
  • Income payments in this annuity plan are made for a pre-determined duration.
  • If you pass away before the end of the chosen period, the payments may continue to the nominee or legal heirs.
Increasing Annuity
  • This annuity plan offers a rising income stream at high annuity rates over time.
  • The payouts gradually increase either at a fixed rate or in line with inflation.
  • This annuity plan provides protection against the impact of rising living costs.
Annuity with Return of Purchase Price
  • This annuity plan guarantees the return of the purchase price to the nominee or legal heirs upon your death.
  • It provides added financial protection by ensuring that the initial investment is not lost.
Based on People Benefiting
Single Life Annuity
  • This annuity plan provides you with a regular income stream along with high annuity rates during your retirement years
  • Single-life annuity plans in India offer different payout options, like:
  • Life Annuity
  • Life annuity with return of purchase price
Survivor/ Joint Life Annuity
  • This is one of the best annuity plans in India that covers two individuals, usually spouses or partners.
  • Income payments continue as long as either of the individuals is alive
  • These annuity plans ensure that the surviving spouse receives a regular income at the best annuity rates even after the demise of the primary annuitant

Eligibility Criteria To Buy Best Annuity Plans in IndiaEligibility Criteria To Buy Best Annuity Plans in India

Documents Required to Buy Annuity Plans in India

The essential documents required to buy annuity plans in India are listed in the table below:

Particulars Documents Required
Identity Proof (any one)
  • Valid Passport
  • Driving License
  • Aadhar Card
Address Proof (any one)
  • Utility Bills
  • Bank Statement
  • Rental Agreement
Age Proof (any one)
  • Valid Passport
  • 10th Board Mark sheet
  • Birth certificate

Working of Annuity Plans in India

Learn the working of annuity plans in India from the steps mentioned below:

Step 1: Selection of Annuity Plan

The first step is to choose the type of annuity plan that suits your needs. Consider factors such as the desired payout frequency, whether you want an immediate or deferred annuity, and any additional features you require.

Step 2: Pay the Premium 

Once you have chosen an annuity plan, you will need to pay a premium. The premium amount will depend on the type of annuity plan you choose, your age, and the amount of income you want to receive.

Step 3: Vesting Age

The vesting age is the age at which you want to start receiving income earned from the best annuity rates under the annuity plan.

Step 4: Annuity Payout Options 

Before reaching the vesting age, you will need to select the annuity payout options that determine the frequency and duration of your income payments. You can choose monthly, quarterly, half-yearly or annual payouts.

Step 5: Start receiving payments 

Once you reach the vesting age, the insurance company starts providing you with regular income payments as per the annuity payout options for the chosen duration.

Step 6: Additional Features

Some annuity plans offer additional features, such as a joint-life annuity or return of purchase price or waiver of premium option. Joint-life annuity ensures that the income continues to the spouse or nominee after the annuitant's death, while the Return on Purchase Price (ROP) guarantees that the remaining amount is given to the nominee or legal heirs if the annuitant passes away before using the total investment.Waiver of premium ensures that the policy continues in case of unfortunate demise of primary annuitant.

Advantages of Best Annuity Plans in India

Let us have a look at the advantages offered under the best annuity plans from the list mentioned below:

benefits of best annuity plans in indiabenefits of best annuity plans in india

  1. No Cap of Investment

    Best annuity plans do not have investment limits, unlike government schemes like the Senior Citizens Savings Scheme (SCSS) and Post Office Monthly Income Scheme (PO-MIS).

  2. Sense of Financial Security

    Annuity plans offer financial security by providing a guaranteed income stream along with the best annuity rates. The insurance company assumes the responsibility of managing the investment and longevity risk, ensuring that you receive the promised income for the specified period or throughout your lifetime.

  3. Guaranteed Income 

    An annuity plan in India provides you with a guaranteed income for life and high annuity rates. This can be a great way to ensure that you have a steady income to live on during retirement.

  4. Tax Benefits 

     Annuity Plans in India can offer a number of tax benefits, including tax-deferred growth and tax-free withdrawals. This can help you save taxes and increase your retirement savings.

  5. Flexibility 

    Many types of annuity plans are available, so you can choose one that fits your individual needs and circumstances. For example, you can choose an annuity that pays out a fixed amount of money each month or an annuity that pays out a variable amount of money based on the performance of the underlying investments.

  6. Retirement Income 

    Annuity plans provide a reliable and regular income during your retirement years. This ensures that you have a steady source of income to support your lifestyle and meet your financial obligations after you stop earning.

FAQ's

  • What is an annuity plan?

    Annuity plans are commonly used as retirement income solutions. They offer you the opportunity to convert your savings or investments into a reliable and consistent source of income during your retirement years.
  • What is an immediate annuity plan?

    An immediate annuity plan is a type of annuity plan where you make a lump sum payment to an insurance company and start receiving income immediately. 

    It is designed to provide you with an immediate and regular income stream at high annuity rates, typically after retirement. 

    You can choose to receive payments monthly, quarterly, semi-annually, or annually. You can also choose to receive a fixed or variable income stream.

  • How is a deferred annuity plan different from an immediate annuity plan?

    The main difference between the deferred and immediate annuity plan can be drawn on the basis of the time when you start receiving payment. In an immediate annuity plan, you start receiving a payout immediately after the investment. However, in a deferred annuity plan, the payout can be received after the deferment period ends.
  • How annuity is better than FD?

    Whether an annuity is better than a fixed deposit (FD) depends on your individual financial goals and risk tolerance. If you prioritize a guaranteed income stream and protection from market volatility, an annuity might be suitable. However, if you prefer higher potential returns and liquidity, a fixed deposit might be a better option.
  • How much will a Rs. 50000 annuity pay monthly?

    Several factors influence the monthly payment from an annuity, including Age, Annuity type, Payout period, Gender, and Health. You can use an Annuity Calculator to insert these details to get an estimated monthly payout.
  • What is the LIC annuity plan?

    LIC, or Life Insurance Corporation of India, offers several annuity plans designed to provide individuals with a regular income stream during their retirement years: 
    • Jeevan Akshay

    • Jeevan Shanti

    • New Jeevan Akshay VI

    • Jeevan Nidhi

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws.

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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

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