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LIC Jeevan Akshay VII Pension Plan

LIC Jeevan Akshay VII pension plan (512N337V01), LIC plan No. 857, is the latest version of the classic immediate annuity plan, Jeevan Akshay of LIC of India, where a policyholder deposits single premium and opts one out of ten pension options to get guaranteed yearly, half-yearly, quarterly or monthly pension for lifetime. Immediate annuity means, if policyholder chooses monthly mode, the pension starts from next month. The annuity or pension amount depends upon age and selected option and it remains guaranteed for life. An example of Jeevan Akshay VII plan with all benefit has been illustrated in later part of the article.

Related Link: LIC Jeevan Akshay VII (857) Pension Calculator

Features and Eligibility Conditions

• Minimum Age: 30 Years (Last Birthday)
• Maximum Age: 85 Years (Last Birthday) except option F and 100 years for option F.
• Minimum Purchase Price: Rs. 1,00,000 and subject to minimum pension
• Maximum Purchase Price: No Limit
• Minimum Pension: 12,000 (Yearly), 6000 (Half-yearly), 3000(Quarterly), 1000(Monthly)
• Joint Life: The policy can be taken between any two lineal descendent/ascendant of a family (like grandparent, parent, children, grandchildren) or spouse of siblings.
• Mode of Payments: Jeevan Akshay VII allows yearly, half-yearly, quarterly or monthly installments for payment of annuity, which means, if yearly mode is opted for, the annuity/pension will be available after 1 year of purchase.

Annuity (Pension) Options

LIC Jeevan Akshay VII comes with 10 options- from A to J, one option can be opted for by a policyholder as per his/her choice. All options are explained below.

1. Option-A [Single Life]: Immediate Annuity for Life
• In this option guaranteed pension is provided as long as policyholder is alive and in case of death of the policyholder, purchase price is not returned to nominee and policy gets closed.
2. Option-B [Single Life]: Immediate annuity for guaranteed period of 5 years and for life thereafter
• Guaranteed pension is paid for first 5 years either to policyholder himself or his nominee. Nominee gets the amount in case of death of the policyholder during guaranteed period of 5 years. After 5 years, policyholder gets pension as long as he is alive. In case of death of the policyholder, purchase price is not returned to nominee and policy gets closed.
3. Option-C [Single Life]: Immediate annuity for guaranteed period of 10 years and for life thereafter
• Guaranteed pension is paid for first 10 years either to policyholder himself or his nominee. Nominee gets the amount in case of death of the policyholder during guaranteed period of 10 years. After 10 years, policyholder gets pension as long as he is alive. In case of death of the policyholder, purchase price is not returned to nominee and policy gets closed.
4. Option-D [Single Life]: Immediate annuity for guaranteed period of 15 years and for life thereafter
• Guaranteed pension is paid for first 15 years either to policyholder himself or his nominee. Nominee gets the amount in case of death of the policyholder during guaranteed period of 15 years. After 15 years, policyholder gets pension as long as he is alive. In case of death of the policyholder, purchase price is not returned to nominee and policy gets closed.
5. Option-E [Single Life]: Immediate annuity for guaranteed period of 20 years and for life thereafter
• Guaranteed pension is paid for first 20 years either to policyholder himself or his nominee. Nominee gets the amount in case of death of the policyholder during guaranteed period of 20 years. After 20 years, policyholder gets pension as long as he is alive. In case of death of the policyholder, purchase price is not returned to nominee and policy gets closed.
6. Option-F [Single Life]: Immediate annuity for life and return of purchase price
• Guaranteed pension is paid to policyholder as long as he is alive. In case of death of the policyholder, purchase price is returned to nominee as per death settlement opted by the policyholder and policy gets closed.
7. Option-G [Single Life]: Immediate annuity for life and annuity increasing at a simple rate of 3% per annum
• Guaranteed pension is paid to policyholder as long as he is alive and the pension amount increases at a rate 3% per annum according to simple interest. For example, if yearly pension amount is Rs. 100 in year 2020, it will be Rs. 103 in 2021, Rs. 106 in 2022 and so on. In case of death of the policyholder, purchase price is returned to nominee as per death settlement opted by the policyholder and policy gets closed.
8. Option-H [Joint Life]: Guaranteed annuity (pension) for life with provision for 50% of the annuity to secondary annuitant on death of primary annuitant
• In this option, the primary policyholder receives annuity (pension) as long as he survives and on death of the primary policyholder, secondary policyholder (Joint Policyholder) receives 50% of pension for lifetime. In case of death of last survivor, purchase amount is not returned to the nominee and policy get closed.
9. Option-I [Joint Life]: Guaranteed annuity (pension) for life with provision for 100% of the annuity to secondary annuitant on death of primary annuitant
• In this option, the primary policyholder receives annuity (pension) as long as he survives and on death of the primary policyholder, secondary policyholder (Joint Policyholder) receives same pension (100% of pension) for lifetime. In case of death of last survivor, purchase amount is not returned to the nominee and policy get closed.
10. Option-J [Joint Life]: Guaranteed annuity (pension) for life with provision for 100% of the annuity to secondary annuitant on death of primary annuitant
• In this option, the primary policyholder receives annuity (pension) as long as he survives and on death of the primary policyholder, secondary policyholder (Joint Policyholder) receives same pension (100% of pension) for lifetime. In case of death of last survivor, purchase amount is returned to the nominee and policy get closed.

