Widely read:
'Annuity' means a fixed sum of money that is paid out to the purchaser every year in return for a lump sum, usually for as long as the purchaser lives. An annuity is typically priced on the basis of product features, longevity and interest rates. Annuities in India are typically 'deferred annuities' or annuities that are purchased on the maturity of a pension plan or NPS scheme. However, immediate annuities that begin paying out immediately after purchase are also available.
This article was originally published on December 16, 2021, and last updated on August 18, 2022.
