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LIC’s Jeevan Akshay – VII (Plan 857): Complete Guide to
India’s Best Immediate Annuity Plan
LIC’s Jeevan Akshay – VII (Plan No. 857) is one of the most
trusted immediate annuity pension plans in India. It is designed for
individuals who want guaranteed lifelong income immediately after making
a one-time investment. Backed by the Life Insurance Corporation of India (LIC),
this plan is widely chosen by retirees, senior citizens, and investors seeking
stable post-retirement income.
This article explains features, benefits, annuity
options, eligibility, taxation, and suitability, making it useful for both
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What is LIC’s Jeevan Akshay – VII?
LIC’s Jeevan Akshay – VII is a single premium,
non-linked, non-participating immediate annuity plan. Under this policy,
the policyholder pays a lump-sum amount and starts receiving regular
pension income immediately or shortly after purchase, depending on the
chosen annuity option.
The annuity is payable throughout the lifetime of the
annuitant or for a defined period, ensuring financial security.
Key Features of LIC’s Jeevan Akshay – VII
- Immediate
pension after one-time investment
- Guaranteed
annuity rates at the time of purchase
- Multiple
annuity options to choose from
- Pension
payable monthly, quarterly, half-yearly, or yearly
- Option
for spouse pension (joint life)
- Loan
facility available under certain conditions
- No
market risk involved
Eligibility Criteria
|
Criteria |
Details |
|
Minimum Entry Age |
30 years |
|
Maximum Entry Age |
85 years |
|
Minimum Purchase Price |
₹1,00,000 (varies by annuity option) |
|
Maximum Purchase Price |
No upper limit |
|
Policy Term |
Lifetime |
Annuity Options Available
LIC’s Jeevan Akshay – VII offers 10 different annuity
options, allowing flexibility based on individual needs. Some popular
options include:
- Annuity
for life
- Annuity
for life with return of purchase price on death
- Joint
life annuity for spouse
- Joint
life annuity with return of purchase price
- Annuity
guaranteed for 10, 15, or 20 years and thereafter for life
These options help policyholders plan income for themselves
and their dependents.
Annuity Payment Modes
Policyholders can choose how frequently they want to receive
pension income:
- Monthly
- Quarterly
- Half-Yearly
- Yearly
Higher frequency generally results in slightly lower annuity
payouts.
Benefits of LIC’s Jeevan Akshay – VII
1. Guaranteed Lifetime Income
Once purchased, the annuity rate is locked for life,
ensuring predictable income.
2. Financial Security for Spouse
Joint life options ensure pension continues for the spouse
after the policyholder’s death.
3. No Market Volatility
Returns are not affected by stock market fluctuations.
4. Trusted Government-Backed Insurer
LIC is India’s most reliable life insurance provider.
Taxation of LIC Jeevan Akshay – VII
- The purchase
price is not eligible for deduction under Section 80C
- The annuity
income is taxable as per the policyholder’s income tax slab
- TDS
may apply if applicable under income tax rules
(Always consult a tax advisor for personalized advice.)
Who Should Buy LIC’s Jeevan Akshay – VII?
This plan is ideal for:
- Retired
individuals seeking regular pension income
- Senior
citizens wanting guaranteed returns
- Investors
with a lump-sum amount from retirement benefits
- People
who prefer low-risk, stable income products
Important Points to Consider
- Once
purchased, the policy cannot be surrendered (except under specific
conditions)
- Annuity
rates depend on age and selected option
- Not
suitable for those looking for high returns or liquidity
Frequently Asked Questions (FAQs)
Is LIC Jeevan Akshay – VII a good pension plan?
Yes, it is one of the safest immediate annuity plans in
India offering guaranteed income.
Can I take a loan against this policy?
Yes, loan facility is available after a certain period for
specific annuity options.
Is this plan suitable for young investors?
It is better suited for retirement planning or
post-retirement income needs.
Conclusion
LIC’s Jeevan Akshay – VII (Plan 857) is a reliable and
secure immediate annuity plan for individuals seeking guaranteed pension
income without market risk. With multiple annuity options and the trust of LIC,
it remains a popular choice for retirement income planning in India.
Before purchasing, carefully evaluate your income needs,
annuity option, and tax implications to ensure it aligns with your long-term
financial goals.