Pension Plan: How many types of annuity plans are there, if you are planning for retirement then first understand this important thing...
After retirement, you do not have any source of income, but the need for money remains. In such a situation, one has to depend on others for small needs. Therefore, it is very important that along with your job, you make such arrangements for yourself so that you continue to get regular income in old age and you do not have to depend on anyone for money. In such a situation, annuity plans can be very helpful for you.
An annuity is an insurance product, in which there is a kind of contract between you and the insurance company. In this, the person has to invest a lump sum. In the future, you will be paid in return monthly, quarterly, or annually. Annuities are used as part of a retirement portfolio. In this, as long as you survive, you get a fixed income. After your death, the nominee is entitled to receive the amount. However, there are many types of annuity plans. If you are also planning to purchase it, then first know about it-
There are many types of annuity plans
Life Annuity: In this, an annuity is paid to the person till his death. You can choose whether the payment is monthly, quarterly, or annually.
Annuity for the guaranteed period: In this, an annuity can be paid for a certain amount even after the death of the policyholder. After the completion of a certain period, the receipt of the annuity also stops.
Joint Life Annuity: In this, after the death of the policyholder, an annuity is paid to your spouse for his entire lifetime.
Life Annuity with Return of Purchase Price: In this, the policyholder will get annuity payment till his death. After death, the amount paid by them to buy the annuity is returned to their nominee.
Joint Life Annuity with Return of Purchase Price: In these plans, after the death of the policyholder, his spouse gets an annuity for his entire life and after his death, the nominee gets the amount initially invested.
Tax benefits are not available
Keep in mind that an annuity is linked to your income, hence you do not get any kind of tax exemption in it. Policyholders have to pay tax according to the tax slab they fall in.
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