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NPS rules force 40% of your corpus into annuity at 60 (you can voluntarily convert up to 100%). Annuity rates differ meaningfully across LIC, HDFC Life, SBI Life, and ICICI Pru — sometimes by ₹100+/month per lakh. Below: live side-by-side quotes for the three most-bought payout options.
₹20,00,000
For your corpus of ₹20,00,000 at age 60, HDFC Life offers ₹12,500/month — that’s ₹200/month more than the lowest quote (SBI Life). Spread compounds to ~₹60,000 over 25 years.
| Insurer / Product | ₹ per lakh | Monthly payout | Annual | Lifetime (to 85) |
|---|---|---|---|---|
HDFC Life Pension Guaranteed Plan | ₹625 | ₹12,500best | ₹1,50,000 | ₹37,50,000 |
LIC Jeevan Akshay-VII | ₹620 | ₹12,400 | ₹1,48,800 | ₹37,20,000 |
ICICI Prudential Guaranteed Pension Plan | ₹618 | ₹12,360 | ₹1,48,320 | ₹37,08,000 |
SBI Life Saral Pension | ₹615 | ₹12,300 | ₹1,47,600 | ₹36,90,000 |
Quotes as of 2026-04-01. Insurer-published rate sheets. Refreshed quarterly. Final quote varies slightly by insurer underwriting + GST treatment + state. Lifetime estimate assumes you live to 85 (Indian male LE at 60 today is ~80, female ~83); does not discount future cash flows.
Highest monthly payout. You get paid for life; when you die, the corpus is gone — nominee gets nothing. Best for singles or couples where the spouse has independent income.
Lower monthly payout (~15% less) but your nominee gets back the full corpus when you die. Most popular Indian choice because of the inheritance mindset. The catch: the ~15% lower payout, every month, compounds to a meaningful opportunity cost over a 25-year retirement.
Pays until the LATER of you OR your spouse dies. Lowest monthly payout but highest household-income security. Spouse continues receiving the same monthly payout uninterrupted. Best for non-earning spouses.
Insurers price annuity based on their assumed long-run government-bond yield (since annuity is funded by their fixed-income portfolio) + mortality assumptions for the buyer cohort. LIC has the longest mortality dataset in India and tends to price slightly more conservatively (lower payout) on long-duration options. HDFC Life and ICICI Pru sometimes price aggressively on the life-only option to compete with LIC’s default-mover advantage.
Inflation-protected annuity (rare in India), deferred annuity (pays after a buffer period of N years), and annuity-linked GST are not surfaced. Tax on annuity payouts: classified as “Income from Other Sources”, taxed at your slab rate — no special exemption.
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PPF (Public Provident Fund) and NPS (National Pension System) are sovereign-backed retirement savings schemes administered by the Government of India. PPF rates are notified quarterly by the Ministry of Finance; NPS returns depend on the chosen pension fund manager and asset allocation. Contribution limits, lock-in, and tax benefits per Income Tax Act sections 80C / 80CCD apply.
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