LIC Jeevan Akshay VII

LIC Jeevan Akshay VII- An Overview

The Life Insurance Corporation of India has launched several senior citizen insurance plans that help policyholders look after their post-retirement requirements. LIC Jeevan Akshay VII is one such plan designed to look after the policyholders' post-retirement needs. It is a single premium immediate annuity pension plan wherein the policyholder can choose the type of annuity from the 10 available options. The plan starts offering a regular income immediately after its purchase based on the chosen annuity mode. The annuity rates are guaranteed at the start of the policy, and these annuity payments will continue for the entire lifetime of the annuitant.

Key Features of LIC Jeevan Akshay VII

• Single Premium Immediate Annuity Plan: LIC Jeevan Akshay VII is a single premium plan wherein the policyholders are required to pay a lump sum premium once.

• Annuity Options: The plan offers a wide range of 10 annuity options to choose from and the annuity payouts can be made monthly, quarterly, half-yearly, or yearly.

• Flexibility: Policyholders can choose between Single Life Annuity and Joint Life Annuity.

• Online & Offline Purchase available: The plan can be purchased online and offline at the policyholder’s convenience.

• Tax Benefits: The purchase price of the Jeevan Akshay plan is tax-free upto Rs 1.5 Lakhs under Section 80C of the Income Tax Act, 1961.

What Is the Eligibility of LIC Jeevan Akshay VII?

Apart from being an Indian citizen, the following are the eligibility criteria for LIC Jeevan Akshay For Senior Citizens:

What Are the Benefits of LIC Jeevan Akshay VII Plan?

The benefits of this plan vary depending on the annuity option you choose. The list below explains the benefits you would receive through each option:

1. Multiple Annuity Options

   Option A: Immediate Annuity for life.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment.

   • The policy will terminate on their death, and no death benefit will be payable.

   Option B: Immediate Annuity with a Guaranteed Period of 5 years & life thereafter.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment.

   • In case the policyholder dies within the guaranteed period of 5 years, the annuity will be paid to the nominee till the end of the guaranteed period.

   • If the policyholder dies after the guaranteed period, the pension will stop, and the policy will terminate.

   Option C: Immediate Annuity with a Guaranteed Period of 10 years & life thereafter.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment.

   • In case the policyholder dies within the guaranteed period of 10 years, the annuity will be paid to the nominee till the end of the guaranteed period.

   • If the policyholder dies after the guaranteed period, the pension will stop, and the policy will terminate.

   Option D: Immediate Annuity with a Guaranteed Period of 15 years & life thereafter.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment.

   • In case the policyholder dies within the guaranteed period of 15 years, the annuity will be paid to the nominee till the end of the guaranteed period.

   • If the policyholder dies after the guaranteed period, the pension will stop, and the policy will terminate.

   Option E: Immediate Annuity with a Guaranteed Period of 20 years & life thereafter.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment.

   • In case the policyholder dies within the guaranteed period of 20 years, the annuity will be paid to the nominee till the end of the guaranteed period.

   • If the policyholder dies after the guaranteed period, the pension will stop, and the policy will terminate.

   Option F: Immediate Annuity for life with return of Purchase Price.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment.

   • In case of the policyholder’s death, the purchase price will be returned to the nominee as a death benefit, as per the option exercised by the annuitant, and the policy will terminate.

   Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a.

   • The Annuitant will receive a pension for their entire life as per the chosen mode of annuity payment. The annuity will increase at a simple rate of 3% per annum for each completed year.

   • The policy will terminate on the death of the annuiant, and no death benefit will be payable.

   Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.

   • The pension would remain unaffected on the death of the secondary annuitant, if happens before the primary annuitant, but decrease by 50% on the death of the primary annuitant. The policy will terminate on the death of both annuitants.

   Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.

   • The annuity will remain unaffected as long as both primary and secondary annuitants are alive.

   • 100% of the annuity will be paid if one annuitant is alive. The policy will terminate on the death of both the annuitants, and no death benefit will be payable.

   Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

   • The annuity will remain unaffected as long as primary and secondary annuitants are alive.

   • 100% of the annuity will be paid if one annuitant is alive. On the death of both the annuitants, the purchase price will be returned to the nominee, and the policy will terminate.

2. Death Benefit Payment Options

   Under LIC Jeevan Akshay VII, annuity options F and J provide the annuitant the flexibility to choose how the death benefit is paid to the nominee(s). These options must be selected by the annuitant(s) at the time of purchase, and once chosen, cannot be changed by the nominee(s) later.
   Below are the available modes of death benefit payout:

   Lump sum Amount

   In this option, the entire purchase price is paid as a one-time lump sum to the nominee(s).

