LIC's Jeevan Akshay VI Plan

LIC’s Jeevan Akshay VI Plan

LIC’s Jeevan Akshay VI Plan is an Immediate Annuity Plan offered by Life Insurance Corporation of India. This plan can be purchased by paying a lumpsum of money and “purchase” annuity. This the single premium paid is called “Purchase price”. In this plan, the annuity or the pension starts immediately without any waiting period according to the option selected by the policyholder.

Thus, what is an Immediate Annuity Plan?

An annuity plan which starts immediately on payment of premium without having to wait for vesting is called an Immediate Annuity Plan.

Who is an annuitant?

The person who receives annuity is called an annuitant. Since, you cannot propose an annuity plan for someone else, the policyholder is the annuitant in this plan.

What are the features of the LIC’s Jeevan Akshay VI plan?

The LIC’s Jeevan Akshay VI plan is a pension plan wherein the pension starts immediately without having to wait.

The plan offers exciting features as under :

The initial premium is to be paid in a single go i.e. lump sum
Since there is no life coverage in this plan, the annuitant does not need to undergo medical examination while purchasing this plan
The annuity payable under this plan can be received in yearly, half-yearly, quarterly or monthly mode based on the choice opted by the policyholder
In the case of joint policyholders different annuity payment options can be chosen i.e. the annuity payment of the policyholder can be different from the annuity payment option chosen for the spouse
For higher purchase price i.e. lump sum single premium and plans purchased via online channel are eligible to receive annuity payment at higher rates
The LIC’s Jeevan Akshay VI plan does not have an upper limit on the purchase price or the amount of annuity received

What are Annuity options available under the LIC’s Jeevan Akshay VI Plan?

The LIC’s Jeevan Akshay VI plan is an immediate annuity plan that focuses on the payment of an annuity to the annuitant throughout their entire lifetime as per the mode of annuity payment chosen by the annuitant. LIC has given annuitant option to choose the annuity for investment as per their needs and convenience.

What are the benefits of the LIC’s Jeevan Akshay VI plan?

1. Death Benefit: In the case of death of the annuitant the annuity shall be paid in the manner the annuity option was chosen by the annuitant while purchasing the LIC’s Jeevan Akshay VI plan the annuity shall be paid as under :

2. Maturity Benefit: The LIC’s Jeevan Akshay VI plan is an annuity plan and it does not offer maturity benefit under this plan

Following are the annuity options available under the LIC’s Jeevan Akshay VI plan :

Annuity Option	Annuity Description	Single Life/ Joint Life	Survival Benefit	Death Benefit
1	Immediate Annuity for life	Single Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the annuitant as long as he lives and nothing would be payable thereafter and the policy would be terminated after his death.	NIL
2	Immediate Annuity with Annuity Certain for 5, 10, 15, 20 years and then for life thereafter	Single Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the annuitant for a minimum period of 5, 10, 15 or 20 years and then as long as he lives and nothing would be payable thereafter. However, if the annuitant dies before the certain period of 5, 10, 15 or 20 years’ of annuity payment, then the remaining guaranteed annuities would be paid to the nominee and the policy would be terminated. This type guarantees a minimum tenure of annuity for 5, 10, 15 or 20 years, as chosen.	If the annuitant dies within the first 5, 10, 15 or 20 years of annuity payment, then the remaining annuity certain would be paid to the nominee. However, if the annuitant dies after the first 5, 10, 15 or 20 years of annuity payment, nothing would be payable as Death Benefit.
3	Immediate Annuity for Life with Return of Purchase Price	Single Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the annuitant as long as he lives	After the death of the annuitant, the entire purchase price, i.e. the premium paid towards the annuity corpus would be returned to the nominee and the policy would be terminated.
4	Immediate Annuity for Life with an increasing rate of 3% p.a.	Single Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the annuitant as long as he lives at an increasing simple interest rate of 3% p.a. and the policy would be terminated after his death.	NIL
5	Joint Life Annuity: Immediate Annuity for life for the primary annuitant with 50% payable to the secondary annuitant on death of primary annuitant	Joint Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the primary annuitant as long as he lives. After his death, 50% of the annuity would be paid to the secondary annuitant till as long as he lives and after the death of both the annuitants, the policy would be terminated.	After the death of the primary annuitant, 50% of the annuity would be paid to the secondary annuitant till as long as he lives and after the death of both the annuitants, the policy would be terminated and nothing would be payable to the nominee.
6	Joint Life Annuity: Immediate Annuity for life for the primary annuitant with 100% payable to the secondary annuitant on death of primary annuitant	Joint Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the primary annuitant as long as he lives. After his death, 100% of the annuity would be paid to the secondary annuitant till as long as he lives and after the death of both the annuitants, the policy would be terminated.	After the death of the primary annuitant, 100% of the annuity would be paid to the secondary annuitant till as long as he lives and after the death of both the annuitants, the policy would be terminated and nothing would be payable to the nominee.
7	Joint Life Annuity: Immediate Annuity for life for the primary annuitant with 100% payable to the secondary annuitant on death of primary annuitant and then Return of Purchase Price on death of the last survivor	Joint Life	Annuity will start immediately from the next month or year, as is chosen and will be paid to the primary annuitant as long as he lives. After his death, 100% of the annuity would be paid to the secondary annuitant till as long as he lives.	After the death of the primary annuitant, 100% of the annuity would be paid to the secondary annuitant till as long as he lives and after the death of both the annuitants, the entire purchase price, i.e. the premium paid towards the annuity corpus would be returned to the nominee and the policy would be terminated.

Kindly note, the annuitant has an option to choose any one of the above annuity options at the start of the policy. The option opted cannot be changed thereafter.

What are the eligibility parameters for purchasing the LIC’s Jeevan Akshay VI plan?

Particulars	Eligibility parameters
Minimum Annuity Purchase Price	Rs 1.50 Lakhs for the purchase of policy via the online channel Rs 1.00 Lakhs for the purchase of policy via channels other than online channel
Minimum Age at Entry	Minimum 30 Years completed
Maximum Age at Entry	100 Years completed for policies of which annuity option selected is “Annuity for Life with the return of Purchase Price on the death of the Annuitant” 85 Years completed for all the other annuity options
Annuity Payment Option	Yearly Half-Yearly Quarterly Monthly

How to surrender the LIC’s Jeevan Akshay VI Plan?

Surrender of the LIC’s Jeevan Akshay VI plan is not allowed except in the case where the annuity option chosen by the annuitant is “Annuity for life with return of purchase price”. The surrender of the annuity plan under the “Annuity for life with return of purchase price” is allowed under the following circumstances like :

Surrender will be allowed after the completion of one policy year
If the annuitant is diagnosed or suffering from specified critical illnesses
If the annuitant is shifting to a foreign country permanently

Thus, under the above circumstances LIC shall allow the surrender of LIC’s Jeevan Akshay VI plan under the annuity option “Annuity for life with return of purchase price” while in all other annuity option surrender of policy is not allowed.

LIC’s Jeevan Akshay VI Plan