LIC Jeevan Akshay : Are you looking for a secure way to ensure a lifelong monthly income after retirement? LIC’s Jeevan Akshay policy has been turning heads for offering lifetime pensions with just a one-time investment. If the idea of depositing once and receiving ₹20,000 every month sounds appealing, this detailed guide will walk you through the numbers, benefits, and how you can make it work for you.
Understanding LIC Jeevan Akshay: A Quick Overview
LIC Jeevan Akshay is an immediate annuity plan offered by the Life Insurance Corporation of India. It allows investors to deposit a lump sum amount and start receiving pensions from the very next month. With multiple annuity options and lifetime income assurance, this policy has become a popular retirement solution among senior citizens and early retirees alike.
Key Features of LIC Jeevan Akshay
- One-time lump sum investment
- Monthly, quarterly, half-yearly, or yearly pension payout options
- Lifetime guaranteed income
- Option to include joint life annuity
- Annuity rates fixed at the time of purchase
- Tax benefits under Section 80CCC
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How Much Do You Need to Invest to Get ₹20,000 Monthly Pension?
Let’s break down the estimated investment amount needed to receive ₹20,000 per month under LIC Jeevan Akshay. The amount may vary based on the annuitant’s age, annuity option selected, and whether it is a single life or joint life annuity.
Sample Investment Table – Single Life Annuity (Monthly Payout)
| Age at Entry | Monthly Pension (₹) | Investment Required (₹) | Annuity Option | Return of Purchase Price |
|---|---|---|---|---|
| 50 | 20,000 | 31,50,000 | Life Annuity | No |
| 55 | 20,000 | 30,00,000 | Life Annuity | No |
| 60 | 20,000 | 28,75,000 | Life Annuity | No |
| 65 | 20,000 | 27,00,000 | Life Annuity | No |
| 60 | 20,000 | 33,50,000 | Life + Return | Yes |
| 65 | 20,000 | 32,00,000 | Life + Return | Yes |
| 70 | 20,000 | 30,50,000 | Life + Return | Yes |
| 75 | 20,000 | 29,00,000 | Life + Return | Yes |
Note: These figures are approximate and may change based on LIC’s current annuity rates and GST charges.
Types of Annuity Options Available Under LIC Jeevan Akshay
LIC Jeevan Akshay offers multiple annuity options tailored to different needs:
- Life Annuity with No Return of Purchase Price
- Life Annuity with Return of Purchase Price on Death
- Annuity Guaranteed for 5, 10, 15, or 20 Years and Life Thereafter
- Joint Life Last Survivor Annuity with or without Return of Purchase Price
- Increasing Annuity at a Simple Rate of 3% per annum
Each option suits different retirement needs. For example, if you want to leave behind the purchase amount for your nominee, the “Return of Purchase Price” option is ideal.
Advantages of LIC Jeevan Akshay for Pension Seekers
- Lifetime Income: Ensures regular income post-retirement without any dependence.
- Immediate Annuity: Payout starts immediately after investment.
- Peace of Mind: Fixed returns without market-linked risks.
- Multiple Payout Modes: Choose how you want your pension – monthly, quarterly, or annually.
- Joint Life Option: Ideal for couples who want to secure income for both lives.
Sample Investment Table – Joint Life Annuity with Return of Purchase Price
| Age of Annuitant | Spouse Age | Monthly Pension (₹) | Investment Needed (₹) | Payout Mode |
|---|---|---|---|---|
| 60 | 55 | 20,000 | 34,00,000 | Monthly |
| 65 | 60 | 20,000 | 32,50,000 | Monthly |
| 70 | 65 | 20,000 | 30,75,000 | Monthly |
| 75 | 70 | 20,000 | 29,25,000 | Monthly |
| 60 | 50 | 15,000 | 25,75,000 | Monthly |
| 65 | 55 | 25,000 | 40,00,000 | Monthly |
| 70 | 60 | 30,000 | 46,75,000 | Monthly |
| 75 | 65 | 35,000 | 52,00,000 | Monthly |
Who Should Consider LIC Jeevan Akshay?
This plan is ideal for:
- Retirees aged 50 and above looking for guaranteed income
- Investors seeking safe, market-independent returns
- Individuals with a lump sum (such as PF or gratuity) looking to convert it into income
- Families wanting to secure income for a dependent spouse
How to Buy LIC Jeevan Akshay Plan?
You can purchase the plan both online and offline. Here’s how:
Offline Process:
- Visit your nearest LIC branch
- Consult with a LIC agent or officer
- Submit the required documents (ID proof, age proof, address proof, PAN card)
- Pay the lump sum amount and receive your policy documents
Online Process:
- Visit LIC’s official website
- Navigate to ‘Buy Policies’ > ‘Immediate Annuity’
- Choose Jeevan Akshay Plan
- Use the annuity calculator to estimate returns
- Fill in your details, upload documents, and make payment
Important Points to Note Before Investing
- Once purchased, the annuity cannot be altered or cancelled
- No loan facility is available under the plan
- The annuity rate is locked in at the time of purchase
- Taxable as per your income slab under “Income from Other Sources”
- No medical tests required in most cases
Tax Implications of LIC Jeevan Akshay
Although the premiums paid under this plan qualify for deductions under Section 80CCC (up to ₹1.5 lakh), the pension received is taxable as per the individual’s income tax slab. However, senior citizens can claim relief under Section 80TTB (up to ₹50,000).
Why LIC Jeevan Akshay Stands Out Among Pension Plans
- Backed by LIC’s credibility and trust
- Immediate payout post investment
- Flexible annuity options tailored for individual or joint needs
- Transparent pricing with no hidden charges
- No dependency on market conditions
Is LIC Jeevan Akshay Right for You?
LIC Jeevan Akshay is a reliable pension plan for anyone who wants financial security post-retirement without worrying about fluctuating returns or market risks. With the flexibility to choose your payout frequency and annuity type, it offers peace of mind for both individuals and couples. However, it is essential to weigh in the lack of liquidity and the fixed nature of returns before locking in your investment.
Always consult with a certified LIC advisor or financial planner to align this plan with your long-term retirement goals.
The above figures are estimates based on prevailing annuity rates and are subject to change. Please confirm the latest rates and details directly with LIC before investing.