Best Annuity Plans to Invest for Retirement
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Updated date : 25 June 2019
Retirement does not only mean the end of the earning period but starting your golden time. The retirement phase is the time in which you can enjoy your life to the fullest as you probably do not have any liabilities. However, since there is no regular source of income, thus you should have a good amount of money or some alternative source of income so that you not only can maintain your lifestyle but can also fulfill your long lost dreams. At this time, annuity plans work as a boon.
What is an Annuity Plan?
An annuity plan is a plan that helps you to receive regular income for entire life after you make a lump sum investment. In such plans, the life insurance organization invests the investor’s money and pays back the generated returns from it.
Types of Annuity: The different types of annuities available are as follows:
- Deferred Annuity: The pension plans wherein the annuity starts after a specific date is known as a deferred annuity. The different phases of this plan are:
- Accumulation Phase: A phase wherein you start to invest and accumulate cash and commence as soon as you pay the premium for the first time.
- Vesting Phase: A date from which you start receiving the benefits of the policy as a pension.
- Immediate Annuity: These plans do not have any accumulation phase and the benefits of the plan start from the phase of vesting. This type of plan can be purchased by paying the lump sum amount and the payment of the annuity starts instantly either for a lifetime or for a limited period.
Best Annuity Plans
Some of the best annuity plans are listed below:
- SBI Life – Annuity Plus: This plan allows you to choose your options for the annuity. The key benefits of SBI pension plan are:
- You start getting regular income from the age of 40 years.
- A rider option, SBI Life – Accidental Death Rider, is provided.
- A lifetime annuity is paid to your family and you.
- The frequency of payouts can be chosen by you easily.
- The tax benefits can be availed as per the prevailing income tax laws of India.
- The following options are available – Income for a lifetime with Balance Capital Refund, Single Life annuity, provides income for a lifetime for five, ten, and fifteen years, lifetime income with a yearly increase of three to five percent.
- ICICI Pru Immediate Annuity Plan: For this plan, you need to make a payment for one-time or select from five pay-out options. There are four pay-out modes available i.e. yearly, half-yearly, quarterly, and monthly. The annuity payout options available in ICICI Prudential Immediate Annuity Plan are:
- Annuity for life with purchase price return.
- Annuity for life.
- Joint life last savior with the return of purchase price.
- Joint life last savior without the return of purchase of price.
- Guaranteed annuity for five, ten, and fifteen years.
- HDFC Life New Immediate Annuity Plan: The main features of this HDFC pension plan are:
- Option to choose from a wide variety of annuity options.
- Option to choose the annuity’s frequency.
- Provision of guaranteed income throughout your lifetime and lifetime of your spouse.
- Offers tax benefits.
- Death benefits are provided for some annuity options.
- BSLI immediate Annuity Plan: The key benefits of BSLI immediate Annuity Plan are:
- Regular income is provided to you after your retirement.
- For availing this policy, you need not undergo any kind of medical test.
- The frequency of payout can easily be selected by you.
- The tax benefits as per Section 80CCC of the income tax act can be availed in this plan.
- Reliance Immediate Annuity Plan: A single premium payment plan with the following benefits:
- Provides option to leave some fund for your dependents.
- You can convert your earnings into regular income.
- Get tax benefits as per the laws of the income tax.
- You get regular income for your whole life.
- LIC Jeevan Akshay VI Plan: An immediate LIC annuity plan that is available with a single premium payment option. Some of the key benefits of LIC pension plan are:
- The annuity starts soon after paying the premium from your selected date.
- You can choose this plan for self and for your spouse as well.
- To avail the benefits of this plan, you do not have to undergo any medical checkup.
- The annuity options provided under this LIC annuity plan are:
- Lifetime annuity option with the return of purchase price.
- A life annuity is provided at a uniform rate.
- The life annuity is provided for five, ten, fifteen, and twenty years and then it is payable for a lifetime.
- The life annuity increases at a simple rate of 3 percent per annum.
- Annuity for a lifetime is provided with the option of 50% annuity to the spouse when the annuitant dies.
- Annuity for a lifetime is provided with the option of 100% annuity to the spouse when the annuitant dies.
- Annuity for a lifetime is provided with the option of 100% annuity to the spouse when the annuitant dies and return of purchase price after the last survivor dies.
The retirement is the most precious phase of everyone’s life so preparing well for it is the responsibility of every working individual. In old age when your body does not have much energy or zeal to work, having sufficient money to maintain your lifestyle as well as bear your healthcare expenses is a must. So, in order to maintain the same, it is essential to have an annuity plan. An annuity plan gives you income for your retirement age. You can select from LIC annuity plans to annuity plans provided by other life insurance providers as per your requirements.
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