LIC increases annuity rates of Jeevan Akshay VII, New Jeevan Shanti with effect from Feb 1

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The Life Insurance Corporation of India (LIC) has increased the annuity rates of its Jeevan Akshay VII and New Jeevan Shanti policies with effect from February 1, 2022. According to a press release issued by LIC, LIC of India has revised annuity rates in respect of its annuity plans LIC’s Jeevan Akshay VII (Plan 857) and LIC’s New Jeevan Shanti(Plan 858) with effect from 1st Feb 2022.

The modified version of these plans with revised annuity rates shall be available for sale from 1st Feb 2022. The annuity amount under both annuity options of New Jeevan Shanti can be calculated through calculator provided in LIC’s website as well as through various LIC Apps.

As per the LIC website, annuity means a specified amount payable under this policy at specified regular intervals as mentioned in the Schedule and payable as per the specification under the option chosen by the Annuitant as evidenced in the Schedule of the policy. Annuity option once chosen cannot be altered.

In addition to annuity rate revisions, LIC’s Jeevan Akshay VII (Plan no 857) is now available through a new distribution channel called Common Public Service Centres (CPSC – SPV), as well as other current distribution channels. The plans are available both online and offline.

LIC’s Jeevan Akshay-VII

Here is what the sales brochure of the LIC Jeevan Akshay-VII states about the policy:

This is an Immediate Annuity plan wherein the Policyholder has an option to choose type of annuity from 10 available options on payment of a lump sum amount.

The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the lifetime of Annuitant(s).

Annuity options:

  • Option A: Immediate Annuity for life.
  • Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter.
  • Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter.
  • Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.
  • Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.
  • Option F: Immediate Annuity for life with return of Purchase Price.
  • Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a.
  • 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.
  • 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.
  • 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.
  • Minimum Purchase Price*: Rs 1 lakh subject to Minimum Annuity as specified below.
  • * Note: The above mentioned minimum purchase price would be increased appropriately to meet minimum annuity criterion as specified below.
  • For Purchase Price less than Rs 1.5 lakh annuity rates given under this plan shall be reduced with Reduction Factors.
  • Maximum Purchase Price : No Limit
  • iii. Minimum Age at Entry : 30 years (completed)
  • Maximum Age at Entry : 85 years (completed) except Option F; 100 years (completed) for Option F

Mode of Annuity payment:

The modes of annuity available are yearly, half-yearly, quarterly, and monthly. The Annuity shall be payable in arrears i.e. the annuity payment shall be after 1 year, 6 months, 3 months and 1 month from the date of commencement of policy depending on whether the mode of annuity payment is Yearly, Half yearly, Quarterly and Monthly respectively.

LIC’s New Jeevan Shanti

As per the plan’s sales brochure available on the LIC website:

This is a single premium plan wherein the Policyholder has an option to choose between Single life and Joint life Deferred annuity. The annuity rates are guaranteed at the inception of the policy and annuities are payable post deferment period throughout the life time of Annuitant(s). This plan can be purchased offline as well as online.

  • The options available are:
  • Option 1: Deferred annuity for Single life
  • Option 2: Deferred annuity for Joint life
  • Maximum Age at Entry : 79 years (Last Birthday)
  • Minimum Vesting Age : 31 years (Last Birthday)
  • Maximum Vesting Age : 80 years (Last Birthday)
  • Minimum Deferment Period : 1 year
  • Maximum Deferment Period : 12 years subject to Maximum Vesting Age

Mode of payment

The modes of annuity available are yearly, half-yearly, quarterly and monthly. The Annuity shall be payable in arrears i.e. the annuity payment shall be after 1 year, 6 months, 3 months and 1 month from the date of vesting of Annuity depending on whether the mode of annuity payment is Yearly, Half yearly, Quarterly and Monthly respectively.



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