Many people invest in pension plans but it is seen that most of the people find it difficult to choose pension plans or annuity plans. An annuity is an investment made for retirement.
If you are a salaried person, then you get the benefit of pension facility after retirement. But how much pension you will get every month after retirement, it depends on the contribution made by you to the pension fund while working. Many people invest in pension plans, but it is seen that most of the people find it difficult to choose pension plans or annuity plans. An annuity is an investment made for retirement. It helps you to earn a fixed and regular income after retirement. Let us try to understand what is an annuity, and what are its benefits. Here we are going to explain to you some special types of annuity plans.
Annuity with ROP on death
ROP (Refund of Premium) is an annuity option that guarantees a fixed annuity payout to the annuitant throughout his life. On death, the amount paid to buy the annuity is returned to the nominee.
Joint life annuity
This type of annuity option covers the annuity taker and his/her spouse. Under this, the annuity is paid till at least one of the insured is alive.
Increasing pay annuity
In this type of annuity plan, the payout increases at a fixed rate on an annual basis. Where the annuity holder gets a predetermined additional amount in the plan. Those whose expenses are high, and those who want to avoid any kind of financial trouble due to their expenses, such people can take an annuity.
Annuity for life
This is the simplest form of annuity where predetermined and regular payments are made to the annuity holder for the rest of his life. The payments can be monthly, quarterly or annually depending on the needs of the annuity holder. The annuity income stops only on the death of the annuity holder.
