Annuities give low, but guaranteed returns for life

Conservative investors and those in the lower tax bracket should opt for these

The Insurance Regulatory and Development Authority of India (Irdai) recently asked the Life Insurance Corporation (LIC) to lower the return it offers on its immediate annuity plan, Jeevan Akshay. The regulator wants the rate to be aligned with the 10-year government securities (G-sec) yield, which is currently at around 6.58 per cent. This news has brought annuities into focus. Conservative investors, or those who don’t use an advisor, may consider investing a part of their corpus in this product.       

Deferred annuities: One option available to save for retirement is the pension plans of life insurers, also called