Guaranteed Pension Plan

What this product is

A single-premium annuity plan offering both immediate and deferred payout options, with 11 variants to choose how and when your guaranteed income starts.

You might need this if…

• You might need this if you want maximum choice in structuring your retirement income — immediate or deferred, single or joint life, with or without capital return.
• You might need this if you'd rather start your annuity a few years from now (deferred) instead of immediately, letting your purchase price grow first.
• You might need this if you want a safety net that pays out early if you're diagnosed with a serious illness or disability, not just on death.
• You might need this if you're transferring a UK pension (QROPS) and need a plan structured to meet those specific rules.

How it actually works

• Immediate annuity entry age is 40–70 (up to 80 for a special Single Life ROP-at-80 option); deferred annuity entry is 30–100, with 1–10 years of deferment.
• There are 11 annuity options in total spanning single life, joint life, with/without Return of Purchase Price (ROP), and versions tied to critical illness or permanent disability.
• During deferment, the death benefit is the higher of (Purchase Price + accrued Guaranteed Additions) or 105% of Purchase Price.
• Seven listed critical illnesses (e.g. cancer, heart attack, stroke, organ transplant) or permanent disability can trigger early benefits before age 80 on eligible options.
• Larger purchase prices unlock extra annuity rate boosts — up to 2.50% more for immediate annuities and up to 4.00% more for 6–10 year deferred annuities on purchases of ₹25 lakh+.
• A policy loan (deferred plans only) is available up to 80% of surrender value at ~8.15% p.a. (as of Jan 2026), and must be cleared before the deferment period ends.

The tiers

Purchase Price	Immediate Annuity Boost	Deferred 1-5 yrs	Deferred 6-10 yrs
Under ₹3L	0.00%	0.00%	0.00%
Under ₹5L	0.85%	1.50%	2.75%
Under ₹10L	1.50%	2.25%	3.25%
Under ₹25L	2.15%	2.75%	3.75%
₹25L and above	2.50%	3.00%	4.00%

Worth knowing before you decide

• Surrender is only allowed on specific option numbers (immediate options 1–6, deferred 7–9) and is unavailable for NPS/QROPS-sourced policies.
• The annuity option and payout frequency become locked in permanently once the 30-day free-look period ends — no later changes allowed.
• Guaranteed surrender value factors are relatively low in early years: 75% in years 1–3, rising to 90% from year 4.
• Policies can be contested by the insurer within 3 years of issue on grounds of fraud or material misstatement.

Official source

⌟ Official product brochure

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