LIC Jeevan Akshay-VII is a non-linked, non-participating, individual immediate annuity plan launched on February 28, 2023. This plan can be purchased both offline and online.
This is an immediate annuity plan wherein the policyholder has the option to select the type of annuity from 10 available options on payment of a lump sum amount. The annuity rates are guaranteed at the start of the policy, and annuities are payable for the life of the annuitant(s).
LIC’s Jeevan Akshay-VII annuity options:
The available annuity options under this plan are as under:
Option A: Immediate Annuity for life.
Option B: Immediate Annuity with a guaranteed period of 5 years and life thereafter.
Option C: Immediate Annuity with a guaranteed period of 10 years and life thereafter.
Option D: Immediate Annuity with a guaranteed period of 15 years and life thereafter.
Option E: Immediate Annuity with a 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 the 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 annuitants survives.
Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the annuitants survives and return of Purchase Price on death of the last survivor.
Do remember that the annuity option once chosen cannot be altered.
Benefits of these options
LIC Jeevan Akshay-VII Annuity Option A
The annuity payments will be made in arrears for the duration of the Annuitant’s life, according to the mode of payment selected.
Nothing will be payable upon the death of the annuitant, and the annuity payment shall end immediately.
LIC Jeevan Akshay-VII Annuity Options B, C, D, E
According to the LIC sales brochure, • The annuity payments shall be made in arrears for as long as the annuitant is alive, as per the chosen mode of the annuity payment.
• On the death of the annuitant during the guaranteed period of 5/10/15/20 years, the annuity shall be payable to the nominee(s) till the end of the guaranteed period.
• On the death of the annuitant after the guaranteed period, nothing shall be payable and the annuity payment shall cease immediately.
LIC Jeevan Akshay-VII Annuity Option F
• Annuity payments will be made in arrears throughout the Annuitant’s life, in accordance with the manner of annuity payment selected.
• If the annuitant passes away, the annuity payment will stop immediately, and the Purchase Price will be paid to the nominee(s) according to the choice exercised by the annuitant.
LIC Jeevan Akshay-VII Annuity Option G
Annuity payments will be paid in arrears throughout the annuitant’s life, as per the form of annuity payment selected. For each completed policy year, the annuity payment will be increased at a simple rate of 3% per year.
• Nothing will be payable upon the death of an annuitant, and the annuity payment shall cease immediately.
LIC Jeevan Akshay-VII Annuity Option H
The annuity payments will be made in arrears for as long as the Primary Annuitant is alive, according to the mode of payment chosen.
• If the Primary Annuitant dies, 50% of the annuity sum is payable to the remaining Secondary Annuitant for as long as the Secondary Annuitant lives. The annuity payments will stop upon the death of the Secondary Annuitant.
• If the Secondary Annuitant predeceases the Primary Annuitant, the annuity payments will continue until the death of the Primary Annuitant.
LIC Jeevan Akshay-VII Annuity Option I
As per the selected mode of an annuity payment, 100% of the annuity amount will be paid in arrears for as long as the Primary Annuitant and/or Secondary Annuitant are alive.
• Upon the death of the last survivor, annuity payments will cease immediately and no further payments will be made.
LIC Jeevan Akshay-VII Annuity Option J
As per the chosen mode of annuity payment, 100% of the annuity amount will be paid in arrears for as long as the Primary Annuitant and/or Secondary Annuitant are alive.
• Upon the death of the last survivor, annuity payments will cease immediately, and the Purchase Price will be paid to the nominee(s) in accordance with the choice selected by the Primary Annuitant.
LIC Jeevan Akshay-VII: Options available for payment of Death Benefit
The annuitant(s) must select one of the following choices for the payment of the death benefit to the nominee(s) under the annuity options, Option F and Option J, where a benefit is payable upon death.
Lumpsum Death Benefit
The benefit amount payable under this option will be paid in one lump sum to the nominee(s) upon death.
Annuitisation of Death Benefit
The immediate annuity must be purchased from the Corporation for the nominee(s) under this option in order for it to start paying benefits as soon as the annuitant passes away. The annuity amount due to the nominee(s) on the admission of death claim will depend on the nominee(s)’ age and the immediate annuity rates in effect as of the annuitant’s death (or, in the case of a joint life annuity, the last survivor).
LIC’s Jeevan Akshay-VII minimum Annuity
Note: Joint Life: The joint life annuity can be taken between any two lineal descendants/ascendants of a family (i.e. grandparents, parents, Children, Grandchildren) or spouse or siblings.
LIC Jeevan Akshay-VII : Mode of annuity payment
There are four different annuity payment schedules: annual, semi-annual, quarterly, and monthly. Depending on whether the annuity payment frequency is annually, biannually, quarterly, or monthly, the annuity payment will be made after one year, six months, three months, or one month from the date the policy was first issued.
Minimum Purchase Price: Rs 10,00,000 age at entry is 25 years to 29 years and 30 years and above is subject to minimum annuity.
Maximum Purchase Price: No Limit
Minimum Age at Entry: 25 years (completed) subject to minimum purchase price.
Maximum Age at Entry: 85 years (completed) except Option F 100 years (completed) for Option F.
Source By: economictimes
