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 –
Overview of LIC Jeevan Akshay VI Plan
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.
Key features of LIC Jeevan Akshay VI Plan
LIC Jeevan Akshay VI has the following key benefits to look out for –
- A single premium is payable to buy the plan. This premium is called the purchase price.
- There are seven annuity payment options to choose from
- You can also opt for joint-life annuity and ensure financial security for your spouse in your absence
- There are annuity options which return the purchase price on death. These options can be selected for creating a legacy for your family
- You can choose to avail annuity pay-outs annually, semi-annually, quarterly or monthly as per your requirement
- The plan can be bought without undergoing any pre-entrance medical check-ups
- You get higher annuity rates if you pay the purchase price of INR 2.5 lakhs and above to buy the policy
- The annuity rate increases by 1% if you buy the policy online
Annuity options offered by LIC Jeevan Akshay VI Plan
The following annuity payout options are offered by LIC Jeevan Akshay VI Plan–
- Annuity Option I- A level amount of annuity is paid throughout the lifetime of the annuitant.
- Annuity Option II-
A level amount of the annuity is paid for a guaranteed period of 5, 10, 15 or 20 years whether or not the annuitant is alive. If the annuitant survives the guaranteed period, the annuity payment continues lifelong.
- Annuity Option III-A level amount of annuity is paid throughout the lifetime of the annuitant. On the death of the annuitant, the purchase price is refunded back.
- Annuity Option IV-Increasing annuity is paid throughout the lifetime of the annuitant which increases by 3% simple rate of interest every year.
- Annuity Option V-A level amount of annuity is paid throughout the lifetime of the annuitant. After the death of the annuitant, 50% of the annuity amount is paid to the surviving spouse for his/her lifetime.
- Annuity Option VI-A level amount of annuity is paid throughout the lifetime of the annuitant. After the death of the annuitant, 100% of the annuity amount is paid to the surviving spouse for his/her lifetime.
- Annuity Option VII-A level amount of annuity is paid throughout the lifetime of the annuitant. After the death of the annuitant, 100% of the annuity amount is paid to the surviving spouse for his/her lifetime. Moreover, after the spouse also dies, the purchase price is refunded back to the nominee
Eligibility criteria of LIC Jeevan Akshay VI Plan
|Entry age||30 years to 85 years|
|Purchase price (single premium)||Minimum – INR 1.5 lakhs if the plan is bought online otherwise INR 1 lakhMaximum – no limit|
|Annuity amount||Depends on annuity mode, purchase price and entry age|
Sample annuity rates offered by LIC Jeevan Akshay VI Plan
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.
|Entry age||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|
|40 years||INR 7080||INR 7020||INR 6470||INR 5230||INR 6870||INR 6680||INR 6430|
|60 years||INR 8930||INR 8390||INR 6600||INR 7140||INR 8220||INR 7620||INR 6530|
|80 years||INR 17,410||INR 10,080||INR 6920||INR 15,440||INR 14,170||INR 11,940||INR 6760|
Surrender value under LIC Jeevan Akshay VI Plan
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 –
- On diagnosis of a critical illnessThe 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 –
- Open chest CABG (Coronary Artery Bypass Graft)
- Stroke which causes permanent symptoms
- Cancer of a specified severity
- Bone marrow or major organ transplant
- Repair of the valves of the heart or open heart replacement
- Permanent paralysis in the limbs
- Failure of the kidney which requires you to undergo regular dialysis
- Motor neurone disease which has permanent symptoms
- End-stage liver failure
- Multiple sclerosis which has persisting symptoms
- End-stage lung failure
- Third-degree burns
- Loss of limbs
- A major head trauma
- Primary pulmonary hypertension
- Loss of speech
- Benign brain tumour
- Myocardial infarction
- Change of citizenshipIf 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.
Tax benefits of LIC Jeevan Akshay VI Plan
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.
How to buy LIC Jeevan Akshay VI Plan?
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.