In NPS after retirement 60 percent of the corpus is used to buy annuity but if subscriber dies then will the annuity paid to legal heirs?
Annuity is meant for regular income to the subscriber for the rest of his/her life. In National Pension System (NPS) there are different types of annuity payout options that the subscriber chooses. Some of the payment options offered by the annuity plans include lifetime annuity, lifetime annuity with return of purchase price, and an annuity with joint life, last survivor benefits.
So while buying your annuity check if it offers death benefits or annuity benefits to the survivor. if the subscriber has opted for return of purchase option, then the original corpus is returned to the legal heirs but the annuity will stop. If the subscriber has opted for joint annuity, then the annuity continues to be paid to the spouse.