Fortune Guarantee Pension

What this product is

A guaranteed, non-market-linked pension/annuity plan (individual or group) offering several annuity structures, including options that return your full purchase price to your nominee on death.

You might need this if…

• You want a pension income that's fixed and guaranteed at purchase, not dependent on markets
• You want the reassurance that your purchase price (or a return of it) goes to your family if you pass away, depending on the option chosen
• You're buying this for a group (e.g., employees) - the plan supports group purchases of 5+ members
• You want flexibility in how deferred your income starts, and in payout frequency

How it actually works

• Entry age starts at 30, going up to 84-85 depending on which of the plan's four annuity options you pick
• Choose Single Pay (1-10 year deferment) or Regular/Limited Pay (5-12 year premium term, with deferment tied to that term)
• Four annuity structures: Immediate Life Annuity, Immediate Life Annuity with Return of Purchase Price, and two Deferred Life Annuity variants (with optional return of purchase price)
• Minimum annuity amounts apply by frequency (roughly ₹1,000/month up to ₹12,000/year) - a floor below which you can't structure payouts
• No stated maximum purchase price, subject to Tata AIA's underwriting policy, so larger retirement corpora can be annuitized
• Top-up premiums allowed to boost your eventual annuity amount

Worth knowing before you decide

• Because it's a guaranteed annuity, once you commit your purchase price the rate is locked in - you don't benefit from any future rate rises on that money
• Return-of-purchase-price options generally pay a lower ongoing annuity than options without that feature - it's a trade-off, not free
• Some options remain subject to underwriting depending on entry age and health, so issuance isn't automatic
• Tax treatment of annuity income follows prevailing law at the time you receive payouts, which can differ from when you bought the plan

Official source

⌟ Official product brochure

Learn about this category

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