MUTUAL ANNUITY PLAN
Mutual Annuity Plan is a contract to pay a set amount (the annuity) every month or quarter while the annuitant (the person on whose life the contract depends) is still alive.
Annuities are usually expressed in terms of the annual amount payable although in practice they can be payable monthly, quarterly, half-yearly or yearly. Mutual Annuity Plan provides an income that is guaranteed to last for life.

Available Plans     

            
Mutual Immediate Annuity Plan: This contract provides, in return for a single premium, an annual (or half-yearly/quarterly/monthly) payment starting immediately and continuing for the rest of the annuitant?s life.
These contracts are suitable for intending retirees who want an income that is guaranteed to last for the rest of their life, no matter how long (or short) that may be.
Mutual Deferred Annuity Plan: This provides for an annuity to be payable commencing at some future date. The period between the date of the contract and the date the annuity is to commence ? often called the vesting date or maturity date ? is the deferred period. Often, regular premiums are payable throughout the deferred period. If the annuitant dies during the deferred period, the office will usually return the premiums paid, with or without interest. Once the vesting date is reached, the annuity becomes payable and will continue for the rest of the annuitant?s life. Often, a cash option is available on the vesting date in lieu of the annuity. However, this option is not available for annuity in connection with pension scheme.
Mutual Guaranteed Annuity Plan: A guaranteed annuity is an immediate annuity which is guaranteed to be payable for a minimum period regardless of when the annuitant dies.
Thus, an annuity guaranteed for ten years will be payable for life or ten years, whichever is the longer. If the annuitant dies during the guaranteed period then the balance of the guaranteed instalments will be payable to the estate. However, a commuted cash sum may be payable instead.
Annuity Certain: An annuity certain is a contract to pay an annuity for a specified period regardless of whether the annuitant survives. It does not depend on the age of the annuitant as payment is guaranteed for the set period whatever happens.
Increasing Annuity: All the annuities discussed so far are level annuities. However, some people will opt for increasing annuities, where the instalments increase by a fixed percentage each year. This can help to offset the effects of inflation, although the rate of inflation may well be higher than the fixed rate of increase.

Features     

Flexibility in premium payment (Single premium payment, Monthly, Quarterly, Half-yearly or Annually.)
Plan holders can choose their desired type of annuity to be purchased.
Guaranteed return on investment
Flexibility in income payment (direct into Annuitant?s account; payment by cash/cheque at home due to old age or incapacity.)
Return of premiums paid plus accrued interests on the death of plan holder before the commencement of annuity payment.
Flexible contribution rate to reflect new economic power.
Option to purchase an annuity that guarantees a proportional periodical increase in benefit/income earned by annuitant to mitigate the effect of inflation.