Things That Affect Your Annuity Income
Current Interest rates-
If interest rates are high at the time of buying annuity, your annuity payments will be higher than it would be if the interests were low. This is because the company predicts that it can earn more by investing your money.
The amount you deposit-
The more amount you deposit, the higher will be your annuity income.
The older you are when you buy the annuity, the higher your annuity payments will be. That's because you're not expected to live as long.
Women get less money than men of the same age because they are expected to live longer.
The length of the time for receiving payments-
You choose the number of years you receive payments with a term-certain annuity. The shorter the term, the higher the payments. If you have a life annuity, you can arrange for your annuity payments to continue to your spouse, your dependent children, or your estate after you die. The longer you want payments to continue after your death, the less you get each month while you're alive.
If the annuity plan only covers you, then you get a higher income. If you add option of joint or survivor option, the income reduces.
For people with serious medical condition, their annuity is higher since their life expectancy is low.
The biggest two factors that decide your annuity income are the interest rates and life expectancy. Other factors also play a role but these are the two key factors that are considered.
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HDFC Life Insurance Company Limited. CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101.
Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: [email protected], Tel No: 1800-266-9777 (10 am to 7 pm). The name/letters “HDFC” in the name/logo of the company belongs to Housing Development Finance Corporation Limited (“HDFC Limited”) and is used by HDFC Life under an agreement entered into with HDFC Limited.
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