What Are the Most Popular Types of Annuities?

The main types of annuities offered in India are:

1. Immediate Annuity: This provides income immediately or within a month of purchasing the annuity with a lump sum payment. It gives retirees an income stream quickly from their retirement savings.
2. Deferred Annuity: With this, you contribute to building a corpus over time, which pays out as annuity income at a future date, usually retirement. It provides future income security.
3. Fixed Annuity: This offers a predetermined, guaranteed interest rate and payout for the policy term. It provides a stable income unaffected by market fluctuations.
4. Variable Annuity: Here, the annuity income may fluctuate based on the performance of the investment funds chosen. It provides a potential for higher returns for those willing to take some investment risk.
5. Lump-Sum Annuity: A substantial single premium is paid to the insurer to receive a guaranteed income stream for a set period of life. Allows converting a lump sum into a reliable retirement income.

Use the annuity calculator to learn about the yearly annuity by entering the investment amount, expected rate of return and life expectancy to make an informed decision.