LIC Annuity Agent in Powai
An annuity is one of the few financial decisions that's hard to undo. Once the lump sum is in and the option is chosen, it usually stays that way for life. So it's worth getting the details right. As an LIC annuity agent in Powai, I walk you through the options before you commit.
Annuity in one line
- You pay LIC a lump sum (the purchase price)…
- …and LIC pays you a regular income…
- …for life, or as per the option you choose.
How LIC Annuity Plans Work
The amount you invest in an annuity is called the purchase price. The income you receive is the annuity. The rate at which the purchase price converts into income is generally fixed when you buy, depending on your age, the option you choose and the rates applicable at that time. That's what gives an annuity its predictability.
Immediate annuity
The income starts soon after purchase — you can usually choose monthly, quarterly, half-yearly or yearly payouts. This is typically used by people who have just retired and received their PF, gratuity or a policy maturity amount. At the time of writing, LIC's immediate annuity plans include Jeevan Akshay-VII and LIC's Smart Pension.
Deferred annuity
You invest now, and income starts after a deferment period you choose. This suits someone in their 50s who wants to fix a future pension in advance. New Jeevan Shanti is LIC's single-premium deferred annuity plan at the time of writing.
LIC revises plans, rates and options from time to time. We'll always look at the current brochure and a proper illustration from LIC before you invest.
Common annuity options, explained simply
- Life annuity: income for as long as you live. Usually the highest income, but nothing is returned after death.
- Life annuity with return of purchase price: income for life, and the purchase price goes to the nominee after death. Income is lower than a pure life annuity.
- Joint life annuity: income continues to the spouse after the first person passes away, fully or partly as per the option.
- Increasing annuity: in some plans, income increases at a set rate each year, starting lower.
Which options are available, and their exact terms, depend on the specific plan.
Where an annuity fits in retirement
An annuity covers fixed monthly needs well: groceries, society maintenance, electricity, medicines. It's less suitable for money you might need suddenly. That's why I usually suggest putting only part of your retirement savings into an annuity. The broader picture is on the pension and retirement planning page.
Immediate vs Deferred Annuity
A general comparison to help you think it through.
| Point | Immediate annuity | Deferred annuity |
|---|---|---|
| When income starts | Soon after purchase | After the deferment period you choose |
| Typically suits | People at or after retirement | People a few years away from retirement |
| How you pay | Usually a single lump sum | Single premium or as per plan |
| Main benefit | Income from day one | Future income fixed in advance |
| Main thing to check | Option chosen is usually permanent | Your money is committed for the deferment period |
Please note: LIC plan benefits, premiums, eligibility and applicable terms depend on the specific plan and prevailing LIC rules. Please verify the latest details and policy terms before making a decision.
Official LIC website →LIC Annuity – FAQs
Clear answers before you put a lump sum into an annuity.
In everyday use they mean almost the same thing. An annuity is the product that pays you a regular income; the income itself is what most people call a pension.
In most LIC annuity options the annuity rate is fixed at the time of purchase, so your income stays the same. Some options offer an increasing annuity. Always check the exact terms of the option you choose.
It depends on the option. Options with return of purchase price pay the invested amount to the nominee after death. Surrender or loan facilities, if any, vary by plan and option, so check this before investing.
Usually not. An annuity is good for fixed monthly needs, but you'll also want money you can access quickly for health costs and emergencies. Most people put only a part of their corpus into an annuity.
Understand Your Annuity Options First
A short call can save you from picking the wrong option for life.