LIC Jeevan Akshay VI Plan
LIC Jeevan Akshay 6 is an annuity plan offered by the LIC - Life Insurance Corporation of India. The plan shall be purchased making lump-sum premium payments after which the annuity payouts are made right away. Jeevan Akshay 6 plan offers fixed amount of returns throughout the insured’s lifetime. There are several options that can be availed under the mode and type of the annuity amount’s payment.
What is LIC Jeevan Akshay 6 Plan?
LIC Jeevan Akshay 6 b is a smart retirement plan created to help senior citizens avail a pure pension plan with regular pension payments at fixed time intervals. The policy premium is a one-time payment at the beginning of the plan. Immediately after this, policyholder will be eligible for regular pension at fixed time intervals.
This policy, if active and in effect, is applicable for reversionary bonus to gain some profit for LIC. This bonus is calculated based on the premium paid.
There is coverage for life risk under this policy as it is an immediate, pure pension plan. Whatever the policyholder invests, he gets it back as the pension amount.
Features and Benefits of the LIC Jeevan Akshay 6 Policy
The various features of the LIC Jeevan Akshay 6 are as follows:
- The minimum entry age for this policy is 30 years and the maximum entry age is 85
- No loans can be taken against this policy
- There is no paid-up value required for this plan
- The plan does not provide any additional riders
The 7 annuity plan options available under LIC Jeevan Akshay 6 are:
- Option 1 – The annuity is payable at a uniform rate under this option
- Option 2 – Annuity is payable either for 5, 10, 15 or 20 years. After this period, the policyholder will receive the amount until he is alive
- Option 3 – Annuity will be paid for the lifetime of the policyholder with the return on purchase price on the death of the annuitant
- Option 4 – Annuity will be paid for the whole lifetime of the annuitant under this option. Each year, the pension amount will increase by 3%
- Option 5 – This is a lifetime annuity with a provision to ensure payment of 50% of the annuity to the spouse of the annuitant during his or her lifetime upon the death of the annuitant
- Option 6 - Lifetime annuity, with a provision to ensure payment of 100% of the annuity to the spouse of the annuitant during his or her lifetime upon the death of the annuitant
- Option 7 – Lifetime annuity, with a provision to ensure payment of 100% of the annuity to the spouse of the annuitant during his or her lifetime upon the death of the annuitant. This option has an added feature where the purchase price will be returned upon the death of the final survivor
Annuity Payout upon the death of the annuitant in each of the above cases are:
- Under Option 1, the annuity payment will cease
- Under Option 2, in the event of the death of annuitant during the policy period, the nominee is eligible to receive the guaranteed amount until the end of guarantee period
- Under Option 3, the annuity payment will cease, and the purchase price will be paid out to the nominee
- Under Option 4, the annuity payment will cease
- Under Option 5, the annuity payment will cease and 50% will be paid out to the nominated spouse. If the annuitant outlives the spouse, the annuity will cease
- Under Option 6, the annuity payment will cease and 100% will be paid out to the nominated spouse. If the annuitant outlives the spouse, the annuity will cease
- Under Option 7, the annuity payment will cease and 100% will be paid out to the nominated spouse. After the death of the spouse, the appointed nominee will receive a full refund of the purchase price of the policy. If the annuitant outlives the spouse, the appointed nominee will receive a full refund of the purchase price of the policy upon the annuitant’s demise
Benefits of the LIC Jeevan Akshay 6:
Some of the core benefits of LIC Jeevan Akshay VI plan are as follows:
- The most beneficial feature of this plan is the one-time lump sum premium payment
- The minimum amount of one-time premium payment is Rs 1 Lakh; 1.5 Lakh if the policy is purchased online. There is no maximum limit for this policy
- From the date of initiation, the policy offers a cooling period of 15 days to the policyholders. The policyholders can return the policy within 15 days of receiving it if they are not satisfied with the terms and conditions
- The plan offers various annuity modes such as quarterly, monthly, half-yearly or yearly basis, one of which can be chosen by the applicant
- If the policy is bought for more than Rs 2.5 Lakh, the policyholder will be eligible for incentives that can increase the annuity amount
- No mandatory health examination or medical checks are needed under this policy as no diseases are covered
- The maximum age of entry is 85 years which is quite high when compared to other policies where the cut off age is mostly 60 years only
- The LIC Jeevan Akshay 6 policy can be easily applied online in a few steps
- The policy offers high annuity rates when purchased online
- Online purchase of this policy fetches a rebate of 1%
- The pension payout begins immediately after the policyholder pays the premium
- Like other insurance plans, premium paid under LIC Jeevan Akshay 6 is eligible for tax exemption under section 80C of Income Tax Act. The pension received is also applicable for tax deduction
- This plan offers flexibility to choose seven types of annuity payment options to the annuitant
- Several options offer excellent benefits to the surviving spouse or nominee after the annuitant’s death
Exclusions of the LIC Jeevan Akshay 6 Plan
The exclusions of the LIC Jeevan Akshay 6 policy are:
