We all get tired working in this hectic professional world today and dream of retiring early with steady cash flow to take care of our daily expenses for life. While this may not seem possible but is also not entirely impossible. If you have saved reasonable amount of corpus and has passed all the major expense points of your life like children’s education, marriage etc then by creating annuities on your corpus can help you in retiring early.
Annuities, mentioned above, are nothing but a pension plan with steady cash flow during your retirement years so that you don’t have to depend upon others for your expenses. Immediate annuities are basically opposite of a typical life insurance policy. Instead of paying regular premiums to an insurer that makes a lump-sum payment upon your death, with an annuity you give the insurer a lump sum of cash in return for regular income payments until you die. Immediate annuities start paying out right away.
Many insurance companies in India provide various options on annuity plans depending upon your requirement. For example one might be looking to retire after his / her retirement age and wants annuities for life along with a lump sum payment, or someone might want the payment for say 10 years only without any lump sum payment or a case may be when a person might want to retire immediately and wants his annuities to also start immediately. There is some kind of pension plan available for every need.
For example EdelweissTokio Life -Immediate Annuity Plan, is a single premium plan available for age group 18 to 85 years. So you can even start your annuity very young and enjoy the steady cash flow for life. Some of the key features of this immediate annuity plan are:
- You can plan your retirement with guaranteed annuity benefit.
- Choice of multiple options as per your requirements. For example Life Annuity with Return of Purchase Price, Life Annuity Certain for 5 Years / 10 Years/ 15 years / 20 years, Life Annuity Increasing at a Simple Rate of 3.0% per annum, Life Annuity Increasing at a Simple Rate of 5.0% per annum etc
- Pay only once and avail immediate annuity benefits for lifetime.
- Avail extra annuity benefits for higher premium amounts.
- Option to avail annuity during your lifetime and leave lump-sum thereafter for your loved ones.
- Option of annuity benefits for both - you and your spouse.
- Option to receive annuity benefits in yearly, half-yearly, quarterly or monthly installments.
- No Surrender benefits are available for this product.
- No policy loans can be availed on this plan.
Note: I am writing this review for BlogAdda