Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

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.

Benefits of Annuity Plan Investment

With an annuity plan, you’ll mostly be required to invest a lumpsum amount and receive regular income post-retirement for the rest of your life. Here is more you need to know.

  • Dec 22, 2021
  • 1,894 Views

Most individuals would want to live their retirement years following new hobbies, pursuing their dreams, travelling, and spending more time with their families and friends. But the rising medical inflation, cost of living, and life expectancy have made it necessary for people to start planning their retirement as early in life as possible. As a result, people as young as in their 20s and 30s are now concerned about retirement planning.

A regular stream of income post-retirement is one of the best ways to live a financially independent life after you bid goodbye to your professional life. Annuity plans are created with the sole purpose of fulfilling this objective.

Check out four reasons that make annuity plans a smart choice for a worry-free retirement-

1. Steady Source of Income

With an annuity plan, you’ll mostly be required to invest a lumpsum amount and receive regular income post-retirement for the rest of your life. Policyholders are free to choose the age after which they’d like to start receiving annuity and even the payment frequency from options like monthly, quarterly, half-yearly, and yearly.

The income assurance that an annuity plan provides brings in a sense of security and helps you live a more confident and stress-free life.

2. No Risk of Reinvestment

India is steadily moving towards a low-interest rate structure. The falling FD rates are an excellent example of the same. With most other investment options, there is always a reinvestment risk of getting lower returns at the time of reinvesting the principal amount. The unstable rate of returns is not ideal for something as critical as retirement planning.

Annuity plans do not have any reinvestment risk. You invest a lump sum amount, and the insurer guarantees to pay the annuity for the rest of your life at the same rate.

3. Safe and Guaranteed Returns

Most popular long-term investment options such as equity come with a significant level of risk. While investors should always focus on building a diversified portfolio with multiple asset types, one should always have at least a few investments that deliver guaranteed returns irrespective of any market condition.

An annuity plan could be that investment option as the payouts are fixed and free from market movements. Alternatively, some of the insurers also offer annuity plans with a variable annuity. Here, the payouts depend on the company’s performance and are not fixed. Informed buyers can also consider this option.

4. Immediate and Deferred Annuity Option

Most insurers also allow the investors to choose between immediate and deferred annuity options. With an immediate annuity, the payouts begin almost as soon as a lumpsum payment is made to the insurer. Deferred annuity plans are focused on people who want to start saving for the future. In these plans, the payouts start after a certain age.

If the policyholder wants to start receiving payouts sooner, there is also an option to convert deferred annuity into an immediate annuity.

Add More Stability to Post-Retirement Life with an Annuity Plan in India

Several reasons make annuity plans an excellent choice for retirement living. The regular fixed payouts from the plan could function as a steady source of income for the policyholder, making it more practical for them to live the retirement life of their dreams.

Look for a top insurer to know more about annuity plans and choose one that best meets your requirements.

Kotak Life Time Income Plan

Download Brochure

Features

  • 6 Plan Options
  • Tax benefits ^
  • Higher annuity rates for higher purchase price
  • 4 Annuity Modes

Ref. No. KLI/23-24/E-BB/1052

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

3 Ways to Save Early to Keep Living Out Your Dreams Post Retirement

Types of Pension Plans for Your Retirement

ULIPs or Pension Plans – Which is a Better Retirement Plan?

The Significance of Number 8,000 in Retirement Planning

How To Choose The Right Pension Plan?

How should one decide on fund allocation within NPS?

Retiring soon? Here’s why buying annuity plans may make sense

How to Register An EPF Grievance Online

Inflation: A Key Factor to Consider into Retirement Planning

ELSS vs ULIP: Which is a Better Investment?

10 Steps to Figure Out How Much Money You Will Need For Your Post Retirement Plans

Different Types of Retirement Schemes

Retirement Planning Guide: These 5 Steps Will Help You Towards a Safe, Secure and Fun Retirement

What are the Instruments Available for Building a Retirement Corpus?

15 Passive Income Ideas for Seniors to Boost Retirement Income

What is the Minimum Lock-in Period for ULIP?

What Are Retirement Pension Plans?

What are the 4 Financial Phases of Retirement? How to Budget For Each One?

