The Ultimate Guide to LIC's Jeevan Akshay VII (Plan 857): Guaranteed Lifelong Pension in Bhadra
When discussing Financial Planning in Bhadra, the most critical concern for senior citizens and retiring individuals is securing a steady, risk-free income stream. Market fluctuations can erode your savings, which is why a Long Term Investment Plan that guarantees your pension for life is absolutely essential.
Welcome to the definitive guide on LIC's Jeevan Akshay VII (UIN: 512N337V07). Widely regarded as the cornerstone of Retirement Planning India, this plan ensures a "Playful Retirement". Brought to you by Ashuram Insurance Expert, the most trusted Insurance Advisor in Bhadra, this comprehensive pillar page will decode every single feature, eligibility criterion, and annuity option available under Plan 857.
1. What is LIC's Jeevan Akshay VII?
LIC's Jeevan Akshay VII is a Non-Par, Non-Linked, Individual, Savings, Immediate Annuity plan. Let us break down what this means for your Family Financial Security:
- Immediate Annuity: This is a Single Premium Immediate Annuity Plan. You pay a lump sum amount once, and your pension payouts begin almost immediately.
- Non-Linked & Non-Par: This is a non-par product under which benefits payable on death or survival are guaranteed and fixed irrespective of actual experience. Hence the policy is not entitled to any discretionary benefits like bonus etc. or share in Surplus.
- Guaranteed Lifelong Income: The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the life time of Annuitant(s).
This Plan can be purchased Offline through agents/other intermediaries as well as Online directly through the LIC website.
2. Eligibility Conditions and Purchase Limits
Before you initiate your Saving and Investment Planning, it is vital to know if you meet the entry requirements. LIC has designed this plan with broad eligibility, even allowing younger individuals to secure their future.
Age Criteria
| Minimum Age at Entry | 25 years (completed), subject to minimum Purchase Price requirement |
|---|---|
| Maximum Age at Entry | 85 years (completed) Except for Option F Option F: 100 years (completed) |
Purchase Price Limits
| Minimum Purchase Price | Ages 25-29: Rs. 10,00,000/- Ages 30+: Rs. 1,00,000/- (Subject to meeting minimum annuity limits) |
|---|---|
| Maximum Purchase Price | No Limit (Subject to underwriting decision) |
Reduction Factor: For a Purchase Price less than Rs. 1,50,000/-, annuity rates given under this plan shall be reduced with Reduction Factors.
Minimum Annuity Payouts
To ensure the pension amount is meaningful, LIC has set minimum limits on the annuity payouts based on the chosen mode:
| Payout Mode | Minimum Annuity Amount |
|---|---|
| Monthly | Rs. 1,000 per month |
| Quarterly | Rs. 3,000 per quarter |
| Half-Yearly | Rs. 6,000 per half year |
| Annual | Rs. 12,000 per annum |
3. The 10 Annuity Options: Customizing Your Pension
As a leading LIC Agent in Bhadra, Ashuram Insurance Expert strongly advises understanding the payout options. The available annuity options under this plan are as under:
- Option A: Immediate Annuity for life. (Nothing is payable on death).
- 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.
(Note for B,C,D,E: On death during guaranteed period, annuity payable to nominee. On death after guaranteed period, nothing payable).
- Option F: Immediate Annuity for life with return of Purchase Price. On death of the annuitant, the annuity payment shall cease immediately and Purchase Price shall be payable to nominee(s).
- 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.
Joint Life Clause: The Joint Life Annuity can be taken between any two lineal descendant/ascendant of a family (i.e. Grandparent, Parent, grandchildren) or spouse or siblings. Please note that the annuity option once chosen cannot be altered.
4. Special Provisions for Divyangjan and NPS Subscribers
LIC ensures absolute inclusivity. There are exceptional cases where minimum Purchase Price and minimum annuity restrictions are relaxed:
- For Divyangjan (Persons with Disability): If the plan has been purchased for the benefit of dependant person with disability, the minimum Purchase Price under such cases shall be Rs. 50,000/- without any restriction on minimum annuity. In such cases, the annuity rates shall be applicable without any reduction factor.
- For NPS Subscribers: If the plan has been purchased on exit by the subscribers of NPS regulated by the PFRDA, the restriction on minimum annuity and the minimum Purchase Price shall be as per PFRDA Rules and Regulations.
5. Maximizing Your Pension: Incentives and Rebates
Ashuram Insurance Expert ensures you get the highest possible returns. The following incentives are available under this plan:
| Incentive Type | Details & Benefit |
|---|---|
| Higher Purchase Price | Incentive by way of increase in Tabular Annuity Rate. Ex: Investing 1 Cr+ on yearly mode gives an absolute addition of Rs. 4.15 per thousand. |
| Existing Policyholders | 0.15% incentive as a percentage of Tabular Annuity Rates for existing policyholders or nominees buying within one year of death. |
| Direct/Online Sale | 2.00% to 2.50% for new customers, 2.15% to 2.50% for existing, and 3.00% for NPS Subscribers. |
6. Options for Payment of Death Benefit
If you choose an option with the return of purchase price (Option F and Option J), the Annuitant(s) will have to choose one of the following options for the payment of the death benefit to the nominee(s):
- Lumpsum Death Benefit: The entire Purchase Price shall be payable to the nominee(s) in lumpsum.
- Annuitisation of Death Benefit: The Purchase Price shall be utilized for purchasing an Immediate Annuity from the Corporation for nominee(s).
- In Installment: The Purchase Price can be received in installments over 5, 10, or 15 years. (Minimum amounts: Rs. 5,000/Monthly, Rs. 15,000/Quarterly, Rs. 25,000/Half-Yearly, Rs. 50,000/Yearly).
7. Liquidity: Policy Loans and Surrender Value
Traditional immediate annuities lock your money forever, but Plan 857 provides strategic liquidity options under specific choices.
Important Note: Surrender and Policy Loan facilities are available ONLY under Option F and Option J.
- Surrender Value: Can be surrendered at any time after three months from the completion of policy or after expiry of the free-look period. Not allowed for other options.
- Policy Loan: Available after three months. The loan amount is limited so the effective annual interest doesn't exceed 50% of the annual annuity amount, maxing out at 80% of Surrender Value.
(There is a Free Look Period where if the Policyholder is not satisfied, the policy may be returned within 30 days from the date of receipt).
Secure Your "Playful Retirement" with Ashuram Insurance Expert
Do not let inflation and market risks compromise your dignity in your golden years. LIC's Jeevan Akshay VII (Plan 857) provides the ultimate peace of mind with a completely risk-free, guaranteed lifelong pension. For the most transparent, honest, and expert Insurance Services in Bhadra, Ashuram Insurance Expert is your local authority. Serving the community across pin codes 335501 to 335511, we are fully equipped to provide personalized annuity quotations, assist with documentation, and ensure smooth claim processing.