Pension (Annuity) Rate

Annuity or pension rate of Jeevan Akshay VII depends upon age(s) of the policyholder(s) and selected annuity option. Please use LIC Jeevan Akshay VII Pension Calculator to calculate pension as per your age and investment amount. Annuity Rates (offline) for Rs. 10,00,000 investment amount are given in the following table.

Maturity Benefits

There is no maturity benefit associated with this plan. The full purchase amount is not returned to policyholder in his lifetime. Further, purchase price is returned to nominee as death claim in case of death of policyholder(s) in option F and J only.

LIC Jeevan Akshay VII Example

For explanation purpose, all benefits of a policy with Rs. 25,00,000 purchase price for a 50 years old policyholder with option-F has been given below.

Rebates

Incentive for higher purchase Price

In case of higher purchase price, there will be rebate which will be given to policyholder by way of increasing annuity or pension amount. Following table provides chart for rebate per thousands of purchase price.

Incentive for online purchase

There will be 2% rebate by way of increase in annuity, if the policy is purchased online or if it is the case of NPS (New Pension scheme) subscriber.

Death claim settlement options

In Jeevan Akshay VII, Death claim is applicable in options F and J only. In these annuity (pension) options, the policyholder can choose one of three methods for death claim payment to his nominee.

1. Lumpsum Death Benefit: In this option death claim is paid in one single amount.
2. Annuitisation of Death Benefit: In this option, death claim is used to purchase immediate annuity plan according to prevailing rate and terms & conditions at the time of purchase. This option can be utilized for full death claim amount or part of it.
3. In installments: In this option, death claim amount is paid in installments over chosen period of 5, 10 or 15 years. This option can be utilized for full death claim amount or part of it. The installment will be subject to minimum criteria mentioned in following table.

Policy Surrender

LIC Jeevan Akshay VII can be surrendered after 3 months of purchase. Surrender value is applicable in options F and J only and all other option has no surrender value.

To calculate and learn more about Jeevan Akshay VII surrender value, please visit Jeevan Akshay VII Surrender Value Calculator.

Policy Loan

LIC Jeevna Akshay has loan facility which is restricted to option F and J only. The maximum loan amount will be 80% of surrender value. The loan amount should be such that annual interest amount does not exceed 50% of annual pension amount.

Free Look Period

If policyholder is not satisfied with terms and conditions of the policy, he can request cancellation of his policy within 15 days (30 days in case of online purchase) from receipt of the policy. Policy will be cancelled and purchase price will be returned after deducting stamp duty and annuity (pension) paid.

Document Required for Purchase

1. ID proof
2. Address Proof
3. PAN Card
4. Income proof
5. Cancelled Cheque or bank details

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