LIC Jeevan Akshay VII – Overview

LIC Jeevan Akshay VII is a Non-Participating, Non-Linked, Individual Immediate Annuity Plan that provides a guaranteed pension for life on payment of a single premium.

The annuity rates are fixed at the time of policy purchase and remain unchanged throughout the lifetime of the annuitant(s), ensuring stable and predictable retirement income.

Key Features of LIC Jeevan Akshay VII

• Single Premium Immediate Annuity plan
• Guaranteed pension for the lifetime of annuitant(s)
• Choice of Single Life or Joint Life annuity
• Multiple pension payout modes:
  • Yearly
  • Half-Yearly
  • Quarterly
  • Monthly
• Non-participating plan – no bonus or profit sharing
• Benefits are fixed and not linked to market performance

Who Can Take LIC Jeevan Akshay VII?

Minimum Purchase Price

Maximum Purchase Price

There is no upper limit on the purchase price. However, the maximum annuity payable to an individual is subject to LIC’s Board-approved underwriting policy.

Age at Entry

• Minimum Age: 25 years (completed), subject to minimum purchase price conditions.
• Maximum Age: 85 years (completed) for all options except Option F.
• Option F: Maximum entry age is 100 years (completed).

Annuity Limits

Minimum Annuity

Maximum Annuity

There is no maximum limit on the annuity amount. Final approval is subject to underwriting norms.

Joint Life Annuity – Eligibility

Under Joint Life annuity options, pension can be taken between any two of the following relationships:

• Spouse
• Parents or Grandparents
• Children or Grandchildren
• Siblings

LIC Jeevan Akshay VII – Annuity Options

Single Life Annuity Options

• Option A: Immediate annuity for life
• Option B–E: Immediate annuity with guaranteed period of 5, 10, 15, or 20 years and life thereafter
• Option F: Immediate annuity for life with return of purchase price on death
• Option G: Immediate annuity for life increasing at 3% simple interest per annum

Joint Life Annuity Options

• Option H: 100% annuity to primary annuitant, 50% to secondary annuitant after death
• Option I: 100% annuity payable as long as either annuitant survives
• Option J: 100% annuity to survivor with return of purchase price on death of last survivor

Benefits Under Jeevan Akshay VII

Survival / Death Benefits

Benefits payable on survival or on death of the Annuitant(s) depend on the annuity option chosen at policy inception and are payable as follows:

• Option A: Annuity is payable in arrears for the lifetime of the annuitant. On death of the annuitant, annuity payments cease immediately and nothing is payable.
• Options B, C, D and E: Annuity is payable in arrears for life. If death occurs during the guaranteed period of 5, 10, 15 or 20 years, annuity continues to be paid to the nominee(s) till completion of the guaranteed period. If death occurs after the guaranteed period, annuity payments cease and nothing is payable.
• Option F: Annuity is payable in arrears for life. On death of the annuitant, annuity payments cease immediately and the purchase price is returned to the nominee(s).
• Option G: Annuity is payable in arrears for life and increases at a simple rate of 3% per annum for each completed policy year. On death of the annuitant, annuity payments cease and nothing is payable.
• Option H: Annuity is payable in arrears for life to the primary annuitant. On death of the primary annuitant, 50% of the annuity is payable to the secondary annuitant for life. Annuity payments cease on the death of the secondary annuitant.
• Option I: 100% of the annuity is payable in arrears for as long as either the primary or secondary annuitant is alive. On death of the last survivor, annuity payments cease and nothing is payable.
• Option J: 100% of the annuity is payable in arrears for as long as either the primary or secondary annuitant is alive. On death of the last survivor, annuity payments cease and the purchase price is returned to the nominee(s).

Maturity Benefit

There is no maturity benefit payable under LIC Jeevan Akshay VII.

Incentives Under Jeevan Akshay VII

LIC Jeevan Akshay VII offers incentives for higher purchase price. These incentives are provided by way of an increase in the tabular annuity rate and depend on:

• Purchase price slab
• Mode of annuity payment

The incentive is added to the annuity rate per annum for every ₹1,000 of purchase price.

Surrender Value and Loan Facility

Surrender Value

Surrender of the policy is allowed only under the following annuity options, and only after three months from the date of policy issuance or after completion of the free-look period, whichever is later:

• Option F: Immediate Annuity for life with return of Purchase Price.
• Option J: Joint Life Immediate Annuity with 100% annuity payable to the survivor and return of Purchase Price on death of the last survivor.

The surrender value payable depends on the age (last birthday) of the annuitant at the time of surrender. On payment of the surrender value, the policy terminates and all benefits cease.

Surrender provisions for policies purchased under NPS or QROPS are subject to guidelines issued by the respective regulatory authorities (PFRDA / HMRC). Policyholders are advised to view this policy as a long-term arrangement, as surrender may result in a significant loss.

Loan Facility

Loan facility is available under the policy after three months from the date of issuance or after the free-look period, whichever is later, subject to LIC’s prevailing terms and conditions.

As per current provisions, loans are allowed only under the following options:

• Option F
• Option J

The maximum loan amount is restricted such that:

• The annual interest payable does not exceed 50% of the annual annuity, and
• The loan amount does not exceed 80% of the surrender value.

Loan interest is recovered from the annuity payable, and any outstanding loan amount is adjusted from the claim proceeds at the time of exit.

Illustration – LIC Jeevan Akshay VII

The following illustration is for reference only and shows the annuity amounts payable under different annuity options for a sample set of inputs.