LIC Jeevan Akshay VI is an immediate pension plan, which creates a regular income stream from the very next month of Investment. You may ask for Annuity as monthly, quarterly or annual payment mode option.
Immediate pension plans are important to study especially for those who have invested in some deferred pension plans of any insurer or even invested in NPS. Both these products, on maturity, mandate investors to put some of their accumulated money in the immediate pension plan and buy regular annuity options.
In this article, I will be reviewing the features and benefits of LIC Jeevan Akshay VI for readers to consider it one of the options while buying annuity from their pension products. This Plan is replaced by a new pension Plan LIC Jeevan Akshay VII, which is also reviewed on this blog, click here to check.
LIC Jeevan Akshay VI – in Brief
LIC Jeevan Akshay VI is a guaranteed lifetime pension plan, which starts paying pension from the next month of the Investment or as per the mode was chosen. The other immediate pension plan launched by LIC backed by Government of India is Pradhan Mantri Vaya Vandana Yojana.
Unlike PMVVY, LIC Jeevan Akshay VI can be purchased by people aging 30 years and above, with a maximum age limit of 85 years. The rate of Interest is better in PMVVY but the tenure and the maximum investment limit is high in LIC Jeevan Akshay.
LIC Jeevan Akshay VI or any Immediate pension Plan for that matter, requires a Lump sum premium payment and depending on the Mode of receipt (Monthly/Quarterly/Half Yearly/Annually) you have chosen, starts paying the pension amount as per the annuity option you have opted for.
(Also Read: How pension Plans in India Works?)
LIC Jeevan Akshay VI – Basic Features
LIC Jeevan Akshay VI can only be bought Online on lic website
LIC Jeevan Akshay VI – Death/Maturity/Surrender benefits
There is no death benefit attached to LIC Jeevan Akshay.
There is no Maturity benefit attached to Jeevan Akshay. However, if you have opted for “Return of Purchase Price” annuity option, you or your family as the case may be will get the purchase price back on completion of the term.
(Also Read: Why Personal cash flow analysis is important?)
Being an annuity Plan there are no Surrender benefits attached as you cannot surrender the policy in between the policy term.
LIC Jeevan Akshay VI – Annuity options
There are 7 annuity options in LIC Jeevan Akshay VI Plan.
- Annuity Payable for Life at Uniform rate: The Pension/Annuity amount will remain same till you are alive
- Annuity payable for a certain term (5,10,15 or 20 years) and thereafter as long as the annuitant is alive
- Annuity for Life with the return of purchase price on the death of annuitant
- Annuity Payable for Life increasing at a simple rate of 3% ‑ (HDFC Immediate annuity has 5% escalation clause)
- Annuity for life, with 50% payment to wife on annuitant’s death
- Annuity for life, with 100% annuity to wife on annuitant’s death
- Annuity for life, then 100% annuity to the spouse, and then return of purchase price to the nominee.
LIC Jeevan Akshay VI – Should you Buy?
As I wrote above that in some cases you have no option but to consider immediate annuity plans. It is a mandatory buy in case of the new pension scheme and deferred pension plans. The question comes should you go with LIC Jeevan Akshay VI?
In my view, it is worth considering. Now days almost every insurer has this kind of product in their portfolio, I have reviewed HDFC Immediately pension plan earlier on this blog. You have to compare what you are getting from where and decide what suits you the best.
LIC Jeevan Akshay VI offers returns that are half a percentage points more than the 10-year government securities.
But if the requirement is just to provide for or supplement monthly/Annual income, then you may also consider other fixed return instruments like Post office MIS, Senior citizen schemes and even Bank FDs.
Hope you are clear on the workings and features of LIC Jeevan Akshay VI Pension Plan. Feel free to ask your queries or doubts in the comments section below.
Hello,
Please advise, what if I invest 20L in Jeevan Akshay VI. My age is 51 and currently unemployed.
Unsure of getting employed, I require some immediate guaranteed monthly income lifelong. Any other suggestions is also appreciated. Thank you sir,
I think you should not block your money in LIC Jeevan Akshay. Better to get all the options evaluated like SWP in Mutual funds, post office deposits and other instruments and then decide as per your requirement.
You should also review your Health insurance and other goals along with.
In short get a Holistic Retirement Planning done for you.
what is the rate of interest for jeevan akshay VI considering monthly annuity
LIC has withdrawn Jeevan Akshay VI plan, it will not accept any fresh investment in the same.
LIC is deducting Rs. 3600 every month on jevan akshay monthly annuity of 11867. This single premium of RS 20 lakhs came out of NRE account. And income tax rule exempts me from taxes upto 2.5 lakhs per year. So why is LIC deducting 3600 every month. its more than 30%. How should I stop LIC from deducting.
Looking at your query, it can be said that LIC is right in deducting TDS.
As per our knowledge, if you do not want the TDS to be deducted as you feel that you might not generate any taxable income then you may file application u/s 195(3) to jurisdictional tax officer to obtain a certificate of Non-deduction of TDS or Lower TDS.
If the Income-tax officer grants the waiver then you can submit that waiver certificate to the LIC office to not deduct TDS on high rates.
KIndly, also contact LIC, asking for the solution of the issue.