In India, annuities are priced by actuaries using mortality tables for lifespans and a conservative assumed interest rate to grow the corpus. A life-only annuity gives the highest monthly payout, joint-life reduces it for covering two lives, and 'return of purchase price' drastically cuts the income because the insurer has to preserve your capital. Frankly, I use life-only for maximizing cash flow—the maths is clear, but my life says security for my wife matters more, yaar. So we chose a joint-life with a 50% survivor pension; watching my father's old workshop struggle taught me that true 'sukh' is in knowing her chulha will stay lit.
#life#career
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