Purchasing a good insurance plan today can be a time consuming venture, as there is a world of options, with policies that offer regular or staggered payouts, policies that pay a large benefit to your dependants in the event of your death, policies that promise a maturity benefit should you survive till the end of the term, Unit Linked Life Insurance Policies (ULIPs), etc. – and then there are policies like the LIC Jeevan Akshay VI Plan, which pays out benefits in the form Annuity payments, with the option to choose one of 7 ways in which you wish to be paid, in different circumstances and different situations.

Eligibility Conditions of LIC Jeevan Akshay VI Plan

Features and Benefits of LIC Jeevan Akshay VI Plan

Features and Benefits:

• Regular payout of annuity.
• Flexibility to choose annuity payout from 7 options.
• Benefits extend to the surviving named spouse / nominee after the death of the annuitant.
• Excellent retirement solution.
• Incentives for high purchase price.
• No medical examinations of any kind are required before taking on this plan.
• Annuity payouts can happen on a frequency scale that can be selected by the annuitant:
  • Monthly.
  • Quarterly.
  • Semi-annually.
  • Annually.
• Tax benefits under Section 80C and Section 10(10D).

How does this policy work?

This LIC pension plan offers the choice between 7 options for receiving annuity. Once an option has been chosen, it cannot be changed.

1. Option i: Annuity payable for life at a uniform rate.
2. Option ii: Annuity payable for either 5 years, 10 years, 15 years, 20 years for certain, and then thereafter for as long as the policyholder (annuitant) is alive.
3. Option iii: Annuity for life with the return of purchase price on the date of death of the annuitant.
4. Option iv: Annuity payable for life, with an additional increase of 3% per annum (simple rate).
5. Option v: Annuity for life, with a provision to ensure that 50% of the annuity will be paid to the spouse of the policyholder during his / her lifetime, on the death of the annuitant.
6. Option vi: Annuity for life, with a provision to ensure that 100% of the annuity will be paid to the spouse of the policyholder during his / her lifetime, on the death of the annuitant.
7. Option vii: Annuity for life, with a provision to ensure that 100% of the annuity will be paid to the spouse of the policyholder during his / her lifetime, on the death of the annuitant. With the purchase price being returned in the event of the death of the last survivor.

In the event of the death of the annuitant:

1. Under option i, annuity will cease.
2. Under option ii, in the unfortunate event of the annuitant’s death during the policy guarantee period, annuity is paid out to the nominee until the end of the guarantee period, and will cease after the end of the guarantee period.
3. Under option iii, the annuity will cease and the purchase price will be paid out to the nominee of the annuitant.
4. Under option iv, the annuity will cease.
5. Under option v, annuity will cease and 50% of the annuity will become payable to the surviving named spouse of the annuitant, but if the spouse dies before the annuitant dies, the annuity will cease.
6. Under option vi, annuity will cease and 100% of the annuity will become payable to the surviving named spouse of the annuitant, but if the spouse dies before the annuitant dies, the annuity will cease.
7. Under option vii, annuity will cease and 100% of the annuity will become payable to the surviving named spouse, and the nominee of the annuitant will receive a full refund of the purchase price after the death of the named spouse. If the spouse dies before the annuitant dies, then the full refund of the purchase price will be made to the nominee on the death of the annuitant.

Riders

There are no additional riders available with this policy.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017