Top 5 Annuity Plans In India 2024

With a 9 to 5 hectic schedule and multiple responsibilities, everyone wants a comfortable life after a certain age. 

What are your plans for the post-retirement period? 

You must be seeking a comfortable life with a regular monthly income to cover old-age expenses and other financial responsibilities. If yes, then annuity plans can be the best choice! 

Here in this blog, we have curated a list of the top 5 annuity plans in India with their features to help you pick the best! 

Let’s begin! 

What is an Annuity Plan?

Annuity plans are pension or retirement plans, where you pay a lump sum amount in the accumulation period and receive regular income in the post-retirement period. The primary motive behind the plan is to meet people's long-term retirement requirements. 

These plans provide financial stability and help you maintain a good lifestyle even if you are not working.  

Further, it offers the following ways to make the investment:  

• Regular premium payments
• Lump sum payment

To understand how an annuity plan works, here is an example: 

Mr. Amit invested ₹20 lakhs in an annuity plan, and the investment will be ₹2 lakhs for ten years. Now, this plan will collect returns on the investment until Amit turns 60 or retires. 

With the lock-in of the current annuity rates, Amit will receive the approximate amount of ₹2-2.5 lakh every year post-retirement for his entire life. 

Features of the Annuity Plans in India

• Guaranteed Regular Payouts: The annuity plan’s regular payouts and life insurance cover offer financial security and help you live a stress-free life during your retirement years. 
• Flexibility: Its flexibility in payment options makes it one of the best retirement plans. You can pay a single lump sum or pay over a limited period of time on a monthly, quarterly, half-yearly, or annual basis.
• Tax Benefits: Under Section 80C of the IT Act 196, annuity plans offer tax benefits on the premiums paid under the policy. 
• Death Benefit: Along with the regular income in the retirement period, the Annuity plan comes with an added feature, i.e., “death benefit,” which ensures that the income continues to the nominee after the annuitant's death.
• Deferment Period: Choose a deferment period between 1 to 10 years. This allows you to delay the regular income according to your needs and secure the current annuity rate for a future lifelong income. 
• Multiple Annuity Options: As per the policyholder preferences and requirements, this policy offers multiple annuity options:

• Single Life Annuity
• Joint Life Annuity
• Annuity with Return of Purchase Price

List of Top Annuity Plans in India in 2024 

S.No.	Best Annuity Plans
	ICICI Pru Guaranteed Pension Plan Flexi
	Bajaj Allianz Guaranteed Pension Goal
	IndiaFirst Life Guaranteed Annuity Plan
	HDFC Life New Immediate Annuity Plan
	TATA AIA Saral Pension Plan

Read about Annuity Plans and what they are here

ICICI Pru Guaranteed Pension Plan Flexi

To build lifetime savings and regular income during retirement, choose ICICI Pru Guaranteed Pension Plan Flexi. It is a non-linked and non-participating deferred annuity plan that assures the best annuity rates and a financially stable future. 

Features of ICICI Pru Guaranteed Pension Plan Flexi:

• Waiver of Premium (WOP) Feature: WOP ensures that in case of the demise of the primary annuitant, the joint life annuitant will not pay the premium. But he/she gets the entire benefits without paying premiums. 
• Flexibility: This plan offers flexibility to choose how long you want to pay premiums and when to start your annuity/income, as well as to receive annuity on a monthly, quarterly, half-yearly, or yearly basis. 
• Diverse Annuity Options: This annuity plan in India comes with the following annuity options: 

1. 1. Single Life Annuity
   2. Joint Life Annuity

• Return of Purchase Price (ROP): The plan offers a Return Of Purchase option along with a lifetime guaranteed annuity benefit. 
• Minimum age at entry: 40 years for primary annuitants and 30 years for secondary annuitants. 
• Maximum age at entry: Single Life with Accelerated Health boosters option: Lower of (70, 80 – Deferment period – 1) years.  For all other options, it’s 70 years
• Flexibility in policy surrendering: You are free to surrender the policy after paying at least 2 full years' premium and get a 100% premium paid back as surrender value. 
• Minimum annuity: ₹12,000 per annum (₹1,000 per month)
• Maximum annuity: Subject to board-approved underwriting policy
• Tax benefits: You can get tax rebate under Section 80C and Section 10 (10D) of the IT Act, 1961.
• “Top-up” option: In case you have additional funds to invest, use the Top-up option to get more annuity benefits on retirement.
• "Save the Date" Option: This feature helps you to receive your annuity on any date of your choice. 

Bajaj Allianz Guaranteed Pension Goal

A non-participating, non-linked, deferred & immediate annuity plan that guarantees assured income in the second inning of life. By investing a lump sum amount, it ensures a fixed income and a secure retirement period. The plan comes with two annuity options- 

• Immediate Annuity: After a lump sum payment, the Annuity pay-out will start immediately as early as the following month. 
• Deferred Annuity: Pay lump sum or regular premiums, and Annuity pay-out will begin after the deferment period. 

Features of Bajaj Allianz Guaranteed Pension Goal

• Multiple Annuity Options: The policy offers a wide range of Annuity options to meet post-retirement needs. 
• Guaranteed Lifetime Income: The annuity amount gets fixed at the commencement of the policy and paid as per the policyholder's requirement (monthly, quarterly, half-yearly, or yearly).
• Minimum Annuity Amount - 

Yearly	Half-yearly	Quarterly	Monthly
₹12,000	₹6,000	₹3,000	₹1,000

• Maximum Annuity Amount: No limit 
• Return of cost (Purchase price): The plan offers a Return of Purchase Price on death or as a Survival Benefit. 
• Joint Life Annuity for Spouse: The policy offers financial security to the spouse after the death of the policyholder by providing the option of a joint-life annuity with 50% or 100% annuity payable after your death. 

