LIC Jeevan Akshay Policy VII - Eligibility, Benefits, Annuity Rates, Taxation

Gaurav Seth
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Gaurav Seth

LIC Jeevan Akshay Policy VII Full Details

LIC has launched its Jeevan Akshay VII Pension Plan which is an immediate annuity plan and has been brought in place of Jeevan Shanti Pension Plan which is being phased out shortly. This is an enhancement with few changes. LIC is a reliable and trusted brand and many would opt for pension and insurance products as these are lifetime commitments. What is an immediate annuity and how does it work? What are the eligibility criteria? What are the key features, procedures, and taxation criteria? Let’s head below to know the full-fledged details. 


As this plan by LIC provides immediate annuity, one may have doubts as to how this works exactly. In very simple terms, one needs to purchase this pension plan in a lump sum, and LIC would pay the pension amount based on the option chosen. The pension would start immediately after the purchase of such a pension plan, and the pension amount will be dependent on the terms of the pension plan.


Entry Age 30 yrs to 85 yrs( 100 years for option F)
Purchase Price 

Minimum: Rs 1 Lakh 

Maximum: No-limit

Minimum Annuity 

Rs 12000/year, 

Rs.6,000/half year,



Annuity Payment Modes Yearly, Half-yearly, Quarterly, and Monthly 


1. Annuity Options: 

The annuity options offered under this plan are:

Option No.Name
Option AImmediate Annuity for lifetime.
Option B

Immediate Annuity with a guaranteed tenure of 5

years and lifetime thereafter.

Option C

Immediate Annuity with a guaranteed tenure of 10

years and lifetime thereafter.

Option D

Immediate Annuity with a guaranteed tenure of 15

years and lifetime thereafter.

Option E

Immediate Annuity with a guaranteed tenure of 20

years and lifetime thereafter.

Option FImmediate Annuity for lifetime with Return of Purchase Price.
Option GImmediate Annuity for lifetime increasing at  a rate of 3% p.a.
Option HImmediate Joint Life Annuity for life time with a provision of 50% of annuity payable secondary holder after primary holder’s death.
Option IImmediate Joint Life Annuity for life time with a provision of 100% annuity payable to the survivor for life.
Option JImmediate Joint Life Annuity for life time with a provision of 100% annuity payable to the survivor for life and Return of purchase amount on death of the last survivor.

2. Loan Facility :

The loan facility will be available after the free-look period or after 3 months of the date of issuance of the policy, whichever is later.

Currently, the policies offering loan facilities are:

  • Option F: Immediate Annuity for lifetime with Return of Purchase Price.
  • Option J: Immediate Joint Life Annuity for life time with a provision of 100% annuity payable to the survivor for life and Return of purchase amount on death of the last survivor.

3. Guaranteed Annuity Rates:

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

4. No Medical Examination:

There is no compulsion for medical examination to invest in this plan.

5. Incentive:

  • An incentive for a purchase price of Rs. 5 lacs & more is available. It will increase the annuity rate. Following are the rates applicable:
Annuity ModeRs.5 lakhs to 10 lakhsRs.5 lakhs to 10 lakhsRs.5 lakhs to 10 lakhsRs.5 lakhs to 10 lakhsRs.5 lakhs to 10 lakhs
Monthly1.05 1.65 2.00 2.15 2.25
Quarterly1.10 1.70 2.05 2.20 2.30
Half-Yearly1.15 1.75 2.10 2.25 2.35
Yearly1.25 1.85 2.20 2.35 2.45

^per Rs.1,000 purchase price 

  • A rebate of 2% is applicable through a rise in annuity rates on online purchases made by NPS subscribers & as QROPS.

6. Death Benefits

In case of Option F & J where death benefits are payable,  the annuity holders need to choose from the following options for the payout of death benefits to his/her nominees:

  1. Lump-sum: In this option, the purchase price of the policy will be paid as a lump sum to the nominee.
  2. Annuitisation: Here, the purchase price of the policy will be utilized to purchase an immediate annuity from the LIC for the nominee.
  3. Installments: In this option, the annuity holder can choose to select the installment mode instead of lump sum for death benefit payout to the nominee over the 5,10, or 15 years.

7. Surrender

In the options F & J, the policy can be surrendered anytime after the completion of the free look period or after 3 months, whichever is later.

The surrender value will depend on the age of the annuity holder at the time of surrender.

Also Read: How to Become an LIC Agent?


Here are some of the benefits of the plan which one might explore before buying it. This plan has a number of perks that will definitely help you to make a good choice.

1. Availability of 10 payout options

This plan provides individuals an option to receive the payout in 10 different ways. One has to choose the payout option at the time of the commencement of the policy. Once chosen, the payout option cannot be changed during the payout term.

