Commutation of pension is always a good option. Firstly, the enhance rate of pension(without commuted portion) is given to next of kin upto seven years from the date of death of pensioner. Secondly, any liability can be cleared with commuted pension as one should be debt free post retirement.
Thirdly,the amount equal to commuted portion of the pension can be drawn from debt mutual fund on monthly basis as part of SWP,if the commuted value of the pension is invested the debt fund. This arrangement works out beneficial to the pensioner. Fourthly, commuted portion of the pension is non taxable.