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    Read this Before Buying Immediate Annuity Plan | PNB MetLife


    Buying annuity? Read this before you take the plunge

    Last Updated On 20-06-2019

    The retirement years can be a wonderful period in life when planned properly. You can sit back, relax, travel, rest and do whatever you want with all the free time you have. But all this is possible only if you invest smart ensuring that you maintain a balance between conservative investments and aggressive returns.

    One of the best ways to ensure a guaranteed income for life (or for a certain stipulated duration) is to buy annuity plans. They do not offer a live cover but they protect you from outliving your own resources. 

    Here are a few things you need to know about annuity plans before you consider them or invest in them. 

    Types of annuity:

    Deferred annuity: A deferred annuity is one where you first build a corpus after which you use the same to buy an annuity at the time of retirement.  Pension plans of life insurance companies, however, need you to annuitize at least two-thirds or 66.67% of the corpus on maturity. The remaining one-third can be taken as a lump sum.

    Immediate annuity: Immediate Annuity Plan is where you simply take your money and buy an annuity from any insurer that provides immediate annuity. You pay once to ensure guaranteed income for your lifetime. This way, you can secure lifetime income for your spouse, even if you are not around and leave a legacy for your family through the return of invested capital on your demise.   

    An annuity guarantees regular payments to you for life after you invest a lump sum. You buy an annuity product at a prevailing rate, which gets locked. So, the payouts are fixed and guaranteed. The rate will depend on factors such as your age, type of annuity chosen and the amount.

    The younger the customer, the lower the rate of annuity since the payout will be for longer. Annuity rates mostly depend on the long-term interest rates in the market. The rates are also sensitive to the economic scenario and the insurer will alter the rate based on future projections. But remember that once bought, the rates are for life. 

    Annuity plans can also be divided on the basis of how the purchase amount is returned. One type of plan returns the purchased amount (principal) to the nominee on the death of the annuitant, and the second offers a higher rate of payout. 

    In case you have dependents or a spouse, you can choose the joint life survivor annuity, which pays you an annuity and on your death, continues the payoutsto your spouse for life. But here also you can choose the return of purchase price for the beneficiaries. 

    The routes and choices might vary for each investor, but the bottom line of an annuity plan is to ensure that it helps you build a regular stream of income. But remember that this is not a quick form of investment and you should commit fully into it. Once you annuitize, you cannot liquidate your investment. Also remember that the annuity income is taxable.

    To know more about Term Insurance, browse the website for various Term Plans Life Insurance Plans offered by PNB MetLife.

    Doesn’t the thought of retirement sound blissful? No work, no deadlines, and all your hours spent doing the things you love, like travel, painting, and even napping in the afternoon! If you want your retirement to be what you have always dreamed of, start retirement planning now and save a considerable retirement corpus in time. The online Retirement Calculator can help you plan your future financial goals and ensure you achieve them within the stipulated time. 


    The aforesaid article presents the view or an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ before making any decision.

    PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
    IRDAI Registration Number 117. CI No: U66010KA2001PLC028883.
    Please read this Sales brochure carefully before concluding any sale. This product brochure is only indicative of terms, conditions, warranties and exceptions contained in the insurance policy. Detailed terms and conditions are contained in the policy document
    For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding any sale. Terms and Conditions Apply. "Goods and service Tax (GST) shall be levied as per the prevailing tax laws which are subject to change from time.
    The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website:, Email: or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
    EC078 LD/2019-20/055

    • IRDAI is not involved in activities like selling policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

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    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at or You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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