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LIC Jeevan Akshay VI
  • No Medical Checkup
  • Lum Sum Premium Paid
  • 15 days Cooling Periods
  • Protection & Saving Benefit
  • Tax Benefit Under 80C & 10D

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LIC Jeevan Akshay VI Plan

LIC Jeevan Akshay VI Plan is an immediate annuity pure pension plan for senior citizens provided by one of the top ranked insurance companies in India, Life Insurance Corporation of India (LIC).

It is a smart retirement investment plan, a lump sum amount is to be paid to purchase the policy. Under this annuity plan, pension for a regular interval of time immediately after the payment of premium is received by the insured. The type and mode of payment is to be selected by the policyholder from multiple options available.

The plan is ideal for the retired people so as to remain independent and financially stable after their retirement.

Features & Eligibility Criteria of LIC Jeevan Akshay VI

1

One-Time Payment

LIC offers the most beneficial feature under this plan that is the amount for premium is to be paid in a lump sum.

2

Policy Costs

The minimum one-time payment amount is Rs. 1 lakh. And, if the policy purchase is online then the amount is Rs. 1.5 lakhs. There is no maximum limit to purchase the policy.

3

Entry Age

The minimum entry age is 30 years and the maximum entry age is 85 years.

4

Cooling Period

The plan offers a cooling off period of 15 days within the initiation of the policy.

5

Loans

No loan facility available for this plan.

6

Surrender Value

No loan facility available for this plan.

7

Paid Up Value

No paid up value is required for this plan.

8

Additional Riders

No additional riders available under this plan.

9

Annuity Payment Mode

Offers various modes such as monthly, quarterly, half-yearly or annually.

10

Incentives

If the purchase costs is Rs. 2.5 lakhs or more, the insured will be applicable for incentives which will pay higher annuity.

11

No Medical Tests

LIC does not require any mandate medical examination reports as it does not cover any diseases of the policyholder.

Benefits of LIC Jeevan Akshay VI

Maturity Benefit

Maturity Benefit

This plan does not offer any maturity benefit like other LIC plans. Once the single premium is paid the annuity starts in the form of pension. And if the policyholder wish to receive the payment even after the death, the joint member (spouse) will get the advantage in the of pensions at specific time intervals.

Death Benefit

Death Benefit

This plan does not offer any death benefit like other LIC plans. Unlike other LIC plans, you don't get any benefit under this plan. Once the single premium is paid the annuity starts in the form of pension. And if the policyholder wish to receive the payment even after the death, the joint member (spouse) will get the advantage in the of pensions at specific time intervals.

Profit Participation

Profit Participation

The policy is likely to gain some profit for the LIC Corporation. If the policy is active and in force, the policy is applicable for Simple Reversionary Bonus. This Reversionary bonus is calculated on the basis of the premium paid.

Pension Rate

Pension Rate

The pension rate depends on the type of annuity chosen by the policyholder. There are 7 active types of plans under this annuity product. But once selected and the single premium is paid, the policyholder is not allowed to change the plan as it is a one-time payment plan and the benefits start immediately.

Pension Benefit

Pension Benefit/Annuity Benefit

The pension starts immediately once the policyholder pays the premium. Pension payment mode is selected and chosen by the annuitant. The minimum amount of pension or annuity will be Rs. 6000 and the maximum is Rs. 60,000 (approx). The amount will vary depending on the taxes applicable.

Tax Benefit

Tax Benefit

Similar to other policy schemes, this LIC plan also provides income tax benefits. The premiums paid are tax exempt under the Section 80C of the Income Tax Act, 1961. Only the pension received is applicable for tax deduction.

7 Annuity Options of LIC Jeevan Akshay VI

The plan offers 7 different Annuity options as explained below with a standard example:

Single premiumPension modeAnnuitant’s Age
Rs. 5 lakhsAnnual60 years

1. Lifelong Annuity

Under this plan, Annuitant will receive lifetime pension. The amount payable to the policyholder will remain constant and will not change. After that, this plan will not be eligible. According to the above data, the annuitant will be liable to receive Rs. 48, 750 annual pension.

2. Guaranteed Annuity for Specific Period

Under this option, you have 4 different choices. You can select the plan for 5, 10, 15 or 20 years. After choosing the plan period, the annuitant will receive the annuity despite the fact he/she is alive or not. The 4 options are as follows:

  • For 5 years: The annuitant or the beneficiary will receive Rs. 48,300 as pension for 5 years despite the fact that the policyholder is alive or not. In the case of survival of the annuitant, the same amount is paid to him/her for the rest of life.

