Best Annuity Plans to Invest for Retirement

Best Annuity Plans to Invest for Retirement in 2024

1. Regular Pay^†† Annuity Plan

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

   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

2. Single Pay Immediate Annuity Plan^††

   Investment Plans	Entry Age	Purchase Price (Annual)	Annual Annuity Amount For Lifetime (in Rs.)
   Bajaj Immediate Annuity	30 - 85 years	As per Board approved Underwriting	Rs. 12,000 - No Limit
   HDFC Life New Immediate Annuity Plan	20 - 85 years	Rs. 2.5 lakhs - No Limit	Rs. 10,000 - No Limit
   ICICI Pru Guaranteed Pension Plan	30 - 65 years	As per the Annuity Amount	Rs. 12,000 - As per Board Approved Underwriting
   IndiaFirst Immediate Annuity Plan	40 - 80 years	Rs. 3 lakhs - No Limit	Rs. 12,500 - As per Board Approved Underwriting
   Kotak Life Immediate Annuity	45 - 99 years	As per Board approved Underwriting	Rs. 12,000 - No Limit
   Tata AIA Saral Pension	40 - 80 years	As per the Annuity Amount	Rs. 12,000 - No Limit

   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

3. Single-Pay Deferred Annuity Plan^††

   Investment Plans	Entry Age	Deferment Period	Purchase Price (Annual)	Annual Annuity Amount For Lifetime (in Rs.)
   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
   ICICI Pru Pension for Life	30 - 85 years	1 - 10 years	As per the Annuity Amount	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
   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
   TATA AIA Pension for Life	30 - 85 years	1 - 10 years	As per the Annuity Amount	Rs. 12,000 - As per Board Approved Underwriting

   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

What is an Annuity Plan?

An annuity plan is a financial product offered by insurance companies that provides a regular stream of income to the annuitant (the person who buys the annuity) during their retirement years. The annuitant makes either a lump-sum payment or regular payment to the insurance company, and in return, they receive periodic payments either immediately or at a specified future date. Annuity plans are designed to ensure financial stability and income continuity for individuals after they retire.

Types of Annuity Plans

Below are the different types of annuity plans available for the investment:

• Deferred Annuity:

  • Annuity starts after a specific date.

  • Phases: Accumulation (investing and accumulating cash) and Vesting (receiving pension benefits).

• Immediate Annuity:

  • No accumulation phase; benefits start from the vesting phase.

  • Purchased with lump sum; annuity payments start instantly for lifetime or limited period.

• Variable Annuity:

  • Pay-outs vary; investments in market-linked securities.

  • Returns depend on market performance; suitable for high-risk appetite individuals.

• Fixed Annuity:

  • Annuity payouts remain constant throughout the tenure.

  • Similar to a fixed monthly pension; offers guaranteed and regular income.

• Life Annuity:

  • Provides income for the lifetime of the annuitant.

  • No specific end date for payments; offers long-term financial security.

• Joint Life Annuity:

  • Provides income for two individuals, typically spouses.

  • Payments continue until the last surviving annuitant's death.

  • Ensures financial support for both individuals during their lifetimes.

• Index Annuity:

  • It is a hybrid between a fixed annuity and variable annuity. 

  • Linked to a specific financial index, like the S&P 500.

  • Offers potential for higher returns based on index performance.

  • Provides a level of protection against market downturns with guaranteed minimum interest rates.

  • Suitable for individuals seeking market-linked growth with some level of security.

• Lump-sum annuity: This plan allows receiving a lump-sum payout after a specified period against a lump-sum investment. However, it may come with conditions set by the insurance company and may not provide the complete retirement benefit.

• Life annuity with return of purchase price: Guarantees annuity payouts for life, with the initial purchase amount returned to the nominee upon the annuitant's death.

• Annuity payable for a pre-decided term: Provides payouts for a set period, such as 5 or 10 years, even if the annuitant passes away. Payments stop at the end of the agreed term.

Best Annuity Plans to Invest in India

Let’s take a look at the best annuity plans to invest in India.

Details of Annuity Plans in India for Single Payouts in 2024:

1. HDFC Life New Immediate Annuity Plan

   • Guaranteed income for life with high annuity rates.

   • Flexible payout frequencies (monthly/quarterly/semi-annual/annual).

   • Single or joint life annuity options.

   • Tax benefits on premiums under Section 80C and income under Section 10(10D) of the IT Act.

   • Higher annuity rates with a high purchase price.

   • Return of Purchase Price (ROP) option for death or critical illness.

2. TATA AIA Saral Pension Plan

   • Guaranteed lifetime income with high fixed annuity rates.

