LIC Jeevan Akshay is an Immediate Annuity plan offered by Indian insurance and investment company Life Insurance Corporation of India (LIC). It is a single premium policy and has to be purchased by paying a lumpsum amount at once. The annuity can be paid monthly, quarterly, biannually or annually as chosen. This pension plan has 6 options to choose from. Once the individual chooses an option, it can’t be changed during as the payout starts immediately with the plan.
Key Features and Highlights of LIC Jeevan Akshay Plan
Listed below are the features and highlights of LIC Jeevan Akshay.
- It is an annuity pension plan.
- Premium has to be paid in lumpsum.
- Offers 6 options to choose from-
- Annuity for life- Pension is paid till the insured is alive.
- Annuity guaranteed for a certain period- In this option, the pension is paid for a certain period of time irrespective of whether the life assured is alive or not.
- Annuity with return of purchase price on death- Pension is paid till the life assured is alive and after the death of the assured the remaining amount will be paid to the nominee.
- Increasing Annuity- Pension is paid at an increasing rate of 3% p.a. till the assured is alive.
- Joint Life Last Survivor Annuity 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant
- Joint Life Last Survivor Annuity - 1000% of the annuity payable to spouse during his/her lifetime on death of the annuitant
- Annuity for life with a provision of 100% of the annuity payable to spouse during their lifetime on death of annuitant. The purchase price will be returned on the death of last survivor.
- Annuity payment- Annuity can be paid monthly, annually, biannually as chosen.
- Medical examination is not required.
- You will be entitled to special incentives if you buy the plan online.
- The policy has a cooling off period of 15 days starting from the date of receipt of the policy.
- Loan-There is no loan facility available under this particular policy.
- Surrender value-The policy has no surrender value.
- Additional riders- There are no additional riders available under this plan.
- Paid up value- The policy does not acquire any paid up value.
Benefits of LIC Jeevan Akshay Plan
Listed below are the benefits of LIC Jeevan Akshay plan.
- Death benefit- Death benefit is paid depending on the plan option chosen by the assured.
- Maturity benefit-There is no maturity benefit under this plan.
- Income tax benefit-The plan offers tax benefits. Premiums paid under this plan are exempted from tax under section 80C of the Income Tax Act.
- The plan offers 6 options to choose from.
Eligibility Criteria for LIC Jeevan Akshay Plan
Listed below are the conditions expected to be fulfilled by the individual to qualify for the plan.
- Minimum age at entry: 30 years
- Maximum age at entry: 65 years
- Minimum purchase price of annuity: Rs.1,00,000
- Maximum purchase price of annuity: No limit
- Payment modes- Annual, biannual, quarterly, monthly.
Given below is a clearer picture of the eligibility criteria of the policy
|Age at entry||30||85|
|Purchase price of annuity||Rs.1,00,000||No limit|
LIC Jeevan Akshay Premium Payment
LIC Jeevan Akshay is a single premium payment plan, meaning that the premium has to be paid in lump sum at once. The annuity can be paid annually, biannually, quarterly or monthly depending on what the assured chooses. Listed below is an illustration of annuity payouts for Rs.1 lakh for different options of the plan.
|Age||Option 1||Option 2||Option 3||Option 4||Option 5||Option 6Option 7|
Mr. Arjun, a 30 year old working professional buys the LIC Jeevan Akshay policy with a purchase annuity of Rs.50,000. Given below are the annuity options and rates for three of the plan options.
Annuity payable for life- Under this option Mr.Arjun will earn pension till he is alive.
Annuity with return of purchase price on death- Pension is paid till Mr.Arjun is alive and after the death of the assured the remaining amount will be paid to the nominee.
Annuity for life with a provision of 100% of the annuity payable to spouse during their lifetime on death of annuitant. The purchase price will be returned on the death of last survivor.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017