Established in 1956, the Life Insurance Corporation (LIC) of India is an investment corporation owned by the Ministry of Finance. The organization has crossed trillions of total life funds raised. With nearly 300 million policyholders, LIC boasts of a significant investment network. If you have been associated with LIC in any form, you may know of LIC offerings and policies.
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Multiple Annuity Options
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This article covers the LIC Jeevan Akshay 7 Plan, an immediate annuity, non-linked, and non-participative plan. It was launched in 2020 and can be purchased both offline and online.
The following are the eligibility criteria for Jeevan Akshay 7 Plan from LIC:
The documents required for buying a LIC Jeevan Akshay 7 Plan are as follows:
The documents for age, address, and income proof may be any of the following:
For age proof |
Aadhaar card, passport, driving license, pan card, 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. |
Photo ID proof |
Aadhaar card, pan card, driving license, passport, voter ID, ration card, bank passbook with proposer photograph. |
The main features of the LIC Jeevan Akshay 7 plan are as follows:
The benefits obtained from this plan vary according to the annuity option that you decide to pick. The table below gives a short glimpse of how the particular annuity option of your choice corresponds to a certain set of benefits:
Annuity plan option |
Feature of the annuity option |
Relevant benefit |
A |
Immediate annuity for whole life |
Until you (the policyholder) are alive, the annuity payments are made in arrears. It is important to mention that no payment will be made on your death. The annuity payment will cease. This is a good option where the policyholder survives. |
B |
Immediate annuity along with a guarantee period of 5 years & thereafter, life. |
Here, on the death of the annuitant, the nominee will receive annuity payment. This payment will happen after the guarantee period of 5 years. If you die after the guarantee period, then nothing is payable. |
C |
Immediate annuity along with a guarantee period of 10 years & thereafter, life. |
Same as option B benefits except for the sole difference of you receiving the payment after the guarantee period of 10 years. |
D |
Immediate annuity along with a guarantee period of 15 years & thereafter, life. |
Same as option B benefits except for the sole difference of you receiving the payment after the guaranty period of 15 years. |
E |
Immediate annuity along with a guarantee period of 20 years & thereafter, life. |
Same as option B benefits except for the sole difference of you receiving the payment after the guarantee period of 20 years. |
F |
Immediate life annuity where you may receive a return on your purchase price. |
As long as the policyholder is alive, the annuity payment will be made in arrears. |
G |
Immediate life annuity. Here, your policy value increases at a rate of 3% per annum. |
The biggest benefit here is the 3% rate of increase for your policy value after every completed year. For a long-term policy, this is highly beneficial. |
H |
A joint life immediate annuity plan. In case of the death of the primary policyholder, the secondary policyholder may receive 50% of the annuity. |
In this plan, if you are the secondary annuitant & if your death precedes the primary annuitant, then there won't be any visible benefits. However, if you are the primary annuitant, you will receive a payment of 50% of the annuity as a survivor. |
I |
Another joint-life immediate annuity option where the survival of one of the annuitants promises a provision for 100% of the payable annuity. |
100% payment benefits are available if you are the primary annuitant. |
J |
Same as option-I. The difference is that on the death of the last survivor, the purchase price is returned. |
The greatest benefit of this plan is if you are the nominee. You will receive the policy purchase price if the option is exercised in case of eventuality related to the primary annuitant. |
The general benefits applicable to LIC and annuity plans may be available above all the mentioned benefits. These may include maturity benefits, survival benefits, and death benefits.
You may purchase via two channels - online & offline. If you satisfy the policy's eligibility criteria, you may proceed with the application. It's important to consult your financial advisor before the application process. You may leverage online resources and tools like an annuity calculator to understand the policy in full.
Rest assured, you should plan the policy cover to prepare for premium payments and maturity benefits. Your point of contact at LIC may act as your financial guide in purchasing & investing in this policy.
You should consider the plan like any other financial tool where investment risks are present. Therefore, you should consider all the market risks associated with this policy and decide accordingly. A thorough understanding of the terms & conditions of the plan and the investment impact is to be calculated. Planning regarding the nomination procedures and the policy loans should be practised.