Best Annuity Plans in India for NRIs 2024

Best Annuity Plans^†† 2024-25

Below is the list of best annuity plans to invest in 2024-25.

Disclaimer: †† Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Annuity Plans in India for NRIs

Annuity plans for NRIs are financial products offering a guaranteed stream of income for a specified period or lifelong in exchange for a lump sum payment. The invested amount generates returns, providing financial security during retirement or other life stages requiring regular income. These plans serve as a reliable tool for NRIs to ensure a comfortable and stable future for their families in India. Invest in the best annuity plans to secure your spouse, children, and family's financial well-being.

Let’s understand this with the help of an example:

Ram invested: Rs. 10,00,000 rupees for 10 years at 8% interest

Total returns: Rs. 1.56 Cr.

Shyam invested: Rs. 10,00,000 for 8 years at 6% interest.

Total Returns: Rs. 1.4Cr.

Ram's timely investment and interest rate resulted in a higher return of Rs. 16L compared to Shyam.

Basic Concept of Annuity Plan in India

What is the Eligibility Criteria to Buy Best Annuity Plans in India?

Some of the standard eligibility criteria that individuals are usually required to meet are as follows:

• Age Requirement: 30 years – Lifetime

• Citizenship: Indian Resident Citizens/ NRIs/ PIOs

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

What are the Features of the Annuity Plans in India for NRIs?

Annuity plans for NRIs are designed in a way that gives you a comfortable life after your retirement. Here is a list of the best annuity plans in India 2024:

1. Guaranteed Income:

   Annuity plans provide a guaranteed income either for a specified period or for the lifetime of the annuitant.

2. Flexibility in Purchase Price:

   The plans offer flexibility in the purchase price, allowing investment through a lump sum amount or regular contributions over time.

3. Pension Payout Options:

   Choose from various pension payout options, including monthly, quarterly, half-yearly, or yearly payments.

4. Tax Benefits:

   Annuity plans come with tax benefits under Section 10(10D) and 80C of the Income Tax Act, making them tax-efficient investment options.

What are the Different Types of Best Annuity Plans?

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 NRIs make regular premium payments over a period in exchange for a guaranteed income stream at decided intervals.
   Here is the List of Best Regular Pay Annuity Plans for NRIs, 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

   Investment Plans	Entry Age	Premium Payment Term (PPT)	Deferment Period	Purchase Price (Annual)	Annual Annuity Amount For Lifetime (in Rs.)
   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
   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
   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
   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

2. Single Pay Immediate Annuity Plan

   In this annuity plan, NRIs can make a single lump-sum payment upfront, which immediately starts generating a regular income stream for a specified period.
   Here is a list of Best Single Pay Immediate Annuity Plans for NRIs 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

   Investment Plans	Entry Age	Purchase Price (Annual)	Annual Annuity Amount For Lifetime (in Rs.)
   HDFC Life New Immediate Annuity Plan	20 - 85 years	Rs. 2.5 lakhs - No Limit	Rs. 10,000 - No Limit
   Tata AIA Saral Pension	40 - 80 years	As per the Annuity Amount	Rs. 12,000 - No Limit
   Bajaj Immediate Annuity	30 - 85 years	As per Board approved Underwriting	Rs. 12,000 - No Limit
   ICICI Pru Guaranteed Pension Plan	30 - 65 years	As per the Annuity Amount	Rs. 12,000 - As per Board Approved Underwriting
   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, NRIs can make a single lump-sum payment upfront, which accumulates and grows over a specified period until it is converted into a regular income stream.
   Here is a list of Best Single Pay Deferred Annuity Plans for NRIs. 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

   Investment Plans	Entry Age	Deferment Period	Purchase Price (Annual)	Annual Annuity Amount For Lifetime (in Rs.)
   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

Features of Top Annuity Plans

1. ICICI Pru Guaranteed Pension Plan Flexi

   • Assured Income with WOP Option

     • Non-linked, non-participating deferred annuity plan

     • Return of Purchase Price (ROP) and Waiver of Premium (WOP) features

   • Diverse Annuity Options

     • Single Life, Joint Life annuity options

     • Flexible premium payment term and vesting age

   • Exclusive Benefits

     • "Save the Date" option

     • Top-Up option for additional funds

     • Tax benefits under Sections 80C and 10(10D)

2. Max Life Guaranteed Lifetime Income Plan

   • Higher Assured Income

     • Non-linked, non-participating annuity savings plan

     • Annuity options for Single and Joint Life

   • Unique Features

     • Early Start Advantage from age 30

     • Nominee benefits of 105% of the Purchase Price

   • Tax Efficiency

     • Deductions under Section 80C and 10(10D)

     • Additional deduction for age 60 and above under Section 80D

3. Bajaj Allianz Guaranteed Pension Goal

   • Lifestyle Goal Achievement

     • Non-participating, non-linked deferred annuity plan

     • Guaranteed income with flexible payout modes

   • Comprehensive Options

     • Joint Life Annuity and Return of Purchase Price (ROP) option

     • Tax benefits on premiums u/ Section 80C and tax-free income u/ Section 10(10D)

4. HDFC Life Systematic Retirement Plan

   • Financial Independence

     • Non-participating, non-linked deferred annuity plan

     • Tailored deferment period and diverse payout modes

   • Security and Nominee Protection

     • Guaranteed fixed income for a lifetime

     • Nominee protection with Return of Total Purchase Price

   • Tax Efficiency

     • Deductions u/ Section 80C and 10(10D)

