Guaranteed Pension Plan Flexi

What this product is

A guaranteed (non-market-linked) annuity plan for people 40+ who pay premiums for a limited period and then receive a fixed, lifelong pension, with seven annuity structures to choose from.

You might need this if…

• You might need this if you're 40+ and want a fully guaranteed, unchanging pension amount for life rather than market-linked retirement income.
• Useful if you want to choose between getting your premiums back to your family (Return of Premium) or a higher payout without that guarantee.
• Fits if you want a pension that rises 5% every year to help keep pace with the cost of living (Increasing Annuity option).
• Good if you or your spouse might face a critical illness or disability — one option pays out early on such diagnosis rather than waiting for death.

How it actually works

• Entry age 40-80 (primary), 30+ (secondary for joint life); premium payment term 2-15 years; entry age plus deferment period cannot exceed 85 years.
• Seven annuity options: Single/Joint Life with or without Return of Premium, Single/Joint Life with Return of Premium on Critical Illness/Disability/Death, and Increasing Annuity (5% p.a.) versions for single or joint life.
• Guaranteed Additions accrue monthly during deferment at a rate equivalent to ₹5,000/month if premiums stay current, and a High Premium Benefit adds an extra 1.5%-8.5% to the annuity depending on premium size.
• The annuity amount is fixed and guaranteed for life once informed at policy purchase, unaffected by market or interest-rate changes later.
• Policy loans (up to 60% of surrender value during deferment, for health expenses only after deferment) and a Special Withdrawal option (up to 60% of premiums paid, max 3 times) are available on Return-of-Premium variants.
• Death benefit during deferment is the higher of (total premiums + accrued additions) or 105% of premiums paid; after deferment, Return-of-Premium options pay back unused premiums plus additions minus annuity already received.

Worked example

The tiers

Worth knowing before you decide

• "Without Return of Premium" options generally pay more per year, but nothing is paid back to your family after death — the tradeoff is higher income vs. no legacy.
• No death benefit after the deferment period ends for the "without Return of Premium" options.
• Suicide clause during deferment: only 80% of total premiums paid, or surrender value if higher.
• If you bought this using NPS or another pension scheme's proceeds, you generally cannot surrender except under specific legal/government directives.

Official source

⌟ Official product brochure

Learn about this category

Read the full annuities & retirement explainer → · See all retirement products →