LIC Pension Plan also called Jeevan Akshay VI is a immediate annuity plan. This scheme is offered offline as well as online.

Online customers are offered a rebate of 1% by way of increase in the basic annuity rate. It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount.

Here are few salient features of the scheme:

1 Premium is to be paid in a lump sum.

2 Minimum purchase price:
Rs.100,000/- for all distribution channels except online.
Rs.150,000/- for on line sale.

3. No medical examination is required under the plan.

4. No maximum limits for purchase price, annuity etc.

Who can buy?

One who has attained the age of 30 years and maximum allowed age at entry is 85 years (completed). Age proof is mandatory.

• Annuity payable options:
• Annuity payable for life at a uniform rate.
• Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
• Annuity for life with return of purchase price on death of the annuitant.
• Annuity payable for life increasing at a simple rate of 3% p.a.
• Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on passing away of annuitant. The purchase price will be returned to the nominee on the death of last survivor.

Loan:

No loan facility is available under the scheme

Tax:

Annuities are added to your income and taxed as per your income tax slab.

Know more about LICs other Pension plan named LIC Jeevan Nidhi

Amount and annuity options should be chosen considering your commitments and needs.

Annuity plans are less popular in India and this is the option available to regular income seekers. Annuity rates have come down with years, which may not beat inflation or other fixed income instrument.

GoodReturns.in