- The policy will be declared void if the insured individual commits suicide within a year from the commencement of benefit, irrespective of his mental health. The claim amount payable in this case will be 80% of premiums paid thus far minus taxes and extra premium paid
- Surrender value is applicable only for the ‘Annuity with return of Purchase Price’ option only if the annuitant is suffering from specific critical illnesses
- There are no riders that can be added to this policy
- This plan doesn’t provide maturity benefit like other such LIC policies. The policy kicks in as soon as single premium amount is paid. If the annuitant chooses to continue the policy even after his death, his spouse or nominee will get the benefit at regular time intervals
- This policy does not provide death benefit like other such LIC policies
Eligibility Criteria to apply for LIC Jeevan Akshay 6 Plan
The applicant of the LIC Jeevan Akshay 6 must be a citizen of India and must show age proof. Given below are the other eligibility requirements:
|Entry Age||Minimum= 30 years Maximum = 85 years|
|Basis of Plan||Individual|
|Mode of Premium||Lump sum one-time payment to activate policy|
|Minimum Purchase Price||Rs 1.5 Lakh is plan if purchased through online channels Rs 1 Lakh if plan is purchased through other channels|
|Maximum Purchase Price||No limit|
|Payment modes||quarterly, monthly, yearly, and half-yearly|
|Yearly Payout||Amount depends upon entry age and purchase price|
Claim process for the LIC Jeevan Akshay 6 Plan
Given below are the steps to be followed in case a claim arises:
- Intimation of Claim
- Submission of Documents
- Decision on the Claim
The claim must be intimated to the nearest LIC office by the policyholder. To register the claim, the following details must be furnished to the customer service executive:
- Policy number
- Name of Claimant
- Name of Life Assured
- Date of death of Life assured
- Cause of Death of Life Assured
- Contact details
Documents Needed to be Submitted for Death Claim
The following documents are required to be submitted for Death Claim:
- Certificate of Death
- Assignment Deeds
- Policy Document
- Statement from the hospital
- Certification of medical attendant
- Certification of cremation and burial
- Certificate by employer
Documents Required for Maturity/Survival Claim
Document needed to be submitted for Maturity/Survival claim are:
- Maturity Form filled out
- Original Policy document
- KYC in case of address change
- Cancelled cheque showing account number
- ID Proof of the third party if he submitted the claim request
Things to remember in the claim process
You need to remember the following things while registering the claim:
- If the original policy document is missing, indemnity bond in lieu must be submitted
- A death claim must be initiated right away to ensure a smooth claim process
- Documents and claim file must be turned within the stipulated time
- If the policy is less than 3 years old, chances of investigation are less
Required Documents to apply for the LIC Jeevan Akshay 6 Plan:
The required documents needed to apply for LIC Jeevan Akshay 6 are given below:
- Proof of residence such as Aadhar card, Passport, or utility bills
- Proof of identity such as phone bill, bank statement, Voter Id or Driver’s license
- Proof of Income such as Income Tax returns, Employer’s certificate, Accountant certificate, or Bank statements
- Age proof such as birth certificate, school certificate, passport, or Aadhar card
- Passport size photo
- Cancelled bank cheque
- Proposal Form, signed
How to Buy the LIC Jeevan Akshay 6 Plan?
Buying the LIC Jeevan Akshay 6 Policy online is recommended to avail of the 1% rebate. The information you will need for applying online are:
- Valid email id or mobile number (to obtain an Access id)
- Net banking details
- Bank IFSC code
- PAN number
- Nominee details
Steps for Purchasing of the LIC Jeevan Akshay 6 Policy:
- Step 1: Visit the official website of LIC which is licindia.in
- Step 2: Login to the website with your Access Id
- Step 3: Fill in all the details and choose the LIC Jeevan Akshay 6 policy from the policy list after you compare plans online
- Step 4: Based on your details, the premium to be paid will be calculated and displayed
- Step 5: Pay the premium through net banking to get a confirmation on your email id or mobile number
- Step 6: Take a print-out of the Final premium receipt, Acceptance letter and the Proposal form
- Step 7: A representative from LIC will contact you and collect the various supporting documents for the policy
Renewal Process of the LIC Jeevan Akshay 6 Plan
Renewal of LIC Jeevan Akshay 6 can be done online by logging in to the LIC website and submitting the required details along with payment of premium to complete the policy renewal. Given below are the steps:
- If you are already registered, login to the customer portal of LIC by entering your details. If you have not registered, register yourself on the website
- Next, login to your account by entering all your details
- Once logged in, click on ‘online policy payments’
- Choose the policy for which you wish to make payment and renew. Click on ‘Check and Pay’
- Choose any payment gateway pay the premium amount to complete your transaction
Assume an individual who is 60 years old has taken a policy worth 5 lakhs with annual pension payment. The annuity payments will be as given below in the various options:
Lifelong Annuity – Under this plan, the annuity amount does not change and he will receive it for his lifetime after which the plan will lapse. The individual will receive Rs. 48, 750 as annual pension.
