An immediate annuity plan is a guaranteed pension plan that assures a fixed income immediately after investing a lump sum amount. It is suitable for people who are nearing retirement or have already retired and require a regular income to manage their daily expenses. Many types of immediate annuity plans are available in the market these days. More details about these plans and how to buy a new immediate annuity plan are discussed in this blog!
You must be mindful of several things and factors before purchasing an immediate annuity plan. These factors include annuity rate of return, payout options, death benefit, and more. However, before that, you must also figure out the type of new immediate annuity plan you must buy. More details on the immediate annuity pension plan types and their key differences are specified in the table below:
| Immediate Annuity Plan Type | Key Feature | Income Frequency Options | Recommended For |
|---|---|---|---|
| Single Life Annuity Plan | This immediate annuity plan provides income for a lifetime and stops after the investor’s death. | Monthly, Quarterly, Six months and yearly | People who do not have any dependents and require a lifetime pension. |
| Joint Annuity Plan | This plan provides income for the spouse or any other nominee even after the death of the investor. The investor also receives a lifetime pension. | Monthly, Quarterly, Six months and yearly | This immediate annuity plan is for individuals who wish to look after the regular expenses of their spouse or dependent even after their death. |
| Annuity with Return of Purchase Price | The pension is provided to the investor for a lifetime. After the death of the investor, the nominee receives a sum equivalent to the initial investment. | Monthly, Quarterly, Six months and yearly | This plan is suitable for people who wish to provide their family members a lump sum amount after their death. |
| Increasing Annuity | The income of this new immediate annuity plan increases every year. | Monthly, Quarterly, Six months and yearly | This plan is for the people who wish to minimise the impact of inflation on their spending ability. |
Depending upon your requirements, you can choose the immediate annuity plan that suits you the most!
A new immediate annuity plan will provide the much-needed regular income that you require after retirement. If your retirement planning does not include a regular income stream after retirement, you can think of buying an immediate annuity plan. However, don’t forget to miss out on these features while buying one:
Use a retirement calculator to calculate the amount to be invested to generate the required amount as payouts from a new annuity plan. The immediate annuity plan calculator can be found on the website of most insurers these days.
Follow these steps while buying a new immediate annuity plan in India:
An immediate annuity plan secures your future and helps you lead a carefree life after retirement. Yet, you must be judicious while choosing an annuity plan that fulfils all your requirements perfectly. The new immediate annuity plan from PNB MetLife offers these benefits:
For more details, explore the retirement plans and solutions offered by PNB MetLife today!
You have to invest a lump sum amount to generate steady income payouts after retirement. This amount can be much higher if you require a higher income post-retirement. So, you may have to give away the cash that you had invested for emergency expenses or big-ticket purchases.
Receiving a pension for a lifetime and the option to continue the pension to the spouse or return the invested amount to the nominee are the key benefits of an immediate annuity plan.
The annuity can be received from the next month onwards by choosing a monthly payout option!
Piyush Kataria, SEO Manager at PNB MetLife, is a seasoned digital marketing strategist with over a decade of experience in optimizing websites for search engines. His expertise extends to keyword research, content strategy, technical SEO, and link building, all of which have been instrumental in driving organic traffic growth at PNB MetLife. With a strong foundation in life insurance, Piyush leverages his industry knowledge to create targeted and effective SEO campaigns.
Sakshi Malhotra is a seasoned marketing professional associated with the Life Insurance industry since 2007. At PNB MetLife, she heads Digital Marketing and Direct to Customer line of business. She is responsible for driving effective customer engagement through the company’s website and social media channels. In addition, she drives customer online buying journeys to help them buy the right product.
Disclaimer:
At PNB MetLife we are delighted to offer a new fund, the “Nifty 500 Momentum 50 Index Fund” (ULIF03115/02/25NIFTYMOMEN117). The objective of the fund is to invest in a basket of stocks drawn from the constituents of NSE’s NIFTY 500 Momentum 50 Index, subject to regulatory limits. The Nifty 500 Momentum 50 Index aims to track the performance of the top 50 companies within the Nifty 500 selected based on their Normalized Momentum Score. Historical data from NSE suggests that the momentum strategy has outperformed vs broader indices in the past. Regulations may restrict us from investing in all the stocks/sectors in line with their weights in the index from time to time, resulting in tracking error. The index funds which track momentum strategies are best suited for individuals with very high risk tolerance and long-term investment goals.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
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Call us Toll-free at 1-800-425-6969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra.
| Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers! IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint. |
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