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What Our Plans Cover
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Regular income at the frequency ch...
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Lifetime income on the life annuit...
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Joint-life continuation for a spou...
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Return of purchase price to the no...
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Period-certain guarantees of five
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Escalating income options
Who Can Consider This Plan?
- Entry age typically 18 to 60, varying sharply by product
- Income sufficient to sustain the premium for the full term
- Full disclosure of health, lifestyle and family medical history
- Medical examination above a threshold age or sum assured
- Indian resident or NRI, subject to the insurer's country rules
What May Not Be Covered?
- Access to the capital after purchase, on most variants
- Any increase in income, unless an escalating option was chosen
- Participation in later interest rate rises
- Changes to the option once income has commenced
- Inflation protection on a level annuity
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
- Niva Bupa Health Insurance
- HDFC ERGO
- ICICI Lombard
- Bajaj Allianz
We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
An annuity is a contract in which you hand over a lump sum and the insurer pays you an income for a defined period or for the rest of your life. Immediate annuities start paying at once; deferred annuities start at a chosen future date.
It is the only widely available instrument that genuinely removes longevity risk. No portfolio strategy can guarantee an income that continues for as long as you live, because no strategy knows how long that is. An insurer can, by pooling that uncertainty across many lives.
The trade is liquidity and legacy. Once purchased, the capital is generally gone — you have exchanged an asset for an income stream. Options exist that return the purchase price to your heirs, and they pay a lower income for it.
Who should consider it
Retirees who want a guaranteed floor under their essential expenses. People without a pension who need to replicate one. Anyone worried, with good reason, about managing investments into advanced age.
It is not for someone who needs access to capital, or whose priority is leaving an estate. And it is rarely sensible to annuitise everything — the right proportion is usually what covers your non-negotiable monthly costs.
Benefits
- Income guaranteed for life, whatever happens to markets or interest rates
- Eliminates longevity risk entirely, which no investment strategy can
- Joint-life options continue paying a surviving spouse
- Rates are locked at purchase and unaffected by later rate movements
- No ongoing management required — important at advanced ages
- Return-of-purchase-price options preserve capital for heirs
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Regular income at the frequency chosen — monthly, quarterly or annual
- Lifetime income on the life annuity options
- Joint-life continuation for a spouse, where selected
- Return of purchase price to the nominee, on that variant
- Period-certain guarantees of five, ten, fifteen or twenty years
- Escalating income options, where selected
Typically not covered
- Access to the capital after purchase, on most variants
- Any increase in income, unless an escalating option was chosen
- Participation in later interest rate rises
- Changes to the option once income has commenced
- Inflation protection on a level annuity
- Surrender, which most annuities do not permit at all
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 Start with the goal, not the plan A school fee in 2038, an income from 2045, an estate to pass on. The goal decides the structure; the brand is the last decision, not the first.
- 2 We separate the protection from the saving You see what the cover costs and what the savings portion is projected to return, as two numbers rather than one blended promise.
- 3 Compared against the honest alternative Term insurance plus a mutual fund, on the same premium and the same horizon. Sometimes this plan wins; often it does not, and we say so.
- 4 Proposal, medicals and financial underwriting Medicals arranged at home. For larger premiums, insurers assess income as well as health.
- 5 Issued, with the illustration on file We keep the benefit illustration you were shown, so what was promised is on record for the whole term.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Annuity rates are locked at purchase. Buying when rates are low locks a low income for life, which is an argument for staggering purchases across several years rather than annuitising in one transaction.
- A level annuity loses purchasing power every year. Over a twenty-five-year retirement that erosion is severe — price the escalating option even though it starts lower.
- Return of purchase price sounds attractive and pays a materially lower income. Decide whether the priority is your income or your estate; trying to have both costs you the difference.
- Annuitise the portion that covers essential expenses, not the whole corpus. Liquidity for emergencies and medical costs has to come from somewhere else.
- Compare rates across insurers before purchasing. They differ meaningfully, and because the decision is permanent, a small rate difference compounds for decades.
Documents required
- Completed proposal form with full health disclosure
- Identity proof — Aadhaar, passport or PAN
- Address proof
- PAN card, mandatory for life insurance
- Income proof — Form 16, salary slips or filed returns
- Bank statements, for larger premiums
- Medical reports, where the insurer requires them
- Recent passport-size photograph
Frequently Asked Questions
Can I get my money back after buying an annuity?
On most variants, no. You have exchanged capital for an income stream, and that exchange is permanent. Return-of-purchase-price options return the capital to your nominee on death, but they pay a lower income in exchange and still do not give you access during your lifetime.
Should I buy the whole annuity at once?
Usually not. Rates are locked at purchase, so annuitising everything in one year locks whatever rate happens to prevail then. Staggering purchases across several years averages that risk, much as an SIP averages market entry.
Level or escalating income?
A level annuity pays more now and loses purchasing power every year. An escalating one starts lower and rises. Over a retirement that may run twenty-five years or more, the escalating option is frequently the better decision despite the lower starting figure.
What happens to my spouse?
Only a joint-life option continues paying them. A single-life annuity ends on your death regardless of your spouse's circumstances. For a married retiree, joint life is usually the correct default.
Is annuity income taxed?
Yes, as income in the year received. It is worth planning the income you need on a post-tax basis rather than being surprised by the difference.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.