LIC (Life Insurance Corporation of India) is the oldest and most trusted insurance company in India. LIC has recently launched its new Jeevan Akshay VII policy. It is an immediate annuity plan (857). In this post, let us take a look at the features and benefits of the LIC Jeevan Akshay VII Pension Plan.
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LIC Jeevan Akshay VII Policy – An Immediate Annuity Plan (857)
LIC Jeevan Akshay VII Policy is a non-linked, non-participating, immediate annuity plan. You can purchase this instant annuity plan by paying a lump sum amount. In this plan, the pension rates are guaranteed at the beginning of the policy.
The policy provides for annuity payments of a stated amount throughout the life time of the annuitant. The policyholders have an option to choose a type of pension from 10 available options. The plan can be purchased via offline as well as online mode.
Features of LIC Jeevan Akshay VII Policy
1. This plan is launched by LIC on August 25, 2020.
2. It is a single premium, non-linked, non-participating, and immediate pension plan.
3. The minimum purchase price is Rs.1 lakh.
4. There are no maximum limits for the purchase price, annuity, etc.
5. The immediate pension starts as early as next month.
6. There are 10 options of pension to choose from as per your requirement.
7. There is a rebate of 2% by way of an increase in the basic pension rate will be available.
8. You will get a higher amount of pension if your purchase price is Rs.5 lakh or more.
9. You may choose either monthly, quarterly, half-yearly, or yearly as a mode of payment of the pension.
10. There is no medical test required under this plan.
11. You can make payment through Netbanking, Debit card, Credit card, Amex card.
12. You can buy more than one policy for yourself if you believe you need more life cover.
Eligibility for LIC Jeevan Akshay VII Pension Plan
1. Minimum age of entry – 30 years
2. Maximum age of entry – 100 years for option F and 85 for other options
3. Age proof is necessary
4. Minimum purchase price – Rs.1 lakh
5. Maximum purchase price – No maximum limit for the purchase price
6. Minimum annuity – Monthly Rs.1,000/month
– Quarterly Rs. 3,000/quarter
– Half-yearly Rs.6,000/half-year
– Annual Rs.12,000/annum
7. Maximum annuity – No Limit
8. Premium payment mode – Single premium only.
9. The joint-life annuity can be taken between any lineal descendant/ascendant of a family.
Annuity Options under this plan
Below mentioned pension options available under LIC Jeevan Akshay VII Pension Plan (857). You may choose any one from these options:
1. Annuity payable for life at a uniform rate.
2. Annuity payable for 5 years certain and thereafter as long as the annuitant is alive.
3. Annuity payable for 10 years certain and thereafter as long as the annuitant is alive.
4. Annuity payable for 15 years certain and thereafter as long as the annuitant is alive.
5. Annuity payable for 20 years certain and thereafter as long as the annuitant is alive.
6. Annuity for life with return of purchase price on death of the annuitant.
7. Annuity payable for life increasing at a simple rate of 3% p.a.
8. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
9. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
10. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of the annuitant. The purchase price will be returned on the death of the last survivor.
Rebates available under this plan
1. The incentive for high purchase price
The incentive by way of increase in the tabular annuity rate will be given to the annuitant.
2. Incentives for online sale
A rebate of 2% for policies sold directly without any involvement of Agent/any other intermediary by way of increase in annuity shall be available in case of the following:
a) For Online policies or
b) NPS subscribers.
Sample Annuity Rates
Below are the sample annuity payable amount under different options
How to buy LIC Jeevan Akshay VII Pension Plan?
You can purchase this pension policy either online or offline. For online purchases, visit LIC online portal. For offline purchases, you can directly visit your nearest LIC branch or contact a LIC agent.
Final Thoughts
LIC Jeevan Akshay VII Policy is an immediate pension plan. If you buy this pension plan online then a rebate of 2% will be available by way of an increase in the basic pension rate. However, the returns of annuity plans would be low post inflation. Therefore, do your research before buying such pension plans.
For more information visit LIC official website here.
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