Types of Annuity Plans
- Posted On: 05 Feb 2026
- Updated On: 10 Feb 2026
- 9 Views
- 2 min read

Table of Contents
Planning for retirement means thinking long-term about steady income. One of the most effective ways to ensure income after working years is understanding the types of annuity plans available in India. Annuity plans provide a systematic way to convert your savings into regular income, helping you maintain your lifestyle with peace of mind.
What Are Annuity Plans?
Annuity plans are retirement products that provide regular payouts to policyholders in exchange for a lump sum investment made during their earning years. Instead of spending your savings all at once, annuities help you receive periodic income, typically monthly, quarterly, or annual after your retirement age.
Understanding the types of annuity plans helps you structure your post-retirement income according to your needs, responsibilities, and lifestyle expectations.
Types of Annuity Payout Options
1. Immediate Annuity Plans
An immediate annuity plan begins paying income almost right away, usually within one month of buying the policy. These are suitable for people who are about to retire or have already retired and want predictable income without waiting.
2. Deferred Annuity Plans
In deferred annuity plans, you invest a lump sum or regular premiums during your working years. The income payouts begin at a future date, typically after retirement. This type allows your savings to grow before they are converted into a retirement income.
3. Life Annuity
This plan provides income for the lifetime of the annuitant. Payments stop only upon the annuitant’s death. It is the simplest and most predictable form of income security.
4. Life Annuity with Return of Purchase Price
Under this option, income is paid for life, and upon death, the purchase price (the lump sum you invested) is returned to your nominee. This gives both lifetime income and protection for your family’s financial interests.
Choosing the Annuity That Fits Your Future
Understanding the types of annuity plans is a key step in creating a secure retirement strategy. Each annuity type, immediate or deferred, life or fixed-period, simple or increasing, serves a different purpose based on your age, income goals, and responsibilities.
Choosing the right annuity means fitting your retirement income to your life goals, not just your savings.
| Start building your retirement income plan today, explore annuity options with Shriram Life that align with your long-term goals and bring financial confidence into your golden years. |
FAQs
What is the main difference between immediate and deferred annuity plans?
Immediate annuity plans begin payouts soon after purchase, while deferred plans delay payouts until a future date.
Can my nominee receive benefits after I pass away?
Certain annuity options, like “Life with Return of Purchase Price,” ensure your nominee receives the invested corpus after your death.
Do annuity incomes adjust with inflation?
Some annuity plans offer increasing payouts that can help protect against inflation. Always check the plan specifics.
Is annuity income taxable?
Annuity payouts may be taxable under prevailing income-tax laws. Consult a tax advisor for details based on your situation.
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