LIC of india has modified its existing pure pension plan Jeevan Akshay- VI to make it LIC’s online policy. The new online pension plan can be purchased from LIC’s official website www.licindia.in Jeevan Akshay – VI can also be booked through an LIC Agent.

Before you jump on buying the online insurance, keep in mind:

  • You can not surrender the policy.
  • You can not get loan on this policy.
  • You wont get tax benefit.
  • Minimum Premium for online policy is Rs.1.5 lac and 1 lac if you buy from agent.
  • Insurance policy will attract service tax as per current financial law.
  • Your agent will make 2% commission, if you prefer to buy it offline.
  • You will get 1% rebate if you buy it online
  • You will get rebate, if you buy policy for 2.5 lacs or above
  • Pension will depend on the plan you choose and your age.
  • You can buy the policy, if you are in 30-85 age group.
  • You will have 15 days cooling off period to return the policy and get refund if you are not satisfied.
  • This is single premium pension plan.

7 Types of annuity available:

  1. Annuity for life
  2. Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
  3. Annuity for life with return of purchase price on death
  4. Annuity for life increasing at a simple rate of 3% p.a.
  5. Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant.
  6. Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life 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 with return of purchase price on the death of last survivor.

Pension:
Annuity can be paid in yearly, half-yearly, quarterly or monthly installments.

Benefits:

Your first pension will start as early as next month. Further, pension will be paid during the lifetime of the annuitant with following provisions on death of the annuitant for different options:

(a) Under option (1) – payment of annuity ceases.
(b) Under option (2)
i. On death during the guarantee period – annuity is paid to the nominee till the end of the guaranteed period after which the pension ceases.
ii. On death after the guarantee period – payment of annuity ceases.

(c) Under option 3) – payment of annuity ceases and the purchase price is returned to the nominee.
(d) Under option (4) – payment of annuity ceases.

(e) Under option (5) – payment of annuity ceases and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.

(f) Under option (6) – payment of annuity ceases and 100% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.

(g) Under option (7) – payment of pension ceases. 100% of the annuity is paid to the surviving named spouse during his/her life time and purchase price is returned to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price is paid to the nominee. The pension will be assured throughout the period for which it is payable.

Eligibility Conditions and Features of LIC’s Jeevan Akshay- VI (Plan No. 810) :

Minimum Age at entry: 30 years last Birthday
Maximum Age at entry: 85 years last Birthday
Minimum Purchase Price:

  • Rs.1,00,000/- for all distribution channel except online sale.
  • Rs. 1,50,000/- for online sale.

Sample annuity table prepared by Vinay Gupta Development Officer, LIC of India