Itís not advisable to take a unit-linked policy for health insurance

Feb 04 2014, 12:48 IST
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After paying premium for eight years for a moneyback policy, I am no longer able to do so. (Thinkstock) After paying premium for eight years for a moneyback policy, I am no longer able to do so. (Thinkstock)
SummaryAfter paying premium for eight years for a moneyback policy, I am no longer able to do so.

fund future premiums in case of any unfortunate event.

I want to invest RS 30 lakh in an annuity product. How much monthly pension will I get and what happens to the corpus after my death?

ó PS Rao

Annuity plans are the ideal way to ensure a guaranteed income during the retirement years. These products have various options:

Annuity for life: The annuitant receives a guaranteed income during his lifetime.

Annuity for life with ROP: The annuitant receives a guaranteed income during his lifetime. On the death of the annuitant, the purchase price is paid back to the nominee.

Joint life annuity for life: The annuitant receives a guaranteed income during his lifetime. On the death of the annuitant, the spouse continues to receive the same income.

Joint life annuity for life: The annuitant receives a guaranteed income during his lifetime. On the death of the annuitant, the spouse continues to receive the same income. After the death of spouse, the purchase price is refunded to the nominees.

Currently, a male aged 60 years paying a single premium of Rs 30 lakh will receive an annual payout of round Rs 2.7 lakh. However, annuity rates are subject to change based on market conditions. This amount is based on the current annuity rates.

Prashant Tripathy is director & CFO, Max Life Insurance

Send your queries at fepersonalfinance@expressindia.com

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