There are two types of annuity plans. There is also an option of instant pension in one. You can choose it according to you. You can also make a nominee in this.
The market is going through a period of volatility due to the Corona period. In such a situation, people want to avoid risky situations for investment. People want to invest money in such a scheme to meet the need of money in emergency, which will give them better returns and keep their money safe. In such a situation, taking an annuity plan can be a better option. In this, you can get pension every month after retirement.
You can get lifelong pension on the amount deposited under the annuity plan. Most of the insurance companies also provide pension facility to the spouse after the death of the policyholder. At the same time, some insurance companies stop all future annuity payments after the death of the subscriber. So keep this thing in mind while choosing it. The minimum age for taking annuity should be 30 to 40 years.
how to get annuity
Insurance companies offer two types of annuity plans. Out of this, one is Immediate Annuity Plan and the other is Deferred Annuity Plan. In the Immediate plan, the investors immediately start getting a fixed amount on monthly, quarterly, half yearly or yearly basis for a limited period or for the whole life. Whereas under a deferred plan, investors get a fixed amount on monthly, quarterly, half yearly or yearly basis for the rest of their life after some time or after retirement.
Benefits of Annuity
If someone takes an annuity plan of Rs 50 lakh at the age of 30, then one can ensure a pension of Rs 3 lakh annually for life. If someone chooses a pension plan for himself and his nominee, then one can get annuity amount up to Rs 2.95 lakh. Apart from this, if the subscriber dies, the nominee will get the purchase price back.
In this, you can also provide a lump sum amount when you can be useful in needs like children’s education or marriage. Apart from this, tax exemption is available in annuity plan. Some policies also offer tax exemption on premium.
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