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FAQs on Retirement Annuity
 
    How do I choose the right annuity plan?
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      You must choose a plan that is suitable to your life profile and future needs. For example, if you have a spouse that is dependant on your retirement income, you may consider purchasing a joint-life annuity plan. If, however you wish to consider protecting your income against inflation, you may consider purchasing an increasing annuity plan. Another factor that you should consider is the affordability of the plan.

      It is important for you to check all options offered by the insurance companies before you buy the one that best suits your needs. You may wish to consult your insurance company or its agent before you make a decision.
       

    What will happen to my annuity plan in the event of my demise before the income payment commences?
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      In the event of your demise before the income payment commences, the insurance company will normally pay the surrender value to your nominee/beneficiary. This would be the total premium paid less all charges incurred. Some annuity plans may also provide death benefit to your loved ones in the event of your early demise before the income payment commences.
       
    Will income payment of the annuity plan continue after my demise?
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      In all annuity plans, the income payment will continue for as long as you live. However, for certain plans such as the guaranteed annuity plan, the income payment will continue to be paid to the nominees/beneficiaries after your demise until the fixed guaranteed period of the annuity expires.
       
    Are there any tax incentives available for purchasing a deferred annuity plan?
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      You can claim tax relief on the premiums that you pay for an annuity plan, up to the maximum amount of RM5,000 per year, inclusive of other contributions you have paid to an approved retirement benefit scheme, such as the EPF or other pension schemes.
       

    What will happen to my deferred annuity policy if I am unable to continue paying the premiums after a few years? Can I surrender the policy midway?
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      If you are unable to continue with your premium payments, you can choose to surrender the policy for its cash surrender value. The cash surrender value would be the total premiums paid less all charges incurred. Hence, you will not receive the full premiums that you have paid. Alternatively, depending on the amount of premiums that you have already paid, you can also choose to have the policy paid up. This means that you may stop paying future premium payments. However, the income payments that you will receive upon retirement will be lower than the amount you choose initially.
       
 
 
 
Related Information
 

Retirement annuity
 
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