LIC Jeevan Akshay – VII Plan Review: Good or Bad?

A person who is about to retire often worries about how to manage the expenses without any regular income.

During your working years, you can manage any emergency or any unplanned big-ticket expense easily.

But after retirement, a thousand question arises in mind like how to meet the living expense or any unforeseen expense.

Can LIC Jeevan Akshay VII be a helping hand during your post-retirement period?

Will LIC Jeevan Akshay VII provide financial security in post-retirement life?

In this article, we will figure out the advantages(pros) and disadvantages(cons) of LIC Jeevan Akshay VII and we will dissect whether ‘LIC Jeevan Akshay VII’ is a good or bad option for your golden years.

Let’s get started!

Table of Contents:

1.)An Overview of LIC Jeevan Akshay VII
2.)Features of LIC Jeevan Akshay VII – Analysis
3.)Eligibility Criteria of LIC Jeevan Akshay VII with Illustration
4.)Annuity Plan Options In LIC Jeevan Akshay VII

• • Joint Life Annuity Vs Single Life Annuity in LIC Jeevan Akshay VII

5.)LIC Jeevan Akshay VII – Review of Benefits in detail with Illustration
6.)Free-Look Period in LIC Jeevan Akshay VII
7.)Surrendering LIC Jeevan Akshay VII – Analysis
8.)Advantages of LIC Jeevan Akshay VII – Analysis
9.)Disadvantages of LIC Jeevan Akshay VII – Analysis
10.)Research Methodology Of LIC Jeevan Akshay VII – Analysis
11.)Benefit Illustration and IRR(Internal Rate Of Return i.e. Interest Rate) Analysis of LIC Jeevan Akshay VII
12.) LIC Jeevan Akshay VII for Senior Citizens – Is It Suitable?
13.)LIC Jeevan Akshay VII vs. Other Investment Options

• LIC Jeevan Akshay VII vs. Bank Fixed Deposit
• LIC Jeevan Akshay VII vs. LIC Jeevan Lakshya
• LIC Jeevan Akshay VII vs. LIC Jeevan Azad

14.)LIC Jeevan Akshay VII vs. Other Investment Options – Review Conclusion
15.)Final verdict on LIC Jeevan Akshay VII – Good or Bad?

1. An Overview of LIC Jeevan Akshay VII

It is a Non-Linked, Non-Participating, Individual Immediate Annuity Plan.

In this Immediate Annuity plan, you have the option to choose a type of annuity from 10 available options on payment of a lump sum amount.

The annuity rates are guaranteed at the inception of the policy and annuities are payable throughout the lifetime of the Annuitant(s).

Click Here to download the official brochure of LIC Jeevan Akshay VII for more policy details.

This plan qualifies for tax benefits under Section 80CCC of Income Tax Act.

2. Features of LIC Jeevan Akshay VII – Analysis

• One-time premium payment.
• Option to include spouse under Joint cover.
• There are 10 Annuity options to choose from.
• Annuity mode can be chosen as per your requirement – Monthly, Quarterly, Half-yearly, Annual.
• You get a guaranteed annuity at the chosen interval.

Annuity pay-outs are fully taxable as per the individual’s income tax slab.

3. Eligibility Criteria of LIC Jeevan Akshay VII with Illustration

Minimum Purchase Price	25 years to 29 years – 10 Lakhs30 years & Above – 1 Lakh
Maximum Purchase Price	No Limit
Minimum Age at Entry	25 years
Maximum Age at Entry	85 years (100 Years for Option F)
Minimum Annuity	Monthly – ₹ 1000 Quarterly – ₹ 3000 Half-yearly – ₹ 6000 Annual – ₹ 12,000
Annuity Mode	Yearly, half-yearly, quarterly, and monthly.

4. Annuity Plan Options in LIC Jeevan Akshay VII

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 Annuitants survives.
Option J:	Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the annuitants survives and return of Purchase Price on death of last survivor.

Use the LIC Jeevan Akshay VII calculator to estimate annuity pay-outs for each option.

Joint Life Annuity Vs Single Life Annuity in LIC Jeevan Akshay VII

When choosing an annuity plan under LIC Jeevan Akshay VII, one of the key decisions is between a single life annuity and a joint life annuity.

