Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. 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 insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more


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.

Why You Should Invest In An Annuity Plan?

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

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.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Are You Planning an Early Retirement? Here's Why Buying Annuity Plan Will Make Sense

Is ULIP A Good Investment Option?

How To Make Most of Your Money After Retirement?

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

8 Charges in ULIP That You Must Know

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

How Does ULIP Work in India?

Benefits of Early Retirement Plans

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

What are the things to consider before buying ULIPs?

Saving for approaching retirement with retirement insurance

The Significance of Number 8,000 in Retirement Planning

Retirement Planning for Millennials

Why ULIP Should Be a Part of Your Investment Portfolio?

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

यूलिप और उनके प्रकार क्या हैं?

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

Types of Pension Plans for Your Retirement

5 Common ULIP Myths That You Should Stop Believing

What is a Defined Benefit Plan and How it Works?

How can NPS help you save tax?

How To Keep Your Retirement Accounts from Being Hacked?

Retirement: A New Start to Life!

How Safe is it to Invest in ULIP plans?

What is the Death Claim Payable in the Case of ULIP?

Top 6 Reasons Why You Should Get A Pension Plan

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Retirement Planning - How To Calculate Your Retirement Premium in India?

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

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

What are the Chances of Losing all my Money in ULIP and How Much Return Should I Expect?

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

What are the Differences Between ELSS ULIP and Mutual Funds?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Un-Retirement - Are You Ready For It?

ULIP Plan or Traditional Insurance Plans - Which is better?

Types of Retirement Plans

Can I Surrender My ULIP Policy after 2 Years?

Is ULIP Better Than FD?

What are the Rules for Exit From NPS?

What are the Benefits of ULIP - Explained

What are Fixed Maturity Plans and Why Should I Invest in Them?

EPF Grievance Management: All You Need to Know

Can NRIs Invest in ULIP Plans Offered in India?

5 Notable Investment Options for Retirees

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

Long Term Investment Guide for Your Retirement

Which Is Better: ULIP or SIP?

Do Pension Plans Allow any Death Benefits?

Understanding Annuity Plans

Invest for your second innings with a guaranteed savings plan

Ten Signs That You're Ready to Retire

Calculating a Retirement Corpus that can Support Your Lifestyle

FAQs on Taxation of ULIPs

What are the Uses of ULIP?

What Are Mortality Charges In ULIP?

Why Should You Invest in NPS?

Pros and Cons of Retirement Annuities

A Beginner's Guide to Understanding 401k Retirement Plan

What Are Superannuation Benefits?

Retirement Planning at 50? You Are Still Good to Go

Top 4 Mistakes To Avoid While Planning For Your Retirement

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Importance of financial Planning for Retirement

How Can ULIPs Help You Plan for Your Child's Future?

What are the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?

Is it Advisable to Withdraw the ULIP Insurance Policy After 5 Years?

Is ULIP a Good Option for People Above 60?

What are ULIPs and their Types?

Demystifying the Retirement Planning Process

यूलिप के 8 शुल्क

How To Choose The Right Pension Plan?

What is the Minimum Lock-in Period for ULIP?

Here's What Retirement Would Look Like 30 Years From Now

How Has NPS Performed in Comparison with Other Instruments?

How has ULIP Grown Over the Last 3 years?

Give Your Retirement Savings A Booster-Shot with Annuities

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What is Fund Value in ULIP?

A Quick Guide to Retirement Plans

What tax benefits are there on saving for retirement?

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

How to Win at Retirement Savings?

5 Steps to Gift a Smart Retirement Plan to Your Parents

What is Partial Withdrawal in ULIPs?

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

How should one decide on fund allocation within NPS?

5 Reasons to Buy ULIP for a Secured Financial Future

At What Age Should You Start Your Retirement Planning?

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

How Can I Achieve My Wealth Goal with ULIP Investment?

How Quickly is Fund Switch Effected in ULIPs? Is it Done the Same Day or After a Particular Number of Days?

Is It Worth Buying ULIP Plans For 10 Years?

Save Early to Keep Living Your Dreams Post Retirement

Which Pension Plan Suits You best?

Who Gets the Benefit After the Maturity of ULIP: The Proposer or The Life Insured?

ULIP: Can You Surrender ULIPs or Withdraw Money from It?

Different Types of ULIP Investments in India

Looking for Ways to Earn Lifetime Income in Retirement? Here Are 6 of the Top Options

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

Top 6 Flexible Benefits That ULIPs Offer

Top 4 Myths About ULIP Investments You Should Know

Know Why You Should Stay Invested in Your ULIP Plan

How Much Corpus Does One Need for Retirement?

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

Meaning of Sum Assured in a ULIP

Retirement planning with a systematic life insurance plan

What is the difference between Life Insurance and ULIP?

What is a Retirement Plan - What are its Features?

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

NPS for Housewife

Different Types of Retirement Schemes

Terminologies You Should Understand About Retirement Plans

Single Premium ULIP or a PPF - Which One is Better?

5 Retirement Planning Tips for a Financially Controlled Post-Employment Life

Does Having Both ULIP Plan and Other Health Insurance Plan Make Sense?

Are Annuities Great For Early Retirement?

ELSS vs ULIP: Which is a Better Investment?

Top Investment Options for Retirement Planning

What are the Instruments Available for Building a Retirement Corpus?

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

What is NAV in ULIP, and How is it calculated?

How Do Annuity Options Work In NPS

Is the ULIP Policy Surrender Value Taxable?

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

What are the Advantages and Disadvantages of ULIP?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

What Are Retirement Pension Plans?

Retirement Planning Guide for Working Men and Women

Advantages of Pension Schemes and Retirement Plans

What To Do With Your Retirement Accounts During An Employment Lapse?

How Does Pension Plans in India Works?

Benefits of Early Retirement Planning in India

Do ULIPs Give Good Returns On Investments?

Worried About Running Out of Money in Retirement? 4 Tips to Avoid This Crisis

What are the Charges Levied on ULIP?

Tips to invest your voluntary retirement scheme money

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

Is ULIP a Complex Financial Product?

How Does NPS Work?

Why Should You start Retirement Planning as soon as you start a job?

What Happens to ULIP Premiums Paid if the Market Crashes?

Difference Between Unit-Linked Insurance Plans and Non-Linked Plans

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

Importance of Retirement Planning

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

Inflation: A Key Factor to Consider into Retirement Planning

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

What is Lock-In Period in ULIPs?

Is it Suggestible to Take a ULIP Plan Linked with a Term Plan?