Immediate Annuity Rates 2026
After retirement, salary stops, but bills don't. An immediate annuity is one way to fix that. You pay a lump sum once, and the insurer pays you every month for life.
If you pay ₹10 lakh at age 60, you will get about ₹5,200 to ₹6,500 a month. SBI Life pays about ₹6,486 a month. Aditya Birla Sun Life pays about ₹5,208. The lower figure is for a plan that returns your ₹10 lakh to your family. The higher figure is for a plan that doesn't.
This guide compares six private insurers and shows what changes your rate, so you can pick a plan without locking your savings into a weak one.
What is an Immediate Annuity?
You pay one lump sum. The insurer then pays you a fixed income, usually monthly, for as long as you live. The amount is set on the day you buy. It does not go up with inflation unless you choose an “increasing” option, which starts lower.
Once you buy, the decision is hard to reverse. Surrender is allowed only in limited cases, so be sure before you pay.
Immediate Annuity Rates 2026: Private Insurers Compared (Per ₹10 Lakh)
All examples below are for a 60-year-old male annuitant. “Rate” is the yearly payout divided by the amount paid. The figures are not directly comparable. The amounts paid, plan options, and dates differ.
| Insurer and Plan | Option Shown | Life Annuity with Return of Purchase Price (ROP) | Rate (Yearly Payout ÷ Price) | Entry Age | Solvency Ratio, FY 2024-25 |
|---|---|---|---|---|---|
| SBI Life, Smart Annuity Plus | Life annuity, no refund | ₹10 lakh → ₹77,826 a year (about ₹6,486 a month) | 7.78% | 30–95 | 1.96 |
| ABSLI, Guaranteed Annuity Plus | Life annuity with return of purchase price | ₹10 lakh → ₹62,494 a year (about ₹5,208 a month) | 6.25% | 45-90 | 1.88 |
| Tata AIA, Saral Pension | Life annuity with return of purchase price | ₹10 lakh → ₹71,200 a year (about ₹5,933 a month) [verify] | 7.12% | 40–80 | 1.80 |
| ICICI Life, Saral Pension | Single life, refund of purchase price | ₹25 lakh → about ₹1.52 lakh a year | About 6.1% | 45-80 | 1.90 |
| Bajaj Life, Guaranteed Pension Goal II | Life annuity | ₹25 lakh → about ₹1.9 lakh a year | About 7.6% | 30–85 | 2.60 |
| HDFC Life, Smart Pension Plus | Single life annuity | ₹40 lakh → ₹28,762 a month | About 8.6% | 40-80 | 1.90 |
Sources: Insurer pages and brochures. Solvency ratios are from IRDAI data. IRDAI requires a minimum of 1.5.
- Don't compare across rows yet. A bigger purchase price often earns a higher rate. HDFC's ₹40 lakh example is not a ₹10 lakh rate.
- Refund plans pay less. Plans that return your money to your family have lower rates. Compare “with refund” only with other “with refund” quotes.
- Safe does not mean the same. All insurers here are regulated by IRDAI. A higher solvency ratio shows more financial cushion. Read our solvency ratio guide for how it works.
For LIC rates, see our best annuity plans page. For deferred and market-linked options, see our top pension plans guide.
What Decides Your Annuity Rate?
- Your age: The older you are when you buy, the higher the yearly payout. The insurer expects to pay for fewer years.
- Amount paid: Larger purchase prices can earn better rates.
- Option you pick: No refund pays the most. Refund of purchase price, joint life with a spouse, or an annual increase pays less.
- Payout frequency: Some plans pay less in total if you take monthly instead of yearly. HDFC Life's Pension Guaranteed Plan brochure uses a 96% factor for monthly annuity. [verify]
- Interest rates on the day you buy: Annuity rates tend to follow bond yields. A rate locked today is fixed for life.
- Insurer: Two insurers can quote different rates for the same profile.
With Refund or Without? A Simple Example
Say a refund plan pays ₹1,000 less a month than a no-refund plan. That is ₹12,000 a year, or ₹2.4 lakh over 20 years. You give up ₹2.4 lakh of income so your family gets ₹10 lakh back.
If your family does not need that money, the no-refund plan gives you more to live on. If you want to leave something behind, the refund plan may suit you better. (This is a made-up example to show the trade-off, not a quote.)
Three Things People Forget
- Inflation: A fixed ₹6,486 a month today will feel smaller later. At 5% inflation a year, it would buy about what ₹3,100 buys today after 15 years. (Assumed inflation, for illustration.) Do not put all your money into an annuity.
- Tax: Annuity income is generally added to your income and taxed at your slab rate. Ask your tax adviser how the refund to your nominee is treated. Individual life insurance policies have carried 0% GST since 22 September 2025.
- NPS Buyers: If you are buying an annuity with NPS money, the share of your corpus that must go into an annuity changed in 2025 for non-government subscribers. Check PFRDA's current rule before you decide how much to put in. [verify]
How to Compare Quotes in Five Steps
- Use the same age, gender, purchase price and payout mode for every quote.
- Compare the same option. No refund against no refund, refund against refund.
- Divide the yearly payout by the amount paid to get the rate.
- Check that the plan is currently on sale, and look at the insurer's solvency ratio.
- Ask the insurer in writing whether the figure includes GST or any charges.
Conclusion
An immediate annuity gives you a regular income for life, but the right plan depends on your retirement needs. Compare quotes using the same age, purchase price, and payout option. Choose a refund option if leaving money for your family matters more. Choose a no-refund option if you need a higher monthly income. Keep enough savings outside the annuity to manage inflation, medical costs, and unexpected expenses.
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