LIC Jeevan Akshay VII is a Non-Linked, Non-Participating, Individual Immediate Annuity Plan. This plan provides you 10 annuity options to choose from. Also, You can purchase this plan offline as well as online.
| Plan Name | LIC Jeevan Akshay VII |
| Table No. | 857 |
| UIN No. | 512N337V01 |
| Plan Type | Immediate Annuity Plan (Pension Plan) |
| Launch Date | 25 August 2020 |
List of Topic Covered
Key Features of LIC Jeevan Akshay 7 Plan
- LIC Jeevan Akshay 7 plan is an immediate pension plan.
- This plan provides fixed annuity payments throughout the lifetime of the pensioner.
- Medical tests are not required in this plan.
- It is a replacement of immediate pension option from LIC Jeevan Shanti (850)
- LIC Jeevan Akshay VII provides 10 pension options to choose from.
What is Annuity?
Annuity in simple words is a pension where you get a regular amount for a fixed period of time. Annuity (Pension) are of two types.
- Immediate Annuity – Here you start getting pension immediately. Suppose you have 10 lakhs and you bought an immediate annuity. So your pension will start immediately from next month.
- Deferred Annuity – Here your pension starts after a certain period of time in future. Suppose at the age of 35, you decided to buy a deferred annuity plan. So you will keep investing till the time you want to retire and after that you will start getting pension regularly.
LIC Jeevan Akshay VII Plan Annuity Options with Example
This plan provides 10 annuity options listed below to choose from. Let’s understand each one in detail with example.
Suppose Ram takes this plan with following parameters,
Purchase Price : Rs. 10 Lakhs (Excluding taxes)
Ram’s Age (Annuitant Age) : 45 years (completed)
Annuity Mode : Yearly
Age of Secondary annuitant at entry : 35 years completed (Applicable for joint life annuity only)
The available annuity options under this plan are as follows:
- Option A: Immediate Annuity for life
- Pension will be paid for lifetime as long as the annuitant is alive. On death of the annuitant, nothing shall be payable and policy will close.
- Example : Here Ram will receive the annual pension of Rs. 63,950 for the rest of his life.
- Option B,C,D & E : Immediate Annuity with guaranteed period of 5,10,15 & 20 years and life thereafter.
- Pension will be paid for a guaranteed period of 5,10,15 & years whether the annuitant is dead or alive.
- After this period is over, pension will be paid as long as the pensioner is alive.
- On death of the annuitant anywhere within the guaranteed period, the nominee will receive the pension payout for the remaining period of guaranteed term.
- Once the guaranteed period is over, nothing shall be payable and policy will close.
- Example : Here Ram will receive the annual pension of Rs. 63,850 for the guaranteed period of 5 years. If Ram survives this 5 years period. Then pension will be paid as long as Ram is alive. If Ram dies after receiving pension for 2 years then the same pension will be paid to his nominee for next 3 years and after that policy will close.
- Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter.
- Example : Here Ram will receive the annual pension of Rs. 63,650 for the guaranteed period of 10 years and life thereafter.
- Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.
- Example : Here Ram will receive the annual pension of Rs. 63,350 for the guaranteed period of 15 years and life thereafter.
- Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.
- Example : Here Ram will receive the annual pension of Rs. 62,750 for the guaranteed period of 20 years and life thereafter.
- Option F: Immediate Annuity for life with return of Purchase Price.
- Pension will be paid for lifetime as long as the annuitant is alive.
- On death of the annuitant, annuity payment will cease and purchase price will be refunded to the nominee and policy will close.
- Example : Here Ram will receive the annual pension of Rs. 53,150 for the rest of his life. On the death of Ram, his nominee will be given the purchase price of Rs. 10 Lakhs and policy will close.
- Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a.
- Pension will be paid for lifetime as long as the annuitant is alive.
- The annuity payment will increase at a simple rate of 3% every year.
- On death of the annuitant nothing shall be payable and policy will close.
