Features:
- Provides a steady stream of income in retirement years
- Minimum annuity amount of Rs 60,000 per year
- Entry age from 40 to 75 years
- Option to choose Return of Purchase Price benefit
- Deferment period of 5 to 10 years before annuity payouts begin
Analysis:
This new plan from Shriram Life Insurance can be a good option for people looking to build a retirement corpus and secure a regular income after retirement. The plan offers flexibility in terms of entry age, deferment period, and annuity options. The Return of Purchase Price benefit adds an extra layer of security for the investor’s principal amount.
Secure Your Retirement Income: Explore Shriram Life’s Deferred Annuity Plan:
Here’s a breakdown of the pros and cons:
Pros:
- Steady income: Guaranteed income stream after retirement
- Flexibility: Options to customize the plan according to individual needs
- Security: Return of Purchase Price benefit protects the principal investment
Cons:
- Lower returns: Annuity plans typically offer lower returns compared to equity-linked investments
- Lock-in period: Money is locked in for the chosen deferment period
- Taxation: Annuity payouts may be taxable
Conclusion:
Overall, the Shriram Life Deferred Annuity Plan can be a valuable tool for retirement planning, especially for those seeking guaranteed income and capital protection. However, it’s important to compare it with other investment options like pension plans and mutual funds to see which best suits your risk appetite and financial goals.
FAQs:
What is a Deferred Annuity Plan?
A Deferred Annuity Plan allows you to invest a lump sum or pay regular premiums over a period (deferment period). After the deferment period, you start receiving regular income payments (annuity) for a chosen period.
Who is this plan suitable for?
This plan is ideal for individuals between 40 and 75 years old who are looking to build a retirement corpus and secure a steady income stream after retirement.
What is the minimum investment amount?
The minimum annuity amount is Rs 60,000 per year (which translates to a lump sum or premium amount depending on the chosen option).
Can I get my invested amount back?
Yes, you can choose the Return of Purchase Price option, which guarantees the return of your initial investment amount along with the annuity payouts.
What is the deferment period?
The deferment period is the time between investing and starting to receive annuity payments. This plan offers a deferment period of 5 to 10 years.
Are there different annuity payout options?
Yes, the plan likely offers various annuity options such as receiving income for a fixed period (e.g., 20 years) or throughout your lifetime.
How are the annuity payouts taxed?
Annuity payouts may be taxable as per prevailing income tax laws. It’s best to consult a tax advisor for specific details.
What are the benefits of this plan?
- Guaranteed income: Provides a steady stream of income after retirement.
- Flexibility: Offers options for entry age, deferment period, and annuity payouts.
- Security: Return of Purchase Price option protects your principal amount.
What are the drawbacks to consider?
- Lower returns: Annuity plans typically offer lower returns compared to equity-linked investments.
- Lock-in period: Money is locked in for the chosen deferment period.
Should I choose this plan?
This plan can be a good fit for your retirement planning if you prioritize guaranteed income and capital protection. However, compare it with other options like pension plans and mutual funds to see what aligns best with your risk tolerance and financial goals.
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