Nps amount receivable as pension at the age of 60

You invest in NPS to accumulate corpus. You use the corpus (at least 40%) to purchase annuity at the time of retirement. However, these annuity plans are not sold by NPS Trust. The annuity plans are sold insurance companies empanelled with NPS. The annuity rates are not guaranteed. You get the rate prevailing at the time of your annuity purchase.

When you purchase an annuity plan, you enter into a contract with an insurance company. In return for the purchase price, the insurance company makes you periodic payments (monthly, quarterly, semi-annual or annual) for life (or fixed period). The pension that the insurance company pays depends on your age and the type of annuity plan chosen.

Annuity Options available under NPS

1. Annuity/ pension payable for life at a uniform rate.
2. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive. (I do not understand how this works)
3. Annuity for life with return of purchase price on death of the annuitant.
4. Annuity payable for life increasing at a simple rate of 3% p.a.
5. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
6. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor.

Option 6 is the default annuity option.

thank you Sir for detailed reply. My query is in fact after the annuity is purchased and the use gets the same and goes on say for 10 years. My investement (principal) does not get recovered through annuity payments. What about the interest component for so many years ?