Jeevan Akshay VII (857) – All details with calculators
(Last Updated On: September 14, 2020)
Jeevan Akshay VII (Plan 857) is an immediate annuity (Pension Plan) from LIC of India. This plan, which is a successor of Jeevan Akshay VI replaces the immediate annuity option of Jeevan Shanti (Plan No 850) with effect from 25th August 2020. Jeevan Akshay is a non-linked, Non-Participating, Individual Immediate annuity plan to be precise.
The plan provides ten immediate annuity options.
Annuity OptionsAnnuity DescriptionOption AImmediate Annuity for life.Option BImmediate Annuity with guaranteed period of 5 years and Life thereafter.Option CImmediate Annuity with guaranteed period of 10 years and Life thereafter.Option DImmediate Annuity with guaranteed period of 15 years and Life thereafter.Option EImmediate Annuity with guaranteed period of 20 years and Life thereafter.Option FImmediate Annuity for life with return of purchase price.Option GImmediate Annuity for life increasing at a simple rate of 3% p.a.Option HJoint life Immediate Annuity for life with a provision for 50% of annuity to the Secondary annuitant in death of Primary Annuitant.Option IJoint Life immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.Option JJoint 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.
Jeevan Akshay VII – Salient Features
Single premium – Premium is paid as a one-time single payment.Pension mode can be chosen from Yearly, Half Yearly, Quarterly, and monthly modes.Pension/Annuity shall be paid in arrears (After the end stipulated mode.)No maturity benefit is paid under this policyA joint-life annuity can be taken between any two lineal descendants/ ascendant of a family(Grandparent, parent, Children, Grandchildren) or spouse or siblings.
Jeevan Akshay VII (Plan 857) -Eligibility conditions and restrictions
ConditionMinimumMaximumPurchase Price1,00,000No LimitAge at entry30 Years (LBD)100 Years for option F85 years for all other optionsAnnuity ModeMonthlyQuarterlyHalf-YearlyAnnualMinimum AnnuityRs. 1,000 per monthRs. 3,000 per quarterRs. 6,000 per half year12,000 per annum
Jeevan Akshay VII – Plan 857 – Premium and Benefit Calculator
This section is under construction and will be available soon.
Exceptions for minimum sum assured of 1,00,000
If the plan is purchased for the benefit of dependent person with disability(Divyangjan), the proposal shall be allowed without restriction on minimum annuity up to a minimum purchase price of Rs.50,000.
Jeevan Akshay 857 – Rebates and Incentives
Under this plan special incentive is provided for higher purchase prices. Annuity rates will get increased by the following rates in case the purchase price is higher than or equal to 5,00,000.
Mode of AnnuityFor Rs. 1000 purchase price5,00,000 to 9,99,99910,00,000 to 24,99,99925,00,000 to 49,99,99950,00,000 to 99,99,9991,00,00,000 and aboveYearly1.251.852.202.352.45Half Yearly1.151.752.102.252.35Quarterly1.101.702.052.202.30Monthly1.051.652.002.152.25
Jeevan Akshay VII – Surrender of policy
The policy can be surrendered any time after three months from the completion of the policy or expiry of free look period, which ever is later. So effectively policy can be surrenderred after 3 months from the date of issuance of the policy.
Surrender is allowed only on
Option F: Immediate Annuity for life with return of Purchase PriceOption 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.
Loan – Jeevan Akshay VII (plan 857)
The loan is also allowed any time after the completion of three months from the issuance of the policy. The loan will be available only on Option F and Option J policies. The maximum loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount payable under the policy and shall be subject to a maximum of 80% of Surrender Value.
Normal Requirements for Death Claim
Claim forms prescribed by the corporation.Original policy documents.NEFT Mandate form of the claimant for crediting the claim to the bank account.Proof of death.
Read more: Retirement Planning in India – Guide with calculator
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.
