Higher annuity rates of LIC Jeevan Akshay applicable from Feb 2023

Published: July 20, 2023 at 6:00 am

Last year, while preparing a retirement planning illustration based on laddered annuities, we listed the annuity rates of LIC Jeevan Akshay – an immediate annuity plan. These are the revised and higher annuity rates applicable from Feb 28th 2023.

Additional resources

Annuity Options

A. Annuity payable for life at a uniform rate.
B. Annuity payable for 5 years certain and thereafter as long as the annuitant is alive.
C. Annuity payable for 10 years certain and thereafter as long as the annuitant is alive.
D. Annuity payable for 15 years certain and thereafter as long as the annuitant is alive.
E. Annuity payable for 20 years certain and thereafter as long as the annuitant is alive.
F. Annuity for life with return of purchase price on death of the annuitant.
G. Annuity payable for life increasing at a simple rate of 3% p.a.
H. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
I. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
J. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her lifetime on death of annuitant. The purchase price will be returned 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 annuitant’s death. In option F, the insurer must return the purchase price to the nominee.


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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 quickly 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. Older people are likely to die sooner, and the insurer with option F must0 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

Annuity rate comparison

Let us look at how the rates have increased for option A: Annuity payable for life at a uniform rate.

AgeFeb 28th 2023 to Feb 2th 2023From Feb 28th 2023
306.205%6.899%
406.535%7.276%
507.155%7.949%
608.325%9.265%
7010.690%12.050%
8017.230%18.486%

Annuity Rates of LIC Jeevan Akshay VII from Feb 28th 2023

Plan no: UIN – 512N337V04

There are incentives for buying online and for a higher purchase price which would increase the annuity rate. These are not considered in this illustration.

Annuity rates comparison table for LIC Jeevan Akshay VII (UIN - 512N337V04) From Feb 28th 2023
Annuity rates comparison table for LIC Jeevan Akshay VII (UIN – 512N337V04) From Feb 28th 2023

You can also download the Excel version of this data. To find the rate applicable to your specific age, you can use LIC’s online premium calculator.

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 government bonds and create an income source. Also see:

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