LIC – Life Insurance Products

Annuity Plans

Plans that turn a lump sum into a regular income, for life or a fixed period.

How we help

An annuity converts a sum of money, whether retirement savings or a maturity amount, into regular payments. An immediate annuity starts paying soon after you buy it, and a deferred annuity starts at a date you choose.

The income depends on your age, the amount invested and the option you pick. Life-only gives the highest income. Joint-life continues to your spouse. Return of purchase price pays the amount back to your nominee, at a lower income.

We compare the options available from the insurers we work with and show how the income would meet your regular expenses.

What it covers

Regular income payouts
Choice of annuity options
Terms vary by policy

Policy benefits, eligibility, premiums, and terms vary by insurance product.

Before you decide

Points to check

01The annuity option: life only, joint life, or with return of purchase price
02The annuity rate and how often income is paid
03Whether the income is fixed or increases over time
04How the income is taxed in your hands

Common questions

What people ask us about Annuity Plans

Can I change the option after I start?

Generally not. The option is fixed when the annuity begins, so it is worth choosing carefully.

Is annuity income taxable?

Yes. It is added to your total income and taxed at your slab rate in the year you receive it.

What is the difference between an annuity plan and a pension plan?

A pension plan builds a corpus over time and then converts it into income. An annuity plan can also be bought with a lump sum you already have, starting the income straight away.