LIC’s Jeevan Akshay-VII (Plan No. 857)

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LIC’s Jeevan Akshay-VII (Plan No. 857): Complete Guide to India’s Most Trusted Immediate Annuity Plan

Planning for a financially secure retirement is one of the most important decisions in life. With rising life expectancy, inflation, and increasing medical expenses, having a guaranteed and steady income after retirement has become essential. Life Insurance Corporation of India (LIC), India’s most trusted life insurer, offers LIC’s Jeevan Akshay-VII (Plan No. 857)—an immediate annuity plan designed to provide guaranteed lifelong income.

This detailed guide explains LIC Jeevan Akshay-VII in simple terms, covering features, benefits, annuity options, eligibility, tax implications, advantages, disadvantages, and who should invest in this plan. If you are looking for a safe, low-risk retirement income plan, this article will help you make an informed decision.

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What is LIC’s Jeevan Akshay-VII (Plan No. 857)?

LIC’s Jeevan Akshay-VII is a Single Premium, Immediate Annuity Plan. This means:

• You pay one lump-sum premium.
• Annuity (pension) starts immediately or within one year.
• You receive a guaranteed income for life, regardless of market conditions.

This plan is ideal for individuals who want certainty, stability, and lifelong income, especially retirees, senior citizens, and people receiving retirement benefits like PF, gratuity, or NPS maturity proceeds.

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Key Features of LIC Jeevan Akshay-VII

Here are the main features that make this plan popular among conservative investors:

• Immediate pension after paying a single premium
• Guaranteed annuity rates fixed at purchase
• Multiple annuity options to suit different needs
• Lifetime income for the annuitant
• Option for joint life annuity with spouse
• Return of purchase price available in select options
• Backed by LIC, a Government of India undertaking
• No market risk involved

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Types of Annuity Options Available

LIC Jeevan Akshay-VII offers 10 annuity options, allowing flexibility based on personal and family needs. Below is a simplified explanation:

1. Annuity for Life

• Pension paid throughout the annuitant’s lifetime.
• Stops after death.
• No return of purchase price.

2. Annuity for Life with Guaranteed Period (5, 10, 15, or 20 years)

• Annuity paid for life.
• If death occurs during the guaranteed period, payments continue to nominee.
• After guaranteed period, annuity stops on death.

3. Annuity for Life with Return of Purchase Price

• Pension paid for life.
• After death, purchase price is returned to nominee.

4. Joint Life – Annuity for Life

• Pension paid to primary annuitant.
• After death, annuity continues to spouse.
• Stops after both pass away.

5. Joint Life with Return of Purchase Price

• Pension continues to spouse after primary annuitant’s death.
• After both die, purchase price returned to nominee.

These options make the plan suitable for single individuals, married couples, and retirees looking for family security.

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Eligibility Criteria

Minimum Age

• Immediate Annuity: 30 years
• Deferred Annuity: As per LIC norms

Maximum Age

• Generally up to 85 years (varies by option)

Minimum Purchase Price

• ₹1,00,000 (subject to annuity option)

Maximum Purchase Price

• No upper limit (subject to LIC underwriting rules)

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How Does LIC Jeevan Akshay-VII Work?

1. You invest a lump sum amount (purchase price).
2. LIC calculates annuity based on:
• Age
• Annuity option chosen
• Mode of payment (monthly, quarterly, half-yearly, yearly)
3. You start receiving fixed pension payments for life.
4. On death:
• Annuity stops or continues as per chosen option.
• Purchase price may be returned to nominee (if applicable).

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Annuity Payment Modes

You can choose how often you want to receive pension:

• Monthly
• Quarterly
• Half-Yearly
• Yearly

Monthly payments generally offer slightly lower rates compared to yearly payments.

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Tax Benefits of LIC Jeevan Akshay-VII

Tax on Premium

• No tax deduction under Section 80C for purchase price.

Tax on Annuity Income

• Annuity received is taxable as per income tax slab.
• TDS may apply as per prevailing rules.

Tax on Death Benefit

• Return of purchase price to nominee is generally tax-free under Section 10(10D), subject to conditions.

Always consult a tax advisor for personalized advice.

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Advantages of LIC Jeevan Akshay-VII

1. Guaranteed Income for Life

No matter how long you live, you will receive pension regularly.

2. Zero Market Risk

Your income does not depend on stock markets or interest rate fluctuations.

3. Trusted Government-Backed Insurer

LIC is one of the most reliable financial institutions in India.

4. Multiple Annuity Choices

Flexibility to match your retirement and family needs.

5. Ideal for Retirement Corpus

Suitable for using PF, gratuity, VRS, or NPS maturity amounts.

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Disadvantages of LIC Jeevan Akshay-VII

While the plan is safe, it has some limitations:

• No inflation protection (pension amount remains fixed)
• No liquidity (cannot withdraw purchase price)
• Lower returns compared to equity-based options
• Annuity income is taxable

This plan is best for stability, not for high growth.

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Who Should Buy LIC Jeevan Akshay-VII?

This plan is suitable for:

• Retired individuals seeking stable monthly income
• Senior citizens who prefer low-risk investments
• People with lump sum retirement funds
• Couples looking for joint life pension
• Conservative investors prioritizing safety over returns

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Who Should Avoid This Plan?

You may consider alternatives if:

• You want high returns or inflation-adjusted income
• You need liquidity or flexibility
• You are young and can take market risk

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Comparison: LIC Jeevan Akshay-VII vs Other Retirement Options

Feature	Jeevan Akshay-VII	Mutual Funds	NPS
Risk	Very Low	High	Moderate
Guaranteed Income	Yes	No	Partial
Market Linked	No	Yes	Yes
Liquidity	No	High	Limited
Inflation Protection	No	Yes	Partial

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How to Buy LIC Jeevan Akshay-VII?

You can purchase this plan through:

• LIC branch office
• Authorized LIC agent
• Online through LIC website (subject to availability)

Documents required:

• Identity proof
• Age proof
• Address proof
• Bank details

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Frequently Asked Questions (FAQs)

Is LIC Jeevan Akshay-VII safe?

Yes. It is backed by LIC, a Government of India undertaking.

Can I surrender this policy?

No. Immediate annuity plans do not have surrender value.

Can NRIs buy this plan?

Yes, subject to LIC rules and FEMA guidelines.

Is pension amount fixed?

Yes. Once decided, it does not change.

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Final Verdict: Is LIC Jeevan Akshay-VII Worth It?

LIC’s Jeevan Akshay-VII (Plan No. 857) is an excellent choice for individuals who want peace of mind, certainty, and lifelong income. While it may not beat inflation or generate high returns, it excels in stability and reliability, making it a strong pillar of a balanced retirement portfolio.

For retirees and conservative investors, this plan serves as a financial safety net, ensuring that basic living expenses are covered throughout life.

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Disclaimer

This article is for educational and informational purposes only. Policy features, annuity rates, and tax rules are subject to change as per LIC and Government regulations. Please read the official policy brochure carefully and consult a licensed financial advisor before investing.

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