Im­me­di­ate An­nu­ity Plans

In­vest once, get pen­sion for­ever

Consumer Voice - - Bfsi -

Un­like in the case of a life in­sur­ance pol­icy, where you pay reg­u­lar pre­mi­ums to an in­surer that makes a lump-sum pay­ment upon your death, with an im­me­di­ate an­nu­ity you give the in­surer a lump sum of cash in re­turn for reg­u­lar in­come pay­ments un­til you die. Thus, in the lat­ter in­stance, you can look for­ward to a guar­an­teed reg­u­lar in­come. Also, as the name in­di­cates, an im­me­di­ate an­nu­ity starts pay­ing out right away. The mar­ket for im­me­di­ate an­nu­ity plans in In­dia is grow­ing and is ex­pected to emerge as a favourable av­enue for re­tirees to park their funds and get an in­come from it through­out their lives. So, let us get down to the specifics, features and lim­i­ta­tions of this fi­nan­cial prod­uct.

Subas Ti­wari & Gopal Ravi Ku­mar

shares/deben­tures/bonds, etc., though ex­clud­ing your house and land. Your in­come has stopped be­cause you have re­tired from ser­vice now. You now want to use your sav­ings to gen­er­ate in­come ev­ery month, to take care of your own and maybe your spouse’s reg­u­lar liv­ing ex­penses. This is where an an­nu­ity plan comes in. There are few fi­nan­cial in­stru­ments that of­fer guar­an­teed in­come as long as the per­son is alive.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.