After you retire you need a source of income to substitute the income that you lose due to retirement. That is why an immediate annuity plan comes into the picture. The policy pays lifelong annuities till you are alive thereby providing you with regular incomes. LIC’s Jeevan Akshay VI is also an immediate annuity life insurance plan. Let’s explore what the plan offers –
LIC Jeevan Akshay VI is an immediate annuity pension plan which pays annuities immediately after you buy the policy. The plan offers different annuity options and you can choose to receive annuities in any option that you like.
LIC Jeevan Akshay VI has the following key benefits to look out for –
The following annuity payout options are offered by LIC Jeevan Akshay VI Plan–
30 years to 85 years
Purchase price (single premium)
Minimum – INR 1.5 lakhs if the plan is bought online otherwise INR 1 lakh
Maximum – no limit
Depends on annuity mode, purchase price and entry age
Given below are the sample annuity rates which are payable by LIC for different annuity payment options and at different entry ages. It is assumed that the purchase price is INR 1 lakh, an annuity is payable annually and the policy has been sold offline.
Annuity Option I
Annuity Option II where the guaranteed period is 15 years
Annuity Option III
Annuity Option IV
Annuity Option V
Annuity Option VI
Annuity Option VII
If you have selected the annuity option which refunds the purchase price on death, you can avail a surrender value in two instances. These instances are as follows –
The plan covers 21 critical illnesses. If you are diagnosed with any of the covered critical illness, you can claim a surrender value under the policy. The illnesses covered under the plan are as follows –
If you are moving to another country permanently and your citizenship status is changing, you can avail a surrender value under the policy.
Under both cases, the surrender value would be payable only after the completion of one year from the date of buying the policy. Moreover, no surrender value would be available under any other annuity option except the option wherein the purchase price is refunded on death.
The premium paid for buying the policy is allowed as a deduction under Section 80CCC of the Income Tax Act, 1961. You can claim a maximum deduction of up to INR 1.5 lakhs.
The annuities received, however, are considered an income. They are, therefore, taxed at your income tax slab rates when you receive them.
LIC Jeevan Akshay VI Plan has currently been withdrawn by LIC. You cannot, therefore, apply for a new policy. However, LIC’s Jeevan Shanti Plan has replaced LIC Jeevan Akshay VI Plan and you can buy that plan if you are looking for immediate annuity policies.
Other insurance companies also offer immediate annuity plans. You can buy the best immediate annuity plan from Turtlemint. Turtlemint is tied-up with leading life insurance companies which offer some of the best pension plans.
You can visit https://www.turtlemint.com/life-insurance and choose ‘Pension/Retirement’ to find out the best pension plans for your needs. Provide your details like your gender, date of birth, annual income, retirement age, investment horizon and the amount that you would like to invest. Thereafter you would be able to check-out the best immediate annuity plans available in the market. Choose a plan of your liking and pay the premium online and you can buy the policy of your choice easily.
No, you would have to choose an annuity option at the time of buying the policy. Once the policy has been bought, the option cannot be changed.
You can add your spouse as the secondary annuitant if you opt for joint-life annuity.
Immediate annuity plans pay annuity till your lifetime. The annuity payments stop only after your death. Moreover, if you have chosen the joint-life annuity option and your spouse is alive, the annuity payments would not stop even after your death. In that case, on your death, the annuity would be paid to your spouse for as long as they are alive.
Under an annuity certain policy, the annuity payments are guaranteed for a specified number of years. You can choose the period of guarantee. During this period, the annuity would be paid irrespective of whether you live or die. Once the guaranteed period is over, annuity payments would continue only if you are alive.
No, the option to withdraw one-third part of your corpus is not available under immediate annuity plans. These plans are designed solely to give you annuity payments for life.
Under increasing annuity plans, the annuity payment increases every year. LIC offers an increasing annuity option wherein the increase is allowed at 3%. This means that every year the annuity amount would increase by 3%. The increase would be calculated on the base annuity rate which is payable in the first year. For instance, if the annuity rate in the first year is INR 10,000, it would become INR 10,300 in the next year, INR 10,600 in the third year, INR 10,900 in the fourth year and so on.