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I agree to the Terms of Usage and Privacy Policy. By submitting my contact details here, I override my NDNC registration and authorize ABSLI to contact me by phone/e-mail/SMS/WhatsApp. Trade Logo "Aditya Birla Capital" displayed above is owned by ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) and used by ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the license. BEWARE OF SPURIOUS / FRAUD PHONE CALLS! IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint. ABSLI Nishchit Aayush is a non-linked non-participating individual savings life insurance plan (UIN No 109N137V05)

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Annuity certain

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What is Annuity Certain?

An "Annuity Certain" or "Certain Annuity" is a type of annuity that guarantees payments to the annuitant for a specific number of years, regardless of how long they live. This predetermined period is referred to as the "certain period" or "guarantee period". If the annuitant passes away before the certain period ends, the remaining payments are usually made to a designated beneficiary or the annuitant's estate.


Types of Annuity Certain

There are two main types of Annuity Certain:

  • Life Annuity with Period Certain (H3): This is a hybrid annuity where payments are made for the longer of two periods - the annuitant's life or a specified certain period. If the annuitant lives beyond a certain period, they continue receiving payments until they pass away. If they pass away before the end of a certain period, their beneficiary receives the remaining payments.
  • Period Certain Annuity (H3): In this type of annuity, payments are made only for a fixed certain period. If the annuitant passes away before the period ends, the remaining payments go to the beneficiary. If the annuitant outlives a certain period, no further payments are made.

Why Choose Annuity Certain?

Annuity Certain plans are ideal for individuals who want to ensure a steady stream of income for a fixed period, regardless of longevity. This type of annuity can serve multiple purposes:

  • Guaranteed Income :

    The annuitant can rely on the guaranteed income during a certain period, which can be helpful for budgeting and financial planning.
  • Estate Planning :

    Annuity Certain can be an effective estate planning tool. If the annuitant passes away before the certain period ends, their heirs will receive the remaining payments.
  • Liquidity :

    Some annuity certain plans may allow withdrawals or early payouts, providing financial flexibility to the annuitant.

Considerations for Annuity Certain in India

Annuities are regulated by the Insurance Regulatory and Development Authority of India (IRDAI). Before purchasing an Annuity Certain plan, consider the following:

  • Reliability of the Insurer :

    Check the financial strength of the insurance company to ensure they can meet their annuity obligations.
  • Inflation Risk :

    The purchasing power of fixed annuity payments can decrease over time due to inflation. Some annuities may have features that adjust for inflation.
  • Fees and Charges :

    Understand the fees associated with the annuity, including surrender charges if you need to withdraw money early.
  • Tax Implications :

    Annuity payments are usually taxable under the Indian Income Tax Act. Consider this while planning your taxes.

An Annuity Certain can be a valuable instrument to ensure a stable income for a fixed period and can be particularly beneficial for retirement planning. However, it's crucial to understand the terms of the annuity and consider your financial goals, risk tolerance, and other investment options before purchasing one.

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  • Disclaimer

    1 Male age 60 years, Annuity Option -Life Annuity, Annuity Payout Frequency-Annual, Option chosen of Premium, Purchase Price Rs.10,00,000, Level Annuity, PPT: Single Pay, Single Life. Receive Annuity Rs.87,314 per annum
    ABSLI Guaranteed Annuity Plus is a Non-Linked, Non-Participating, General Annuity Plan (UIN: 109N132V07)
    3 Provided all due premiums are paid
    ADV/6/23-24/553