  • For 10 years: The annuitant or the beneficiary will receive Rs. 47,300 as pension for 10 years despite the fact that the policyholder is alive or not.. In the case of survival of the annuitant, the same amount is paid to him/her for the rest of life.

  • For 15 years: The annuitant or the beneficiary will receive Rs. 45,950 as pension for 15 years despite the fact that the policyholder is alive or not.. In the case of survival of the annuitant, the same amount is paid to him/her for the rest of life.

  • For 20 years: The annuitant or the beneficiary will receive Rs. 44,400 as pension for 20 years despite the fact that the policyholder is alive or not.. IIn the case of survival of the annuitant, the same amount is paid to him/her for the rest of life.

3. Return of Purchase Price with Annuity on Death

Under this option, the annuitant receives the benefit until he/she is alive. On the death of the annuitant the beneficiary gets the full amount of the single premium paid.

So according to the above example, the annuitant will receive Rs. 37,550 as annual pension till he/she is alive. After the death of the annuitant, the nominee will get Rs. 5 lakhs with the abolition of the policy.

This option is similar to the fixed deposit as it provides the invested money back along with the pension benefit.

4. Annuity Increase

Under this option, the annuitant receives the benefit till he/she is alive. Every year the pension amount will increase by 3%. So according to the above example, the annuitant will get Rs. 39,650 as annual pension till he/she is alive. The pension will be increased by Rs. 1,190 every year, which is 3% of Rs. 39,650.

5. Joint Life Last Survivor Annuity with 50% for spouse

Under this option, the annuitant receives the benefit till he/ she is alive. On the death of the annuitant, the nominee gets the amount which is 50% of the pension. So according to the above example, the annuitant will get Rs. 45,200 as annual pension till he/she is alive. Every year the nominee will get Rs. 22,600 after the death of the policyholder.

6. Joint Life Last Survivor Annuity with 100% for Spouse

Under this option, the annuitant receives the benefit till he/ she is alive. On the death of the annuitant, the nominee gets the amount which is 100% of the pension. So according to the above example, the annuitant will get Rs. 42,150 as annual pension till he/she is alive. Every year the nominee will get Rs. 42,150 after the death of the policyholder.

7. Joint Life Last Survivor with Return of Purchase Price

Under this option, the annuitant receives the benefit till he/she is alive. On the death of the annuitant, the nominee gets the full pension every year. The actual amount paid will be returned on the death of the annuitant and the spouse. So as per the above example, the annuitant will get Rs. 37,050 as annual pension till he/she survives. After the death of the annuitant, the nominee gets Rs. 37,050. On the death of a spouse the purchase price of Rs. 5 lakhs is also payable.

How LIC Jeevan Akshay Plan Works?

As we have discussed above that the policy premium term is one-time premium. At the beginning of the plan, you have to pay the premium of your choice. After this you will be eligible for a regular pension. There is no life risk covered under this plan, as it is a pure immediate annuity plan and whatever you invest, you will get it as a pension. The plan is especially for senior citizens. So, once you pay the one shot premium of your choice, the annuity will start from that moment.

Illustrations

Mr. Rohan purchases Jeevan Akshay VI Policy with the following details

Policy Details

Sum Assured: Rs. 5 lakhs

Policy Purchase Year: 2017

Age: 60 years

Pension Mode: Yearly

By using a premium calculator, you can calculate the benefit details.

Purchase Details

Purchase Price: Rs. 5 lakhs

Service Tax: Rs. 15,450

Total Premium: Rs. 5,15,450

Pension Details

Pension Type: Yearly

The Rate of Interest: 9.38%

Pension Amount: Rs. 48, 903

For a policy of Rs. 5 lakhs, the rate of interest per annum will be 9.38%. And based on this, the policyholder or the annuitant will receive Rs. 46,903 per annum as a pension amount.

Conclusion

LIC Jeevan Akshay VI policy is among the best plans for investment as it offers financial assistance after retirement. One of the advantageous plans for retirees to get the benefits of pension even after death. Also, it provides the option to get the money back to the beneficiaries after the death of the policyholder.

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Last updated on 10-07-2019