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3 Retirement Annuity Benefits You Need to Know.
The post-retirement years are often the golden years of one’s life. We spend all our lives working, earning, and saving - to perhaps, unwind the exhaustion and live it up in our golden years. However, simply earning isn’t enough. It would be best to have an insurance annuity plan or an annuity scheme to safeguard your golden future.
With old age comes a lot of responsibilities and health problems.
All this can exhaust your life-long savings. This may create a financial crisis, as post-retirement, you can only rely on your saved corpus, and there is no job to supplement your income. In such situations, an annuity plan or annuity scheme will come to your rescue.
Now, you may be wondering what an annuity plan is and how it works. In this article, we will discuss annuity plans and their benefits at great length. We will also discuss the things you should do before purchasing a retirement annuity policy.
If you are looking to buy a retirement plan, you should opt for renowned insurance providers with an easily customizable policy, such as Tata AIA Life Insurance.
An annuity plan or annuity scheme is an insurance product made to help a person during their post-retirement phase of life. Insurance annuity plans ensure that you get an assured sum of money regularly after you retire.
To put it simply, it works pretty much the same way as any other insurance does. You will have to invest your money in an annuity scheme, and in return, the insurer would deliver pre-decided returns. Please note that insurance providers do pool money from all policy seekers and invest it elsewhere to grow the money. This is how they can generate exponential growth in your insurance product portfolios.
Now that you know the workings of an annuity plan let's move to the types of annuity plans you could pick from.
An annuity scheme works only for a certain amount of time. You can choose the period yourself — it varies from five, ten, to fifteen years.
Based on its operational timespan and the number of people it covers, we could broadly classify annuity schemes into the following types. The annuity benefits will stop only after the death of the buyer.
Now that you know the merits one could gain from an annuity plan, it’s perhaps time to buy one! However, before you make such a huge decision since it decides the course of your life, you should know a few more things about these insurance plans.
One thing that you should know before purchasing an annuity plan is the lack of liquidity. If you’ve bought an annuity scheme for 15 years, but you want to withdraw your money before that period, you will have to pay a fees as a fine.
We hope this article helped you find out more about annuity insurance plans and schemes. For any queries, do comment or reach out to us. Wishing you a happy, insured, and secure retirement!
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry
Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you