LIC Jeevan Akshay VII Pension Plan (857) introducing it from 25th August 2020. It is the immediate pension plan. At the same time, LIC is withdrawing the immediate pension option from Jeevan Shanti (850).
Considering the decreasing interest rate, it was expected from LIC that it may revise the pension rates of Jeevan Shanti. Instead, it removed the immediate pension option of Jeevan Shanti and introduced the LIC Jeevan Akshay VII Pension Plan (857).
LIC Jeevan Akshay VII Pension Plan (857) – Features, Benefits, and Eligibility
Below are the silent features of this plan.
Below are the pension options available under LIC Jeevan Akshay VII Pension Plan (857).
The additional feature of what this plan offers is that the death benefit payable to the nominee can be opted in installments ranging period from 5 years, 10 years or 15 years.
NPS subscribers may opt for this immediate plan. However, for Government employees, the default options are Option J and Option F.
The policy is eligible for surrender after 3 months (only for Options F and J).
You can avail the loan also under this plan.
Taxation of annuity products:-
As it is a pension plan, the pension you receive is taxable income as per your income tax slab.
LIC Jeevan Akshay VII Pension Plan (857) – Should you buy?
As of now, the annuity rates are not available. However, I am sure that they are lower than the existing Jeevan Shanti Plan. Again before jumping into this plan, check your tax liability as the pension you receive from this policy is taxable income as per your tax slab.
Such plans are meant for those who not bother about inflation and tax but want a constant safety stream of income during their old age.
Conclusion:- LIC Jeevan Akshay VII Pension Plan (857) is obviously offer you lesser pension than the existing Jeevan Shanti Plan. Also, tax and inflation are the biggest enemies for such plans. Do your own research before jumping into such plans. I prefer RBI Floating Rate Bonds, PMVVY or Post Office Senior Citizen Savings Schemes better option. However, it is up to you to take your own call.
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