LIC Jeevan Akshay Plan: A few months after the withdrawal of its flagship intermediate annuity plan Jeevan Akshay, the country’s largest life insurer Life Insurance Corporation of India (LIC) has resumed the scheme. This scheme is very popular among subscribers of the National Pension System (NPS) and those planning pension.
A few days ago, LIC had withdrawn the Jeevan Akshay Scheme after the beginning of Jeevan Shanti. However, LIC has resumed the Jeevan Akshay Scheme, as it was a very popular scheme. It was the flagship scheme in LIC’s pension plan portfolio.
I: Immediate annuity plan
The revamped plan Jeevan Akshay VII is now the LIC of India’s Immediate Annuity Plan. At the same time, Jeevan Shanti has become a deferred or annuity plan. For this, Jeevan Shanti Yojana has also been revised, so that any duplication with Jeevan Akshay can be avoided.
What is the annuity scheme?
Income is earned after a fixed time by applying interest on the amount invested in an annuity scheme. Income can be earned every month in this. In this way, there is a fixed income regularly in such schemes after a lump sum investment.
Jeevan Akshay Scheme: a guarantee of annuity rates
LIC’s Jeevan Akshay Scheme allows investors to choose any one of the 10 available annuity options on payment of a lump sum. That is, instead of Jeevan Shanti, options A to J will be available only with LIC’s Jeevan Akshay Scheme.
On taking this policy, the annuity rates are guaranteed at the beginning. An annuity is paid to the policyholder throughout the age. This policy can be taken both online or offline.
What did the circular say?
LIC has stated in one of its circulars that with the introduction of Jeevan Akshay-VII, the new intermediate annuity plan, all the imperative annuity options (ie options A to J) available under Jeevan Shanti will be withdrawn from August 25, 2020. At the same time, the circular also states that, however, the deferred annuity option (ie option 1 and option 2) available under Jeevan Shanti will be available for sale.
These are the options
Option A: Immediate annuity for life
Option B: Immediate annuity with a guaranteed period of 5 years and then paid throughout the age
Option C: Immediate annuity with a guaranteed term of 10 years and age pay thereafter
Option D: Immediate annuity with a guaranteed period of 15 years and age pay thereafter
Option E: Immediate annuity with a guaranteed term of 20 years and age pay thereafter.
Option F: Payment of age annuity with purchase price return
Option G: Annuity paid throughout the year with simple interest of 3% per annum
Option H: Joint Life Immediate Annuity throughout life with provision to give 50% annuity to secondary annuity on death of the primary annuitant
Option I: Joint Life Immediate Annuity throughout the lifespan with the provision of giving 100% annuity if one annuity is over-served
Option J: Joint Life Immediate Annuity throughout the year with the provision to give 100% annuity on the survival of anyone annuity and return purchase price on the death of the last Survivor.