- 15-Oct-2025
- public international law
The Life Insurance Corporation of India (LIC) offers a variety of pension plans aimed at providing individuals with a steady stream of income after retirement. These plans ensure financial security in one's post-retirement years and are designed to meet the needs of those seeking regular monthly income. One of the key features of LIC pension plans is the provision of annuity payments, which can be customized to suit the retirement goals and preferences of the policyholder.
LIC offers the Jeevan Akshay VII plan, which is specifically designed to provide monthly pensions or annuity payments to individuals after their retirement. This plan allows the investor to receive a guaranteed monthly income for a specified period or for the rest of their life.
Jeevan Akshay VII offers various pension options that can be selected based on the policyholder's preferences. These options include:
The plan provides a fixed monthly pension based on the amount invested and the pension option selected. The pension amount is decided at the time of policy purchase and remains constant throughout the payout period.
Jeevan Akshay VII does not require the policyholder to undergo a medical examination. It is available to anyone who meets the age eligibility, making it easy to access for senior citizens.
The premium for the LIC pension plan can be paid as a single lump sum amount or through installments (depending on the policy option selected). The payment mode offers flexibility to suit different investment capabilities.
The pension payments are guaranteed for the chosen duration, whether for a fixed number of years or for the lifetime of the policyholder.
LIC pension plans provide tax exemptions under Section 80CCC for contributions made towards the plan, subject to the maximum limit under Section 80C. However, the pension received is taxable as per the applicable income tax laws.
The primary aim of this plan is to provide post-retirement income, offering financial support and security during the later years of life, when regular employment income ceases.
The monthly pension provides a guaranteed income, which is highly beneficial for individuals who need a steady cash flow after retirement for meeting their expenses.
The option to choose between different annuity types such as single life, joint life, or certain period ensures that the plan can be customized to the specific needs of the policyholder and their family.
The tax benefits provided under Section 80CCC make this plan an attractive option for tax-conscious investors. However, it is important to note that the pension received will be taxed according to the individual’s income tax slab.
Since LIC’s pension plans don’t require medical tests, they are accessible to all senior citizens who wish to invest for regular income without health-related concerns.
The joint life annuity option ensures that if the policyholder passes away, their spouse will continue to receive the pension. This provides financial protection to the spouse in the event of the policyholder’s death.
The life annuity option ensures that the pension is paid for the entire lifetime of the policyholder, regardless of how long they live, offering peace of mind that they will never outlive their savings.
The minimum entry age for this plan is 30 years, and the maximum entry age is 85 years.
The minimum purchase price for this plan is ₹1,00,000, and the amount can go up based on the desired pension amount.
Let’s consider an example where an individual, aged 60 years, purchases the LIC Jeevan Akshay VII pension plan:
In this case, the policyholder will receive a fixed monthly pension based on the amount invested (₹10,00,000) at an interest rate of 7.5% annually, which amounts to approximately ₹75,000 per year or ₹6,250 per month.
The LIC Jeevan Akshay VII pension plan is a highly beneficial option for those seeking a reliable monthly income after retirement. With guaranteed returns, flexible payout options, and government backing, it offers financial security to senior citizens during their post-retirement years. The option to customize the pension amount and the payout frequency makes it a flexible and safe investment for ensuring a steady income stream.
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