There are many ways to invest your money. One of the best options is putting your money into an annuity life insurance plan. While you won't see a high rate of return, the annuity ensures you will always have a steady income with guaranteed security for life.
Annuities are a type of insurance policy that pays you a fixed sum of money for a set number of years or the rest of your life. The main purpose of an annuity is to protect you from outliving your income by guaranteeing regular payments to you throughout your retirement. Unlike other types of life insurance policies, an annuity protects against living too long and running out of money during retirement.
In this article, we will talk about the different types of annuity life insurance policies and their pros and cons. And also we will talk about the best annuity life insurance plans, how to choose the best annuity life insurance policy within your budget.
What is an annuity Life Insurance policy?
An annuity life insurance policy is a contract between the life insurance company and the insured person whereby the company agrees to pay a fixed sum of money periodically to the insured person. The annuity life insurance policy is a type of investment that guarantees an income for life. It is also called a ‘lifetime annuity. The policyholder will receive a fixed amount of money from the insurer at regular intervals for as long as they live.
Different Types of Annuity Plans
An annuity is a financial instrument that pays out a fixed sum of money at regular intervals, such as monthly or annual payments. There are many different types of annuities and they can be classified into two categories: deferred annuities and immediate annuities.
Deferred Annuity
A deferred annuity is a type of annuity contract, which provides for periodic payments to be made in the future. A deferred annuity may provide for payments to be made at specified intervals (monthly, quarterly, semiannually, or annually) or at the end of a specified period (10 years). The amount of each payment and the date on which it will be paid are both determined by the individual’s age and life expectancy.
The advantage of a Deferred Annuity plan is that it allows you to defer taxes until you start withdrawing money from your account. This can help you save more money as you don't need to pay taxes on interest earned while your money is invested in your Deferred Annuity plan account.
Benefits of Annuity Life Insurance Plans
Annuity life insurance is a type of life insurance that pays a fixed amount each month for the person’s lifetime. This type of life insurance provides an income during retirement and also offers protection for your loved ones in case of your death.
The main benefit of annuity life insurance is that it provides a guaranteed income for the person who buys it. The monthly payments are guaranteed to continue until the person dies or reaches the end of their contract period.
Annuity life insurance plans are often bought by people who have an immediate need for money, such as retirees, who want to make sure they will have enough money to live on in retirement. Below are some of the main benefits of Annuity life insurance plans
- Flexibility in Payout Options: You can choose payout options from an array of annuity options depending on what suits your requirements the most.
- Financial Security: You can get financial protection in the form of guaranteed income from the annuity life insurance policies.
- Safe Investment Option: Annuity plans are a safe investment tool that lets you save for the future. This is especially true for investment interests.
Top 10 Best Annuity Life Insurance Plans in India
IndiaFirst Life Immediate Annuity Plan
Immediate Annuity Plan provides financial protection and is designed to help you maintain your choice of lifestyle post-retirement.
Features and Eligibility:
- Life Cover: Get life cover in case of the unfortunate death of an insured
- Age: You can choose your retirement age as per your need between 40 and 80 years
- Entry Age: Minimum: 18 Years, Maximum: 80 years
- Premium Payment Mode: yearly, quarterly, half-yearly, monthly
- Premium: Minimum: Rs.3 lakh, Maximum: No limit
- Policy Term: 40 to 80 years
Exide Life New Immediate Annuity
Exide Life New Immediate Annuity is an immediate annuity plan with an option for a return on the purchase price. It provides lifelong annuity pay-outs guaranteed for life, flexible options to receive an annuity, death benefit, etc.
Features and Eligibility:
- Entry Age: Minimum: 0 Years, Maximum: 100 years
- Maturity Age: NA
- Premium Payment Mode: yearly, quarterly, half-yearly, monthly
- Premium Paying Term: Single (One Time)
Edelweiss Tokio Life Forever Pension
Forever Pension plan offers guaranteed immediate and Deferred Annuity, Return of the purchase price for single life and joint life, and any critical illness, permanent disability, higher annuity for the higher purchase price, etc.
Features and Eligibility:
- Entry Age: Minimum: 35 Years, Maximum: 85 years
- Maturity Age: 100 years
- Premium Payment Mode: yearly, quarterly, half-yearly, monthly
- Premium Paying Term: Single Pay
Ageas Guaranteed Lifetime Income Plan
Ageas Federal Life Insurance Guaranteed Life Income Plan helps you devise a personal annuity plan towards leading a comfortable retired life. The plan offers the option of both immediate and deferred annuity.
