Retirement is the time to relax, enjoy, and live stress-free. And with LIC’s Jeevan Akshay-VII, you can make this possible. This policy is a Non-Par, Non-Linked, Individual, Savings Immediate Annuity Plan. This plan is designed for individuals who want a steady income stream throughout their lifetime.
LIC Jeevan Akshay Premium Maturity Calculator
The plan brings you different ways to get your regular income. You can choose how you want to invest and how you want your money to come back to you. Here’s an in-depth breakdown of this plan to help you make an informed decision.
Key Features
- Immediate Annuity: Start receiving payments immediately after purchasing the policy.
- Single Premium Plan: Pay once to secure lifetime income.
- Wide Range of Options: Choose from 10 different annuity payout structures to suit your requirements.
- Flexible Payment Modes: Select from yearly, half-yearly, quarterly, or monthly annuity payments.
- Guaranteed Rates: Annuity rates are locked at the inception of the policy.
- Available for Single or Joint Lives: Opt for single or joint annuities based on your financial goals.
- Incentives for Higher Purchase Price: Higher purchase prices enjoy increased annuity rates.
- Eligibility for Online and Offline Purchase: Buy through LIC agents, intermediaries, or directly online at www.licindia.in.
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Annuity Options
| Option | Description |
|---|---|
| A | Immediate Annuity for life. |
| B | Immediate Annuity with a guaranteed period of 5 years and life thereafter. |
| C | Immediate Annuity with a guaranteed period of 10 years and life thereafter. |
| D | Immediate Annuity with a guaranteed period of 15 years and life thereafter. |
| E | Immediate Annuity with a guaranteed period of 20 years and life thereafter. |
| F | Immediate Annuity for life with return of Purchase Price on death of the Annuitant. |
| G | Immediate Annuity for life increasing at a simple rate of 3% per annum. |
| H | Joint Life Immediate Annuity for life with 50% annuity payable to the Secondary Annuitant after Primary’s death. |
| I | Joint Life Immediate Annuity for life with 100% annuity payable as long as one Annuitant survives. |
| J | Joint Life Immediate Annuity for life with 100% annuity payable and return of Purchase Price on last survivor’s death. |
Eligibility Criteria
| Criteria | Details |
|---|---|
| Minimum Purchase Price | ₹1,00,000 (₹50,000 for Divyangjan cases). |
| Maximum Purchase Price | No limit. |
| Minimum Entry Age | 25 years. |
| Maximum Entry Age | 85 years (100 years for Option F). |
| Minimum Annuity Amount | ₹1,000 (monthly), ₹3,000 (quarterly), ₹6,000 (half-yearly), or ₹12,000 (yearly). |
Benefits
1. Annuity Payment
The regular income keeps coming to you throughout life. If you choose, these payments can be guaranteed for a fixed time period first, then continue for life. The money flow stops after death.
2. Death Benefit
For Options F and J, the nominee receives the Purchase Price upon the annuitant’s death. Other options may cease payments upon death.
3. Incentives for Higher Purchase Price
Annuity rates improve for larger purchase prices. Slabs include:
| Purchase Price Slab | Additional Annuity Rate Increase |
|---|---|
| ₹5,00,000 to ₹9,99,999 | Moderate increase. |
| ₹10,00,000 to ₹24,99,999 | Higher increase. |
| ₹25,00,000 to ₹99,99,999 | Significant increase. |
| ₹1,00,00,000 and above | Maximum incentive. |
Sample Annuity Illustration
Let’s assume a Purchase Price of ₹10,00,000 with the annuitant aged 60 years (male), opting for yearly payments:
| Option | Description | Annual Annuity (₹) |
|---|---|---|
| A | Immediate Annuity for life. | 91,100 |
| B | Immediate Annuity with a guaranteed period of 5 years and life thereafter. | 90,400 |
| C | Immediate Annuity with a guaranteed period of 10 years and life thereafter. | 88,600 |
| D | Immediate Annuity with a guaranteed period of 15 years and life thereafter. | 85,800 |
| E | Immediate Annuity with a guaranteed period of 20 years and life thereafter. | 82,300 |
| F | Immediate Annuity for life with return of Purchase Price on death of Annuitant. | 67,700 |
| G | Immediate Annuity for life increasing at a simple rate of 3% per annum. | 73,700 |
| H | Joint Life Immediate Annuity for life (50% annuity to Secondary Annuitant after death). | 83,800 |
| I | Joint Life Immediate Annuity for life (100% annuity payable to survivor). | 77,600 |
| J | Joint Life Immediate Annuity with return of Purchase Price on last survivor’s death. | 66,900 |
Examples for Better Understanding
Scenario 1: Immediate Annuity for Life (Option A)
- Purchase Price: ₹20,00,000.
- Annuity Amount (Yearly): ₹1,82,200.
- What Happens? The annuitant receives ₹1,82,200 yearly for life. Payments cease upon death.
Scenario 2: Joint Life Annuity with Return of Purchase Price (Option J)
- Purchase Price: ₹50,00,000.
- Annuity Amount (Yearly): ₹3,34,500.
- What Happens? Both annuitants receive the annuity while alive. After their demise, the nominee receives the ₹50,00,000 purchase price.
Scenario 3: Annuity with 20-Year Guarantee (Option E)
- Purchase Price: ₹30,00,000.
- Annuity Amount (Yearly): ₹2,46,900.
- What Happens? The annuitant receives guaranteed payments for 20 years. If alive after 20 years, they continue receiving payments for life.
Explanation of Terms
- Annuity: A fixed amount of money paid regularly to the policyholder, usually for life or a guaranteed period.
- Purchase Price: The one-time premium paid to activate the policy and secure lifetime annuity payments.
- Return of Purchase Price: An option where the original premium amount is returned to the nominee after the annuitant’s death.
- Guaranteed Period: A fixed period during which annuity payments are guaranteed, irrespective of whether the annuitant survives.
- Joint Life Annuity: A plan where annuity payments are made to two people. Payments continue to the second individual if the first passes away.
- Incentives for Higher Purchase Price: Discounts or increased annuity rates are offered for higher premium amounts.
- Increasing Annuity: An annuity that grows at a fixed rate (e.g., 3% annually) to combat inflation.
How to Buy LIC’s Jeevan Akshay-VII
- Decide Purchase Price: Choose an amount based on your desired annuity.
- Select Annuity Option: Pick the option that best suits your financial goals.
- Choose Payment Mode: Opt for monthly, quarterly, half-yearly, or yearly payments.
- Submit Required Documents: Provide proof of identity, age, and income.
- Make Payment: Complete the one-time premium to activate your annuity.
Conclusion
LIC’s Jeevan Akshay-VII is a good plan especially if you want a steady income for life. It can be the best option if you are planning for retirement or want a kind of financial stability. If you want personalized assistance, you can contact an LIC agent or visit www.licindia.in today.
