Life Insurance Corporation of India has launched its new Jeevan Akshay- VII annuity plan with further enhancements and changes. The annuity plan, which is single premium, is non-linked and non-participating in nature. Since Jeevan Akshay-VII is an immediate annuity plan, it will start paying annuity or pension to the policyholder on annuity age.
"The policyholders have an option to choose a type of annuity from 10 available options on payment of a lump sum amount," LIC said on Monday. The options include immediate annuity for life, immediate annuity with guaranteed period and life, immediate annuity for life with return of purchase price, among others.
While the minimum purchase price is Rs 1 lakh, the maximum has no limit. Minimum entry age is 30 years and the maximum age has been set at 85 years. The modes of annuity available are yearly, half-yearly, quarterly, and monthly. The annuity plan also allows for joint life cover. The plan can be purchased online as well as offline.
The rate of interest payable on the plan has not yet been declared by the life insurer.
LIC also said that a loan facility will be available at any time after three months from the policy issuance or after expiry of the free-look period, whichever is late.
Meanwhile, LIC had launched Jeevan Akshay- VI before Jeevan Akshay-VII annuity plan. The former is an immediate annuity plan (pension plan), which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the lifetime of the annuitant.