Jeevan Akshay VI – A Single Premium Pension Plan from LIC of India
Is Jeevan Akshay VI pension plan discontinued by LIC of India? Recently there was a huge rumor that LIC is going to discontinue their single premium pension plan Jeevan Akshay VI. But in reality, LIC has re-introduced this pension plan adding some new features. In current market, when interest rates of deposit schemes has been fallen significantly, LIC Jeevan Akshay VI policy can attract people with a steady pension income after retirement.
Before proceeding further, one need to know few of the basic terms to understand how Jeevan Akshay VI works. This is not like any other insurance policy, rather this is an annuity plan. In this article I will share complete details of Jeevan Akshay VI review, Jeevan Akshay VI premium calculator, how much pension one will get after retirement and various other benefits of LIC Jeevan Akshay VI plan.
What is Annuity Plan?
The purpose of annuity plans are to provide regular pension after retirement. This kind of policies will collect money from policy holder and then pay monthly pension. There are 2 types of annuity plan and let’s explore them one by one.
Immediate Annuity: Let’s say you have a huge corpus and you want to invest the same for regular monthly income. Although there are monthly income schemes, but you can also buy Jeevan Akshay VI immediate annuity option to get regular monthly pension from day 1 itself.
Deferred Annuity: Now this is like you want to invest now but will get the pension after a certain period of time. E.g. if your age is 25 years and you are planning to retire at the age of 60 years, then you can buy this policy now and then start getting pension after the age of 60 years only. During that period your money will grow as per the interest rates provided by LIC of India.
LIC Jeevan Akshay VI Key Features & Highlights
Let’s explore few of the key features of this pension policy from LIC of India.
- This is a single premium plan, that means you have to pay the premium as lump sum.
- Minimum purchase price : Rs.100,000/- for all distribution channels except online. Rs.150,000/- for on line sale. There is no maximum limit though.
- Get an additional 1% discount in case you purchase this plan online. By the way this is the only online pension plan in India from LIC of India.
- No medical examination is required under the plan.
- Minimum allowed age at entry is 30 years (completed) and Maximum allowed age at entry is 85 years (completed).
- Share any of you Age proof document while approaching for this policy.
- One can choose the pension payment option from any of monthly, quarterly, half-yearly or yearly.
- In case of purchase of Rs 2.5 lakh or more then you will be eligible for special incentive from LIC. Better to check with your LIC agent or enquiry about the incentives clearly by calling LIC customer support team.
- There is a 15 days grace period under which you can cancel this policy if you are not happy with any of the terms & conditions of this policy.
- There is no loan facility available under this policy.
- Assignment and backdating is not allowed.
Type of Annuity:
- Annuity payable for life at a uniform rate.
- Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
- Annuity for life with return of purchase price on death of the annuitant.
- Annuity payable for life increasing at a simple rate of 3% p.a.
- Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- 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.
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under:
|Age last birthday||Yearly annuity amount under option|
|( i )||( ii ) (15 years certain)||( iii )||( iv )||( v )||( vi )||(vii)|
New changes of LIC Jeevan Akshay VI Plan
- The annuity rates has been fallen and new rates applied.
- One can surrender the policy only after completion of the policy period only. There are many other clauses included for cases like in case annuitant is shifting to another country permanently.
- One can also surrender the policy if the annuitant is diagnosed as suffering from any of the following critical illnesses:
- Cancer of specified severity
- Myocardial infarction
- Open Chest CABG
- Open Heart Replacement or Repair of Heart Valves
- Kidney Failure requiring regular dialysis
- Stroke resulting in Permanent Symptoms
- Major Organ/Bone Marrow Transplant
- Permanent Paralysis of Limbs
- Motor Neurone Disease with Permanent Symptoms
- Multiple Sclerosis with Persisting Symptoms
- Benign Brain Tumor
- End-stage Lung failure
- End stage liver failure
- Loss of speech
- Loss of Limbs
- Major Head Trauma
- Primary(Idiopathic)Pulmonary Hypertension
- Third Degree Burns
Should I Buy LIC Jeevan Akshay 6 Pension Plan?
Well, the answer is very simple I think. If you understood the policy, then you should know how much return or pension one can get as pension. This pension amount will be taxable and not inflation adjusted. That means the real-time value of the money at the time of getting pension will not be enough to fight inflation. Anyway, you can use the lic jeevan akshay vi pension calculator to know the exact pension amount.
But if you are not bothered about this things and want to get a steady pension or you can say a guaranteed return then this is a good plan. Make sure you h ave accumulated enough money for your retirement and then only go for such pension plan as to explore other options.
Recently a Mumbai businessman buys LIC’s costliest policy for Rs 50 crore premium. Do you think LIC Jeevan Akshay VI is the best pension plans in india with single premium? Share your thoughts and any experience here by writing a simple comment below. For more details, refer LIC of India official website.