LIC Jeevan Akshay Plan
LIC Jeevan Akshay 6 Plan Review
LIC Jeevan Akshay VI Policy is a Single Premium Immediate Annuity Plan
How it works – You pay a Single Premium (the ‘Purchase Price’) to purchase an Annuity. LIC will then pay you regular amounts for the rest of your life. You could receive this frequent payout monthly, quarterly, half-yearly, or annually. This regular payout amount is called an Annuity. You have 7 options to decide on the type and amount of annuity you want to receive.
Our take – If you have already purchased a Pension Plan (also called a Deferred Annuity plan) from LIC you will have to buy an Annuity from LIC itself. As per the current regulations, at Vesting Age you can withdraw a maximum of 1/3 of the accumulated amount and the rest has to be used to purchase an Annuity from the same insurance company. So it is best to decide which of the 7 options best suits you. The details of the 7 Annuity options and the benefits are explained below.
You can of course buy an Annuity by investing a lumpsum that you have as savings. You will then be assured of a regular payout as long as you are alive. It works well for those who want a confirmed amount for the rest of their lives and are not necessarily looking at options that may offer them higher returns with an element of unpredictability. For example, there may be a period where Fixed Deposits provide better returns than the Annuity, but then the FD rates may go down also within a year or so.
Key Features
The minimum purchase price or premium paid is Rs 100,000 for channels other than online and Rs 150,000 for plans purchased online
An annuity may be paid monthly, quarterly, half-yearly, or yearly intervals depending on how you choose initially
Different annuity payment options may either be chosen for a single policyholder or jointly for the policyholder and spouse
An annuity will be calculated at higher rates for plans purchased online and a lump sum premium (or purchase price) of Rs 250,000 or higher
No upper limit for purchase price or annuity under the plan
Benefits
where the pension is paid till the policyholder is alive. The pension received regularly is uniform and does not change.
Example: The policyholder would receive an annual pension of Rs. 48,750 for the rest of his/her lifetime.
where the pension is definitely paid for 5/10/15 or 20 years as chosen, whether the policyholder is alive or not during this period. Post this period, pension is paid as long as the annuitant is alive. Hence this option will have 4 effective options:
Annuity Guaranteed for 10 years - Example: The policyholder or the nominee will get Rs. 47,300 surely for 10 years, irrespective of the policyholder's survival for 10 years. In case the policyholder survives for 10 years, he/she would continue to get Rs. 47,300 for the rest of his/her lifetime.
Annuity Guaranteed for 15 years - Example: The policyholder or the nominee will get Rs. 45,950 surely for 15 years, irrespective of the policyholder's survival for 15 years. In case the policyholder survives for 15 years, he/she would continue to get Rs. 45,950 for the rest of his/her lifetime.
Annuity Guaranteed for 20 years - Example: The policyholder or the nominee will get Rs. 44,400 surely for 20 years, irrespective of the policyholder's survival for 20 years. In case the policyholder survives for 20 years, he/she would continue to get Rs. 44,400 for the rest of his/her lifetime.
pension is paid till the policyholder is alive and the “Purchase Price” or the amount initially invested is paid to the nominee as a death benefit.
Example: The policyholder would receive an annual pension of Rs. 37,550 for the rest of his/her lifetime. Post the policyholder's death, the nominee will receive the Purchase Price of Rs. 5,00,000, and the policy is terminated.
pension is paid till the policyholder is alive at an increasing simple rate of 3% per annum.
Example: The policyholder would receive an annual pension of Rs. 39,650 for the first year. The annual payout will increase by Rs. 1,190 (3% of Rs. 39,650) every year for the rest of his/her lifetime.
pension is paid till the policyholder is alive. On the death of the policyholder, 50% of the pension is payable to the spouse for his/her lifetime. All benefits stop on the death of the spouse also.
Example: The policyholder would receive an annual pension of Rs. 45,200 for the rest of his/her lifetime. After the death of the policyholder, the spouse will be paid Rs. 22,600 (50% of Rs. 45,200) for the rest of his/her life.
pension is paid till the policyholder is alive. On the death of the life insured, 100% of the pension is payable to the spouse for his/her lifetime. All benefits stop on the death of the spouse also.
Example: The policyholder would receive an annual pension of Rs. 42,150 for the rest of his/her lifetime. After the death of the policyholder, the spouse will be paid Rs. 42,150 (100% of Rs. 42,150) for the rest of his/her life.
pension is paid till the policyholder is alive. On the death of the policyholder, 100% of the pension is payable to spouse for his/her lifetime. The purchase price is returned on death of the policyholder and the spouse.
Example: The policyholder would receive an annual pension of Rs. 37,050 for the rest of his/her lifetime. After the death of the policyholder, the spouse will be paid Rs. 37,050 (100% of Rs. 37,050) for the rest of his/her life. On the death of the spouse, the Purchase Price of Rs. 5,00,000 will also be returned.
Tax Benefit
The premiums paid by you are exempt from Income tax under Section 80 C.
The regular pension received by you is however taxable.
Eligibility
FAQs
What happens if You want to surrender the policy?Under most options of this plan, there is no Surrender Value. Which means, there is no option to get back the lumpsum amount you have invested. When this plan was launched, there was absolutely no option to surrender. However, some changes have been made and you can get a Surrender Value if you have chosen the "Return of Purchase Price" option in this plan and meet some other conditions. They are as follows:
- You have shifted permanently to another country of residence
- You have been diagnosed with some critical illness
Know more about the conditions for Surrendering the LIC Jeevan Akshay Plan - the conditions under which you can do so and the list of critical illnesses.
What happens if You want a loan against your policy?A loan facility is not available under this policy.
Claim Process
| Monthly Mode | 1 month after the purchase of the Annuity |
| Quarterly Mode | 3 months after the purchase of the Annuity |
| Half Yearly Mode | 6 months after the purchase of the Annuity |
| Yearly Mode | 1 year after the purchase of the Annuity |
