Everyone dreams of living a comfortable and financially secure retired life.This is the time when you look forward to enjoying the golden phase of life without bothering about financial responsibilities. Even though you may not have liabilities, there is no escape from the monthly bills and expenses that will continueeven when you retire.To accumulate a corpus for the retirement phase, you need to start investing in an annuity pension plan.
An annuity pension plan assures you have a regular flow of income through your retirement life and enables you to meet everyday expenses.It is a non-participating, non-linked immediate annuity plan that is offered to both individual customers and members who are registered for the superannuation fund. Below are some of the key highlights of the Guaranteed Lifetime Income plan:
- Insurance companies offer preferred rates to customers who utilize the proceeds of the pension to purchase an annuity
- Issued annuity rates are guaranteed for a lifetime.
- Individuals who have already purchased the immediate annuity plan can increase the payout by buying an additional annuity. In such a case, the annuity rate is bound to change. While modifying the rate, the insurer takes into consideration the date of policy issuance and Ban of Purchase Price.
- Annuity rates vary as per the purchase price band.
- The annuity modes can be yearly, half-yearly, quarterly and monthly.
- You get the option to surrender the policy on the diagnosis of Critical Illness
- You can avail of tax benefits under Section 80CCC of the Income Tax Act. The death benefit and annuity payments under Guaranteed Lifetime Income Plan are subject totaxes as per the taxation laws.
As a customer, you have to option to invest in two types:
- Life annuity with return of 100% purchase price
Under this option, the annuity payment is received throughout the life of an annuitant. Along with this, the nominee will also get a 100% Purchase Price upon the death of the annuitant.
- Joint Life Survivor Annuity with Return of 100% of Purchase Price on the death of the last Survivor
In this option, the annuity payment is first paid to the annuitant for a lifetime. In case of unfortunate death of the primary annuitant, the spouse or secondary annuitantcontinues to receive the same amount of annuity for his/her life. On the other hand, in casethe secondary annuitant has predeceased the primary annuitant, then on the death of the primary annuitant, the Purchase Price will be payable to the nominee.
Eligibility Conditions for Guaranteed Lifetime Income Plan:
| Parameters | Minimum | Maximum |
| Entry Age | Ranging from 45 to 55 years
|
99 Years |
| Entry Age for Nominees | 0 years | 99 years |
| Spouse Entry Age | 35 years | 99 years |
| Single-Premium | Monthly Annuity of Rs.1000 (per member for Superannuation Fund | No Limit |
To invest in Guaranteed Lifetime Income Plan, the Minimum Annuity contribution is as follows:
- Monthly:Rs.1,000
- Quarterly: Rs.3,000
- Half-Yearly: Rs.6,000
- Yearly: Rs.12,000
A guaranteed lifetimeincome plan brings a variety of benefits that can help you get financial peace of mind once you retire. It can also help you cover a range of expenses related to your health and others. Before selecting any monthly income pension scheme, you must verify your current financial situation and plan your retirement needs. You can also take advice from a reputed insurance company representative to make an informed decision.
