Best Annuity Plans in India for NRIs 2024

What are Annuity Plans in India?

An annuity plan is an agreement between you and an Indian insurance company. You can invest a lump sum or make regular payments, and in return, the company provides you with a regular stream of 100% guaranteed pension for a lifetime after retirement. This provides much-needed financial security after retirement in India.

These plans are designed to provide financial security and stability during retirement or other stages of life when a regular income is required. Moreover, they serve as an effective tool for individuals to create a reliable income source, ensuring a comfortable and financially stable future.

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

• Regular premium payments

• Lump sum payment

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

Features and Benefits of the Annuity Plans in India

The features and benefits of Annuity Plans in India for NRIs are: 

• Guaranteed Income: Annuity plans offer a guaranteed income either for a specified period or for the lifetime of the annuitant, ensuring financial stability post-retirement.

• Flexibility in Purchase Price: NRIs can invest in annuity plans through lump sum amounts or regular contributions over time, providing flexibility in investment options.

• Tax Benefits: Annuity plans offer tax benefits under Section 10(10D) and 80C of the Income Tax Act, making them tax-efficient investment options for NRIs.

• Maintaining Lifestyle: Annuity plans help in meeting financial requirements and maintaining a consistent lifestyle throughout retirement or other life stages.

• Payout Flexibility: NRIs can select payout options based on their financial goals and preferences, ensuring their needs are met effectively.

• Market Fluctuation Protection: Certain annuity plans, such as fixed annuities, offer protection against market fluctuations, providing stability in returns.

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

• Administrative Ease: Annuity plans are easily managed as the insurance company handles administrative tasks and regular income payments, reducing hassle for NRIs.

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

• Potential for Higher Returns: Some annuity plans, such as variable annuities, provide the potential for higher returns by investing in market-linked instruments.

• Additional Benefits: Certain annuity plans also provide additional benefits, such as loyalty boosters, enhancing the overall value for NRIs.

Best Annuity Plans in India 2024

Below is the list of different categories of best annuity plans for NRIs 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 predetermined intervals.

   List of Best Regular Pay Annuity Plans:

   The list of best annuity plans in India with regular pay features 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 starts generating a regular income stream immediately for a specified period.

   List of Best Single Pay Immediate Annuity Plans:

   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
   ICICI Pru Guaranteed Pension Plan	30 - 65 years	As per the Annuity Amount	Rs. 12,000 - As per Board Approved Underwriting
   HDFC Life New Immediate Annuity Plan	20 - 85 years	Rs. 2.5 lakhs - No Limit	Rs. 10,000 - No Limit
   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, accumulating and growing over a specified period until it is converted into a regular income stream.

   Below is the list of the best-deferred annuity plans with the Single Pay feature:

   Investment Plans	Entry Age	Deferment Period	Purchase Price (Annual)	Annual Annuity Amount For Lifetime (in Rs.)
   TATA AIA Pension for Life	30 - 85 years	1 - 10 years	As per the Annuity Amount	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
   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
   HDFC Life Pension for Life	30 - 85 years	1 - 10 years	Rs. 76,046 - No Limit	Rs. 12,000 - No Limit
   Bajaj Allianz Pension for Life	45 - 84 years	1 - 10 years	As per Board approved Underwriting	Rs. 12,000 - As per Board Approved Underwriting
   IndiaFirst Pension for Life	45 - 80 years	5 - 10 years	Rs. 1 lakh - No Limit	Rs. 12,500 -As per Board Approved Underwriting

Details of Best Annuity Plans in India in 2024 

Below are the top annuity plans in India for 2024, offering stable income, tax benefits, and flexible options for NRIs residing in the USA: 

Details of Regular Pay Annuity Plans for NRIs 

1. ICICI Pru Guaranteed Pension Plan Flexi:

   • Non-linked, non-participating deferred annuity plan.

   • Assured income with best annuity rates.

   • Features Return of Purchase Price (ROP) and Waiver of Premium (WOP) options.

   • Diverse annuity options, flexible premium payment, and varied payout frequencies.

   • Tax benefits under Sections 80C and 10(10D) of the IT Act.

2. Max Life Guaranteed Lifetime Income Plan:

   • Non-linked, non-participating annuity savings plan.

   • Provides higher assured income and best annuity rates.

   • Early start advantage from age 30.

   • Flexible annuity options, nominee benefits, and tax efficiency.

3. Bajaj Allianz Guaranteed Pension Goal:

   • Non-linked, non-participating, deferred annuity plan.

   • Guarantees income during post-retirement.

   • Flexible payout modes, joint life annuity, and ROP option.

   • Tax benefits on premiums paid and tax-free income.

4. HDFC Life Systematic Retirement Plan:

   • Individual/group, non-linked, non-participating deferred annuity plan.

   • Provides regular income, higher annuity rates, and financial independence.

   • Tailored deferment period, diverse payout modes, and nominee protection.

   • Tax efficiency under Sections 80C and 10(10D) of the IT Act.

5. IndiaFirst Life Guaranteed Annuity Plan:

   • Non-linked, non-participating annuity plan.

   • Assured regular income with best annuity rates.

   • Tailored annuity options, diverse payout modes, and tax efficiency.

Details of Single Pay Annuity Plans:

1. HDFC Life New Immediate Annuity Plan:

   • Single premium annuity plan with guaranteed income for life.

   • Tailored payout frequencies, versatile annuity options, and tax advantages.

   • Enhanced returns with ROP option and safety net benefits.

2. TATA AIA Saral Pension Plan:

   • Retirement plan with guaranteed lifetime income.

   • Diverse annuity options, no medicals required, and tax benefits.

   • Flexible payout frequencies and nominee protection.

3. Bajaj Allianz Immediate Annuity Plan:

   • Immediate annuity plan with guaranteed income for life.

   • Versatile annuity options, tax advantages, and flexible payout frequencies.

   • ROP option for added safety net and financial security.

4. ICICI Pru Guaranteed Pension Plan:

   • Retirement-oriented insurance product with regular income.

   • Flexible payout frequencies, comprehensive annuity options, and tax benefits.

   • Safety net with ROP option and nominee protection.

5. Kotak Life Immediate Annuity Plan:

   • Immediate annuity plan with regular income for life.

   • Varied annuity options, consistent annuity rates, and enhanced rates for higher premiums.

   • Financial advantages under Section 80C.

Basic Concept of Annuity Plan in India

What are the Different Types of Best Annuity Plans?

Here is a list of the best annuity plans for NRIs living in the USA: 

How Do Annuity Plans Work In India? 

• Annuity plans in India offer financial security during retirement for NRIs living in the USA.

• Choose an annuity plan based on income needs, payout frequency, and duration of payments.

• Payments can be made as a lump sum or through regular premiums.

• In deferred annuity plans, contributions grow during the accumulation phase.

• Annuity payout phase starts after accumulation, providing regular income payments.

• Payout options include fixed amounts, lifetime income, or a combination.

• Optional riders like death benefits or long-term care can enhance protection.