LIC Jeevan Akshay VII

The Life Insurance Corporation of India (LIC of India) has launched several senior citizen insurance plans that help the policyholder to look after their post-retirement requirements. LIC Jeevan Akshay VII is one such plan that was launched in 2020 and can be purchased both online and offline. This article covers the features, eligibility, and benefits of the plan. 

LIC Jeevan Akshay VII- An Overview

LIC Jeevan Akshay VII is an 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.

What Are the Annuity Options 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. Annuity Option A (Single Life):

   • The pensioner shall receive a pension for the entire life of the policyholder.

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

2. Annuity Option B (Single Life):

   • The pensioner receives an annuity regularly for as long as they are alive.

   • The annuity is paid to the nominee for a period of 5 years even if the pensioner dies within this guarantee period.

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

3. Annuity Option C (Single Life):

   • The pensioner receives the annuity regularly for as long as they are alive.

   • The annuity is paid to the nominee for a period of 10 years if the pensioner dies within this guarantee period.

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

4. Annuity Option D (Single Life):

   • The pensioner receives the annuity regularly for as long as they are alive.

   • The annuity is paid to the nominee for a period of 15 years if the pensioner dies within this guarantee period. If the policyholder dies after this period, the pension will stop and the policy will terminate.

5. Annuity Option E (Single Life):

   • The pensioner receives the annuity regularly for as long as they are alive.

   • The annuity is paid to the nominee for a period of 20 years if the pensioner dies within this guarantee period. If the policyholder dies after this period, the pension will stop and the policy will terminate.

6. Annuity Option F (Single Life):

   • The pensioner receives the annuity regularly for as long as they are alive.

   • In case of the policyholder’s death, the purchase price is returned to the nominee as a death benefit and the policy ceases to exist.

7. Annuity Option G (Single Life):

   • The annuity is increased yearly at a simple rate of 3% per annum.

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

8. Annuity Option H (Joint Life):

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

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

9. Annuity Option I (Joint Life):

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

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

10. Annuity Option J (Joint Life):

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

    • 100% of the annuity will be paid as long as 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.

Even though the plan offers 10 immediate annuity options, Options F and J are the most preferred options as they allow loan and surrender benefits. You can go through the options and select the one most suitable to your requirements.

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:

Key Benefits of LIC Jeevan Akshay VII

The benefits of the Jeevan Akshay for Senior Citizens are as follows:

• Death Benefit: The remaining annuities within the guarantee period or the purchase price could be paid as the death benefit. It is paid according to the annuity option selected by the policyholder. The options for the payment of death benefits are -

  1. The death benefit would be paid in lump sum amount to the nominee.

  2. The death benefit would be paid in regular installments as selected by the pensioner

  3. The death benefit would be utilized to buy an immediate annuity plan for the nominee.

• Maturity Benefit: There is no maturity benefit under this plan.

• Income Tax Benefit*: The plan offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

* Tax benefits are subject to change with the current tax laws.

Additional plan benefits include:

• Mode of Annuity Payment: The plan offers the option of receiving the regular pension through various modes, like monthly, quarterly, bi-annually, and yearly. The minimum annuity payable through this plan is:

How To Buy the LIC Jeevan Akshay VII Plan?

You can purchase the plan either online or offline. If you satisfy the policy's eligibility criteria (next section), you may proceed with the application. It's important to consult your financial advisor before you go through with the application process. You may utilize online resources and tools like the LIC Jeevan Akshay Calculator to understand the policy in detail.

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:

LIC Jeevan Akshay Calculator

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. It is a great tool as it reduces the time and effort required to perform these complex calculations.

Let’s say you are a 40-year-old male, purchasing a policy of Rs. 10 Lacs (without taxes) on a yearly mode, then the annual pension and death benefit for Options F and J will be:

Documents Required

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

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

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

3. 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.

4. 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.

• A free look period of 30 days is attached to this plan for both, online and offline modes of purchase. If you are not satisfied with the policy terms & conditions, you may return the policy within this free look period.

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

• For a joint plan, the other member should be your lineal ascendant/descendant.

• The surrender option and loan facility is available for specific annuity options 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.

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