This India First Immediate Annuity Plan helps you maintain a secure post-retirement life. It also helps you to take care of your living expenses and have a worry-free retirement.
Why you need to Buy India First Immediate Annuity Plan
For most of us, putting something aside for retirement is our essential financial goal. Also, no difference either way. All things considered, we save today to have a comfortable future, correct? In any case, that is not it. For a great many people, the retirement period is as when they plan to do things they don’t get to do in their procuring years, for example, living in a mountainous or beachside location or going on long vacations. Furthermore, everything needs proper investment today with the goal that you can receive the rewards later.
Putting resources into a pension plan is one of the numerous ways you can put something aside for your retirement. In a pension plan, you are expected to make monthly contributions of a specific sum over a long term. Beginning your pension plan at the right age, by and large in your 30s, will guarantee that you will have sufficient money saved when you resign. It is more straightforward to contribute little aggregates monthly, and that is conceivable, assuming you begin money management early. Most pension plans likewise offer the option to pull out a proper aggregate consistently after retirement, with the goal that you are not enticed to go overboard a lot too soon, with the exception of an emergency.
Also, with regards to pension plans, IndiaFirst Pension Plan offers extraordinary advantages. Allow us to take a gander at a portion of the advantages of their pension plans.
- You can save tax when you put resources into a pension plan since it is considered a saving.
- Your manager matches your investment in the pension plan, which implies more savings.
- You can add however much you need on a monthly premise inside the base and most extreme breaking point, with the goal that too large an investment doesn’t beg to be spent.
Here are some of the benefits of this plan:
- You can choose your retirement age. Under this plan, you can start reaping the benefits of your investment from the age of 40.
- You can choose how you want your retirement savings. You can get money monthly, quarterly, half-yearly, or yearly.
- Under the joint life annuity plan, you can also support your spouse in your absence.
- Your nominees can get the investment amount back under the return of purchase price option.
- A comfortable retirement is guaranteed under the certain annuity option for a period and life thereafter.
Annuity Options available in this plan:
- Life Annuity
- Life Annuity with Return of Purchase Price
- Joint Life Last Survivor Annuity for Life
- Annuity Certain for a period of 5 years or ten years, or 15 year
On the off chance that you’ve concluded that this is an ideal plan for you, we should check out its eligibility criteria.
- For first annuitants, the base passage age for investment is 40 years, while there is no base age for existing members or beneficiaries of IndiaFirst Life Insurance Plans. The maximum passage age is 80 years.
- For second annuitants, the base eligibility age is 18 years. The maximum age is 80 years.
- The least monthly annuity installment is Rs. 1000, while the yearly limit is Rs. 12,500.
- The least premium is Rs. 3,00,000, while there is no maximum limit.
- The IndiaFirst Annuity plan is a traditional annuity plan that can be purchased by paying a single amount as Single Premium. Once you choose your retirement age, you will get proper pay under this plan on a monthly, quarterly, half-yearly, and yearly basis. This is a non-participating Immediate Annuity plan, which means it’s not eligible for any bonus.
India first Annuity Plan – Key Features
- Traditional Pension Plan: This pension plan pays a regular guaranteed payment to the retired person at the finish of his/her services. It helps the annuitant maintain a nice standard of living and carry on with the resigned life on his/her own terms.
- Immediate Annuity Plan: The annuity payments of a stated amount start as soon as the single amount is paid
- Single Premium Policy: This traditional lifetime annuity plan can be purchased by paying the exceptional in a single payment
- Monthly Annuity Payouts: A definite regular monthly payment is paid to the annuitant all through his/her retirement years
- Lifetime Benefit: The decent annuity is paid on a monthly basis during the lifetime of the annuitant, for example, for as long as he/she is alive
- The decision on Retirement Age: The policyholder can choose the retirement age according to his/her needs
- Relaxed Entry Age: The base age while applying for the plan is 40 years, and the maximum age is 80 years. This allows maximum individuals to benefit from this annuity plan.
- Numerous Payment Options: The payment for the annuity plan can be made with a money order, demand draft (DD), or Electronic Clearing Service (ECS)
India first Annuity Plan – Benefits
- Annuity Benefit: Annuity payouts (series of fixed payments) are paid to the annuitant on a monthly basis according to the planned schedule during his/her lifetime, for example, for as long as he/she is alive. Annuity begins immediately from the following month after payment of a single amount premium.
- Death Benefit: There is no Death Benefit payable since it is an annuity plan
- Vesting Benefit: There are three options available to the policyholder at vesting of a conceded annuity/pension plan:
- He/she can take 1/3rd of the tax-free Fund Value and purchase an annuity with the remaining 2/3rd either from IndiaFirst Life Insurance or from any other life insurance company
- He/she can purchase an annuity with 100% of the single amount either from IndiaFirst Life Insurance or from any other life insurance company
- He/she can take the whole Fund Value and be taxed according to the ongoing annual tax laws
- Surrender Benefit: There is no Surrender Benefit payable under this plan
- Tax Benefits: Tax benefits can be availed according to the Income Tax Act, 1961. Be that as it may, no tax benefit is available on the purchase amount. Assuming that the policyholder purchases an annuity plan from the proceeds of a conceded annuity/pension plan, he/she won’t be taxed on the proceeds of the pension plan that he/she used to purchase the annuity plan.
