Last Updated on October 2, 2023 at 9:26 am
In this article, we list the annuity rates of LIC’s Jeevan Akshay VII (Plan No. 857, UIN : 512N337V02) launched in Feb 2022. While preparing a retirement planning illustration based on laddered annuities we wanted to find the latest Jeevan Akshay VII annuity rates. Unfortunately, neither the sales brochure nor the policy document mentions this!
Other sources on the web still list annuity rates for the Jeevan Akshay VII (Plan No. 857, UIN: 512N337V01) policy which was withdrawn 1st Feb 2022. Therefore we thought it best to use LIC’s online premium calculator and list the annuity rate ourselves. To avoid confusion, we shall refer to the new policy as LIC’s Jeevan Akshay VII (Feb 2022)
We shall follow this up with historical Jeevan Akshay annuity rates (no I to no VII) and then move on to our ultimate goal of retirement planning with laddered annuities.
LIC’s Jeevan Akshay VII (Feb 2022) is a Non-Linked, Non-Participating,
Individual Immediate Annuity Plan. Non-linked means not linked to market movements. Non-participating means the policyholder will not get a slice of the insurer’s profits via bonuses or dividends. An immediate annuity plan means the income (annuity) will commence immediately upon purchase.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
There are multiple options to receive the annuity. We shall list the rates for the options in bold.
Option A: Immediate Annuity for life.
Option B: Immediate Annuity with a guaranteed period of 5
years and life thereafter.
Option C: Immediate Annuity with a guaranteed period of 10
years and life thereafter.
Option D: Immediate Annuity with a guaranteed period of 15
years and life thereafter.
Option E: Immediate Annuity with a guaranteed period of 20
years and life thereafter.
Option F: Immediate Annuity for life with return of Purchase
Price.
Option G: Immediate Annuity for life increasing at a simple
rate of 3% p.a.
Option H: Joint Life Immediate Annuity for life with a provision
for 50% of the annuity to the Secondary Annuitant
on the death of the Primary Annuitant.
Option I: Joint Life Immediate Annuity for life with a provision
for 100% of the annuity payable as long as one of
the Annuitant survives.
Option J: Joint Life Immediate Annuity for life with a provision
for 100% of the annuity payable as long as one of
the Annuitant survives and the return of Purchase Price
on the death of the last survivor
The option that looks most beneficial to us is least beneficial to the insurer and therefore the annuity rate will be lower. For example, in option A, the insurer gets to pocket the purchase price on the death of the annuitant. Whereas in option F the insurer will have to return the purchase price to the nominee.
So they would offer a terrible interest rate (annuity rate) on option F and the best rate for option A! For all options other than A, the rate will drop quick and fast!
In option G, the income increases each year by 3%. If the annuitant is old, (55 or above) this has a higher rate than option F. Because older people are likely to die sooner and the insurer with option F has to repay sooner!
Annuity rates dramatically increase with age because older people need not be paid for long! This is the underlying principle behind laddering annuities (more on this in the coming days). We shall also study the time value of money for these options. To learn more see: How Annuity Plans Work. Also see: When should senior citizens purchase an annuity?
Purchase price less than Rs. 1.5 lakh (it cannot be lower than 1 lakh) will have lower annuity rates!!
Minimum Age at Entry: 30 years (completed)
iv. Maximum Age at Entry: 85 years (completed) except for Option F
100 years (completed) for Option F.
Joint Life: The joint-life annuity can be taken between any two
lineal descendants/ascendants of a family (i.e. Grandparent, Parent,
Children, Grandchildren) or spouse or siblings. The second annuitant must be aged 30 or above.
Annuity Rates of LIC Jeevan Akshay VII from Feb 2022
The image below shows the rates for different options at different ages. For joint like (cols E and F), the spouse is assumed to be 5Y younger except for age 30 when they are assumed to be of the same age. The data is also presented option-wise below.
The numbers correspond to the annual payout only. Other payout options will have lower annuity!!
For example, a 47-year-old opting for “annuity for life” will Rs. 10 lakhs will receive an annual payout of Rs. 69,250; a half-yearly payout of Rs. 33,975 (x 2 = 67950 less than the annual payout or annual rate of only 6.795%).
The quarterly payout is Rs. 16,825 corresponding to a rate of only 6.73%. The monthly payout is Rs. 5,571 corresponding to a rate of 6.68%.
Notice that younger retirees might get a better deal if they buy govt bonds (although this is not guaranteed income for life and could be recalled by the govt). See an example: How I used RBI Retail Direct to buy govt. bonds and create an income source. Also see:
- RBI Retail Direct: A look inside: how to register and what you can buy/sell
- RBI Retail Direct for govt bonds: Who should use it and who should not
LIC’s Jeevan Akshay VII (Feb 2022) Rates for Annuity for life
| Age | Annuity for life |
| 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) Rates for Annuity for life increasing 3% a year
| Age | Annuity for life increasing 3% a year |
| 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) Rates for Annuity for life with return of purchase price
| Age | Annuity for life with return of purchase price |
| 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) Rates for Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives
| Age | Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the 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) Rates for Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor
| Age | Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last 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 |
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)