Annuity Plans
NPS Annuity Plans Comparison 2026: LIC vs SBI vs HDFC Life Rates & Payout Options
Written by Annuity & Pension Analyst•12 min read•Updated: 2026-07-12
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At age 60, NPS subscribers must allocate a minimum of 40% of their total accumulated corpus to purchase an annuity scheme from PFRDA-empanelled Annuity Service Providers (ASPs). Choosing the right annuity scheme and provider determines your exact lifelong monthly pension payout!
Table of Contents (Jump to Section)
1. 5 Standard Annuity Payout Options
- Annuity for Life: Highest monthly pension payout, but pension stops upon subscriber death.
- Annuity with Return of Purchase Price (ROP): Lifelong pension to subscriber; full principal returned to nominee upon subscriber passing.
- Joint Life Pension: Pension paid to subscriber, then to spouse for life upon subscriber passing.
2. Top ASP Rate Comparison Matrix (60-Year Old Subscriber)
| Annuity Service Provider (ASP) | Annuity Rate (Life + ROP) | Monthly Pension per ₹10 Lakhs |
|---|---|---|
| LIC of India | 6.85% p.a. | ₹5,708 / month |
| HDFC Life Insurance | 7.15% p.a. | ₹5,958 / month |
| SBI Life Insurance | 7.05% p.a. | ₹5,875 / month |
| ICICI Prudential Life | 7.10% p.a. | ₹5,916 / month |
3. Joint Life with Return of Premium (ROP)
This is the most popular annuity option among retirees in India because it guarantees financial protection for the spouse while preserving original principal for children.
4. Taxability of Annuity Pension Payouts
Annuity payments are treated as regular income and taxed according to your tax slab in the year received.
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