Top Annuity Plans to Invest in 2019

Annuity Plans

The retirement period is the best time of one’s life when he/she can enjoy life to the fullest without any financial liabilities. However, since you will not have a steady income source post retirement it is important to have a good capital or an alternate income source to secure your financial independence after retirement. If you are planning for a dream retirement, there is no better option than annuity plans to enjoy the second innings of your life without financial worries.   

 An annuity plan is a type of pension plan which enables you to receive regular income for the rest of your life in return of a lump sum investment. There are 2 types of annuity plans namely deferred annuity and immediate annuity. While in deferred annuity plan payment of annuity starts after a specific date, in an immediate annuity plan it starts instantly. Hence, immediate annuity plans are more popular among individuals willing to have a financially secured future after retirement.  

Here are the top annuity plans in India at present that you should consider investing in for attaining a financially secured after-retirement life 

SBI Life – Annuity Plus  

SBI- Life – Annuity Plus is a traditional non-participating immediate annuity plan which offers regular income for the rest of your life. Just by paying a single premium payment you will get assured annuity or pension as long as you live. You can include one of your family members under this plan.  

 Plan features and benefits  

  • With this scheme, you and your family will receive a lifetime annuity.  
  • Your age at entry must be a minimum of 40 years and a maximum of 80 years.   
  • You will have a steady source of income to meet your expenses.  
  • Under this plan, the annuity will be paid at a constant rate throughout your life.  
  • The scheme comes with the rider SBI Life – Accidental Death Cover.    
  • You can decide the frequency of the pay out as per your convenience.  
  • It offers tax-saving benefits under various Sections of the Income Tax Act.  
  • In case of your death, it will secure income for one of your family members.  
  • You will get the option of advancing your annuity. 

LIC Jeevan Akshay VI Plan  

LIC Jeevan Akshay VI Plan is an immediate annuity plan which can be availed by making a single premium payment. It offers annuity/pension of a certain amount throughout the lifetime of the policyholder. Under this plan, you will get multiple annuity options to choose from.   

Plan features and benefits  

  • You can buy this plan by paying a lump sum amount as a one-time premium.
  • You will start receiving annuity right from the date of issuance of the plan.   
  • The age of entering this scheme is a minimum of 30 years and a maximum of 85 years.  
  • It offers flexibility to choose any annuity payment frequency from monthly, quarterly, half-yearly or yearly intervals.  
  • Minimum purchase price of Rs.150,000 for online and Rs.100,000 for offline distribution channels.  
  • There are no maximum limits for annuity and purchase price.  
  • Annuity for a lifetime can be chosen with 50% to 100% annuity payable to your spouse during his/her lifetime after your death.  
  • You can avail this plan without undergoing any medical examination.  
  • The purchase price will be returned on your death or on the death of the last survivor.  
  • The premium paid towards this plan is exempted from tax.  

HDFC Life New Immediate Annuity Plan  

HDFC Life New Immediate Annuity Plan is a traditional non-linked immediate annuity plan which offers guaranteed income throughout your and your spouse’s annuity period. This pension plan offers multiple annuity options to choose from as per your specific investment needs.  

Plan features and benefits  

  • At the time of entry, your age should be a minimum of 30 years and a maximum of 85 years. 
  • It enables you to earn regularly from the age of 30 years.  
  • This scheme will offer annuity as long as you or your spouse lives.  
  • You can choose any annuity payment frequency from monthly, quarterly, half-yearly, and yearly pay out options.  
  • It offers a wide variety of annuity options ranging from Single Life Annuity options to Joint Life Annuity options.  
  • You can avail tax-saving benefits with this scheme under the Income Tax Act.  
  • It offers the return of purchase price option on the death of the annuitant.  

The annuity plans listed above are ideal for individuals who want to smartly plan their retirement. These plans will not only help you to maintain your lifestyle after retirement and give you financial freedom but will also protect you from any kind of uncertainties post-retirement. By having any of these pension plans in your financial investment portfolio you can celebrate your golden years in a stress-free way. So, choose any of these plans today and secure your future post-retirement.