- Example : Here Ram will receive the annual pension of Rs. 47,150 for the rest of his life with an increasing rate of 3% (Rs.1414) on every completed year.
- Let’s understand this, so if Ram has received a first year pension as Rs. 47,150 then next year he will receive ( Rs. 47,150 + Rs. 1414 ) = 48,564 and this will keep on increasing every year for the rest of his life. On the death of Ram, nothing shall be payable and policy will close.
- Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
- Pension will be paid for lifetime as long as the primary annuitant is alive.
- On death of the primary annuitant, 50% of the pension amount will be paid to the secondary annuitant as long as the secondary annuitant is alive.
- After death of the secondary annuitant nothing shall be payable and policy will close.
- Suppose secondary annuitant dies before the primary annuitant, then pension will be payable as long as primary annuitant is alive and after death of the primary annuitant the policy will close.
- Example : Here Ram will receive the annual pension of Rs. 60,550 for the rest of his life. On death of Ram, Rs. 30,275 (50% of Rs. 60,550) will be paid to secondary annuitant as long as secondary annuitant is alive and on death of the secondary annuitant the policy will close and nothing shall be payable.
- Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
- Pension will be paid for lifetime as long as the primary annuitant is alive.
- On death of the primary annuitant, 100% of the pension amount will be paid to the secondary annuitant as long as the secondary annuitant is alive.
- After death of the secondary annuitant nothing shall be payable and policy will close.
- Example : Here Ram will receive the annual pension of Rs. 57,550 for the rest of his life. On death of Ram, Rs. 57,550 (100% of Rs. 57,550) will be paid to secondary annuitant as long as secondary annuitant is alive and on death of the secondary annuitant the policy will close and nothing shall be payable.
- Option 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.
- Pension will be paid for lifetime as long as the primary annuitant is alive.
- On death of the primary annuitant, 100% of the pension amount will be paid to the secondary annuitant as long as the secondary annuitant is alive.
- After death of the secondary annuitant, purchase price shall be paid to the nominee and policy will close.
- Example : Here Ram will receive the annual pension of Rs. 52,750 for the rest of his life. On death of Ram, Rs. 52,750 (100% of Rs. 52,750) will be paid to secondary annuitant as long as secondary annuitant is alive and on death of the secondary annuitant, the purchase price (Rs. 10 Lakhs) shall be paid to Ram’s nominee and policy will close.
Death Benefit in LIC Jeevan Akshay VII Plan
Death benefit under this plan is available only in two options. I.e in option J and option F.
- Lump Sum Death Benefit – Under this plan, the entire purchase price shall be payable to the nominee in lump sum.
- Annuitisation of Death Benefit – Under this option the benefit amount payable on death i.e. Purchase Price shall be utilized for purchasing an Immediate Annuity.
- In Instalments – Under this option the benefit amount payable on death i.e. Purchase Price can be received in instalments over the chosen period of 5 or 10 or 15 years
Eligibility conditions in LIC Jeevan Akshay VII Policy
| Minimum | Maximum | |
| Purchase Price | ₹ 1,00,000 | No Limit |
| Entry Age | 30 years (completed) | 85 years (completed) For option “F”- 100 years (completed) |
Reduction factor for purchase price less than Rs. 1,50,000 in LIC Jeevan Akshay VII Policy
If you invest in this plan with a purchase price less than Rs. 1,50,000 then you will receive the annuity amount with some reduction factor given below.
| Purchase price | Reduction Factors for Rs. 1,000 purchase price (in Rs.) |
| Less than 1,00,000 | 5.0 |
| 1,00,000 to 1,49,999 | 2.0 |
Annuity payment mode in LIC Jeevan Akshay 7 Policy
The mode of annuity payments are yearly, half-yearly, quarterly and monthly mode.
