Jeevan Akshay Plan offered by LIC is essentially an immediate annuity plan that a customer can purchase through a lump-sum payment. The annuitant is entitled to a fixed sum of money on a monthly, quarterly, annually, and half-yearly (yearly) basis from LIC. One may opt for any mode of payment of Annuity.
Annuity plans are most suitable for the retirement phase of one’s life as they offer a steady flow of income without much hassle. Since the cash flow is guaranteed and predictable, it imparts a sense of security to the annuitant. There are multiple payment modes in annuity plans that a person can choose from during the purchase.
Following are some of the features of Jeevan Akshay Plan:
- Lump-sum premium payment
- No requirement of a pre-policy medical examination
- Annuity and purchase prices do not have maximum limits
- The minimum entry age is 30 years and maximum is 85 years
- Proof of age is a mandate
In case the policyholder is in need of a lump-sum amount urgently, it becomes realistically unfeasible to withdraw money from an annuity plan. Therefore, purchasing an annuity plan with a retirement corpus is advisable. However, in case of such dire scenarios, LIC offers a breather with its surrender policy. By surrendering one’s Jeevan Akshay Plan, one can easily obtain a lump-sum amount and thereby take care of the financial situation.
LIC Jeevan Akshay Plan: Surrender Value
LIC allows policyholders to surrender Jeevan Akshay Plan only upon completion of one year of the policy. However, this is applicable only when one chooses the option ‘Annuity with return of purchase price’ for any one of the following circumstances:
- In case the annuitant has been diagnosed with any one of the following illnesses:
- Lung failure - last stage
- CABG - open chest
- Liver failure - last stage
- Severe burns from fire (third degree)
- Myocardial infarction
- Open heart surgery or heart valve repairment
- Regular dialysis for kidney failure
- Stroke (permanent symptoms)
- Permanent paralysis of the limbs
- Bone marrow or some other major organ transplant
- Speech loss (caused by stroke or some other accident)
- Head trauma caused by a major accident
- Sclerosis with symptoms that are persisting
- Primary pulmonary hypertension
- Motor neuron disease with symptoms that are permanent
- Cancer (specific severity)
- Brain tumour (benign)
- Loss of all limbs (caused by accident)
- In case the annuitant is moving to a different country on a permanent deal as displayed in their citizenship proofs and visa. The total value of the surrender factor will be determined by LIC and will be completely dependent on the policyholder’s age during the surrender time.
In case the policyholder had chosen a different option and not ‘Annuity with return of purchase price’, he/she would not have been entitled to the surrender value.