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ANNUITY OPTIONS FOR REGULAR INCOME

1. Life Annuity – You get guaranteed pension for life. The income stream tends to be the highest given that the investment amount will not be paid back.

2. Increasing Annuity – Pension is paid until you are alive but at an increasing rate.

3. Life Annuity with Return of Corpus (or Purchase Price) – Guaranteed pension for your life, and the initial investment amount is returned to a nominee. This will pay you the lowest annuity.

4. Annuity Guaranteed for Certain Periods – Guaranteed pension to for a fixed period of 5, 10, 15, 20 years. It stops after that. In case of death during the period, the equivalent of pension is paid to the nominee for the remaining period. The key difference is that in this option even if on your death the annuity will be paid for the fixed period as selected.

5. Annuity Guaranteed for Certain Periods, and for life thereafter – Same as above option the difference being that if you survive the term, you continue to get the same pension for entire life.

6. Life Annuity with Contingent Survivor or Last Survivor – Annuity is paid to you till your life and after you, if your spouse is alive the annuity is paid to her for the rest of her life.

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