Retirement Planning for Millennials

4 Tips to Avoid Running Out of Money in Retirement

5 Best Investment Options for Senior Citizens in India

Demystifying Retirement Financial Planning

What is a Retirement Plan - What are its Features?

How to Calculate Your Retirement Corpus?

Ten Signs That You're Ready to Retire

Here's are Advantages of Pension Schemes and Retirement Plans

Know the Pros and Cons of Retirement Annuities

How Do Annuity Options Work In NPS

Importance of financial Planning for Retirement

Reasons you should Buy a Retirement & Pension Plan

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What tax benefits are there on saving for retirement?

Meaning of Sum Assured in a ULIP

Embracing the FIRE Movement: Financial Independence and Early Retirement

Here's Benefits of Post Retirement Investment Options

What Retirement Would Look Like 30 Years From Now

Pension Funds In India – Meaning, Overview, How Do Pension Funds Work, Types, Pension Plan Features and Tax Benefits

What is an Annuity Plan, and How Does Annuity Plan Work?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Retirement: A New Start to Life!

Retirement planning with a systematic life insurance plan

How Has NPS Performed in Comparison with Other Instruments?

How Does ULIP Work in India?

How to Protect Your Retirement Account from Hackers

What are the Charges Levied on ULIP?

Top Investment Options for Retirement Planning

Which Pension Plan Suits You best?

The Rise of ESG Investing in Retirement Planning

Plan Your Retirement in India - Retirement Calculator

Turbocharge Your Retirement Savings with Annuities: Unlock Greater Returns

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Benefits of Early Retirement Planning in India

Getting Close to Retirement? Six Key Retirement Planning Tips That Can Help You Retire

6 Signs That You Are Not Financially Ready For An Early Retirement

Gift Your Parents a Sound Retirement Plan

Is an Annuity a Good Investment Option?

How to Save for Retirement With Retirement Investment Plans?

Types of Retirement Plans

What are the Differences Between ELSS ULIP and Mutual Funds?

What are the Rules for Exit From NPS?

Importance of Retirement Planning

What are the Benefits of ULIP - Explained

What Are Superannuation Benefits?

How To Check EPF Claim Status- The Complete Process

Benefits of Early Retirement Planning

Early Retirement Planning Tips

Here's Retirement Planning Guide for Working Men & Women

Retirement Planning: Use our Retirement Calculator to Plan Ahead

How to Maximize Your Retirement Savings with a Pension Scheme in India

Is it possible to live a financially independent life, even after you retire?

What Is A 401(k) Retirement Plan?: A Beginner's Guide

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

Retirement and Pension Plans in India- What are Your Options?

How Much Corpus Does One Need for Retirement?

Managing Your Money After You Retire

Understanding Annuity Plans

NPS for Housewife

6 investment options for the retired

Types of Pension Plans and Their Tax Benefits

Guide to Long Term Investment

Is ULIP Better Than FD?

Mastering the 30:30:30:10 Rule: A Guide to Effective Retirement Planning

Top 3 Reasons Why You Should Start Retirement Planning Early

What Are Mortality Charges In ULIP?

Changing Jobs? Reinvest Your Retirement Funds

What is the Difference Between EPF, VPF, and PPF? What are Their Tax Benefits?

Which Is Better: ULIP or SIP?

Retirement Planning at 50? You Are Still Good to Go

Tips to invest your voluntary retirement scheme money

How Can NPS Help You Save Tax?

Annuity Plan | How to Choose the Right Annuity Plan | Kotak Life

A Quick Guide to Retirement Plans

14 Tips to Ensure Successful Retirement Planning

How To Calculate The Present Value And Future Value Of Annuities?

How to Win at Retirement Savings?

Right Age for Retirement Planning and How to Go About It

How Does NPS Work?

What is a Defined Benefit Plan and How it Works?

Long-Term Investing: Boost Retirement Income with an Income Booster

Terminologies You Should Understand About Retirement Plans

Why Should Retirement Planning Be on Top of Your Priority List?

Why is it Good to Have a Retirement Plan Before Your Marriage?

Mistakes You Must Avoid While Planning Retirement

Steps to Figure Out How Much Money You Will Need After You Retire

Do Pension Plans Allow Any Death Benefits?

7 Best Guaranteed Income Plans 2023 in India Their Eligibility, Features & Benefits