Guaranteed amount for a specific time period – There are 4 time periods in this category when the annuitant will receive the pension amount irrespective of whether he is alive or not. The 4 options are:
5 Years- Under this option, the annuitant will receive Rs. 48,300 annually as pension for a period of 5 years. In case he survives this period, he is paid this amount for the rest of his life.
10 Years- Under this option, the annuitant will receive Rs. 47,300 annually as pension for a period of 10 years. In case he survives this period, he is paid this amount for the rest of his life.
15 Years- Under this option, the annuitant will receive Rs. 45,950 annually as pension for a period of 15 years. In case he survives this period, he is paid this amount for the rest of his life.
20 Years- Under this option, the annuitant will receive Rs. 44,400 annually as pension for a period of 20 years. In case he survives this period, he is paid this amount for the rest of his life.
Return of Purchase Price – In this option, the policyholder receives the pension amount until he is alive. After his death, the beneficiary gets the full amount of the premium. With the current example, the policyholder will receive Rs. 37,550 annually till he is alive after which his nominee will receive Rs 5 Lakh.
Increased Annuity – In this option, the annuitant will receive benefit till he is alive with an annual increase of 3% in the amount. In this example, he will receive Rs. 39, 650 as pension annually till he is alive. Each year, the amount will be increased by 3% of 39, 650 which is Rs. 1190.
Joint Annuity with 50% for Spouse
Under this option, the nominee gets 50% of the pension on the death of the policyholder. In the above e.g., the annuitant will get Rs. 45, 200 till he is alive after which the nominee will get Rs. 22,600.
Joint Annuity with 100% for Spouse
Under this option, the nominee gets 100% of the pension on the death of the policyholder. In the above e.g., the annuitant will get Rs. 42, 150 till he is alive after which the nominee will also get Rs. 42,150.
Joint Annuity with return of Purchase Price
Under this policy option, the annuitant receives the pension amount till he is alive after which the nominee gets100% of the pension. After the demise of the annuitant and his spouse, the nominee will also get the premium amount back. In the above example, the annuitant will get Rs. 37,050 annually till he lives and after his death, the nominee will get Rs. 37,050. After the spouse’s death, the nominee will get Rs. 5 lakh which is the purchase cost.
Premium and Tax Calculation
Sum Assured = 5 Lakh
Age = 60 years
Pension mode = annually
Pension Type = Yearly
Using the premium calculator, you will get the below amounts:
Service tax= Rs. 15, 450
Total Premium= Rs. 5, 15, 450
Rate of interest = 9.38%
Pension amount = Rs. 48, 903
The LIC Jeevan Akshay VI is a popular product in the insurance world. This policy offers an annual return between 6.9 to 7.4% with an option to get back the principal amount as well. Older investors get the advantage of a higher rate of return. For example, if you are investing Rs. 50 lakhs in the LIC Jeevan Akshay Policy 6, you will get a benefit of Rs. 26,000 per month before tax. But if you enjoy some other retirement income and fall into 20% tax bracket, you will get a benefit of Rs. 21,000 per month post tax.
The LIC Jeevan Akshay VI policy is the most ideal policy for providing financial aid for individuals after retirement. The added advantage of this policy is that the retirees get benefits of the policy even after the death payable to their spouse or nominees. Also, the premium amounts are also given back to beneficiaries post the demise of the annuitant.
Ans: LIC Jeevan Akshay is an annuity pension plan where the benefits can be accrued in instalments and the purchase cost must be paid together. The annuity modes can be chosen by the policyholder.
Ans: Yes. The plan promises financial independence after retirement to the policyholders. It guarantees stable income, tax deduction and acts as a good savings option.
Ans: Jeevan Akshay 6 Policy comes from the most reputed insurance companies in the country, Life Insurance Corporation. It is known for its credibility and benefits such as lump sum payments, pension plans and tax deductions and so on.
Ans: The LIC Jeevan Akshay 6 plan is simple. The policyholder must pay a one-time premium to purchase the policy and choose the frequency and type of the annuity payment he will receive such as monthly, quarterly, half-yearly and yearly.
Ans: The annuity payouts received under this policy are considered as income and hence taxable under the tax provisions of Income Tax Act and the tax bracket the returns fall under.
Ans: The pros of the LIC Jeevan Akshay 6 plan are as follows:
- The amount of annuity payout is guaranteed
- There is no maximum limit to the amount to be invested
- Tax exemptions are available on the premium paid
The cons of the LIC Jeevan Akshay 6 plan are as follows:
- The rate of rate of return is lower than those of other insurance policies
- Amount got from annuity that is re-invested is liable to taxation
- Once you choose the annuity plan at the beginning of the policy, you cannot modify it
Ans: Surrender of the LIC Jeevan Akshay Plan is possible only if you had chosen the plan option, “Lifetime annuity with return of purchase price”. Policies with all other annuity options cannot be surrendered.
Ans: No. No loan benefit is available under Jeevan Akshay 6 policy.
Ans: LIC Jeevan Akshay 6 policy offers 7 annuity options for the policyholder to choose from based on his age, amount invested and desired frequency annuity payments.