It is an Immediate Annuity plan, which can be purchased by paying a lump sum premium amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant.
Salient Features of Jeevan Akshay VI
1- Immediate Annuity Plan – Annuity starts as early as the next month.
2- Single premium plan. Premium is to be paid in a lump sum.
3- Seven Options of Annuities to choose from.
Type of Annuity Plans available under Jeevan Akshay VI
1. Annuity payable for life at a uniform rate.
2. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
3. Annuity for life with return of purchase price on death of the annuitant.
4. Annuity payable for life increasing at a simple rate of 3% p.a.
5. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
6. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor.
4- No maximum limits for purchase price, annuity etc.
5- Minimum allowed age at entry is 30 years (completed) and Maximum allowed age at entry is 85 years (completed).
6- No medical examination is required under the plan.
7- Incentive for online buyer – 1% increase in the basic annuity rate will be available.
8- Incentives for high purchase price – If your purchase price is Rs. 2.50 lakh or more, you will receive higher amount of annuity due to available incentives. In addition of this, for policies sold online, a rebate of 1% by way of increase in the annuity rate shall also be available.
Things to Take Care
1- You may choose any one annuity option (out of the seven available above). But Once an option chosen, the option cannot be altered later.
2- Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity. We suggest always opt for yearly option to get better return.
3- The policy does not acquire any paid-up value, surrender value or loan will be available under the policy.
4- Minimum purchase price –
– Rs.100,000/- for all distribution channels except online.
– Rs.150,000/- for online sale.
5- In case of any problem in online buying, you may contact LIC Helpline – by email – firstname.lastname@example.org or Phone # 022-67819282, 022-67819284, 022-26136804 .
The Bottom Line
LIC’s Jeevan Akshay VI has zero liquidity and the annuity recieved is taxable as per current tax slabs for individual. Jeevan Akshay VI plan’s current annuity rates are 7% to 8% , which are not good and much lower than that of the bank fixed deposits, senior citizens’ savings scheme (SCSS), and post office monthly income scheme (POMIS) offer after tax returns of 8%, 9% and 8.5%, respectively.
We would recommend to avoid this plan, but as no other annuity plan is available right now, so buy only if required (i.e. for NPS) and buy it online (Incentive for online buyer – 1% increase in the basic annuity rate), so that you will get 1% more.