Himani Verma
It involves two phases: the accumulation or contribution phase and the payment phase, which starts at a specified date based on the customer’s preference.
Fixed annuities provide guaranteed payments at set intervals.
Variable annuities combine investment opportunities with pension benefits. They allow investors to allocate funds in stocks, bonds, and mutual funds through these schemes.
Indexed annuities combine the features of fixed and variable annuities, offering potential market gains while providing a guaranteed minimum return.
As the name suggests, in a lump sum annuity plan, the customer receives the entire accumulated corpus in a lump sum, the principal and the interest, after maturity.
Compiled By Himani Verma