India first Annuity Plan – Product Specifications
|Entry Age (last birthday)||40 years||80 years|
|Purchase Price||Rs. 50,000||–|
|Premium Payment Term||Single Pay|
|Annuity Payout Frequency||Monthly|
India first Annuity Plan – Product Specifications
Cancellation of Plan: The insurance company will provide their users with a free look period of 15 days which will be counted from the date of receipt of the policy in order to review its terms and conditions and accessibilit. . If one feels that it is not the right plan for him/ her or disagrees with any of its terms and conditions, he/ she can return the policy to the insurance company along with written reasons for such objections. The insurance company will then refund an amount equal to the premium received (purchase price) after deducting the stamp duty.
Policy Loan: No loan facility is available under this plan
Non-Participating Plan: Since this is a non-participating plan, it does not participate in the surplus earnings of the fund or in the profits of the insurance company. No bonus is payable under the plan. The plan benefits are restricted to the promised annuity.
Surrender Value: The plan cannot be surrendered and therefore does not have any Surrender Value
Prohibition of Rebate: Section 41 of the Insurance Act, 1938 (as amended by the Insurance Laws Amendment Act, 2015) forbids accepting rebates in any form. The law states that:
- No person shall allow or offer to allow, directly or indirectly, as an inducement to any person to take, renew or continue insurance in respect of any kind of risk relating to lives or property in India.
- Any person making default in complying with the provisions of this section of the Insurance Act, 1938 is liable to a penalty of a fine which may extend to Rs. 10 lakh
Eligibility – Who Is India’s first Immediate Annuity Plan For?
There are defined requirements for all life insurance policies that clients must meet in order to be eligible to purchase the policy. The Immediate Annuity Plan is only available to new members who are at least 40 years old. This age restriction does not apply to beneficiaries or current pension members, though. Given below are the eligibility requirements of the Immediate Annuity Plan:
|Minimum Entry Age||First annuitant40 years for new members0 years for existing pension members and beneficiariesSecond annuitant18 years|
|Maximum Entry Age||First annuitant80 yearsSecond annuitant80 years for new members99 years for existing pension members and beneficiaries|
|Retirement age||40 years to 80 years|
|Minimum Premium||Rs.3 lakhs|
|Maximum Premium||No limit|
|Minimum Annuity Term||Five years|
|Maximum Annuity Term||15 years|
How To Apply For India’s first Pension Plans?
You now have the chance to apply for the pension plan of your choice once you are aware of your financial objectives and have determined which IndiaFirst Pension plan best meets those objectives. The application procedure is really simple. You really want to actually take a look at your eligibility, and in the event that you’re eligible, contact IndiaFirst to get a top to bottom information on your chosen plan and get your documents checked by our professional consultants. You will get a reference/quote number on the off chance that all your documents are all together. Once you have the statement/reference number, you can purchase your favored plan online at the IndiaFirst website. Simply enter your statement/reference number and the date of birth of the person insured to start.
Q1. What is Pension Plan?
Ans – Otherwise called ‘Annuity Plans,’ pension plans are meant to guarantee standard income for individuals, particularly after they have retired from employment. Ordinarily, when you resign, a massive loss of income is contrasted with your compensation while working. This drop in your standard income level influences all parts of your life. We as a whole realize that the basics and necessities of each individual are unique, and a traditional pension helps somewhat cover these expenses.
Notwithstanding, with a pension plan, you can keep on carrying on with your retired life similarly to when you were utilized. Some Pension plans are additionally intended to give investment returns and go about as life insurance contracts. With pension plans, you can now sit back and relax, realizing that your investment sum will provide excellent returns because of compounding. It will assist with beating the pace of expansion a long time before your arrangement develops and empowers you to keep carrying on with a comfortable life that you are accustomed to living.
Pension plans will be plans that take care of your income stream after your retirement. After retirement, in any event, when there is no type of revenue, your lifestyle expenses will continuously be there. You are expected to orchestrate to meet your everyday expenses. It is when retirement proves to be helpful, as it fills in as a wellspring of average income, empowering you to partake in your retirement period without stress.
Q2. What are the types of pension plan insurance I can opt for?
● Deferred Annuity Pension Plans
● Immediate Annuity Pension Plans
Q3. What is the right time to buy a pension plan?
Ans – Any age is a good age to start thinking of retirement once you become ready to earn and make a living. Crucial steps in planning involve understanding the importance of such plans and changing your lifestyle to accommodate the required savings for a secure old age!
Q4. What are the benefits of a retirement policy?
i. Efficient savings for long-term
ii. Effective against Inflation
iii. Insurance and Investment
Q5. What is the difference between immediate and deferred annuity pension plans?
Ans – In the case of an immediate annuity plan, as soon as you invest your money, you begin getting a consistent income. However, in the case of a deferred annuity plan, the payouts start following the expiration of the deferment term.