Guaranteed Annuity

Looking for a predictable, worry-free retirement income? A guaranteed annuity might just be the answer. A guaranteed annuity combines life insurance certainty with lifelong income security. Whether you want peace of mind for 5 years or income for life, this product does both—without market risks.

Explore what makes guaranteed annuity plans a popular choice for savers who value certainty — and see how you can benefit with it.

What is a guaranteed annuity?

A guaranteed annuity is a type of life insurance product that promises to pay you a fixed income for a specified period—or for life—once you invest a lump sum. Whether it’s 5, 10, or 20 years, your payouts are contractually guaranteed, regardless of market ups and downs.

For those planning retirement or looking to convert savings into reliable income, this is an all-in-one solution. 

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Think of a guaranteed annuity as a reverse savings plan. You pay a lump sum today, and in return, your insurance provider pays you regular income over time—either for a fixed term or for life.

This is how it works, step by step:

How it works before annuity begins:

When you purchase a guaranteed annuity, you can choose to start receiving income immediately (immediate annuity) or at a future date (deferred annuity). You pay a single premium upfront.

• Payout structure:

Once annuity begins, you'll receive monthly, quarterly, or annual payouts based on your plan type and duration. The longer you wait to start, the higher your payouts can be.

• Income certainty:

Your payouts do not change with market conditions. Even during market lows, your income stays consistent—perfect for budgeting and managing lifestyle expenses post-retirement.

• Tax efficiency:

Annuity payouts are partially tax-free under Section 10(10D) in India, depending on the structure—adding to your net savings.

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Types of guaranteed annuities available for Indian investors

Choosing the right annuity depends on how and when you want to receive your income. Here are the most popular options in India that suit different retirement goals:

• Immediate guaranteed annuity:

Ideal for retirees or those looking for instant income. Start receiving your annuity income right after you invest—usually within one year. 

• Deferred guaranteed annuity: 

Defer your payouts to a later date (say 5–10 years). You lock in today's rates and enjoy higher future income. Great if you're planning for post-retirement but not retiring just yet.

• Life annuity with return of purchase price:

You receive income for life, and after your demise, the purchase price is returned to your nominee. This is perfect for those who want to leave behind a safety net.

• Fixed term annuity (e.g., annuity guaranteed for 5 years):

Get assured income for a set period. For instance, a 5-year guaranteed annuity ensures payouts even if you’re no longer around. Nominees continue to receive the amount for the remainder of the term.

• Joint-life guaranteed annuity:

Ideal for couples. After your passing, your spouse continues to receive the annuity income. Financial security for two, in one plan.

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Both plans offer guaranteed income—but the timing and purpose differ. Here’s a comparison to help you decide based on your current life stage.

Fixed annuity vs. variable annuity: What should you choose?

Once you have decided between immediate and deferred annuity, you can pick a payment type. Should your annuity payout be fixed or variable? Let’s simplify that choice:

Fixed annuities like guaranteed annuity plus offer the peace of mind that comes from knowing exactly how much you’ll get, and when.

Want income stability for your retirement? Choose a fixed guaranteed annuity plan now — Check life insurance plans with guaranteed income options and Get Quote!

With a guaranteed annuity plan, you don’t just save—you unlock the power of reliable income for years to come. Whether it’s for 5, 10, or 20 years, you’ll always have a financial safety net.

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