An individual can pay a single premium and immediately enjoy the benefit of a regular income
There are numerous retirement plans available in the market which offer regular income to meet your financial requirements. One of them is an immediate annuity plan. An individual can pay a single premium and immediately enjoy the benefit of a regular income. This plan helps retired individuals maintain their current lifestyle, enjoy their financial independence and meet the health care expenses and inflation.
According to your requirements, you can opt for a certain period for receiving an annuity ranging from 5,10 to15 years. The frequency of receiving pension could be monthly, quarterly, half-yearly, or yearly. Under such a plan the policyholder will get a pension for a lifetime and the invested amount will be returned to the policyholder upon diagnosis of critical illnesses plan and the policy will terminate. Or after the death of the policyholder, the invested amount will return to the nominee.
Immediate annuity plans also have the joint-life option to support your spouse through annuity proceeds even in absence of the primary policyholder. One does not have to wait till 60, if you have an alternate income arrangement, you can retire at 40 or 45.
Before buying any immediate annuity plan, remember to plan your investment. Most of the life insurers offer a single premium option not less than Rs 10 lakh and the maximum amount is Rs 1 crore. The minimum age is 40 and the maximum is 80 years. However, the terms and conditions differ from insurer to insurer. Before buying an immediate annuity plan it is always advisable to compare and go for the highest payouts to reap the maximum benefits.
For instance, an individual who wants to receive a regular income not less than Rs 20,000 every month should invest an amount of Rs 50 lakh. Similarly, an individual who wants to receive a regular income not less than Rs 10,000 every month should invest an amount of Rs 25 lakh to meet the financial requirements.