Contracts that convert an accumulated corpus into a periodic payout, often for life.
An annuity is the other half of retirement. Once a corpus exists, an annuity contract converts it into a stated payout — monthly, quarterly or annual — at a rate locked in on the day of purchase. Immediate annuities begin paying at once; deferred annuities accumulate first and pay later.
The trade-off is explicit: the rate is guaranteed for life, but the capital is generally surrendered to the insurer and the payout does not rise with inflation unless you buy an increasing variant. We place annuities with IRDAI-registered insurers, compare the payout options available on the day, and complete the documentation.
Key features
- Immediate and deferred annuity structures
- Payout options — life only, life with return of purchase price, joint life with spouse
- Rate locked at purchase and payable for life, independent of later interest rate movements
- Commonly used for the mandatory annuitisation portion of an NPS corpus
- Annuity income is taxable in the year of receipt under current rules
- Nomination and survivor documentation recorded at issuance
Risk disclosure. Insurance is a subject matter of solicitation. Benefits, exclusions, waiting periods and claim outcomes are governed solely by the policy wording issued by the insurer. Pyrramid Wealth Distributors distributes this product and does not manufacture it. Nothing here is a recommendation or investment advice.