How Much is 1,00,000 Annuity Per Month?

₹1,00,000 Annuity Monthly Payout

From a broad estimate, for an investment of ₹1,00,000, your monthly annuity plan payout will likely be in the range of ₹400 to ₹800 per month, or even less, depending on several crucial factors. It's important to know the actual amount can only be determined by getting a personalized quote from an insurer.

Factors Determining Monthly Annuity Payout

The annuity amount you receive from a ₹1,00,000 investment is not fixed and depends heavily on the following:

1. Your Age:

   • Older Age, Higher Payout: This is arguably the most significant factor. Generally, the older you are when you purchase the annuity, the higher your monthly payout will be. This is because the insurance company expects to pay you for a shorter duration..

2. Type of Annuity Chosen:

   Your payout depends on the types of annuities you choose.

   • Immediate Annuity: Payouts start almost instantly. For a ₹1,00,000 investment, this will give you a direct monthly income.

   • Deferred Annuity: Your ₹1,00,000 investment will grow over an accumulation period before payouts begin in the deferred annuity plan. While the final corpus might be larger, the monthly payout at that future date will depend on the accumulated sum and prevailing rates then. 
   • Fixed Annuity: Offers predictable, guaranteed payouts. The monthly income will be fixed.
   • Variable Annuity: Payouts depend on market performance. While there's a potential for higher returns, your monthly income from ₹1,00,000 could fluctuate and even be lower if the market underperforms.

3. Annuity Payout Option:

   • Single Life Annuity: Provides income for your lifetime only. This usually gives the highest monthly payout for the individual.
   • Joint Life Annuity: Provides income for both you and your spouse (or another annuitant). Since the payouts are guaranteed for two lives, the monthly income will be lower than a single life option for the same investment.
   • Without Return of Purchase Price (ROP): The initial ₹1,00,000 is fully consumed over your lifetime. This typically offers higher monthly payouts.
   • With Return of Purchase Price (ROP): Upon the death of the annuitant (or last surviving annuitant in a joint life plan), the original ₹1,00,000 investment is returned to the nominee. This feature provides peace of mind for your heirs but results in lower monthly payouts.

4. Current Annuity Rates (Interest Rates):

   Annuity payouts are directly linked to the prevailing interest rates offered by insurance companies. As of mid-2025, annuity rates in India generally range from 5% to 7% per annum for immediate annuities, depending on the insurer and specific plan.

   • Applying a 5-7% annual rate to ₹1,00,000 gives an annual income of ₹5,000 - ₹7,000. Divided by 12 months, this translates to approximately ₹416 to ₹583 per month.

5. Gender

   Women typically have a longer life expectancy than men, which means for the same investment, their monthly annuity payouts might be slightly lower compared to men (for single life annuities).

6. Insurer and Plan Specifics

   Different insurance companies offer varying rates and plan features. It's crucial to compare quotes from multiple providers on platforms like Policybazaar to find the most competitive rates for your specific needs.

Example to Understand How Much is 1,00,000 Annuity Per Month?

Single Life Annuity Without Return of Purchase Price (ROP):

Let's consider a 60-year-old male investing ₹1,00,000 in a single-life immediate annuity without return of purchase price. Given current annuity rates (around 5.5% - 6.5% for this profile), he might receive approximately:

• ₹450 to ₹540 per month

Single Life Annuity With Return of Purchase Price (ROP):

For easy understanding, let's consider the same 60-year-old male from the previous example, but this time he chooses the Single Life Annuity with Return of Purchase Price option. In this case, the insurance company has the obligation to return the ₹1,00,000 to his nominee upon his death. Because of this added guarantee, the monthly payout will be lower. He would likely receive approximately: 

• ₹350 to ₹420 per month

The reduction in monthly income is the cost of ensuring that the initial investment is preserved for his heirs, demonstrating the trade-off between a higher income stream and a guaranteed return of capital.

How to Get an Accurate Estimate?

The best way to determine how much ₹1,00,000 (or any other amount) will provide you per month is to:

• Use Online Annuity Calculators: Policybazaar provides an annuity calculator where you can input your age, investment amount, desired annuity type, and payout options to get an instant estimate.
• Contact Insurance Companies: Directly reach out to various life insurance providers in India to get personalized quotes based on your exact profile and preferences.

Conclusion

While an investment of ₹1,00,000 in an annuity will provide a regular, guaranteed income, it's crucial to have realistic expectations about the monthly payout. For comfortable retirement planning, consider a more substantial investment in an annuity plan, or combine it with other retirement savings avenues. Always compare options thoroughly to ensure you choose a plan that best secures your financial future.

FAQ's