     • Additional deduction for age 60 and above under Section 80D

5. IndiaFirst Life Guaranteed Annuity Plan

   • Assured Lifetime Income

     • Non-linked, non-participating annuity plan

     • Various annuity options and payout modes

   • Family-Centric Facilities

     • Joint Life or Family Income facility

     • Increasing annuity income with escalating option

   • Tax Efficiency

     • Tax benefits under Sections 80C and 10(10D)

6. HDFC Life New Immediate Annuity Plan

   • Guaranteed Lifetime Income

     • Single premium annuity plan

     • Tailored payout frequencies and versatile annuity options

   • Tax Advantages

     • Premium deductions under Section 80C

     • Annuity income deductions under Section 10(10D)

7. TATA AIA Saral Pension Plan

   • Lifetime Income Guarantee

     • Retirement plan with guaranteed income

     • Diverse annuity options, no medicals required

   • Tax Benefits and Nominee Protection

     • Tax deductions on premiums u/ Section 80C

     • Tax benefits on annuity income u/ Section 10(10D)

8. Bajaj Allianz Immediate Annuity Plan

   • Regular Income for Life

     • Immediate annuity plan with guaranteed income

     • Versatile annuity options and tax advantages

   • ROP Option and Payout Frequencies

     • Return of Purchase Price (ROP) option

     • Flexible payout modes – Yearly, Half-yearly, Quarterly, Monthly

9. ICICI Pru Guaranteed Pension Plan

   • Regular Income for Retirement

     • Retirement-oriented insurance product

     • Tailored annuity options and comprehensive features

   • Tax Benefits and Safety Net

     • Premium deductions u/ Section 80C

     • Tax benefits on income u/ Section 10(10D)

     • Return of Purchase Price (ROP) option for protection

What are the Documents Required by NRI to Buy Annuity Plans in India

Here are some essential documents that NRIs need to buy annuity plans in India:

What are the Benefits of Best Annuity Plans in India for Non-Resident Indians (NRIs)?

Following are the benefits of the best annuity plans in India for NRIs:

• Steady Income Source: Annuity plans offer NRIs a reliable and steady income stream.

• Financial Stability: Helps in meeting financial requirements and maintaining a consistent lifestyle during retirement or other life stages.

• Payout Flexibility: NRIs can choose from various payout options based on their preferences and financial goals.

• Market Protection: Certain annuity plans, like fixed annuities, provide protection against market fluctuations.

• Optional Riders: Best annuity plans may include optional riders or benefits that can be added for a small additional cost.

• Administrative Ease: Insurance companies handle administrative tasks and ensure regular income payments.

• Portfolio Diversification: Investing in annuity plans allows NRIs to diversify their retirement portfolio, reducing reliance on other investments or assets.

• Potential for Higher Returns: Variable annuities offer the potential for higher returns by investing in market-linked instruments.

• Additional Benefits: Some annuity plans provide loyalty boosters and other supplementary benefits.

How Do Annuity Plans Work In India?

Nowadays, numerous life insurance companies in India offer annuity plans to ensure that you are financially independent during your retirement. Therefore, it is important to understand how annuity plans work in India in 2024.

• Choosing an Annuity Plan: It is important to select the annuity plan that aligns with your financial goals and needs, considering factors such as the desired income amount, payout frequency, duration of payments, and any additional features or riders.

• Premium Payment: To initiate an annuity plan, you can either make a lump-sum payment or opt for regular premium payments based on your chosen plan.

• Accumulation Phase: If you opt for a deferred annuity plan, there is typically a phase where the contributions made by the annuitant are invested to grow and accumulate over time.

• Annuity Payout Phase: Once the accumulation phase concludes or in the case of immediate annuity plans, the annuity payout phase begins. During this phase, you start receiving regular income payments from the annuity plan. The payment frequency can be monthly, quarterly, semi-annually, or annually, depending on your chosen plan.

• Payout Options: You have various payout options available, including a fixed amount for a specific period (annuity certain), a lifetime income stream (lifetime annuity), or a combination of both.

• Additional Riders: Certain annuity plans offer optional riders or benefits that can be added at an extra cost to provide enhanced protection and financial security. These riders may include features like guaranteed minimum income benefits, death benefits, or long-term care benefits.

Things to Consider Before Investing in Best Annuity Plans

1. Determine your Financial Objectives:

   Before you decide to invest in an annuity plan, it is important to clearly define your financial goals. These may include:

   • Securing income for retirement

   • Ensuring long-term financial stability

   • Meeting specific income requirements

2. Explore Different Annuity Options:

   Take the time to research and understand the various annuity plans available in the market. Compare their features, payout options, fees, and terms.

3. Assess the Insurance Company:

   When considering annuity plans in India, it is advisable to choose reputable insurance companies. Consider the following factors:

   • Financial stability of the company

   • Track record and reputation

   • Quality of customer service

   • Claim settlement ratio

4. Evaluate the Investment Choices:

   Gain a comprehensive understanding of the risks associated with each investment option. Consider diversification and select investments based on your risk tolerance, investment goals, and prevailing market conditions.

5. Understand the Tax Implications:

   Make sure you familiarise yourself with the tax laws applicable to annuity plans in India and your country of residence.

6. Stay Informed and Updated:

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