Incentive in LIC Jeevan Akshay 7 Plan
The following incentives for higher purchase price are applicable under this plan. This will be for per Rs. 1,000 purchase price (Rs.)
| Mode of Annuity | 5,00,000 to 9,99,999 | 10,00,000 to 24,99,999 | 25,00,000 to 49,99,999 | 50,00,000 to 99,99,999 | 1,00,00,000 and above |
| Yearly | 1.25 | 1.85 | 2.20 | 2.35 | 2.45 |
| Half Yearly | 1.15 | 1.75 | 2.10 | 2.25 | 2.35 |
| Quarterly | 1.10 | 1.70 | 2.05 | 2.20 | 2.30 |
| Monthly | 1.05 | 1.65 | 2.00 | 2.15 | 2.25 |
A rebate of 2% by way of increase in the annuity rate shall be applicable for policies purchased Online, by NPS subscribers and as QROPS.
Surrender Value in LIC Jeevan Akshay VII Plan
Policy can be surrendered only in two options (Option F & Option J). After completing the three months in the policy, one can surrender the policy.
Loan Facility in LIC Jeevan Akshay VII Plan
- Loan facility is available under this plan. Only Option F & Option J are available for loan benefit.
- The maximum amount of loan granted will be 80% of the surrender value.
- Loan interest will be recovered from the annuity amount payable.
Tax Benefit in LIC Jeevan Akshay VII Plan
- Premiums paid are exempted under section 80C of the income tax act of 1961.
- The maximum exemption can be availed is 1.5 Lakhs
- Pension amount received will be taxable.
- Death amount received are exempted under section 10(10D).
Free Look Period in LIC Jeevan Akshay VII Plan
If the policyholder is not satisfied with the policy, he or she can return the policy to the corporation stating the reason for the same in 15 days(offline) and (30 days) if purchased online. After receiving the request, the Corporation shall cancel the policy and return the purchase price after deduction of stamp duty, charges, and annuity paid.
How to buy LIC Jeevan Akshay VII Plan
You can buy this plan offline as well as online.
For offline you can contact agents or brokers. You can also visit the company’s branch office and buy the plan.
- Step by step process to buy LIC Jeevan Akshay VII Plan Online
- Log on to www.licindia.in website.
- Click on Buy Policies online.
- Click on Pension heading.
- Then select LIC Jeevan Akshay VII Plan.
- Click on buy online.
- You will be asked if you have been diagnosed with COVID in the past three Months?
- If you will say yes then your journey will end but if you will say no then in the next screen you have to enter your personal details and an OTP will be sent to your phone.
- Then choose your purchase price, select annuity option, pension mode and hit calculate premium.
- After this a screen will show you your total (purchase price + GST) and the annuity amount payable.
- Then you have to confirm and proceed for EKYC.
- At last pay the purchase price online and fulfil the underwriting requirements if any.
Documents required to buy LIC Jeevan Akshay VII Plan
- Following documents are required to buy this plan.
- LIC Proposal form, duly filled and signed by the pensioner/Policyholder/Annuitant
- Photograph of the Pensioner
- Age proof of the Pensioner
- Identity proof of the Pensioner/Annuitant
- Address proof of the Pensioner
- Income proof of the proposer if the sum assured or the premium of the policy is high
- PAN card of the proposer
- Cheque on the name of “Life Insurance Corporation of India/LIC of India” towards policy premium.
How to make claim in LIC Jeevan Akshay VII Plan
How to make Maturity Claim or Surrender in LIC Jeevan Akshay VII Plan
There is no maturity benefit under this policy as this is a pension plan.
If you are making a surrender claim, you have to inform the company in writing or contact your agent for this.(Only for Option F & Option J)
How to make a Death claim in LIC Jeevan Akshay VII Plan?
In case of death claim, nominee can get the purchase price by submitting required documents.
Below are the list of documents which nominee has to submit to get the purchase price.
Claim Form ‘A’ in Form No.3783.
If policy has run for 3 years or more from date or risk, claim Form No.3783A may be used
Certified extract from death register issued by hospital/Doctors/District level authorities.
The original policy document with Deed of assignment
In case you face any issue, contact your agent or visit your respective servicing branch.
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