It is an Immediate Annuity plan from LIC's , which can be purchased by paying a lump sum amount. The plan provides for annuity (pension) payments of a declared amount throughout the life time of the annuitant. The type and mode of payment of annuities comes in various options. LIC will pay the annuitant a uniform payment at regular intervals starting immediately after the annuitant pays a lumpsum premium towards the price of the policy. One can choose to receive the payments monthly, quarterly, half-yearly or yearly.
Salient features
Premium is to be paid in a lump sum.
Minimum purchase price: Rs.50,000/= or such amount which may secure a minimum annuity of Rs.3,000/- p.a.
Minimum Payout would be Rs 500/- monthly, Rs 1000/- quarterly, Rs 2000/- half yearly and Rs 3000/- yearly.No medical examination is required.
No maximum limits for purchase price, annuity etc.
Minimum age 40 years last birthday, Maximum age 79 years last birthday.
Age proof is necessary.
Type of Annuity:
option (i)Annuity payable for life at a uniform rate.
option (ii)Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
option (iii)Annuity for life with return of purchase price on death of the annuitant.
option (iv)Annuity payable for life increasing at a simple rate of 3% p.a.
option (v)Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
option (vi)Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
You may choose any one. Once chosen, the option cannot be altered.
Annuity can be paid monthly, quarterly, half yearly or yearly intervals. Any mode of payment of Annuity can be opted.
The policy does not acquire any paid-up value.
Surrender Value
No surrender value will be available under the policy.
Loan
No loan will be available under the policy.
Annuity Rate:
Age as on last birthday | Yearly annuity amount under option | |||||
( i ) | ( ii ) (15 years certain) | ( iii ) | ( iv ) | ( v ) | ( vi ) | |
40 | 7510 | 7440 | 6930 | 5610 | 7310 | 7120 |
45 | 7770 | 7660 | 6960 | 5890 | 7500 | 7240 |
50 | 8140 | 7950 | 7000 | 6280 | 7760 | 7420 |
55 | 8650 | 8330 | 7050 | 6810 | 8130 | 7670 |
60 | 9350 | 8790 | 7110 | 7530 | 8640 | 8030 |
65 | 10410 | 9330 | 7180 | 8590 | 9400 | 8570 |
70 | 12080 | 9830 | 7260 | 10220 | 10560 | 9370 |
75 | 14510 | 10220 | 7360 | 12590 | 12240 | 10590 |
Incentives for high purchase price
If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity
Benefits
The amount of annuity is assured throughout life of the annuitant.
What happens if the annuitant dies? If the annuitant dies:
1. Under option (i) annuity ceases.
2. Under option (ii)
3. On death during the guaranteed period - annuity is paid to the nominee till the end of the guaranteed period after which the same ceases.
4. On death after the guaranteed period - annuity ceases.
5. Under option (iii) annuity ceases and the purchase price is paid to the nominee.
6. Under option (iv) annuity ceases.
7. Under option (v) annuity ceases and 50% of the annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
8. Under option (vi) annuity ceases and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases.
When first installment of annuity payable: First installment of annuity is payable after 1 month, 3 months, 6 months or 1 year from the date of purchase of annuity depending on the mode chosen is monthly, quarterly, half yearly or yearly respectively.
What are the things which should be considered before taking LIC Jeevan Akshay-VI Annuity (Pension) Policy/ Are there any risk attached
- First, this is an annuity policy, this policy does not have any surrender value. Once opted, there is no exit option except the 15 day free look period.
- You cannot take a loan against this policy.
- Premium is to be paid in lumpsum immediately.
- Pension amount received is TAXABLE as per eligible slab.
- Annuity rates are not that attractive - they are not linked to inflation. So it is possible that you may find the income from this pension comparatively less for meeting the living expenses, the longer you live.
- Tomorrow if interest rates increases, you will not get any benefit out of that. Once the installment amount is fixed, it remains same for life except option (iv).
FAQ's
If I make one-time investment as is required under the plan, what do I receive?
How long ?
Depending on the options you have exercised.
What are the various returns options available to me under the plan?
Option 3 : Installments payable for rest of your life with return of purchase price on death, whenever it occurs. In this you will get i nstallments till you are alive and after that it will pay the lumpsum amount what you paid initially to buy this product to your nominee. This is the one of the best and risk free option opted by majority of people.
Option 4 : Installments increasing @ 3.00 P.A (simple) for rest of your life. Your installments will inflate everyyear @ 3%.
Option 5 : Installments for rest of your life with 50% of the same to your spouse for rest of his/her life after yours.
Option 6 : Installments for rest of your life with 100% of the same to your spouse for rest of his/her life after yours.
Option 1 : Installments payable only for life.
Option 2 : Installments payable for 5 or 10 or 15 or 20 years certain and guaranteed as long as you survive the guaranteed period. For eg. if you opt for 5 years, then you or your nominee will get the specified amount for 5 years even if you are not alive for the tenure. However if you are alive even for next 40 years, Insurance company is still bound to pay installments till you are alive.
What does each Annuity Installment consist of ?
Under option 3, each annuity installment consists of only interest earned on your deposit.
Under all other options, it consists of interest + a portion of the purchase price (amount that you invested ).
What happens to the amount that I invested to purchase this plan ?
Under option 3, purchase price is returnible in your absence whenever it occurs.
In all other options, purchase price is not returnible. However, annuity installments payable under these options will be more than those payable under option 3.
When do I start receiving the installments due to me under the plan ?
On completion of 1 month, 3 months, 6 months and 1 year from the date of investment according as you have chosen Monthly or Quarterly Or Half yearly or Yearly mode.
Are the returns under the plan guaranteed or subject to variation ?
Annuity installments payable are guaranteed irrespective of the market fluctuations in interest rates.
How are the installments paid under the plan ?
Initially in the form of advance cheques. Subsequently through ECS.
Am I eligible to invest under Jeevan Akshay ?
Yes, if you are in the age group of 40-79 years.
