Types of Annuity Plan And It's Benefits
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits | Kotak Life

View Plans
  • 16th Feb 2021
  • 1,498

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits | Kotak Life

Your post-retirement years are for you to live a stress-free life. If planned correctly, you will not need to worry about taking care of your financial needs. There are a lot of financial plans available out there, that help you in your retirement years. One of the effective products for taking care of your financial needs in your post-retirement life is an annuity plan.

What is an annuity plan?

An annuity plan is simply a chain of periodic payments that are made in a time interval. Hence, the payouts will work as a regular source of income. An annuity plan is an easy way of creating your financial net for your retirement. It is considered a form of insurance, instead of an investment alternative. If you wish to get an annuity plan, you must read up on the types of plans. Depending on your needs and requirements, you can select from the different annuity plans available.

Different types of annuity plans and their key benefits in India are:

1. Immediate Annuity:

In an immediate annuity plan, the premium for the policy is paid in a lump-sum and not through multiple, regular payments. This plan will help you get the payout as soon as the first investment is made. Additionally, you will get guaranteed payouts at regular time intervals.

  • Optimal for individuals who are close to their retirement age and are looking for immediate guaranteed income.
  • You can defer taxes until late in your retirement.

2. Fixed Annuity:

In this plan, the payout is the same for the entire time period of the plan. The duration of the plan is also fixed. Hence, even after the policyholder’s demise during the tenure, their beneficiary or spouse will keep receiving the payout. The funds from this plan are invested in fixed income instruments.

  • Preferred as pension payout as it offers guaranteed income to policyholder.
  • Payouts remain constant for the entire tenure of the plan

3. Lump-sum Annuity:

While some annuity plans offer payouts at regular intervals for a specified time, some plans provide a lump-sum payout option. However, this plan is an alternative and is accessible only at a specified period.

  • Can help take care of emergencies that require massive financial help.

4. Variable Annuity:

A variable annuity is a plan designed to provide variable annuity payouts throughout the plan tenure. The payout is not prefixed like the other types of annuity plans. The money is invested in mutual funds, and the return will depend on the performance of the fund the money is invested in.

  • The payouts will be high when the returns are good.

5. Deferred Annuity:

In the deferred plan, the policyholder’s funds are invested for some period before the payments are made.

  • Optimal for individuals who are still in the workforce and have some years left before retirement.
  • Can use the accumulated funds to purchase an annuity at the time of retirement.

- A Consumer Education Initiative series by Kotak Life

Also read

    • 7th Mar 2022
    • 256

    How To Invest Money In ULIP?

    To invest in a ULIP policy and receive the full tax benefit under ULIP, you must understand the various types of funds available and how to invest mon...

    Read more
    • 30th Nov 2021
    • 260

    How to Build a Tax-Free Pension Income for Retirement?

    Filing tax is an obligation since the moment your income becomes taxable. Click here to know how to build a tax-free pension income for retirement.

    Read more
  • 5 Reasons to Buy ULIP for a Secured Financial Future

    ULIP offers benefits ranging from life insurance to wealth creation & tax savings. Here are five more reasons to invest in ULIP.

    Read more

Related Plans

  • Kotak Sampoorn Bima Micro-Insurance Plan

    Kotak Sampoorn Bima Micro-Insurance Plan

    Kotak Sampoorn Bima Micro Insurance Plan is a single premium plan with fixed term of 5 years to cater to the needs of low-income customers.

    Know more
  • Kotak Superannuation Group Plan – II

    Kotak Superannuation Group Plan – II

    Kotak Superannuation Group Plan – II lets you help your employees in their retirement planning while they are earning sufficiently.

    Know more
  • Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator ensures that you get Guaranteed Income every year on the same amount of savings and that the Guaranteed Income increa...

    Know more
  • Kotak SmartLife Plan

    Kotak SmartLife Plan

    A Limited Pay Non-Linked Participating Life Insurance plan. You earn and work hard to accomplish your dreams and aspirations at every stage of life.

    Know more