   Annuitisation of Death Benefit

   The death benefit is used to buy a new LIC Immediate Annuity Plan for the nominee(s). This annuity amount is determined based on the nominee's age and the annuity rates prevailing at the time of the annuitant’s death. This option can be chosen for full or partial death benefit amount payable. Under the Jeevan Akshay for senior citizens plan, this option is ideal to secure regular income if they have dependents.

   Installment Option

   The nominee can receive the death benefit in installments over 5, 10, or 15 years, either for the complete amount or parts of the absolute value. Payments will be subject to minimum installment amounts as follows.

   Mode of Installment Payment	Minimum Installment Amount (Rs)
   Monthly	5,000
   Quarterly	15,000
   Half-Yearly	25,000
   Yearly	50,000

3. Benefit for a Disabled Dependent 

   LIC Jeevan Akshay VII also offers flexible options for individuals who want to financially secure the future of their dependant with a disability. The minimum purchase price under this special provision is ₹50,000, and there's no minimum limit on the annuity payout for the life of the disabled dependent. The plan can be purchased with the disabled dependent as the nominee or secondary annuitant as follows:

   a) Immediate Annuity with Return of Purchase Price (Option F)

   The proposer (typically a parent or guardian) purchases the policy in their own life. When the proposer dies, it will be compulsory to buy immediate annuity with the death benefit, in the name of the disabled dependent.

   b) Joint Life Annuity (Option I or J)

   This option allows the proposer to buy a joint annuity with the disabled dependent as the nominee or Secondary Annuitant.

LIC Jeevan Akshay 7 Plan Details

1. Free-Look Period

   If the policyholder is dissatisfied with the policy terms after purchase, the plan has a free-look period of 30 days in which it can be returned. This period starts from from the date of receipt of the electronic or physical mode policy bond, whichever is earlier.

2. Policy Surrender

   The policy can be surrendered only under options F and J, within 3 months from the date of policy issuance or after expiry of the free-look period, whichever is later. 

3. Loan Facility

   Loan facility is also allowed only under the options F and J. It will be available after the later of 3 months of policy issuance or or after expiry of the free-look period. The maximum loan amount will be 80% of the surrender value and its interest should not exceed 50% of the yearly annuity.

4. Incentives

   The policy offers incentives to the policyholders if the purchase price is higher than rs 5 Lakhs. Incentives on Tabular Annuity rate are also offered for existing policyholder and nominee of a deceased policyholder.

Sample Illustration of LIC Jeevan Akshay

The LIC Premium Calculator is an online tool to help policy seekers get an estimate as to how much they would get in return on investing a certain amount. LIC Jeevan Akshay Calculator reduces the time and effort required to perform these complex calculations.

Here is an example of annuity payment calculation for a 40- year old male, who chose the sum assured of Rs 10 Lakhs:

Using the LIC Jeevan Akshay calculator, you can easily calculate the annuity amount you will get on yearly/half-yearly/quarterly/monthly basis under any annuity option. Just provide the basic details and check the benefits and other LIC Jeevan Akshay 7 plan details.

Documents Required

The documents required for buying a LIC Jeevan Akshay VII Plan are as follows:

• For Age Proof: Aadhaar card, passport, driving license, pan card, or school certificate.

• For Income Proof: Bank statement, income tax returns, salary slip, pension passbook, form 16.

• For Address Proof: Passport, bank passbook, ration card, voter ID, electricity bill, gas bill, water bill, telephone bill, credit card bill, rental agreement, mobile postpaid bill, driving license.

• For Photo ID Proof: Aadhaar card, pan card, driving license, passport, voter ID, ration card, bank passbook with proposer photograph.

Key Points To Remember

Some of the key takeaways of the LIC Jeevan Akshay VII plan are specified below:

• It is a retirement plan with various annuity options to suit your different financial needs.

• The annuities will be fixed and paid throughout the lifetime of the policyholder.

• The plan offers both, single and joint life cover options.

• You can buy it either offline or online. You can visit LIC’s nearest branch to make the purchase offline or on their website to buy it online.

• The pensioners will receive a higher pension if the purchase price is above Rs. 5 Lacs as an incentive.

• For a joint plan, the other member should be your lineal ascendant/descendant (i.e. Grandparent, Parent, Children, Grand children) or spouse or siblings.

• The surrender option and loan facility is are available for specific annuity options (Options H & J) under this plan. They are open only after three months of completion of the policy.

• The policy can only be bought through lump sum payment but has benefits of an LIC senior citizen monthly income scheme.

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