What is an Annuity Scheme?

Annuity schemes are those wherein policyholders regular contributions over a period of time (or a one-time contribution) accumulate to form a pool with the insurance company. This pool is used to yield a regular income that is paid to policyholders until death starting from your desired age. Some annuity schemes have the option to pay your survivors a lump sum amount upon your death in addition to the regular income you receive while you are alive.