Last Updated on March 3, 2024 at 9:02 am
LIC’s Jeevan Akshay – VII (UIN – 512N337V05) is an Immediate Annuity plan. You can purchase a pension (annuity) by paying a lump sum. The annuity rates applicable from Feb 2024 are listed in this article. According to LIC’s online purchase portal, the rates are the same as last year.
Additional resources
- Use this annuity ladder calculator to plan for retirement with multiple pension streams.
- How LIC annuity rates have changed over the last 20 years
- I need a pension: Should I buy an annuity or a govt bond?
- How Annuity Plans Work
- When should senior citizens purchase an annuity?
- Higher annuity rates of LIC Jeevan Akshay applicable from Feb 2023
Annuity Options
A. Annuity payable for life at a uniform rate.
B. Annuity payable for 5 years certain and after that as long as the annuitant is alive*.
C. Annuity payable for 10 years certain and after that as long as the annuitant is alive*.
D. Annuity payable for 15 years certain and after that as long as the annuitant is alive*.
E. Annuity payable for 20 years certain and after that 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 annuitant’s death. The purchase price will be returned on the death of the last survivor.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
* In these options, if the annuitant dies within the stated period, the pension will be paid to the nominee until the end of the guaranteed period.
The option that looks most beneficial to us is least beneficial to the insurer; therefore, the annuity rate will be lower. For example, the insurer keeps the purchase price on the annuitant’s death in option A. In option F, the insurer must 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 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 must 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.
| Age | Feb 28th 2023 to Feb 2th 2023 | From Feb 28th 2023 (also applicable from Feb 2024) |
| 30 | 6.205% | 6.899% |
| 40 | 6.535% | 7.276% |
| 50 | 7.155% | 7.949% |
| 60 | 8.325% | 9.265% |
| 70 | 10.690% | 12.050% |
| 80 | 17.230% | 18.486% |
Annuity Rates of LIC Jeevan Akshay VII from Feb 7th 2024
Plan no: UIN – 512N337V05
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.
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:
- 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
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
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 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
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)