Life Insurance
When do you receive Annuity payments on LIC policies?
There are two types of Annuities - Immediate annuities and Deferred annuities.
Under Immediate annuities, you start receiving annuity payments as soon as you pay the premium usually in a lump sum.
In the case of Deferred annuities, the payments to the annuitant start after a certain deferment period. Typically, the annuitant pays annuity premiums in installments during the deferment period.
Generally, people pay less premium for an annuity that provides future payments because the deferment period allows the insurance company to invest your premiums at a profit, thereby reducing the cost of the annuity to you.