Understanding the differences can help retirees structure a predictable income while considering family needs and longevity risks.

Single Life Annuity
A single life annuity provides payments only for the lifetime of the primary annuitant.

Once the annuitant passes away, the annuity ceases, except for options that return the purchase price (like Option F).

This option generally offers higher annuity payments compared to joint life options because the risk for the insurer is limited to one individual’s lifetime.

It may suit individuals who have other sources of financial support for their spouse or dependents or those whose main objective is to maximize the regular income for themselves.

Joint Life Annuity
In contrast, a joint life annuity provides payments until both annuitants (usually husband and wife) have passed away.

This ensures that the surviving spouse continues to receive a regular income, offering financial security for the family.

Depending on the specific joint-life option chosen, payments may be a full annuity or a reduced percentage (for example, 50% of the annuity continues after the death of the primary annuitant).

Since the risk for the insurer is higher in this case, the annuity amount is slightly lower than that of a single life annuity for the same purchase price.

Key Considerations

• Longevity: Joint life annuities are beneficial for couples concerned about outliving their retirement corpus.
• Cash Flow Needs: Single life annuities may provide higher monthly income but stop after the annuitant’s death.
• Flexibility: Some options allow return of purchase price or a step-up in annuity to adjust for inflation, which can be considered for both single and joint annuities.
• Taxation: Both single and joint life annuities are taxable as per the Income Tax Act, so retirees should calculate the net post-tax income before choosing.

Choosing between single and joint life annuities in LIC Jeevan Akshay VII ultimately depends on family needs, risk tolerance, and expected lifespan.

Senior citizens should carefully weigh their priorities between higher immediate income versus guaranteed long-term support for the spouse.

5. LIC Jeevan Akshay VII – Review of Benefits in detail with Illustration

Option	Annuity Payment	On the death of the annuitant	Return of Purchase Price
Option A:	Made in arrears for as long as the Annuitant is alive	Annuity payment shall cease	No
Option B:	Made in arrears for as long as the Annuitant is alive	On the death of the Annuitant during the guaranteed period of 5/10/15/20 years, the annuity is payable till the end of the guaranteed period. On the death of the Annuitant after the guaranteed period, nothing shall be payable and the annuity payment shall cease immediately.	No
Option C:
Option D:
Option E:
Option F:	Made in arrears for as long as the Annuitant is alive	Annuity payment shall cease	Yes
Option G:	Made in arrears for as long as the Annuitant is alive Annuity increases by a simple rate of3% p.a.	Annuity payment shall cease	No
Option H:	Made in arrears for as long as the primary Annuitant is alive	On the death of the Primary Annuitant, 50% of the annuity amount shall be payable to the surviving Secondary Annuitant as long as the Secondary Annuitant is alive. The annuity payments will cease on the subsequent death of the Secondary Annuitant. If the Secondary Annuitant predeceases the Primary Annuitant, the annuity payments shall continue to be paid and will cease upon the death of the Primary Annuitant.	No
Option I:	100% of the annuity amount shall be paid in arrears for as long as the Primary Annuitant and/or Secondary Annuitant is alive,	On the death of the last survivor, the annuity payments will cease	No
Option J:			Yes

Review of Death Benefit In LIC Jeevan Akshay VII (options F & J)

The Annuitant(s) will have to choose one of the following options for the payment of the death benefit to the nominee(s) in LIC Jeevan Akshay VII.

Lumpsum Death Benefit: Under this option in LIC Jeevan Akshay VII, the entire Purchase Price shall be payable to the nominee(s) in Lumpsum.

Annuitization of Death Benefit: Under this option in LIC Jeevan Akshay VII the benefit amount payable on death i.e., Purchase Price shall be utilized for purchasing an Immediate Annuity from the Corporation for nominee(s). This LIC Jeevan Akshay VII option can be opted for full or part of the benefit amount payable on death.

In Instalment: Under this option in LIC Jeevan Akshay VII the benefit amount payable on death i.e., Purchase Price can be received in instalments over the chosen period of 5 years instead of a lump sum amount.

This option can be exercised for full or part of the Death Benefit payable under the policy.

LIC Jeevan Akshay VII interest rate 2025 determines the annuity pay-outs and can be checked via the official Jeevan Akshay VII calculator.

