How to choose the best annuity provider?

A subscriber in National Pension Scheme (NPS) has the option to choose a life insurance company to get an annuity after he reaches 60 years. Is there any difference in annuity between the life insurance companies? How can we choose the best option?
- Siddhaye

Once you become 60 years old, you should compulsorily utilize at lest 40 per cent of the accumulated corpus to purchase an annuity from a life insurance company. Insurance companies will offer several annuity options and the rate of annuity would depend on your choice. You can shortlist a few insurance companies with a clean reputation and look at annuity options and rates offered by them before taking a final decision.

This article was originally published on January 13, 2016.