LIC Jeevan Akshay VII is a non-linked single premium annuity plan which offers lifelong income after the policy term. This plan provides an immediate annuity for a selected period of 5, 10, 15 or 20 years. The LIC Pension plan can be purchased by anyone above the age of 60 years. The main features of LIC Jeevan Akshay VII are as follows: Minimum entry age – 60 years Policy term – Single premium Annuity options – Immediate annuity for a select period of 5, 10, 15 or 20 years Payment frequency – Monthly, quarterly, half-yearly or yearly LIC Jeevan Akshay VII also offers some additional features like joint life annuity, liquidity after 3 years and income tax benefit.
| LIC’s Jeevan Akshay – VII (Plan No. 857, UIN : 512N337V03) |
| Company Website : Click Here |
| Date of Launch : 30.08.2022 |
| LIC-s-Jeevan-Akshay-VII_Policy-document |
Jeevan Akshay VII Plan
LIC Jeevan Akshay VII is a single premium annuity plan that offers guaranteed lifelong income. The plan provides an immediate annuity for a period of 5, 10, 15 or 20 years. After the selected policy term is over, the annuity payments will continue for life.
The main features of LIC Jeevan Akshay VII are:
Guaranteed lifelong income: The plan provides an annuity for life, starting from the policy term maturity date.
Flexible policy terms: Policyholders can choose a policy term of 5, 10, 15 or 20 years.
Immediate annuity payouts: The annuity payments start immediately after the policy term expires. There is no waiting period.
High annuity rates: LIC Jeevan Akshay VII offers some of the highest annuity rates in the market.
Survival benefits: In case the policyholder dies before the policy matures, his/her nominee will receive all future premiums as lump sum benefits.
Features of Jeevan Akshay VII Plan
The Jeevan Akshay VII Plan from LIC offers several features and benefits that make it an attractive proposition for senior citizens. Some of the key features of this plan are as follows:
1. The Jeevan Akshay VII Plan is a single premium annuity plan that provides for regular income after retirement.
2. It offers guaranteed income for life, which makes it an ideal post-retirement investment option.
3. The annuity payments under this plan are payable monthly, quarterly, half-yearly or annually, as per the policyholder’s choice.
4. This plan also offers the facility of lump sum payment on maturity, which can be used for meeting any immediate financial requirements.
5. The Jeevan Akshay VII Plan comes with a built-in provision for liquidity in the form of loan facility against the policy. This helps in case of any unforeseen financial requirements during the policy term.
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Benefits of Jeevan Akshay VII Plan
LIC Jeevan Akshay VII Plan is a single premium annuity plan where the policyholder needs to pay just one lump sum amount as the premium. On vesting, the policyholder will start receiving regular income payments at specified intervals, which can be monthly, quarterly, half-yearly or yearly. The main benefits of LIC Jeevan Akshay VII Plan are:
1) It provides financial security in old age: This plan ensures that you have a regular income stream after retirement to take care of your expenses and maintain your lifestyle.
2) It offers liquidity: In case of an emergency, you can avail of the facility to surrender the policy and get back up to 85% of the paid-up value as a lump sum amount.
3) It comes with a death benefit: In case of the unfortunate demise of the policyholder during the policy term, his/her nominee will receive all future annuity payments till maturity along with a lump sum death benefit equal to 125% of the original premium paid.
4) It offers tax benefits: The premiums paid as well as the income received from this plan are both tax-exempt under Section 80C and 10(10D) of the Income Tax Act respectively.
Eligibility Criteria for Jeevan Akshay VII Plan
To be eligible for the Jeevan Akshay VII Plan from LIC, the following criteria must be met:
-The applicant must be between the ages of 40 and 80 years.
-The minimum sum assured under the plan is Rs.1 lakh. There is no maximum limit on the sum assured.
-The policy term choices are 5, 10, 15, 20 or 25 years.
-The premium payment options are regular (yearly, half-yearly, quarterly or monthly) or single premium.
-Policyholders can avail of a loan against their policy after it has been in force for 3 years.
Premium Payment Terms for Jeevan Akshay VII Plan
Premium Payment Terms for Jeevan Akshay VII Plan
The LIC Jeevan Akshay VII plan is a single premium annuity plan. This means that you have to pay the entire premium amount upfront in order to purchase the policy. The minimum premium amount is Rs.1,50,000 and there is no maximum limit on the premium amount. The policy term is for 5 years and the policyholder can choose to receive the annuity payments monthly, quarterly, half-yearly or yearly. The annuity payments will start from the end of the policy term.
Surrender Value Conditions of Jeevan Akshay VII Plan
The surrender value of a Jeevan Akshay VII plan is the sum of two parts:
1. The guaranteed surrender value, which is a percentage of the total premiums paid; and
2. The special surrender value, which is a percentage of the average account balance during the policy term.
The guaranteed surrender value is payable if the policyholder surrenders the policy within the first five years. After that, the special surrender value is payable.
The minimum guaranteed surrender value as a percentage of total premiums paid is
– 30% for policies with terms of 5 years or less,
– 50% for policies with terms between 6 and 10 years, and
– 60% for policies with terms greater than 10 years.
For example, if you have a policy with a term of 7 years and you surrender it after paying premiums for 3 years, you will receive 50% of your total premiums back (3 year’s worth).
However, if you wait until after year 5 to surrender the same policy, you will receive 60% of your total premiums back.
Revival of Lic Jeevan Akshay VII Plan
The LIC Jeevan Akshay VII Plan is a non-participating, single premium annuity plan that offers an immediate annuity for a period of 10 years. The minimum premium for this plan is Rs. 1,50,000 and the maximum premium is Rs. 15,00,000. This plan can be availed by anyone between the ages of 45 and 80 years.
This is a revival plan of the previous LIC Jeevan Akshay VI Plan which was discontinued in 2013. The main features of this plan are as follows:
-It offers an immediate annuity for a period of 10 years from the date of commencement of the policy.
-The annuity payments can be made monthly, quarterly, half-yearly or yearly as per the policyholder’s choice.
-Annuity payments will continue even if the policyholder dies during the policy term. In such a case, the nominee will receive the remaining annuity payments.
-There is no maturity benefit under this plan.
-Policyholders have the option to avail income tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Conclusion
LIC Jeevan Akshay VII is one of the best pension plans offered by LIC. It offers very good returns and has a number of features that make it an attractive proposition for those looking for a retirement plan. The major attractions of this plan are its guaranteed payments, income tax benefits and death benefit. This makes it an ideal choice for those who are looking to secure their financial future.
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