3) Life annuity with a return of purchase price:
Pension or annuity continues till the death of the annuitant or policy buyer. After his/her death, the buying price of the annuity policy - i.e. the premium paid by the buyer of LIC Jeevan Akshay-VI Annuity (Pension) Policy - is given to the nominee.
This option suits those investors who want dual benefits - income during their lifetime, as well as money will be paid to dependent nominees after the death. However, one must note that the income might be a bit less, as the price is getting paid back to the nominee on the death of the policy-buyer, which gets discounted in the income or pension payments.
It is good option in case the policy-buyer dies early.
4) Life annuity increasing at a fixed rate:
Worried about inflation and increasing cost of living as the time passes by?? Then go for option in LIC Jeevan Akshay-VI Annuity (Pension) Policy. What this option provides is an regular annual increase in pension amount payable which increases at the rate of 3% per year. Now with inflation hovering in double digits for such a long period of time, this may not sound sufficient enough, but still a good option to get some increasing income. 5) Joint life and last survivor annuity:
In this option, the policy buyer receives lifetime pension. He can also nominate a survivor (Spouse), who will continue to get the pension even after the policy buyer dies. The buyer has to choose the proportion of money to be paid to the spouse and that determines the amount of pension to be paid.
What are the limitations of LIC Jeevan Akshay-VI Annuity (Pension) Policy?
First, this is an annuity policy, so dont expect any returns as this policy does not have any surrender value.
You cannot take a loan against this policy
Premium is to be paid in lumpsum
Pension amount received is TAXABLE
Annuity rates are not that attractive - they are not linked to inflation. So it is possible that you may find the income from this pension comparatively less for meeting the living expenses, the longer you live.
Any illustration of how much LIC Jeevan Akshay-VI Annuity (Pension) Policy pay?
For Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under:
Mode Minimum Annuity
Monthly Rs. 500 per month
Quarterly Rs. 1000 per quarter
Half-yearly Rs. 2000 per half year
Yearly Rs. 3000 per year
LIC Jeevan Akshay-VI Annuity (Pension) Policy
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