Answer Book question
On the annuitant's death (or both spouses' in a joint-life option), the insurer returns the original lump sum to the nominee. You get a lower monthly payout in exchange. It is the option most families choose, and it is worth understanding the cost.
On the annuitant's death (or both spouses' in a joint-life option), the insurer returns the original lump sum to the nominee. You get a lower monthly payout in exchange. It is the option most families choose, and it is worth understanding the cost.
₹20 lakh: life-only ≈ ₹11,000/month; with return of purchase price ≈ ₹10,000/month. Over 20 years the difference is about ₹2.4 lakh in payouts; the nominee receives ₹20 lakh. Most families consider that a fair trade.
The "return" is nominal. ₹20 lakh in 25 years is worth far less than today. But it prevents the feeling of "losing" the corpus, which is what stops many from buying an annuity at all.
Payout difference Nominee Inflation effect on returned amount
Assuming the return is inflation-adjusted. It is not.
This option makes annuities acceptable to Kerala families who would otherwise refuse to "give the money to the insurer."
Difference ₹1,000/month for life; nominee gets ₹20 lakh at the end.
With no heirs, life-only gives more income.
Decide whether the nominal return matters to you Choose the option accordingly
What is an annuity? What happens to the annuity after both spouses die?
Senior-citizen services
India Post / SCSS rules · IRDAI annuity product guidance · RBI deposit insurance (DICGC) limits · Kerala Social Security Mission and Social Justice Department for pension schemes Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Send us your parents' rough monthly expenses, their income sources and what lump sum exists. We will help you see whether it holds up. and what to organise before there is an emergency. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Seniors › Retirement · Retirement 10
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