A peaceful and well-planned retirement is part of everyone’s aspirations, and the planning for it usually begins several years before you retire. It is important to make a detailed plan during your active professional life so that once you retire, you do not have to face any financial stress. In this context, a life insurance annuity plan can be instrumental in making your retirement planning simpler and more efficient.
An annuity pension plan enables you to receive a regular income during your post-retirement years from a lump sum investment corpus created during your earning years. Such regular and guaranteed1 income ensures that your post-retirement life is free from any financial hassles and that you have adequate monetary support for your daily needs as well as any major expenses or even medical emergencies.
Tata AIA's Life Annuity Plans
Annuity plans from Tata AIA Life Insurance give you the liberty to plan your retirement years with an annuity pension plan of your choice in accordance with your financial needs and goals. This annuity plan makes for a wise investment avenue as you need not worry about making any payments towards the plan after retirement. Since the accumulated lump sum fund takes care of your post-retirement financial needs, you can have a financially stable life post-retirement.
These are different annuity pension plan options offered by Tata AIA Life Insurance, under which you can choose between the Single Life and Joint Life options. These plans are:
- Immediate Life Annuity
- Immediate Life Annuity with Return of Purchase Price3
- Deferred Life Annuity with Return of Purchase Price3
Under the Single Life option, you, the primary annuitant, can avail of the payouts and the benefits as per the payment mode you have selected. Upon your death, the benefits under the plan will be payable as a lump sum to your nominee, following which all benefits will cease, and the policy will be terminated.
Your nominee can choose to receive the death benefit under the plan either as a lump sum amount or in the form of an Immediate Annuity purchased from us.
In the Joint Life option, you are the primary annuitant, and the secondary annuitant can receive the payments in the event of your demise only if this option is selected. The secondary annuitant can be a family member, such as your child, parent, sibling, or spouse.
In case another person is to be chosen as the secondary annuitant, it is essential that there should be an insurable interest between the primary and secondary annuitants. This means that the annuitant with insurable interest is dependent on the other annuitant and could suffer financial losses in their absence.
Key Features of the Annuity Policies
You can make the most of the Tata AIA pension benefits by choosing an annuity plan that is ideal for you. Depending on the amount, the annuity plan should be able to fulfil your and your family’s financial goals and also suffice for emergencies without you having to stress about the availability of funds.
Annuity plans in India are designed to provide a regular income during retirement. Here are some of the salient features of annuity policies:
Guaranteed1 income: Annuity plans guarantee a fixed income for the policyholder during the annuity period. A guaranteed flow of income during retirement is essential in the absence of a steady salary.
Flexibility in annuity options: Policyholders can choose from different annuity options such as immediate annuity, deferred annuity, and joint life annuity. This can enable one to select a plan option that meets their retirement needs.
Tax* benefits: Premiums paid for annuity plans are eligible for tax benefits under Section 80C of the Income Tax Act, and the income received from the annuity is tax-free under Section 10(10A) of the Income Tax Act.
Customisable options: Annuity plans can be customised to suit the policyholder's needs, such as the option to include a return of purchase3 price, or the option to provide for a spouse or children in the event of the policyholder's death.
Additional Bonus2: While some annuity plans come with guaranteed1 returns, more others also offer bonuses to the policyholder (subject to declaration), which increases the annuity amount.
Better Liquidity: Some annuity plans also provide the flexibility to withdraw a certain percentage of the corpus after a certain period. This can be useful if the retiree wants to meet their short-term and long-term goals.
Rider# options: Some annuity plans come with rider options, such as critical illness riders, accidental death and disability rider, which provide additional coverage over the base annuity plan. This can help your family meet medical emergencies without having to disturb the annuity benefits.
Do note that annuity plans come with different features and it is always advisable to consult with a financial advisor to determine the apt plan for your retirement planning.
What Are The Benefits Of Secure Retirement Planning?
A concrete retirement plan goes well beyond the notion of savings and investments; true to its name, retirement planning is all about considering the various expenses, investments, savings, liabilities, the needs of your family, future goals, and any emergencies in order to understand how much money you will need to sustain yourself and your loved ones after retirement.
The Tata AIA Life Insurance lets you choose how you want to receive your annuity payouts and also the purchase price for buying the annuity or the annuity amount you would like to receive. The flexibility in the payouts makes it easier for you to make a concrete retirement plan.
However, once you have a well-planned retirement strategy in place with any of our suitable annuity plans for retirement, you can easily work towards the fulfilment of your financial goals. Here are a few benefits of having a secure retirement plan:
- A financial backup for emergencies: With the provision of a regular and guaranteed1 income, a retirement plan can ensure that you have enough financial support even in case of emergencies. Be it relocating to another city or tackling a medical contingency, a well-planned retirement fund can secure you against these expenses.
- Protection for your assets and property: The lack of a retirement plan can leave you in a financial dilemma, compelling you to sell your property or assets to sustain yourself and your family during your retirement years. With secure retirement planning, you can retain your property and assets and allow their value to keep enhancing for future utilisation.
- Financial assistance during medical emergencies: With a pension plan for retirement, you can ensure that apart from your regular expenses, your medical expenses are covered as well. You may underestimate medical expenses, but the fact remains that during the retirement period, one may face health risks, owing to old age.
- A stress-free retired life: Your retirement is yours to enjoy and should not be marred by worries about how you are going to manage your expenses. By opting for an annuity plan for retirement that caters to your needs, you can spend your days pursuing your hobbies, engaging in some exercise, spending time with your family, and fulfilling your planned goals instead of being worried about any monetary problems.
A safe retirement plan is beneficial for you in many ways. Having a good retirement plan means that you can save enough money for all your future needs, which includes fulfilling your family’s aspirations as well. While drafting a practical retirement plan can take some time, making it work with the Tata AIA Life Insurance can be convenient!