Insurance Plans August 24, 2020

Nowadays, with the increase in inflation, everyone wants to accumulate funds for the future. So, the safest option for investment is to buy an investment insurance plan. If you think your retirement days are closer then it is suitable to buy an immediate annuity plan. So, here you can see the Birla Sun Life Immediate Annuity Plan that offers you a regular income after your retirement. There are six different options for the payout and you are free to decide the payout frequency at your convenience. On the other hand, there is no need for any medical test to take this insurance plan. Let’s go through the features of this plan so that you can have a better knowledge of it.

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Key Features of immediate Annuity Plan

  1. You will receive a regular income after your retirement.
  2. There are multiple options to receive the payout.
  3. Flexibility of choosing the Payout Frequency Mode.
  4. There is no need for any medical test before taking the plan.
  5. Receive income throughout life after retirement.
  6. Enjoy tax benefits under section 80C of the Income Tax Act 1961.
  7. The minimum age of entry in this plan is 30 years.

Investment Options of the Immediate Annuity Plan

There are 6 options available to receive the payout once the lump sum premium is paid. You are free to choose any payout option at the time of the inception of the policy.

Option 1

In this option, the annuity will be paid to the insured at a uniform rate. The company will cease the rest of the amount of the insured if in case the insured dies during the payout term.

Option 2

The company will give you an annuity for life and the purchase price on death will be returned to the annuitant.

Option 3

In this option of the Birla Sun Life Immediate Annuity Insurance Plan, a guaranteed annuity is payable for a specified period that you have chosen at the time of inception of the policy. It can be for 5 years, 10 years, 15 years, and 20 years. If in case the insured dies during the chosen payout term then the nominee will receive the income for the remaining payout term.

Option 4

In this option, you will get an addition of 3% every year on the annuity payable. The annuity will be paid for life and in case of death of the insured, the unpaid amount will be ceased by the company.

Option 5

This a Joint Annuity Payout option in which the annuity will be paid to the primary annuitant first. After the death of the primary annuitant, the annuity will be paid to the secondary annuitant. If both the annuitant dies then the company will cease the remaining amount.

Option 6

This option is also a joint payout option in which the annuity will be given to the primary annuitant first and after his death, it will be paid to the secondary annuitant. If in case both the annuitant dies then the company will pay the remaining amount to the nominee.

Steps to take the Immediate Annuity Plan

  1. Decide the lump sum premium amount that you will have to use to buy the annuity and to receive the income
  2. Choose any payout method from the 6 methods mentioned above.
  3. Choose the frequency of the payout whether to receive it on a yearly basis, monthly basis, half-yearly basis, and quarterly basis.
  4. Finally, choose the mean of receiving the income whether through post-dated cheques or directly receiving it into your account.

Eligibility Criteria for the Birla Sun Life Immediate Annuity Plan

ParticularsDetails
Minimum Age of Entry30 Years
Maximum Age of Entry90 Years
Frequency of Receiving the PayoutYearly, Half-Yearly, Monthly, and Quarterly
Minimum Regular Income that you will receiveRs.1000 for Yearly, Half-Yearly, Monthly, and Quarterly
Maximum Regular Income that you will receiveRs.12000 for Yearly, Half-Yearly, Monthly, and Quarterly

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