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Should a 52-year-old person buy LIC Jeevan Akshay plan?

Such a retirement plan with inbuilt insurance should be avoided

Is it a good idea for a person aged 52 to invest in LIC Jeevan Akshay? Will it be beneficial in times of falling interest rates in the long run?
-Swarna Hebbar

LICs Jeevan Akshay VI Plan is an immediate annuity plan. Once you pay a one time premium, it will pay you a monthly or annual income at regular intervals as long as you live. The insurer also offers you an option of returning your premium at the end (which will fetch you lower monthly income). There is no upper limit on how much you can invest in this plan. You can choose to receive the payments monthly, quarterly, half yearly or yearly. While annuity guarantees you a fixed income as long as you live, the annuities are not inflation-linked.

You should avoid traditional pension plans such as this one as they are costly and lack transparency. Their returns tend to be much lower than the Senior Citizen Savings Scheme or Post Office Monthly Income Scheme.

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