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LIC’s Annuity Plan- Types, Features and Benefits.

Updated On Sep 18, 2023

Life Insurance Corporation of India (LIC) is a Indian government owned insurance provider. Being the most trusted insurance provider in India LIC offers a wide range of insurance products. One of the highest selling insurance products of LIC is Annuity and Pension plans, LIC offers two attractive Annuity plans for retirement planning. Before jumping to the Annuity Plans offered by LIC it is important to have information about Annuity Plans.

What are Annuity Plans?

Annuity plans are one of those plans which provide regular income for life after you have invested a lump sum amount in the plan i.e. the insurance provider will invest your money and pays the returns that accumulate on the money invested. Therefore as a payout you will receive the amount you invested along with the accumulated returns on them as regular income for life after your retirement. 

Read More: Why Should I Buy Life Insurance?

Following are the two different types of Annuities:

  • Deferred Annuity

Under deferred annuity the life assured invests a lump sum amount or the life assured pays premium for a fixed period of time. The annuity is paid out to the life assured as income after retirement upon the maturity of the policy.

  • Immediate Annuity

Under immediate annuity the life assured invest a lump sum amount in the immediate annuity plan. The annuity is paid out as guaranteed payouts at regular intervals. This type of annuity is chosen by those who want to receive monthly income in their post-retirement phase of life to fulfill their financial requirements.

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LIC Annuity Plans

LIC offers 2 annuity plans which are discussed below:

1. LIC’s Jeevan Akshay - VII

LIC’s Jeevan Akshay - VII is an Immediate Annuity plan wherein the life assured has an option to choose type of annuity from 10 available options on payment of a lump sum amount. The annuity rates are guaranteed at the time of policy issuance and annuities payouts are made throughout the lifetime of life assured. 

Features and Benefits 

  • Non-Participating Plan
  • Availability of 10 types of Immediate Annuity Payout Options
  • Availability of Loan Against Insurance Policy
  • Guaranteed Annuity Rates
  • Availability of Death Benefit
  • No Medical Examination Required

2. LIC’s New Jeevan Shanti

LIC’s New Jeevan Shanti is a deferred annuity plan. Under this plan the life assured has an option to choose between 2 deferred annuity options namely single life and joint life deferred annuity. The annuity rates are guaranteed at the time of policy issuance and annuities payouts are made throughout the lifetime of life assured. 

Features and Benefits

  • Availability of 2 Deferred Annuity Options
  • Availability of Death Benefit
  • Availability of Loan Against Insurance Policy

Also Read: What is the Best Age to Buy Life Insurance?

Conclusion

LIC offers 2 types of annuity plans namely LIC’s Jeevan Akshay - VII and LIC’s New Jeevan Shanti. LIC’s Jeevan Akshay - VII is an immediate annuity plan and Lic’s New Jeevan Shanti plan is a deferred annuity plan. One can choose to opt for either one of the plans according to their budget and insurance requirement.

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