Immediate annuity plan. LIC New Jeevan Shanti?

[Aditya12]

My retired dad in his yearly 60s wants to take out around 10L from his PPF account and put it in an annuity plan that starts giving monthly/quarterly amount. He has almost finalized LIC New Jeevan Shanti plan.
I personally do not like annuity plans but he insists he wants one (Already has few FD's giving interest). What do you think?

Requirement: Fixed income for life unlike FDs where interest rates are going to go down in coming years.

 

[souvikr]

I would suggest you to go for FD even if FD interest is slighly less. Keeping the principal amount with you has it's own advantage (think of emergency need of lumpsum money).

Btw FD interest is not going to go down every year. It changes in a cycle. There will be years when FD will give better returns than your fixed return from annuity.

 

[Aditya12]

I would suggest you to go for FD even if FD interest is slighly less. Keeping the principal amount with you has it's own advantage (think of emergency need of lumpsum money).

Btw FD interest is not going to go down every year. It changes in a cycle. There will be years when FD will give better returns than your fixed return from annuity.

Even I am in favor of an FD due to better current interests and high liquidity. But he insists on an annuity plan (Jeevan Shanti or Jeevan Akshay VII) with return of principal amount to nominee. Already has a mix of FDs, SCSS etc. Now I am at a point where I only have a say in 'which annuity plan' instead of 'annuity or something else'

 

[chotachetan]

Let me know if you are able to close on the decision ..
I am also looking for an annuity option.

 

[Aditya12]

Let me know if you are able to close on the decision ..
I am also looking for an annuity option.

Dad decided on New Jeevan Shanti with a deferment of 2 years (Not what I would have liked).
I personally liked Jeevan Akshay out of the two. For his age it was giving around 6.70% interest for life and then to spouse and return of investment to nominee. It's about 1-1.5% less than current FDs but guarantees same interest for life.