What are the types of Annuity Plans?

There are two main types of Annuity Plans

Immediate Annuity Plans

We make a lump-sum payment and the Annuity plan starts immediately
We will start receiving our income/pension from the next month itself.
Payment will continue until the end of our agreement or our death

Within the above 2 types, you can pick from these

Lifetime Annuity Plan

The payments are given at regular intervals until our death. After our death the plan ends

Lifetime Annuity With Return on Investment

This plan gives us regular payments until our death, after which the initial lump-sum investment is paid to our Nominee.

Guaranteed Time Period Annuity

Pension payments are made for a specific time period decided when signing the annuity plan. In case we die before this time period, payments are still made to our nominee.

Inflation Adjusted Annuity Plan

The annuity plan increases every year by a percentage amount to help us cope with inflation

Joint Life Time Annuity

Pension payments are made until either of the joint holder is alive. Joint holders are those who sign the annuity contract together like husband and wife.

Joint Annuity with Return on Investment

The pension payment is made until either of the joint holders is alive. After the death of both the joint holders, the payment is made to the nominee.

Quick Tip

These annuity plans are usually used to leave an inheritance-

Joint Annuity with Return on Investment and Life Time Annuity with Return on Investment

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