⏩ Annuity plans are also of two types, immediate and deferred.
⏩ Apart from this, there are also 3 categories of annuity plans.
⏩ In some plans, the annuity is available even after the death of the insured.
New Delhi. After retirement, your regular income stops. But you need money to keep your financial condition healthy, which you get throughout your life. In this case, annuity plans come in handy for you. Through this, even after retiring, you keep getting money every month. In an annuity plan, first, you have to deposit a lump sum amount and after that, you get regular income every month, for three months or 6 months. This income continues till the person buying the annuity plan is alive.
There are two types of annuities. One is an Immediate Annuity and the other is a Deferred Annuity. Payment starts immediately after investing in Intermediate. In Deferred, the money is first collected and after a time it is returned back to the investor. If the policyholder wishes, he can convert the deferred annuity into an immediate annuity. Please tell me that you do not get any tax benefits from this. Tax will be levied according to the tax slab you are in.
Plans are bought from insurance companies
An annuity is an insurance product. It is bought from insurance companies. In this, there is a kind of contract between you and the insurance company. You can buy it both online and offline. Explain that there are 3 more types under Intermediate and Deferred Annuity, based on which the insurance company compensates you for the annuity. These three are life, guaranteed period, and joint annuity. In the first type, the annuity will be available till the death of the insured. In the second type, even after death, an annuity will be available for a certain time. Whereas, in the third type of annuity, the person with whom the account is joint will get an annuity.
Although it is clear from its name that this is a pension plan, but in this, you do not get money from the beginning. You have to invest continuously in NPS and buy the annuity from the 40% portion after retirement. That is, it becomes an annuity plan in the end. You get 60 percent of the money put in it back at once. In this way, you get benefits in two ways and your financial condition remains strong. In this, the return is market-based, so it is also high, but there is some risk in it. However, you can change your fund manager whenever you want.