LIC Jeevan Akshay vii Plan Review (PLAN 857)

 If you are looking for the best Immediate plan with highest returns, then this LIC Jeevan Akshay vii Plan is your ideal choice. We had done a full research in the market and worked upon various insurance companies’ Immediate annuity plan and had written a post on Best Annuity plan India in 2020.

If you choose LIFE annuity, LIC Jeevan Akshay vii Plan is the best in the market.

In the LIFE Annuity with return of purchase price, LIC stands second after ICICI Prudential Immediate Annuity Plan.

In all other categories, LIC Jeevan Akshay vii Plan is giving the best percentage.


LIC Jeevan Akshay vii Plan Annuity Rate

Total Pension (Online) [Basic + Addl(High PP + Online 1% extra)]

Annuity Option Yearly Half-Yearly Quarterly Monthly
Annuity payable for life 92220 44950 22198 7345
Annuity payable for life with ROC on death of annuitant 68182 33184 16390 5426
Annuity payable for life with 100% annuity payable to spouse on death of annuitant 78989 38587 19092 6326
Annuity payable for life with 100% annuity payable to spouse on death of annuitant with ROC on death of Last Survivor 67374 32931 16289 5392

PRODUCT SPECIFICATION 

Type Of Plan   IMMEDIATE ANNUITY PLAN
Return Type  GUARANTEED
Tenure   LIFE TIME
Minimum Term     1
Maximum Term       LIFE TIME
Premium Flexibility  SINGLE
Minimum Premium      RS.150000
Maximum Premium   No Limit
Minimum Age at Entry  30
Maximum Age at Entry   85
Riders Available  NIL

CHARGE STRUCTURE 

Policy Allocation Charge  NOT APPLICABLE
Policy Administration Charge  NOT APPLICABLE
Fund Management Charge  NOT APPLICABLE
Surrender Charge   NOT APPLICABLE
Mortality Charge   NOT APPLICABLE

BENEFITS 

Life Coverage( Sum assured)   NIL
IRR     NOT APPLICABLE
Life Covered Till(Maximum)  NOT APPLICABLE
Maturity Benefit   NIL
Death Benefit     RETURN OF PURCHASE AMOUNT (ONLY IF SELECTED AT INCEPTION)
Waiver of premium    NIL
Survival Benefit    LIFE LONG INCOME
Lapse Benefit   NIL

INVESTMENT 

Loyalty Additions      NOT APPLICABLE
Fund options available   NOT APPLICABLE
Systematic Transfer Plan   NOT APPLICABLE
Automatic Asset Allocation   NOT APPLICABLE
Top -ups  in between   NOT POSSIBLE

TAX BENEFITS 

Section 80C(On premium paid)  NOT AVAILABLE
Section 10(10d) on Maturity   NOT AVAILABLE

LIQUIDITY OPTIONS 

Systematic Partial withdrawal  NOT AVAILABLE
Partial Withdrawal    NOT POSSIBLE
Loans  NOT POSSIBLE
Surrender Before Maturity
Money Back In-between  REGULAR INCOME (MONTHLY, QUARTERLY, HALF YEARLY AND YEARLY OPTION AVAILABLE).
LIC-s-Jeevan-Akshay-VII-Sales-Brochure PREMIUM CALCULATOR

What happens if you discontinue your premiums?

This is a single premium policy and hence there is no point in discussing about discontinuing premium inbetween.


Liquidity

  • Loan facility shall be available at any time after three months from the completion of policy (i.e. 3 months from the date of issuance of policy) or after expiry of the free-look period, whichever is later, subject to terms and conditions as the Corporation may specify from time to time.
  • As per current provisions, policy loan shall be allowed under the following annuity options only: • Option F: Immediate Annuity for life with return of Purchase Price.
  • Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.
  • The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount and shall be subject to maximum of 80% of Surrender Value. Loan interest will be recovered from annuity amount payable under the policy.
  • The loan outstanding shall be recovered from the claim proceeds at the time of exit.
  • The loan interest rate for all the loans commencing during the 12 months’ period from 1st May to 30th April, shall be annual effective rate not exceeding 10 year G-Sec rate p.a. compounding half- yearly plus 300 basis points. The 10 year G-Sec rate shall be as at last trading date of previous financial year.
  • The calculated interest rate shall be applicable for full term of Loan. For the loan sanctioned during the 12 months’ period commencing from 1st May, 2020 to 30th April, 2021, the applicable interest rate is 9.50% p.a. effective for entire term of the loan. Any change in basis of determination of interest rate for policy loan shall be subject to prior approval of IRDAI.

If You want to surrender the policy 

Only under the following annuity options, the policy can be surrendered at any time after three months from the completion of policy (i.e., 3 months from the Date of issuance of policy) or after expiry of the free-look period, whichever is later:

  • Option F: Immediate Annuity for life with return of Purchase Price.
  • Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

The surrender value payable shall depend on the age (last birthday) of the Annuitant at the time of surrender of the policy. If the chosen annuity option is other than specified above, surrender of policy shall not be allowed. On the payment of the surrender value, the policy shall terminate and all other benefits shall cease. The Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI. The Corporation may review conditions of surrender from time to time as per its policy in this regard. In case of NPS or QROPS, the surrender provisions shall be further subject to any specific provisions regarding procedures as per Rules and Regulations of the respective Regulator/Authority (PFRDA/HMRC).

Note: The insurance policy being a long-term contract should be taken from the long-term perspective of continuing the policy. While there is provision for surrender under various annuity options mentioned above, it may be noted that there can be significant loss on surrender of a policy and hence, it is advisable to continue the policy.


**Disclaimer:

This post on LIC Jeevan Akshay vii Plan is just a review of what the plan offers to the customers. We aim at educating ins and outs of this plan. We are trying to simplify the product and make it easy to understand. The Returns provided in this post are for Illustrative purpose only.  The waytoinsurance score is given by our own metrics of calculation and are no way related to the performance of this plan. All these details are derived from the below links. We are aiming at providing financial literacy for the common man.


You can also read our post on Top 10 Annuity Rates India in 2020

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