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Annuity Charges of LIC Jeevan Akshay VII from Feb 2022


On this article, we checklist the annuity charges of LIC’s Jeevan Akshay VII (Plan No. 857, UIN : 512N337V02) launched in Feb 2022. Whereas getting ready a retirement planning illustration based mostly on laddered annuities we wished to seek out the newest Jeevan Akshay VII annuity charges. Sadly, neither the gross sales brochure nor the coverage doc mentions this!

Different sources on the net nonetheless checklist annuity charges for the Jeevan Akshay VII (Plan No. 857, UIN: 512N337V01) coverage which was withdrawn 1st Feb 2022. Due to this fact we thought it finest to make use of LIC’s on-line premium calculator and checklist the annuity fee ourselves. To keep away from confusion, we will discuss with the brand new coverage as LIC’s Jeevan Akshay VII (Feb 2022)

We will comply with this up with historic Jeevan Akshay annuity charges (no I to no VII) after which transfer on to our final purpose of retirement planning with laddered annuities.

LIC’s Jeevan Akshay VII (Feb 2022) is a Non-Linked, Non-Taking part,
Particular person Rapid Annuity Plan. Non-linked means not linked to market actions. Non-participating means the policyholder is not going to get a slice of the insurer’s income through bonuses or dividends. A direct annuity plan means the revenue (annuity) will begin instantly upon buy.

There are a number of choices to obtain the annuity. We will checklist the charges for the choices in daring.

Choice A: Rapid Annuity for all times.
Choice B: Rapid Annuity with a assured interval of 5
years and life thereafter.
Choice C: Rapid Annuity with a assured interval of 10
years and life thereafter.
Choice D: Rapid Annuity with a assured interval of 15
years and life thereafter.
Choice E: Rapid Annuity with a assured interval of 20
years and life thereafter.
Choice F: Rapid Annuity for all times with return of Buy
Value.
Choice G: Rapid Annuity for all times growing at a easy
fee of three% p.a.
Choice H: Joint Life Rapid Annuity for all times with a provision
for 50% of the annuity to the Secondary Annuitant
on the loss of life of the Main Annuitant.
Choice I: Joint Life Rapid Annuity for all times with a provision
for 100% of the annuity payable so long as one in every of
the Annuitant survives.
Choice J: Joint Life Rapid Annuity for all times with a provision
for 100% of the annuity payable so long as one in every of
the Annuitant survives and the return of Buy Value
on the loss of life of the final survivor

The choice that appears most useful to us is least useful to the insurer and due to this fact the annuity fee can be decrease. For instance, in possibility A, the insurer will get to pocket the acquisition value on the loss of life of the annuitant. Whereas in possibility F the insurer must return the acquisition value to the nominee.

So they’d supply a horrible rate of interest (annuity fee) on possibility F and the very best fee for possibility A! For all choices apart from A, the speed will drop fast and quick!

In possibility G, the revenue will increase annually by 3%. If the annuitant is previous, (55 or above) this has a better fee than possibility F. As a result of older individuals are prone to die sooner and the insurer with possibility F has to repay sooner!

Annuity charges dramatically improve with age as a result of older individuals needn’t be paid for lengthy! That is the underlying precept behind laddering annuities (extra on this within the coming days). We will additionally research the time worth of cash for these choices. To be taught extra see: How Annuity Plans Work. Additionally see: When ought to senior residents buy an annuity?

Buy value lower than Rs. 1.5 lakh (it can’t be decrease than 1 lakh) could have decrease annuity charges!!

Minimal Age at Entry: 30 years (accomplished)
iv. Most Age at Entry: 85 years (accomplished) aside from Choice F
100 years (accomplished) for Choice F.

Joint Life: The joint-life annuity will be taken between any two
lineal descendants/ascendants of a household (i.e. Grandparent, Dad or mum,
Youngsters, Grandchildren) or partner or siblings. The second annuitant have to be aged 30 or above.

Annuity Charges of LIC Jeevan Akshay VII from Feb 2022

The picture under reveals the charges for various choices at totally different ages. For joint like (cols E and F), the partner is assumed to be 5Y youthful aside from age 30 when they’re assumed to be of the identical age. The info can be offered option-wise under.

The numbers correspond to the annual payout solely. Different payout choices could have decrease annuity!!

For instance, a 47-year-old choosing “annuity for all times” will Rs. 10  lakhs will obtain an annual payout of Rs. 69,250; a half-yearly payout of Rs. 33,975 (x 2 = 67950 lower than the annual payout or annual fee of solely 6.795%).

The quarterly payout is Rs. 16,825 comparable to a fee of solely 6.73%. The month-to-month payout is Rs. 5,571 comparable to a fee of 6.68%.

Annuity rates comparison table for LIC Jeevan Akshay VII (UIN 512N337V02) Feb 2022
Annuity charges comparability desk for LIC Jeevan Akshay VII (UIN 512N337V02) Feb 2022

Discover that youthful retirees would possibly get a greater deal in the event that they purchase govt bonds (though this isn’t assured revenue for all times and could possibly be recalled by the government). See an instance: How I used RBI Retail Direct to purchase govt. bonds and create an revenue supply. Additionally see:

LIC’s Jeevan Akshay VII (Feb 2022) Charges for Annuity for all times

Age Annuity for all times
30 6.205
35 6.345
40 6.535
45 6.795
50 7.155
55 7.645
60 8.325
65 9.245
70 10.69
75 13.23
80 17.23

LIC’s Jeevan Akshay VII (Feb 2022) Charges for Annuity for all times growing 3% a yr

Age Annuity for all times growing 3% a yr
30 4.425
35 4.575
40 4.785
45 5.065
50 5.425
55 5.925
60 6.615
65 7.545
70 8.975
75 11.435
80 15.315

LIC’s Jeevan Akshay VII (Feb 2022) Charges for  Annuity for all times with return of buy value

Age Annuity for all times with return of buy value
30 5.755
35 5.765
40 5.775
45 5.795
50 5.815
55 5.845
60 5.875
65 5.915
70 5.965
75 6.015
80 6.075

LIC’s Jeevan Akshay VII (Feb 2022) Charges for Joint Life Rapid Annuity for all times with a provision for 100% of the annuity payable so long as one of many Annuitant survives

Age Joint Life Rapid Annuity for all times with a provision for 100% of the annuity payable so long as one of many Annuitant survives
30 5.985
35 6.025
40 6.125
45 6.265
50 6.455
55 6.715
60 7.085
65 7.605
70 8.355
75 9.525
80 11.405

LIC’s Jeevan Akshay VII (Feb 2022) Charges for Joint Life Rapid Annuity for all times with a provision for 100% of the annuity payable so long as one of many Annuitant survives and return of Buy Value on loss of life of final survivor

Age Joint Life Rapid Annuity for all times with a provision for 100% of the annuity payable so long as one of many Annuitant survives and return of Buy Value on loss of life of final survivor
30 5.735
35 5.745
40 5.755
45 5.765
50 5.775
55 5.795
60 5.825
65 5.855
70 5.895
75 5.945
80 5.995

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