Pension Plans
LIC's Jeevan Akshay-VII (857)
Pay once and start receiving a lifelong pension right away, with 10 annuity options
- Entry age
- 25 years (completed) to 85 years (completed); up to 100 years (completed) for Option F
- Policy term
- Not applicable (annuity payable for life)
- Premium paying term
- Single premium (one-time Purchase Price)
- Min. sum assured
- Minimum Purchase Price: ₹10,00,000 (age 25-29) or ₹1,00,000 (age 30+), subject to minimum annuity of ₹1,000 per month / ₹12,000 per year
Plan overview
LIC's Jeevan Akshay-VII is a single premium immediate annuity plan: you pay a lump-sum purchase price and the pension starts from the next month, quarter, half-year or year. Annuity rates are guaranteed at the start and are paid for life, with 10 options including return of purchase price and joint life cover. It suits retirees and others who want a steady, lifelong income from their savings.
New to pension plans? Read our simple guide: Pension and Annuity Plans Explained Simply →Key benefits
- Single premium; annuity starts immediately and is paid for life
- Annuity rates guaranteed at the start of the policy
- 10 annuity options, including return of Purchase Price and 3% p.a. increasing annuity
- Single life or joint life with spouse, siblings or lineal family members
- Annuity paid monthly, quarterly, half-yearly or yearly
- Higher annuity rates for larger Purchase Price, existing policyholders and online purchase
- Loan and surrender allowed under Options F and J
Eligibility at a glance
- Plan number
- 857
- UIN
- 512N337V07
- Plan type
- Non-Par, Non-Linked, Individual, Savings, Immediate Annuity Plan
- Entry age
- 25 years (completed) to 85 years (completed); up to 100 years (completed) for Option F
- Policy term
- Not applicable (annuity payable for life)
- Premium paying term
- Single premium (one-time Purchase Price)
- Minimum sum assured
- Minimum Purchase Price: ₹10,00,000 (age 25-29) or ₹1,00,000 (age 30+), subject to minimum annuity of ₹1,000 per month / ₹12,000 per year
- Maximum sum assured
- No limit on Purchase Price (maximum annuity subject to underwriting)
- Premium payment modes
- Single premium; annuity paid Yearly, Half-yearly, Quarterly or Monthly (in arrears)
How the plan works
LIC's Jeevan Akshay-VII is a non-participating, single premium immediate annuity plan. You pay a one-time Purchase Price, choose an annuity option and a payment mode, and LIC pays you an annuity for life. The annuity rate is fixed at the start, and the option once chosen cannot be changed.
Annuity is paid in arrears: the first payment is made 1 month, 3 months, 6 months or 1 year after the policy starts for monthly, quarterly, half-yearly or yearly mode. The plan can be bought through agents and intermediaries (including POSP-LI and CPSC-SPV) or online at www.licindia.in.
Eligibility (through agents/intermediaries other than POSP-LI/CPSC-SPV)
| Condition | Limit |
|---|---|
| Entry age | 25 to 85 years (completed); up to 100 years for Option F |
| Minimum Purchase Price | ₹10,00,000 for age 25-29; ₹1,00,000 for age 30 and above (raised if needed to meet minimum annuity) |
| Maximum Purchase Price | No limit (maximum annuity subject to underwriting) |
| Minimum annuity | ₹1,000 monthly, ₹3,000 quarterly, ₹6,000 half-yearly, ₹12,000 yearly |
| Maximum annuity | No limit |
For Purchase Price below ₹1,50,000, annuity rates are reduced (reduction of ₹5.40 per ₹1,000 below ₹1,00,000 and ₹2.40 per ₹1,000 for ₹1,00,000 to ₹1,49,999). Through POSP-LI/CPSC-SPV, only Options F and J are allowed, for entry age 40 to 70 years (completed).
Annuity options
| Option | What you get | On death |
|---|---|---|
| A | Annuity for life | Nothing payable |
| B, C, D, E | Annuity for life with a guaranteed period of 5, 10, 15 or 20 years | If death occurs within the guaranteed period, annuity continues to nominee till the period ends |
| F | Annuity for life with return of Purchase Price | Purchase Price paid to nominee |
| G | Annuity for life, increasing at a simple rate of 3% p.a. each completed policy year | Nothing payable |
| H | Joint life; 50% of annuity continues to the Secondary Annuitant after the Primary Annuitant's death | Nothing payable after last death |
| I | Joint life; 100% annuity while either annuitant is alive | Nothing payable after last death |
| J | Joint life; 100% annuity while either is alive, with return of Purchase Price | Purchase Price paid to nominee on last survivor's death |
Joint life can be taken between spouses, siblings, or lineal family members (grandparent, parent, children, grandchildren).
