Alert for Pensioners! LIC of India reintroduces Jeevan Akshay plan, modifies Jeevan Shanti

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Updated: Aug 28, 2020 9:44 PM

LIC of India has reintroduced Jeevan Akshay as it was an immensely popular plan and the mainstay in the insurer's pension plan portfolio.

insurance, life insurance, Life Insurance Corporation of India, LIC of India, LIC policy, Jeevan Akshay, Jeevan Shanti, pension plans, immediate annuity plan, deferred annuity plan, National Pension System, NPSJeevan Akshay VII is now the immediate annuity plan of the LIC of India and Jeevan Shanti has become a deferred annuity plan.

Few months after withdrawing its flagship immediate annuity plan Jeevan Akshay, the country’s largest life insurer Life Insurance Corporation (LIC) of India has reintroduced the plan, which is immensely popular among pension seekers and subscribers of National Pension System (NPS).

The immediate annuity plan Jeevan Akshay was withdrawn after introduction of Jeevan Shanti, which, along with deferred annuity options, also have immediate annuity options.

However, the LIC of India has reintroduced Jeevan Akshay as it was an immensely popular plan and the mainstay in the insurer’s pension plan portfolio.

For this, the life insurance behemoth has modified the Jeevan Shanti plan to make it a deferred annuity only plan by withdrawing the immediate annuity part to avoid duplication with Jeevan Akshay.

So, the newly introduced Jeevan Akshay VII is now the immediate annuity plan of the LIC of India and Jeevan Shanti has become a deferred annuity plan.

“With the introduction of new immediate annuity plan Jeevan Akshay-VII, all the immediate annuity options (i.e. Option A to J) available under Jeevan Shanti shall be withdrawn with effect from August 25, 2020,” said LIC of India in its Circular, adding, “However, the deferred annuity options (i.e. Option 1 & Option 2) available under Jeevan Shanti shall continue to be available for sale.”

“All other terms and conditions in respect of deferred annuity options (i.e. Option 1 & Option 2) available under LIC’s Jeevan Shanti as specified in introductory Circular Ref: CO/PD/109 dated 11.09.2018, Circular Ref: CO/PD/110 dated 26.09.2018 and modification Circular CO/PD/123 dated 23.08.2019 shall remain unaltered,” the Circular further said.

So, instead of Jeevan Shanti, Option A to J will only be available with LIC’s Jeevan Akshay. The options are:

  • 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 per cent per annum.
  • Option H: Joint Life Immediate Annuity for life with a provision for 50 per cent 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 per cent 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 per cent of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

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