Automatic opening of new policy.

[praveensg]

Thank you Sir for your reply. I would like to know , Can we get full amount ? (no problem on tax side). Is there any surrender fees or something. ?

[Madhura]

Thank you Sir for your reply. I would like to know , Can we get full amount ? (no problem on tax side). Is there any surrender fees or something. ?

You won't get full amount, at the max you can claim 1/3rd of the maturity amount. The remaining amount is paid to you in pension installment.

Types of Annuity purchase options in India
a. Deferred annuity
Deferred annuity means annuity payment commence after a certain deferment period which may be a fixed term or after attaining a certain age. You pay a fixed sum over a pre determined period (3 to 25 years) and thus build a corpus. At the end of the payment the corpus continues to grow. Then at a pre-determined age, the annuity payment starts. This option is taken at a young age (around 30 years). The payout starts at a later age. Say at 60. The payout continues as per the payout option chosen by the insured. The premium (or part of it) is tax deductible. The tax advantage makes this very attractive. But the annuity payouts are taxable in your hand. But since the other income may be less, this may not matter too many.
b. Immediate annuity
In immediate annuity the annuity payment commence immediately (from 1st of next month) after sum deposited for the insurance.You pay out a lump sum and purchase the annuity.

Source - What is an Annuity?