PFRDA

Types of Annuity Plans

There are many types of annuities- some payable only till the Annuitant is alive, some payable to spouse after death of the main Annuitant, some even payable to the nominee after death of main Annuitant and Spouse.

Examples of Various Annuity Plans available in the market

Annuity payable for life- Pension for life to the Annuitant till he/she is alive. After death of Annuitant, no pension to surviving spouse/ nominee and the purchase price is lost.
Annuity payable for 5/10/15/20 yrs and life thereafter- Pension for life to the Annuitant till he/she is alive. In case the Annuitant dies within 5/10/15/20 years, spouse gets Annuity for the remaining period only. After such period, the purchase price is lost. For eg. say an Annuitant chooses a 15 year plan. If Annuitant dies after 10 years, pension will be available to the surviving spouse. But if the Annuitant dies after 15 years, no pension will be available to the surviving spouse and the purchase price will be lost. Also, in case the spouse has died before the Annuitant, the Purchase price is lost.
Annuity payable for life with ROC (Return of Capital) on death of annuitant- Pension for life to the Annuitant till he/she is alive. After death of Annuitant, the Purchase price i.e. lump sum used to buy Annuity is returned to the nominee.
Annuity payable for life increasing at 3% simple p.a.- Pension for life to the Annuitant till he/she is alive increasing at simple rate of 3% per annum. After death of Annuitant, no pension to surviving spouse/ nominee and the purchase price is lost.
Annuity payable for life with 50% annuity payable to spouse on death of annuitant- Pension for life to the Annuitant till he/she is alive. After death of Annuitant, 50% pension to surviving spouse. After death of spouse the purchase price is lost. Also, in case the spouse has died before the Annuitant, the Purchase price is lost.
Annuity payable for life with 100% annuity payable to spouse on death of annuitant- Pension for life to the Annuitant till he/she is alive. After death of Annuitant, 100% pension to surviving spouse. After death of spouse the purchase price is lost. Also, in case the spouse has died before the Annuitant, the Purchase price is lost.
Annuity payable for life with 100% annuity payable to spouse on death of annuitant with ROC on death of Last Survivor- Pension for life to the Annuitant till he/she is alive. After death of Annuitant, 100% pension to surviving spouse. After death of spouse the lump sum used to buy the Annuity is returned to the last survivor.