LIC Jeevan Akshay Pension Plan VII – Benefits explained in detail

LIC Jeevan Akshay Pension Plan VII – Benefits explained in detailLIC Jeevan Akshay Pension Plan VII – Benefits explained in detail


LIC has launched Jeevan Akshay Pension Plan VII, No 857 where one can get annuity pension income for for life time. We have reviewed LIC Jeevan Akshay VII well ahead before it was launched. Now the pension plan is launched, we thought it is a good idea to cover some of the aspects in detail which can benefit investors. What are the benefits under LIC Jeevan Akshay VII? Is there any benefit which one can opt to get purchase price back to us after specific period in Jeevan Akshay Plan No 857?

Also Read: How good is LIC Jeevan Akshay VII no 857?

Key features of LIC Jeevan Akshay

LIC Jeevan Akshay was launched on 25 August, 2020.

This is an annuity pension plan which has 10 annuity options to consider.

One can get a guaranteed pension for life for annuitant with or without purchase price back, depending on the option chosen by them.

Annuitant here means who purchased pension plan.

LIC Jeevan Akshay Pension Plan VII – Benefits explained in detail

Benefits are classified into two a) Survival + Death Benefits b) Maturity Benefits.

A) LIC Jeevan Akshay Pension Plan VII – Survival and Death Benefits

Now let us look at Survival and Death Benefits

1) Annuity Option A – Immediate annuity for life

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive.

ii) Benefits Payable on Death

  • On the death of the annuitant, there is nothing payable. The pension income would cease and the pension policy would terminate.

2) Annuity Option B – Immediate Annuity with guaranteed period of 5 years and life thereafter

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive.

ii) Benefits Payable on Death

  • Death of annuitant <5 years – The annuity payment would be done to nominee till the expiry of the guaranteed period of 5 years, pension ceases there-of and pension policy gets terminated after that.
  • Death of annuitant >5 years – On the death of the annuitant, pension payment would cease immediately and the pension policy would terminate.

3) Annuity Option C – Immediate Annuity with guaranteed period of 10 years and life thereafter

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive.

ii) Benefits Payable on Death

  • Death of annuitant <10 years – The annuity payment would be done to nominee till the expiry of the guaranteed period of 10 years, pension ceases there-of and pension policy gets terminated after that.
  • Death of annuitant >10 years – On the death of the annuitant, pension payment would cease immediately and the pension policy would terminate.

4) Annuity Option D – Immediate Annuity with a guaranteed period of 15 years and life thereafter

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive.

ii) Benefits Payable on Death

  • Death of annuitant <15 years – The annuity payment would be made to nominee till the expiry of the guaranteed period of 15 years, pension ceases thereof and pension policy gets terminated after that.
  • Death of annuitant >15 years – On the death of the annuitant, pension payment would cease immediately and the pension policy would terminate.

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5) Annuity Option E – Immediate Annuity with a guaranteed period of 20 years and life thereafter

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive.

ii) Benefits Payable on Death

  • Death of annuitant <20 years – The annuity payment would be done to nominee till the expiry of the guaranteed period of 20 years, pension ceases thereof and pension policy gets terminated after that.
  • Death of annuitant >20 years – On the death of the annuitant, pension payment would cease immediately and the pension policy would terminate.

6) Annuity Option F – Immediate annuity for life with return of purchase price

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive.

ii) Benefits Payable on Death

  • On the death of the annuitant, the annuity income would cease immediately and purchase price would be paid to the nominee.

7) Annuity Option G – Immediate annuity for life increasing at a simple rate of 3%

i) Benefits Payable on Survival

  • Coverage would be for single life.
  • One can get annuity payments for life as long as the annuitant is alive. The annuity payments will be increased by a simple rate of 3% for every completed year.

ii) Benefits Payable on Death

  • On the death of the annuitant, there is nothing payable. The pension income would cease and the pension policy would terminate.