   • Single or joint life annuity options.

   • No medical exam required.

   • Income based on age, purchase amount, and annuity option.

   • Tax deductions on premiums under Section 80C and tax-efficient returns under Section 10(10D) of the IT Act.

   • Flexible payout frequencies (monthly/quarterly/semi-annual/annual).

   • Nominee receives higher sum assured or fund value in case of death.

3. Bajaj Allianz Immediate Annuity Plan

   • Guaranteed income for life with high fixed rates.

   • Various annuity options (single/joint life, period certain).

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

   • Flexible payout frequencies (monthly/quarterly/semi-annual/annual).

   • Return of Purchase Price (ROP) option for death or as a survival benefit.

4. ICICI Pru Guaranteed Pension Plan

   • Guaranteed annual income for financial stability.

   • Flexible payout frequencies (monthly/quarterly/semi-annual/annual). 

   • Comprehensive annuity options (11 options) to suit your needs (single/joint life). 

   • Tax benefits on premiums under Section 80C and income under Section 10(10D) of the IT Act. 

   • Return of Purchase Price (ROP) option for death, critical illness, or disability. 

   • Annuity enhancement through top-up option. 

   • Nominees receive a death benefit based on purchase amount and chosen annuity option.

5. Kotak Life Immediate Annuity Plan

   • Regular income stream for life with high annuity rates.

   • Choose from 6 annuity options for your needs.

   • Higher annuity rates for larger premium payments.

   • Consistent annuity rates throughout your lifetime.

   • Single or joint life annuity options.

   • Tax benefits under Section 80C of the IT Act.

Details of Annuity Plans in India for Regular Payouts in 2024:

1. ICICI Pru Guaranteed Pension Plan Flexi

   • Offers guaranteed income and high annuity rates.

   • Waiver of Premium (WOP) option for joint life annuitant.

   • Return of Purchase Price (ROP) option.

   • Flexible annuity options (single/joint life), premium payment terms, vesting age, and payout frequencies.

   • Exclusive WOP rider ensures income for the surviving annuitant.

   • "Save the Date" option to choose the payout start date.

   • Top-up option for additional income on retirement.

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

2. Max Life Guaranteed Lifetime Income Plan

   • Offers high assured income and annuity rates from age 30.

   • Deferred annuity with death benefit option.

   • Flexible annuity options (single/joint life) and payout choices.

   • Nominee benefit of 105% of the purchase price.

   • Tax deductions under Section 80C and additional deductions for senior citizens under Section 80D of the IT Act.

   • Tax-free income under Section 10(10D).

3. Bajaj Allianz Guaranteed Pension Goal

   • Offers guaranteed income for life.

   • Flexible payout modes (monthly/quarterly/semi-annual/annual).

   • Diverse annuity options to suit your needs.

   • Joint life annuity with payout options for spouses.

   • Return of Purchase Price (ROP) option.

   • Tax benefit on premiums under Section 80C and tax-free income under Section 10(10D) of the IT Act.

4. HDFC Life Systematic Retirement Plan

   • Offers regular income and high annuity rates.

   • Choose your deferment period for annuity payouts.

   • Diverse payout modes (monthly/quarterly/semi-annual/annual).

   • Guaranteed income for life after a limited premium payment period.

   • Return of Purchase Price (ROP) for nominees in case of death.

   • Tax benefits on premiums under Section 80C and income under Section 10(10D) of the IT Act.

   • Additional deduction for senior citizens under Section 80D.

5. IndiaFirst Life Guaranteed Annuity Plan

   • Offers guaranteed income and high annuity rates for life.

   • Choose from 12 annuity options for financial planning.

   • Diverse payout modes (monthly/quarterly/semi-annual/annual).

   • Critical illness protection with Return of Purchase Price (ROP).

   • Annuity Certain option for guaranteed income even in case of death.

   • Joint Life or Family Income options for loved ones.

   • Increasing Annuity Income option for a constantly rising income.

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

Points to Remember Before Buying an Annuity Plan

• Consider your retirement lifestyle, desired income stream, and risk tolerance.

• Pick the payout structure that suits you (single life, joint life, period certain, etc.).

• Explore tax deductions on premiums and potential tax-free income on payouts.

• Check for features like payout frequency changes, top-up options for additional income, and Return of Purchase Price (ROP) options.

• Annuity plans are long-term commitments. Ensure your emergency fund is secure before investing.

• Compare annuity plans from different insurers to get the best rates and features.

• Understand all fees, surrender charges, and terms before signing up.

• Consider consulting a financial advisor for personalized guidance based on your situation.