IndiaFirst Life Guaranteed Annuity Plan

The next plan on our list of top 5 annuity plans in India is the IndiaFirst Life Guaranteed Annuity Plan. It is a non-participating, non-linked, and individual Annuity Plan in which the payouts start immediately after the payment of a single lump sum amount. 

Further, it comes with 12 different annuity options and provides regular income on a Monthly / Quarterly / Half-yearly / Yearly basis as per the investor requirements. 

Features of IndiaFirst Life Guaranteed Annuity Plan

• Choice of Retirement Age: The policyholder can select the retirement age at which they want regular income. 
• Annuity Options:  Select from the 12 different annuity options as per the need. 
• Flexible Deferred Life Annuity:  Flexible payment options to suit your retirement planning needs.
• Escalating Life Annuity Option: Opt for the Escalating Life Annuity option and get an annuity amount growing at a constant rate. 
• Family-Centric Facilities: Choose from Joint Life or Family Income to support your loved ones financially, even in your absence.
• Annuity Amount - Minimum: ₹1,000 per month and ₹12,500 per annum. There is no limit to the maximum annuity amount.             
• Immediate Annuity Plan- As soon as the policyholder pays the lump sum amount, the annuity payments of a stated amount start. 
• Premium (Purchase Price)-  Minimum: INR 100,000 and Maximum: No limit
• Lifetime Benefit- As long as the policyholder is alive, they will get paid lifetime on a monthly basis. 

HDFC Life New Immediate Annuity Plan

Make your retirement period safe and secure with HDFC Life New Immediate Annuity Plan. The plan offers a guaranteed source of income for the entire life and begins after the policyholder pays the single premium payment. 

Features of HDFC Life New Immediate Annuity Plan

• Variety of Annuity Plans: Select from the wide range of annuity plans as per your financial goals. 
• Tax benefit: Avail tax benefits under 80C and 10 (10D) of the IT Act, 1961. 
• Annuity Payout: No limit on maximum annuity payout. The minimum amount varies, as shown below. 

Yearly	Half-yearly	Quarterly	Monthly
₹10,000	₹5,000	₹3,000	₹1,000

• Elevated Annuity Rates: Policyholders can enjoy the benefit of elevated annuity rates for larger purchase amounts. 
• Return of Purchase Price (ROP) Option: Return of Purchase Price option available for death and critical illness. 
• Guaranteed Income for Life: Annuity, once purchased, offers a reliable, guaranteed source of income post-retirement. 
• Ways to pay: Renew your policy or pay the premiums through credit card, internet banking, cheque, and auto debit facility. 

TATA AIA Saral Pension Plan

For a guaranteed annuity for an entire lifetime, along with tax benefits and assured returns, then the TATA AIA Saral Pension Plan is the perfect policy for your retirement period. Invest with a one-time lump sum investment and secure your future financially. It offers regular income payments after retirement and flexibility in choosing the retirement age. 

Features Of TATA AIA Saral Pension Plan

• Guaranteed Lifetime Annuity post Retirement: The plan offers two annuity options, i.e., Single Life Annuity and Joint Life Annuity. 
  • Life Annuity with a Return of 100% of the Purchase price (ROP)
  • Joint Life Last Survivor Annuity with a Return of 100% of Purchase Price (ROP) on the death of the last survivor. 
• One-Time Investment: Pay a one-time lump sum payment via a Single Premium and remove the hassle of paying multiple premiums. 
• Option of Single and Joint Life: The policyholder will get flexibility in payout mode. If it is a joint life option, the nominee will get the amount if the policyholder dies. 
• No Medicals Needed: No medical checkup is required under the POS variant of the policy. 
• Annuity Mode: Annually/half-yearly/quarterly/monthly
• Annuity Payout

The minimum payout is as follows:

Yearly	Half-yearly	Quarterly	Monthly
₹12,000	₹6,000	₹3,000	₹1,000

Maximum: No Limit

Also read - Best Single Premium Pension Plan in India

The Bottom Line

This marks the end of our list of top 5 annuity plans in India. Each of these plans offers unique features and benefits, so you can choose the one that best aligns with your financial goals. 

But as this decision will significantly impact your retirement years, it’s best to get assistance from an InsuranceDekho relationship manager. Give us a call at +91-7551196989, and we will help you choose the best annuity plan in India. 

Frequently Asked Questions (FAQs)

• Why should one choose an annuity plan?

The importance of having a dependable and steady source of income becomes important in retirement years. An annuity plan offers this security by providing assured income, helping you maintain financial stability and peace of mind during retirement.

• What is the difference between a deferred annuity plan and an immediate annuity plan?

The primary difference between a deferred annuity plan and an immediate annuity plan is the way policyholders get the income benefits. 

In a deferred annuity plan, the policyholder will receive the payment after the deferment period ends. On the contrary, in the immediate annuity plan, one starts receiving a payout just after the lumpsum investment, as early as the next month. 

• Which are the best annuity plans in India?

Some of the best annuity plans in India include, 

• Bajaj Allianz Guaranteed Pension Goal
• Max Life Guaranteed Lifetime Income Plan 
• HDFC Life New Immediate Annuity Plan
• Aditya Birla Sun Life Immediate Annuity Plan
• TATA AIA Saral Pension Plan

• How do I choose the best annuity plan for me?

To choose the best annuity plan, consider your financial goals, retirement needs, and risk tolerance. Most importantly, consult with a financial advisor to select the one that best suits your situation.

Also read:

Everything You Must Know About Saral Pension Yojana

What Are The Benefits Of Investing In National Pension Scheme?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.