Features& Eligibility:
- Life annuity with 100% return of purchase price
- Guaranteed annuity payout
- Survival and death benefit.
- Entry Age: 45 years
- Maturity Age: 85 years
- Sum Assured: Rs. 1,50, 000
- Premium Payment Period: single.
PNB MetLife Immediate Annuity Plan
PNB MetLife Immediate Annuity Plan is an Individual, Non-Linked, Non-Participating, Immediate Annuity plan that provides financial security through regular income.
Features & Eligibility:
- Vesting Benefits
- Create your annuity plan
- Cover your spouse through our Joint Life annuity options
- Entry Age: 30 years to 75 years
- Sum assured: Rs. 5 Lakhs
- Premium Payment Period: Yearly, half-yearly, quarterly, and monthly.
Reliance Nippon Life Immediate Annuity Plan
Reliance Nippon Life Immediate Annuity Plan is a Non-linked and Non- participating, annuity plan. This plan helps you to earn a regular income for your entire life. In this plan get regular income for your entire life.
Features & Eligibility:
- Entry Age: Minimum 20 years to Maximum 80 years
- Maturity Age: Minimum 22 years to Maximum 70 years
- Policy Term: 5,10,15 years
- Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly
- Purchase price: Rs. 1,00,000/- to No limit
- Annuity Instalment: Rs. 1000/- to No limit
SUD Life Immediate Annuity Plus
It is a non-linked, non-participating individual immediate annuity plan, which assures a regular flow of income as per the chosen plan option
Features & Eligibility:
- Lifelong income assures the regular flow of income
- Multiple modes of annuity payment receive yearly, half-yearly, quarterly, or monthly.
- Single premium payment mode
- Entry Age: Minimum 45 years to Maximum 99 years
- Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly
- Purchase price: Rs. 10 Lacs to 25 Lacs
Shriram Life Immediate Annuity
Shriram Life Immediate Annuity plan is to provide a lifetime income after retirement with regular periods.
Features & Eligibility:
- Entry Age: 0 years
- Maturity Age: 85 years
- Premium Payment: yearly, monthly
- Premium: Rs. 25,000
- Policy Term: 10/15/20 years
- Sum Assured: Rs. 3 lakhs
ASBL Guaranteed Annuity Plus
Aditya Birla Sun Life Insurance Guaranteed Annuity Plus plan provides guaranteed income for retirement life.
Features & Eligibility:
- Entry Age: 45 years to 75 years
- Premium Payment: Yearly, half-yearly, quarterly, monthly
- Sum Assured: Rs. 1,50,000 to No limit
- Premium Payment Term: Single Pay
Aviva Annuity Plan
A retirement plan designed to provide you with lifetime income during your post-retirement years. Specific financial needs with annuity options, the guaranteed amount payable in the policy, and flexibility to purchase prices at higher annuity values.
Features & Eligibility:
- Entry age: 50 years
- Maximum age: 80 years
- Sum assured: Rs. 1 crore
- Annual premium: Rs. 5 lacs
- Premium Payment: Yearly, half-yearly, quarterly, monthly
How to Choose Right Annuity Life Insurance Plans?
Annuity life insurance plans are a type of life insurance that pays out a set amount of money over some time. The amount of money that is paid out is usually determined by the premiums you pay and the age at which you choose to start receiving payments.
There are many factors to consider when choosing the best annuity life insurance plan for your needs. The following guide will help you navigate this process:
- Determine how much coverage you need
- Consider your lifestyle and health
- Compare different companies rates
- Research on the multiple features
- Select the right type of annuity plan
Documents Required to Buy Annuity Life Insurance Policy
| Age Proof |
Birth Certificate, Passport, Driving License |
| Address Proof |
Aadhar Card, PAN Card, Voter ID, Passport, Driving License |
| Identity Proof |
Aadhar Card, PAN Card, Voter ID, Passport, Driving License, Power Bill, Ration Card |
| Income Proof |
Bank Statement, Salary Payslips |
Conclusion
Annuity life insurance is the most cost-effective way to purchase a life insurance policy. It is also a way to protect your family from the financial burden of your death. It's not always the best option for everyone, but if you want a permanent and tax-deferred investment vehicle, this might be an option worth considering. Compare life insurance quotes online and buy the best annuity life insurance policy.