Brochure illustration (Purchase Price ₹10 lakh, age 60, yearly mode, secondary annuitant age 55): yearly annuity of ₹86,100 under Option A, ₹64,000 under Option F, ₹74,000 under Option I and ₹63,300 under Option J. Actual annuity depends on age, option, mode and rates at purchase.
Death benefit payment (Options F and J)
The annuitant chooses how the Purchase Price is paid to the nominee: as a lump sum, used to buy an immediate annuity for the nominee, or in instalments over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
Incentives
- Higher Purchase Price (addition to annuity rate per ₹1,000 Purchase Price, yearly mode): ₹2.40 for ₹5,00,000-₹9,99,999; ₹3.40 for ₹10,00,000-₹24,99,999; ₹3.90 for ₹25,00,000-₹99,99,999; ₹4.15 for ₹1 crore and above (slightly lower for other modes).
- Existing policyholders / nominees of deceased policyholders: 0.15% increase in tabular annuity rate (via agent/intermediary), subject to conditions.
- Direct sale: Online new customer 2.00% (Purchase Price below ₹10 lakh) or 2.50% (₹10 lakh and above); online existing policyholder/nominee 2.15% or 2.50%; NPS subscribers 3.00%. Only one of these can be chosen.
Loan, surrender & revival
- Surrender: Allowed only under Options F and J, any time after 3 months from issuance or after the free-look period, whichever is later. The surrender value depends on age at surrender and is reviewed by LIC from time to time. Surrendering can cause significant loss.
- Loan: Available only under Options F and J, after 3 months from issuance or after the free-look period, whichever is later. The loan is limited so that annual interest does not exceed 50% of the annual annuity, subject to a maximum of 80% of the Surrender Value. Interest is recovered from the annuity.
- Revival: Not applicable, as this is a single premium plan.
Other key terms
- Free-look period: 30 days from receipt of the policy. The Purchase Price is refunded after deducting stamp duty and any annuity paid.
- Divyangjan option: The plan can be bought for a dependent person with disability with a minimum Purchase Price of ₹50,000, without minimum annuity limits or reduction factors (Option F on own life, or Option I/J with the Divyangjan as Secondary Annuitant).
- NPS subscribers: Annuity options as allowed by PFRDA; minimum Purchase Price and annuity as per PFRDA rules.
- QROPS: Can be bought as a Qualifying Recognised Overseas Pension Scheme with UK tax-relieved assets; minimum age 55 years.
- Taxes: Applicable taxes are charged extra on the Purchase Price.
Who should buy LIC's Jeevan Akshay-VII?
- Retirees who want a regular, lifelong income from their retirement savings
- Couples who want the pension to continue to the surviving spouse
- Those who want income for life and the Purchase Price returned to their family (Options F and J)
- NPS subscribers buying an annuity on exit
- Parents wanting to provide for a dependent person with disability (Divyangjan)
Frequently asked questions
What is LIC Jeevan Akshay-VII (Plan 857)?
It is a single premium immediate annuity plan. You pay a lump-sum Purchase Price and receive a guaranteed annuity for life, starting from the next payment date as per the mode chosen.
What is the minimum investment and entry age?
Minimum entry age is 25 years (completed). The minimum Purchase Price is ₹10,00,000 for ages 25-29 and ₹1,00,000 for age 30 and above, subject to a minimum annuity of ₹1,000 per month or ₹12,000 per year. Maximum entry age is 85 years, or 100 years for Option F.
Which option returns my money to my family?
Option F (single life) and Option J (joint life) pay the Purchase Price to the nominee on death of the annuitant or last survivor.
Can I take a joint life annuity with my spouse?
Yes. Options H, I and J are joint life options, available between spouses, siblings or lineal family members such as parents, children and grandchildren.
Can I surrender or take a loan?
Only under Options F and J, after 3 months from issuance or after the free-look period, whichever is later. Loan is capped at 80% of the Surrender Value, with annual interest not exceeding 50% of the annual annuity.
Is there any extra benefit for buying online?
Yes. Online purchase without an intermediary increases the tabular annuity rate by 2.00% to 2.50% for new customers and 2.15% to 2.50% for existing policyholders, depending on Purchase Price.