LIC Jeevan Akshay VII

LIC Jeevan Akshay VII is a single premium, non-linked, non-participating immediate annuity plan. Launched in 2020, the plan secures the post-retirement years of policyholders by providing them with a pre-stated amount of annuity or pension throughout their lifetime. Jeevan Akshay 7 offers single and joint life plans, and can be bought online and offline. Since the plan is non-linked, the market performance will not affect the asset value, and no bonuses will be included in the annuity. The policyholder will receive a fixed amount of annuity throughout their lifetime.

Below mentioned are the key highlights of LIC Jeevan Akshay VII Plan

• Policy Type

  Pension Plan

• Annuity Options

  10 different annuities available

• Life Cover

  Single and Joint Life

• Entry Age

  25 years to 85 years (100 years for Annuity Option F)

You must meet the following criteria to buy LIC’s monthly pension plan, Jeevan Akshay.

• Minimum Purchase Price

  Rs. 10,00,000 (for 25 - 30 years)
  Rs. 1,00,000 (for 30 years and above, subject to a minimum annuity specified)

• Maximum Purchase Price

  No Limit

• Minimum Annuity

  Monthly: Rs. 1,000
  Quarterly: Rs. 3,000
  Half-yearly: Rs. 6,000
  Annually: Rs. 12,000

• Joint Life Annuity

  Available for (between any two of)
  Lineal Discedent: Grandparent, Parent
  Or Lineal Ascendent: Children, Grandchildren
  Or Spouse
  Or Siblings

Ten different annuity options are available under LIC’s Jeevan Akshay 7 plan. The benefits will depend on the annuity option you choose while buying the plan. Once an annuity option is selected, no alterations are allowed. The available pension plan are stated as 

Immediate annuity for life

• Single life plan.
• Immediate annuity to the pensioner throughout life.
• If the pensioner dies, the annuity ceases immediately, and the policy terminates. 
• No death benefits will be provided. 

Immediate annuity with a guaranteed period of 5 years and life thereafter

• Single life plan.
• Immediate annuity to the pensioner throughout life.
• Guaranteed period of 5 years.
• If the pensioner dies within the guaranteed period, the nominee receives the annuity until the expiry of the guaranteed period.
• If the pensioner dies after the guaranteed period, the payment ceases, and the policy terminates.

Immediate annuity with a guaranteed period of 10 years and life thereafter

• Single life plan.
• Immediate annuity to the pensioner throughout life.
• Guaranteed period of 10 years.
• If the pensioner dies within the guaranteed period, the nominee receives the annuity until the expiry of the guaranteed period.
• If the pensioner dies after the guaranteed period, the payment ceases, and the policy terminates.

Immediate annuity with a guaranteed period of 15 years and life thereafter

• Single life plan.
• Immediate annuity to the pensioner throughout life.
• Guaranteed period of 15 years.
• If the pensioner dies within the guaranteed period, the nominee receives the annuity until the expiry of the guaranteed period.
• If the pensioner dies after the guaranteed period, the payment ceases, and the policy terminates.

Immediate annuity with a guaranteed period of 20 years and life thereafter

• Single life plan.
• Immediate annuity to the pensioner throughout life.
• Guaranteed period of 20 years.
• If the pensioner dies within the guaranteed period, the nominee receives the annuity until the expiry of the guaranteed period.
• If the pensioner dies after the guaranteed period, the payment ceases, and the policy terminates.

Immediate annuity for life with return of purchase price

• Single life plan.
• Immediate annuity to the pensioner throughout life.
• If the pensioner dies, the annuity will cease immediately, and the purchase price will be paid to the nominee as the death benefit.

Immediate annuity for life increasing at a simple rate of 3% p.a.

• Single life plan.
• Immediate annuity to the pensioner throughout life with a simple rate of 3% per annum increase.
• If the pensioner dies, the annuity ceases immediately, and the policy terminates.
• No death benefits will be provided.

Joint life immediate annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on the death of the Primary Annuitant

• Joint life plan.
• The annuity will remain in effect until both or any of the annuitants are alive.
• If the primary annuitant dies, 50% of the annuity amount shall be payable to the secondary annuitant.
• If the secondary annuitant dies following the death of the primary annuitant, the annuity payment shall cease, and the policy terminates.
• If the secondary annuitant dies first, the annuity payment shall continue to be paid to the primary annuitant. It will cease upon the death of the primary pension holder, and the policy will terminate thereafter.

Joint life immediate annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitants survives

• Joint life plan.
• The annuity will remain in effect until both or any of the annuitants are alive.
• If any annuitant (primary or secondary) is alive, 100% of the annuity will be paid.
• On the death of the last annuitant, the annuity ceases immediately, and the policy terminates.

Joint life immediate annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitants survives and return of Purchase Price on death of the last survivor

• Joint life plan.
• The annuity will remain in effect until both or any of the annuitants are alive.
• If any annuitant (primary or secondary) is alive, 100% of the annuity will be paid.
• On the death of the last annuitant, the annuity ceases immediately, and the policy terminates. The listed nominee will receive the purchase price.

A pension holder will receive the following benefits under Life Insurance Corporation Jeevan Akshay Policy.

