Annual Premium Annuity

★

Rated by 1 readers

Definition:

Annual premium annuity means investing equal amounts in installments annually under an annuity plan. This allows investors to save in parts. The total amount invested keeps growing until withdrawals are made.

Description:

Annuity plans work like pension plans. They provide income after a specified time. There is no limit on the annual premium paid. One can top the annual premium annuity amount at any given time. The increased annual premium will generate a higher annuity amount in the future.

Example:

Hansraj plans to invest to buy an annual premium annuity. He paid Rs.1,00,000/- per year for 10 years under the annuity plan. Hansraj then waited for another 5 years for annuity payback.The annual premium is Rs.1,00,000 and total premium paid is 10 lakhs. The returns on annuity paid back will be in the band of 5-6%.

How much helpful you found for you?

Rated by 1 readers

Don’t forgot to share helpful information in your circle

Back to Insurance Dictionary

Newly Added Terms

Newly Added Terms on Insurance Dictionary

Death Benefit

Insurability

Key Employee or Keyman

Insurer

Most Appreciated Terms

Most appreciated Terms on Insurance Dictionary

Guaranteed income with Lumpsum benefit

Buy ABSLI Nishchit Aayush Plan now

BUY ONLINE

ABSLI DigiShield Plan

Think Term Plan. Smart Financial Security For Loved Ones.

Covid-19 covered

10 Plan Options

Buy ₹ 1 Cr Term Cover @Rs.492/month
for Salaried Individuals¹

Name

*Min 3 characters

+91 Phone Number phone

*Please enter a valid 10 digit Mobile No.

I agree to the Terms of Usage and Privacy Policy and by submitting my contact details here, I override my NDNC registration and authorize ABSLI and its authorized representatives to contact me by phone/e-mail/SMS/WhatsApp for further assistance and information about this proposal and resulting insurance policy.

Buy ₹1 Crore Term Cover @ @Rs.492/month for Salaried Individuals¹

Buy Online