Planning to buy an annuity plan? Here's how you can choose the right one

It makes sense to have more aggressive instruments in your portfolio for improving income

Annuity plans are currently in the news. The Pension Fund Regulatory and Development Authority (PFRDA) is trying to put in place an online process for the purchase of annuities, so that payout of pension doesn't get delayed for National Pension Scheme (NPS) investors upon retirement. Also, Life Insurance Corporation of India (LIC) has recently launched Jeevan Shanti, a single premium plan where the investor can opt for either the deferred or the immediate annuity option. Investors who wish to buy either of these two types of plans should evaluate their pros and cons properly.

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