8) Annuity Option H – Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the secondary annuitant on death  of the Primary Annuitant.

i) Benefits Payable on Survival

  • Coverage would be for joint life.
  • One can get annuity payments for life as long as the primary annuitant and/or secondary annuitant is alive.

ii) Benefits Payable on Death

  • On the death of primary annuitant – 50% of the annuity amount shall be payable to the surviving secondary annuitant as long as secondary annuitant is alive. On the death of secondary annuitant, the annuity income will cease and policy would terminate.
  • If the secondary annuitant predeceases primary annuitant – The annuity income would be paid to primary participant till alive and on death of primary annuitant, the pension ceases and policy would terminate.

9) Annuity Option I – Joint Life Immediate Annuity for life with a  provision for 100% of the annuity payable as long as one of the Annuitant survives

i) Benefits Payable on Survival

  • Coverage would be for joint life.
  • One can get annuity payments for life as long as the primary annuitant and/or secondary annuitant is alive.

ii) Benefits Payable on Death

  • On the first death of either of joint lifes – 100% of the annuity amount shall be payable to the surviving annuitant till alive.
  • On the death of the last survivor – the pension income would cease and the pension policy would terminate. There is nothing payable.

10) Annuity Option J – Joint Life Immediate Annuity for life with a  provision for 100% of the annuity payable as long as one of the Annuitant survives and return of purchase price on death of last survivor

i) Benefits Payable on Survival

  • Coverage would be for joint life.
  • One can get annuity payments for life as long as the primary annuitant and/or secondary annuitant is alive.

ii) Benefits Payable on Death

  • On the first death of either of joint lives – 100% of the annuity amount shall be payable to the surviving annuitant till alive.
  • On the death of the last survivor – the pension income would cease and the pension policy would terminate. The purchase price would be payable to the nominee.

B) Maturity Benefit

There is no maturity benefit under this pension plan

Which benefit is best for you in Jeevan Akshay VII Plan of LIC?

This is not simple plain answer. This would depend on few things.

1) Do you expect to get return of purchase price?

If your answer is YES, then you need to mentally prepare to take a lower pension amount. If you are looking for return of purchase price to the nominee, one can opt for Option F for single life coverage or Option J for joint life coverage

2) Do you need to take pension plan on joint life?

If your spouse is depending on you (retirement stage), you should consider a joint life pension plan. If not, at least consider pension plan for single life with an option of return of purchase price. This way your spouse is financially secured to some extent even in your absence.

3) I want to get increase in pension income year on year, which is better?

If you are looking for increase in pension income, you can opt for Option-G where one can get 3% increase in annuity income for every completed year.

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4) I want to get annuity income irrespective whether I am alive or not, which is better?

LIC Jeevan Akshay vii provides 4 options where one can get annuity for fixed period irrespective whether a annuitant is alive or now. One can choose Option-B, Option-C, Option-D and Option E. Annuitant and nominee (post annuitant death) would get fixed annuity income for 5 years, 10 years, 15 years and 20 years respectively irrespective whether the annuitant is alive or not.

5) Maturity amount is zero, but I could see benefits in Option H, U and J, why?

Jeevan Akshay 7 pension plan has zero maturity amount. However as part of survival and death benefit, one can get annuity pension amount even after death of the annuitant. These benefits are passed to nominee and not to annuitant, hence are termed as death benefits and not maturity benefits.

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Suresh KP

8 comments

  • Kamal Garg

    It is requested to kindly share us what will be pension one would get for every one lakh invested in this Scheme as per the Option A. This is just to know what would be the pension amount in advance and if possible to compare the benefits and returns with other such avenues available.

  • Arunava Majumdar

    Just for sake of more clarity, if one purchases a plan for INR 10 Lakhs, what would be the monthly pension amount under each of these categories?

  • R Ramakrishna

    It is stated on the death of annuitant,nothing is payable.In the case of Bank Fixed Deposit with monthly/quarterly/half yearly/annual interest,the principal amount paid by the Depositor will be paid to survivor on the death of Depositor.
    Similarly on the death of annuitant,the amount paid by the policy holder for buying the policy should be paid to survivors/legal heirs.
    Please clarify.Please throw some light on GST payable.

    • Yes Ramakrishna. Based on the option chosen, one would get their purchase price back, else nothing. There is GST of 1.8% applicable on the purchase amount. If you invest Rs 10 lakh in this pension plan, one need to pay Rs 10.18 lakhs (current GST rate for annuities is 1.8%).

  • krish

    Is there any way to stop TDS under this plan?

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