As a senior citizen, you may be living a life of peaceful retirement. You may be trying to fulfill the dreams that you’ve always had, but never got the opportunity to fulfill. Like taking off for a dream vacation or engaging in a hobby like learning a musical instrument. But amidst all this, you must remember that you also have to plan your finances wisely so that the same can last you for your lifetime. Investing in annuities may hold you in good stead. Annuity plans are one of the best senior citizen insurance plans in India today.
Annuities: Why This Retirement and Pension Plan works for you
Annuities are life insurance plans where you invest a lump sum amount of money in exchange for a contractual promise by the life insurance company that they will give you back the money with interest in monthly installments till you live. So, for example, you are 60 years of age, and you have a corpus of money, rather than keeping it in savings bank accounts where it does not fetch you any interest, it is prudent to invest it in annuities, where the money will appreciate as well as give you a monthly payout.
Making Sense of Annuities, Retirement and Pension Plans
In essence, the life insurance company, using information that you submit to them, estimates the length of time that you may be alive and then works out as to how much to pay you back in terms of income, every month, in exchange for the corpus of money that you deposit with them. This way, you can ensure that you receive a monthly income as you used to in your working days. It will help you in planning your monthly finances and saving something for the future.