Answer Book question

What happens to the annuity after both spouses die?

If there is a return-of-purchase-price option, the nominee receives the original lump sum. If it is life-only or joint-life without return, payments stop and nothing further is paid. The option chosen at purchase decides this permanently.

By Kerala Rising · ·

Short answer

If there is a return-of-purchase-price option, the nominee receives the original lump sum. If it is life-only or joint-life without return, payments stop and nothing further is paid. The option chosen at purchase decides this permanently.

Real life

Children discover after both parents' deaths that the ₹25 lakh annuity was life-only. Nothing is returned. Had the parents chosen return of purchase price, the children would have received ₹25 lakh at a cost of about ₹1,200 a month less income.

What this means

Annuity options are irrevocable. Nomination must be recorded.

What to check

Option on the policy document Nominee recorded Where the document is kept

What people often miss

Parents not telling children what option they chose.

The Kerala / NRI angle

Add the annuity to the family asset inventory with the option and nominee noted.

An example

Return option: ₹25 lakh to nominee. No return: nothing.

When this may not be the right answer

None. this is a consequence of the earlier choice.

What to do next

Find the policy and note the option Record the nominee

Related questions

What does "return of purchase price" mean in an annuity? My father died. What financial things should we check first?

Related Kerala Rising help

Senior-citizen services · Health, disability & life events

Sources and what to verify

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 12

Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.