An annuity is a financial product that provides a fixed income stream to an individual over a specified period. Insurance annuity schemes in India are designed to provide individuals with regular income during their retirement years. Here are some of the key annuity schemes available in India:
- National Pension System (NPS): NPS is a government-sponsored pension scheme that allows individuals to invest and accumulate savings for their retirement years. It offers two types of annuities – immediate and deferred annuity. In an immediate annuity, the individual invests a lump sum amount and starts receiving regular income immediately. In a deferred annuity, the individual accumulates a corpus over a period and uses it to purchase an annuity at the time of retirement.
- Life Insurance Corporation of India (LIC) Annuity Plans: LIC offers a range of annuity plans that provide regular income to individuals during their retirement years. The plans are designed to cater to different needs and investment amounts. Some of the popular LIC annuity plans are Jeevan Akshay, New Jeevan Nidhi, and Pradhan Mantri Vaya Vandana Yojana (PMVVY).
- Immediate Annuity Plan from other insurance companies: Apart from LIC, several other insurance companies also offer immediate annuity plans. In this plan, the individual invests a lump sum amount and starts receiving regular income immediately. The income stream can be either fixed or variable depending on the plan chosen.
- Deferred Annuity Plan from other insurance companies: Similar to NPS, several insurance companies offer deferred annuity plans. In this plan, the individual accumulates a corpus over a period and uses it to purchase an annuity at the time of retirement.
- Mutual Fund Annuity Plans: Some mutual fund companies offer annuity plans that invest in a mix of equity and debt instruments and provide regular income to individuals during their retirement years.
In conclusion, insurance annuity schemes in India offer individuals a way to plan for their retirement years and ensure a regular income stream. The schemes are designed to cater to different needs and investment amounts and offer flexibility in terms of payout options. It is advisable to evaluate the different annuity plans available and choose the one that best suits your retirement needs.