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Find Out Which Annuity Option Suits You The Best - The Economic Times
Find Out Which Annuity Option Suits You The Best - The Economic Times
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The launch of LIC's annuity plan and
rising interest rates have reignited
interest in the space. The pension,
general annuity and group fund assets
under management (AUM) for LIC
stand at Rs 6,06,017 crore, signi cantly
higher than those of SBI Life, HDFC
In increasing annuity, the annuitant is eligible for
Life, and ICICI Prudential Life.
lifetime annuity payouts, enhanced at a simple
rate each policy year.
However, before taking the nal
investment call, you need to study all
the options available closely. ET
Wealth explores some types of annuity
to help you decide.
5. Increasing annuity
How does it work: The annuitant will be eligible for lifetime annuity payouts
that are enhanced at a simple rate each policy year.
HDFC Life Insurance Pension Guaranteed Plan does not have this option
available.
Assuming the individual ( rst annuitant, male) invests 10 lakh (the purchase
price) into an immediate annuity plan; in case of LIC, in the increasing
annuity option, the annuities will increase by 3% per annum, 5% in the case of
other life insurers; return of purchase price means the amount that will be
handed over to the nominee post the annuitant and in case of joint life option,
post the spouse's death.
(Click here to know how to save on taxes for the nancial year 2020-21.)
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