Immediate Annuity

Looking for a way to convert your savings into a steady post-retirement income? An immediate annuity could be your ideal solution. It begins paying you almost instantly after a one-time premium payment. Whether you are approaching retirement or already retired, this product helps you turn your lump sum into lifelong income—without market uncertainties.

Want income that lasts as long as you do? Explore annuity-backed life insurance plans tailored to your retirement goals.

What is an immediate annuity?

An immediate annuity is a life insurance product designed to offer a guaranteed income stream starting almost immediately after you invest a lump sum. You pay a one-time premium and start receiving payouts—monthly, quarterly, or annually—within one year of purchase.

This plan is especially suitable for those nearing or in retirement who wish to avoid outliving their savings. Unlike other investments, immediate annuities shift your focus from asset accumulation to stable cash flow for life.

You can also explore life insurance plans that come with returns options like ULIPs, endowment plans and more, enabling you to grow your wealth and get a life cover, all under on umbrella. Compare premiums and get quote to grow your savings today!

Who should buy immediate annuities?

If you're a retiree looking to turn your savings into a dependable income, an immediate annuity can be a wise choice. This plan is all about peace of mind—helping you enjoy your golden years without worrying about cash flow.

Ideal for:

• Retirees with a corpus: 

  If you've recently retired with a lump sum (from EPF, gratuity, or other savings), immediate annuities help convert it into guaranteed monthly income.

• Risk-averse individuals: 

  Prefer safety over market-linked growth? Annuities are low-risk options offering predictable returns.

• Pension gap fillers: 

  For those without formal pensions, these plans can act as self-created pension tools.

• Family caretakers: 

  Joint annuity options can ensure income continuity for your spouse or dependent.

• Early retirees: 

  If you’ve opted for early retirement, this solution helps you maintain a steady income without dipping into other savings.

Ready to match your retirement lifestyle to guaranteed income? Get a plan recommendation based on your income and goals. Compare plans and Get Quote!

Immediate annuities offer flexible payout formats to suit your lifestyle and responsibilities. You can choose how often and for how long you want to receive income.

Common payout types:

• Lifetime annuity: 

Receive income as long as you live. The amount remains fixed and continues till your death.

• Lifetime annuity with return of purchase price: 

After policyholder’s demise, the purchase price is returned to the nominee.

• Joint life annuity: 

Payouts continue for your spouse after your death, ensuring financial continuity.

• Guaranteed period annuity: 

Income is paid for a fixed period (say 5, 10, or 15 years), regardless of survival.

• Increasing annuity: 

Your annuity amount increases at a fixed rate annually to match inflation impact.

• Deferred payout options: 

Some immediate annuity plans also allow short deferral before income starts (within 1 year).

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What are the frequently offered features in immediate annuity?

Modern life insurance annuity plans now come packed with user-centric features designed to provide both flexibility and peace of mind.

Key features include:

• Choice of payout frequency:

Monthly, quarterly, half-yearly, or annual options to match your budgeting needs.

• Multiple annuitant option: 

Choose single or joint life to include your spouse or dependent in your plan.

• Return of purchase price: 

Get capital protection by opting for return of your invested amount to nominee.

• Online purchase availability: 

Buy and activate your annuity directly through trusted insurers in just a few steps.

• High entry age limit: 

Many plans allow purchase up to age 80+.

• Loan facility on annuity: 

Some plans offer partial liquidity during emergencies (subject to terms).

• Auto credit of annuity: 

Income is directly credited to your bank account, hassle-free.

Still unsure about features that matter? Enter your age and goal to see recommended options. Get Quote!

Immediate annuity plans are designed to be accessible while ensuring long-term value. Here's a quick guide on eligibility and investment benchmarks.

Eligibility and investment norms:

• Minimum age: 

Usually starts at 30 or 40 years depending on the plan.

• Maximum age: 

Up to 85 years in most life insurance-backed annuity plans.

• Minimum purchase amount: 

Starts from Rs. 50,000 to Rs. 1 lakh depending on insurer.

• One-time premium: 

You must invest a lump sum; regular contributions are not allowed.

• Nomination facility: 

Available in most plans for legacy planning.

• No medical underwriting: 

Most annuity plans do not require medical tests.

Wondering how much you need to invest? Check life insurance plans with returns based on your age, income, and goals and get quote!

Immediate annuity plans come with specific tax treatment under the Income Tax Act, 1961. They also offer potential deductions under certain sections, enhancing your overall tax efficiency.

Tax-related insights:

• Section 80CCC benefit: 

You can claim deduction up to Rs. 1.5 lakh on investment in annuity under this section (within the overall 80C limit).

• Payouts are taxable: 

The income you receive from annuity is taxed as per your income slab.

• TDS threshold on annuity: 

 Some insurers may deduct TDS if total annuity payouts exceed Rs. 50,000 in a financial year. TDS applicability may vary across insurers and policy types.

• Return of purchase price not taxed: 

If your nominee receives the purchase amount after your death, it’s generally not taxed.

• Joint annuity and taxation: 

Income is taxed in the hands of the primary annuitant.

Maximise your post-retirement income while managing taxes. Start your tax-optimised annuity journey today. Check plans and get quote!

Conclusion

An immediate annuity is more than just an investment—it’s a guaranteed income promise for your retirement. Backed by life insurance, it blends safety, stability, and peace of mind. If you’re ready to turn your savings into dependable income, there’s no better time to start.

Get started with personalised quotes, compare options, and secure lifelong income now. Get Quote!