The death benefit is only paid per the selected annuity option and will be paid in a lump sum or regular installments as the pension holder opts.

By now, the annuity options and benefits must be clear to you. Now suppose you plan to buy an immediate pension plan, Jeevan Akshay 7, you have to pay a lump sum amount once, and the plan pays your pension for life.

You can use LIC’s Jeevan Akshay 7 calculator online to calculate your payable premium amount for different annuity options. We illustrate the premium amount with an example to give you a brief overview.

Suppose, Aadarsh, in the year 45, pays Rs. 10 lakhs to purchase an annuity yearly. The second annuitant’s age at entry is 35 years (only in the case of a joint life plan).

* The above example is reflected from the official LIC sources and is approved by IRDAI.

** To get a brief idea of the premium price per your requirement, connect with a financial advisor or contact RenewBuy experts.

The following options are available under LIC Jeevan Akshay 7 Plan

Options for Death Benefit Payment

As per the annuity option selected, the death benefit will be payable (if applicable) to the nominee or the secondary policyholder (in the case of a joint plan). The following options are available to receive the death benefits

Lump Sum Death Benefit: The death benefit will be paid to the nominee in a lump sum.

Annuitisation of Death Benefit: Purchase price shall be utilized to purchase an immediate annuity for the nominee. The option can be to receive full or a part of the death benefit.

Death Benefit in Installment: The purchase price can be received in installments of a chosen period of 5 years. The option can be opted to receive full or a part of the death benefit.

* If the net claim amount is less to pay the minimum installment as per the option opted by the pension holder, then the death benefit will only be payable in a lump sum.

Option to Take Annuity by NPS Subscriber

All the annuity options are available to NPS subscribers as per PFRDA regulations.

Option to Take the Plan for a Dependent Person with Disability

A person can buy a pension plan for a dependent person with a disability as Nominee/ Second Annuitant.

Besides the multiple options available, the Jeevan Akshay plan has some additional features making the pension plan an excellent purchase option for retirement planners. As mentioned,

Payment of annuity can be made in yearly, half-yearly, quarterly, and annual modes. Hence as per the mode selected, the annuity payment will start after the commencement of the policy.

Jeevan Akshay avails of incentives per the mode of annuity payments and the purchase price slab mentioned below.

(A) Incentive for Higher Purchase Price

Incentives are available for the four purchase price slab

(i) Rs. 5,00,000 to Rs. 9,99,999

(ii) Rs. 10,00,000 to Rs. 24,99,999

(iii) Rs. 25,00,000 to Rs. 99,99,999

(iv) Rs. 1,00,00,000 and above.

(B) Incentive for Direct Sale

If the policy is purchased online by NPS subscribers and as QROPS, a rebate of 2% through an increase in the annuity rate is applicable.

Jeevan Akshay VII plan is available to buy online from the official website of LIC and can be purchased through Point of Sales Person- Life Insurance (POSP-LI) and CPSC-CPV. The IRDAI will issue all the guidelines and regulations.

The surrender option is available on the Annuity Option F and Option J only after the policy is completed 3 months following the Date of Issuance of the policy or after the end of the free-look period, whichever is later.

The annuitant's age determines the surrender value at the time. Once the surrender value is paid, all the benefits cease, and the policy terminates.

You can avail of a loan on the policy only after the policy is completed 3 months from the Date of Issuance of the policy or after the expiry of the free-look period, whichever is later. Only Annuity Option F and Option J are eligible for the loan. The maximum loan amount is determined as the effective annual interest amount payable on the loan, does not exceed 50% of the annual annuity amount and shall be subject to 80% of the Surrender Value.

Jeevan Akshay 7 allows a free look period of 30 days from the policy receipt date. Suppose the policyholder is not satisfied with the policy’s terms and conditions. In that case, the policyholder must state the reasons for objections to receiving the policy. The LIC shall cancel the policy and return the purchase price after excluding charges.

The Jeevan Akshay 7 plan offers tax benefits under Section 80C and 10 (10D) of the Income Tax Act.

The documents required to buy a LIC monthly pension plan are as follows.

• Age proof: PAN card, Aadhaar, Passport, Driving License, or School Certificate.
• Income proof: Form 16, Income Tax Returns, Bank Statement, Salary Slip, Pension Passbook.
• Address proof: Voter ID, Passport, Bank Passbook, Ration Card, Electricity Bill, Gas Bill, Water Bill, Credit Card Bill, Rental Agreement.
• Photo ID proof: Bank passbook with proposer photograph, PAN card, Aadhaar, Passport, Driving License, Voter ID, Ration Card.

With the advantage of receiving an annuity throughout the life of the pension holder, the Jeevan Akshay plan can work as a financial asset in your golden years. The annuities will be fixed and guaranteed until the pension holder is alive. If you buy a LIC pension plan for a purchase price above 5 lakhs, the annuity will be comparatively higher. LIC Jeevan Akshay can be bought by making one lump sum payment, and you can start getting immediate annuities.

If you plan to buy Jeevan Akshay Plan, contact one of our experts at RenewBuy or quickly connect with our POSP advisors on our handy mobile application.