What is an Immediate Annuity?

Hey Friend,

To sustain a pleasant, independent living after you have finished an active working life, financial planning essentially covers your retirement. For people who do not get a post-retirement pension, a constant guaranteed income stream after retirement is the main goal of retirement planning. A good plan might also help you get peace of mind ahead of inflationary developments in India. To replace your regular income stream with an immediate annuity plan, you must build up a corpus over the long term during your productive years. Let me assist you with the immediate annuity meaning.

What is an immediate annuity:

An annuity plan is a strategy that offers you a recurring payout for the rest of your life in exchange for a one-time investment with the service provider. The insurer's retirement or pension plan, which aids in creating the necessary corpus to invest and reimburse you through returns, is the most basic annuity in India. 

An annuity, in its simplest form, is a contract between an insurer and a policyholder, under which the latter agrees to pay either a lump amount or periodic payments. As in an instant annuity plan, a regular income stream begins as soon as the lump sum payment is made. Alternatively, it may start at a mutually agreed-upon future date, typically after retirement. Let's find out more about the various annuity types offered in India before digging further into the instant annuity plan's specifics.

What is a single premium immediate annuity:

With India's single premium immediate annuity pension plans, you can set down a sizeable sum all at once and start receiving assured monthly pension benefits right now. You can choose your vesting age based on your needs with the deferred annuity option available in several periodic premium pension plans. You may decide to invest in other financial instruments in addition to pension plans as part of your retirement preparation.

What are the immediate annuity plans in India:

• Aditya Birla Sunlife Immediate Annuity Plan

• Aviva Annuity Plus Plan

• Exide Life New Immediate Annuity Plan

• Future Generali Immediate Annuity Plan

• HDFC Life New Immediate Annuity Plan

• ICICI Pru Immediate Annuity Plan

• IndiaFirst Life Guaranteed Annuity Plan

• PNB Metlife Immediate Annuity Plan

• Reliance Life Immediate Annuity Plan

• SBI Life Annuity Plus Plan

• TATA AIA Life Smart Annuity Plan

• Star Union Dai-ichi Immediate Annuity Plan

After retirement, entering your second half of life is a significant accomplishment. If you have well-thought-out plans for how you want to spend your retirement years, you can reap the rewards of your labour throughout your working years. A steady income stream enables you to pursue hobbies, a business, or peaceful leisure activities with your loved ones in your later years. The present that will assure your independent financial existence and the lifestyle you desire may be your immediate annuity plan. I would conclude my answer here about the immediate annuity meaning.

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