Review of LIC Jeevan Akshay-VII

Ms. Archana Pandey bought LIC Jeevan Akshay VII for her father. Since she is a single child, Archana is often worried about her parents' financial stability after her father’s retirement. In order to provide a sense of financial security to her parents, Ms. Archana bought this specially designed pension plan.

LIC Jeevan Akshay VII is an Immediate Annuity plan wherein the policyholder has the option to choose the type of annuity from 10 available options on payment of a lump sum amount.

Let us explore more about the plan’s features that convinced her to buy LIC Jeevan Akshay VII.

Features of LIC Jeevan Akshay-VII

1. Multiple Annuity Options

   LIC Jeevan Akshay VII allows the policyholder to choose the most suitable annuity options out of the 10 available options. The available annuity options are: 

   • Option A: Immediate Annuity for life

   • Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter

   • Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter 

   • Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter

   • Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter

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

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

   • 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

   • 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

   • 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

2. Option to choose Death Benefit Payout

   If the policyholder chooses the annuity option where the benefit is payable on death i.e. Option F and Option J, the annuitant will have the option to choose the death benefit payout out of three available options.

   1. Lump Sum Death Benefit

   2. Annuitisation of Death Benefit

   3. In Installment

3. Option to take the plan for the benefit of dependant person with a disability

   If the Proposer has a dependent who is disabled, then the plan can be purchased for their benefit as a nominee or secondary annuitant, subject to certain conditions. The Minimum Purchase Price is Rs.50,000, with no minimum annuity payment or age restrictions.

4. Income Tax Benefit

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

Other Important Policy Details to Buy LIC Jeevan Akshay VII plan:

1. Grace Period

   A grace period of 30 days is given to the policyholder in case he/she forgets the due premium on time. During this period, the policy remains in force. However, if the policyholder does not pay the premium during this period, the policy will lapse.

2. Free-look Period

   A free-look period is a time period wherein the policyholder has the option to cancel their policy if they are not satisfied with the terms and conditions of their policy. One can return the policy within 30 days from the date of receipt.

3. Policy Loans

   After the completion of 3 months, one can avail loan against their LIC Jeevan Akshay VII plan to overcome any financial emergency.

4. Surrender Value

   The policy can be surrendered after the three months from the completion of policy, or once the free look period is over, whichever is later. The surrender value will be:

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

   • 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

To Sum it Up

Pension plans indeed have become a necessity. Not having any source of income after retirement can put an individual through great stress. Thus, having a pension plan is a must have. With LIC Jeevan Akshay VII, one can look after their post-retirement needs as well as customize the plan as per their requirements.

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