2. Immediate Annuity

This is an immediate annuity plan in which one can start receiving payouts immediately after the initiation of the policy. The payout will immediately commence from the following month from the date when the policy is purchased, there is no waiting period.

3. Convenient 

One can invest in this plan through offline and online mode. So if one wants to visit the office and understand the plan from the consultant then he may do so. One can even buy this plan online from the official website of LIC without physically visiting the branch.

4. Multiple Payouts Modes

LIC offers you to receive the payouts on different frequencies. One can take the payout on a monthly, quarterly, half-yearly, and yearly basis. Any payout frequency mode can be chosen as per the convenience and needs.

5. Single-Premium

It is a single premium plan in which lump sum money will be invested into the plan. The LIC will then give you the annuity from the following month. 

6. Affordable 

As noted earlier, the minimum price of this plan is Rs. 1,00,000. One can increase the single premium amount as per convenience and comfort. If one is willing to receive a high sum of payout then the amount of a single premium must be increased. 

7. Loan against policy

The need for liquid money can arise anytime hence one can take a loan against this plan in case of an emergency. But this can only be done after 3 months from the date of commencement of the policy

8. Free-Look Period

LIC also offers a free-look period of 15 days in which one can return the plan if any terms and conditions don’t fit the requirements. The amount of premium invested will be returned after deducting the processing charges.


Amount of annuity payable at yearly intervals which can be purchase for Rs. 10,00,000 under different options for an immediate annuity. 

Source: LIC Official Website


One can buy the plan either in the conventional or traditional means, i.e., visiting the nearest branch or through full-fledged online mode.

To invest in this plan online, one should follow the below-mentioned process:

  • Visit the LIC official website
  • Scroll down to find the ‘Buy Policy Online’ section and select “Jeevan Akshay VII/7”
  • Click on the tab ‘Buy Online’
  • Submit the required details
  • Confirm the filled details and click on ‘Calculate Premium’
  • Submit the One Time Password (OTP) received on the registered mobile number
  • Provide more required details and click on ‘Calculate Premium’
  • Confirm the details and click ‘Confirm and Proceed’
  • If you are not a registered user of LIC, click on ‘No’, and if you are click on ‘Yes’.
  • Click on ‘Proceed’
  • Again click on ‘Proceed’
  • Submit details and click ‘Next’
  • Provide bank and nominee details. Again click on ‘Next’
  • Check the details and click ‘Next’
  • Now, one will get three options. Click ‘Proceed to Pay’
  • Confirm the details and click on ‘Proceed’
  • Click again on ‘Proceed’
  • Make the required payment using the available mode
  • LIC will share the SID (Scheme Information Document) on the registered email ID


Taxability rules are as mentioned:

  1. Amount invested in purchasing this plan is eligible for claiming deductions from income tax liability under section 80C of up to Rs.1,50,000 in a financial year.
  2. Any pension income received is taxable on the basis of the income tax slab applicable to the pension holder.


Any new introduction from LIC would attract investors for different reasons. Annuity plans are considered a safe investment for retirement planning as there is no change in returns or interest in between once you purchase. The following points may help in taking the right decision.

  1. If one has received retirement benefits through different ways (PPF, EPF, accumulated corpus through various sources, etc.) or NPS subscribers, this pension plan can be considered an apt choice to park some of the funds. The balance amount can be invested in other options like Debt mutual funds, balanced funds, senior citizens savings scheme, Pradhan Mantri Vaya Vandhana Yojana Scheme, etc.
  2. If one is young or in the middle age group and has not reached the retirement stage yet, these immediate annuity pension plans can be avoided and the funds can be invested in different categories of mutual funds as per his/her risk appetite, investment horizon & financial goals. Low to Moderate risk investors can look into investing in debt & hybrid funds and equity funds may be opted by high-risk investors as per their requirements.
  3. If one relies on the brand of LIC to purchase an annuity scheme, these plans can be considered. However, LIC pension plans generally offer very low returns. And the post tax & inflation returns come out to be much lower..


In case of demise of the annuitant, the nominee has to inform the insurance company within 90 days from the date of death along with these documents :

  • Claim Form
  • Death Certificate
  • Original Policy Document
  • NEFT Mandate
  • Proof of title
  • Proof of death
  • Proof of age


If you are opting for a high-value annuity purchase via an LIC agent or branch, the rebates will be lower than online mode of purchase. So, an online option could be considered which will offer you a 2% discount or rebate through a rise in annuity rates.

Also Read:

LIC’s New Endowment Plan (914)
Unit Linked Insurance Plans (ULIPs)
Importance of Health Insurance
LIC New Jeevan Anand ( Plan 915)
LIC Tech Term Plan
LIC Term Plans
LIC Jeevan Amar Plan 855

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