Key features of an annuity plan:

1. Regular Income: The primary benefit of an annuity plan is that it guarantees a regular income to the annuitant. The income can be received monthly, quarterly, annually, or as per the chosen payout frequency.


2. Retirement Income: Annuity plans are commonly used as a tool for retirement planning. Individuals can accumulate savings in an annuity during their working years and then convert the accumulated corpus into a stream of income during retirement.


3. Fixed or Variable Annuities: Annuity plans can be of two types: fixed annuities and variable annuities. Fixed annuities offer a predetermined interest rate and a guaranteed income, while variable annuities provide returns linked to the performance of underlying investments, such as mutual funds.


4. Tax-Deferred Growth: One advantage of annuities is that the earnings within the annuity are tax-deferred until the annuitant starts receiving payouts. This can be beneficial for long-term growth and tax planning.


5. Payout Options: Annuity plans offer various payout options, such as life annuity (income for the annuitant's lifetime), joint-life annuity (income for the lifetime of the annuitant and their spouse), or certain period annuity (income for a specific period).


6. Death Benefit: Some annuity plans may include a death benefit that guarantees a lump sum payout to the annuitant's beneficiaries if the annuitant passes away before receiving the entire income or annuity amount.


7. Flexibility: Annuities may offer flexibility in terms of premium payment options, payout frequency, and additional features like riders for inflation protection or long-term care.

Annuity plans can be an essential part of retirement planning, providing individuals with a secure income stream to meet their living expenses during their post-employment years. However, it's essential to carefully consider the terms and conditions of the annuity plan, including fees, surrender charges, and payout options, before purchasing one. Consulting with a financial advisor can help individuals choose the right annuity plan that aligns with their retirement goals and financial needs.