6. Free-Look Period in LIC Jeevan Akshay VII

If you are not satisfied with the “Terms and Conditions” of the LIC Jeevan Akshay VII policy, the policy may be returned to the Corporation within 30 days from the date of receipt of the electronic or physical mode policy bond, whichever is earlier, stating the reasons for objections.

This is similar to other LIC pension plans like LIC Jeevan Shanti or LIC Jeevan Lakshya.

7. Surrendering LIC Jeevan Akshay VII – Analysis

Only under the following annuity options, the LIC Jeevan Akshay VII policy can be surrendered at any time after three months from the completion of the policy (i.e., 3 months from the date of issuance of the LIC Jeevan Akshay VII policy) or after the expiry of the free-look period, whichever is later.

LIC Jeevan Akshay VII Option F: Immediate Annuity for life with return of Purchase Price.

LIC Jeevan Akshay VII Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity paid so long as one of the annuitants survives, with the Purchase Price being returned at the passing of the last survivor.

Use the LIC Jeevan Akshay VII surrender value calculator to check possible pay-outs.

If the chosen annuity option is other than specified above, surrender of the policy shall not be allowed.

8. Advantages of LIC Jeevan Akshay VII – Analysis

• Hassle-free investment (lump sum investment).
• Annuity acts as a regular source of income.
• Death benefit (return of Purchase price) can be received as a Lump Sum or in instalments.
• A joint life option is available.
• Loan can be availed.

LIC Jeevan Akshay VII pension plan can provide financial planning security for retirees.

9. Disadvantages of LIC Jeevan Akshay VII – Analysis

• The annuity option once chosen cannot be altered in LIC Jeevan Akshay VII.
• The Annuity amount is not adjusted for inflation. You receive a standard annuity every year (except Option G).
• Surrender of policy shall not be allowed for options other than Option F & Option J.
• The loan facility is available only under Option F & Option J.
• Once you purchase this plan, you can’t utilise the capital for any other purpose.
• An annuity is fully taxable.

The LIC Jeevan Akshay VII plan calculator is useful to project taxable income and returns for retirement planning.

LIC Jeevan Akshay VII interest rate 2025 may differ from other LIC plans like Jeevan Shanti or Jeevan Lakshya.

10. Research Methodology of LIC Jeevan Akshay VII – Analysis

Under LIC Jeevan Akshay VII, you receive a guaranteed annuity in the chosen annuity mode.

Most of the options provide lifelong annuity. The return of purchase is available only under option F and option J.

In order to find out the return & to understand how each option works, let us work out the benefit illustration given in the sales brochure.

LIC Jeevan Akshay VII qualifies for tax benefits under Section 80CCC for the premium paid.

11. Benefit Illustration and IRR (Internal Rate Of Return i.e. Interest Rate) Analysis of LIC Jeevan Akshay VII

Let us assume a 45-year-old male buys this plan for ₹ 10 lakhs (Purchase price). He chooses an annual annuity. Since most of the plan provides a lifelong annuity, we have assumed a life expectancy of 85 years. In the case of Joint life, we assume that the life expectancy of the last survivor is 85 years.

Male	45-year-old
Purchase Price	10,00,000
Annuity Mode	Annual

Now, let us explore various annuity options. The following table will give a glimpse of the Annuity amount & the IRR (Internal Rate of Return i.e. Interest Rate) under each scenario.

	Annuity per annum	IRR
Option A	74,200	6.91%
Option B	74,100	6.90%
Option C	73,800	6.86%
Option D	73,300	6.80%
Option E	72,800	6.75%
Option F	64,800	6.48%
Option G	56,400	7.07%
Option H	70,700	6.50%
Option I	67,500	6.12%
Option J	63,900	6.39%

The IRR for various options is calculated in the above illustration.

Inference of the IRR analysis

Option A provides the highest annuity amount.

You get the maximum benefit under option G because you get an annual step-up income.

Least IRR for Option F & Option J as they return the purchase price at the end.

If you look at the IRR, it is almost hovering around 6.5%.

One might think that an annuity in the range of 6.5% is a good option.

But, if you consider inflation, then the annuity wouldn’t be helpful in the long run.

Moreover, you lose the opportunity to invest in other investment options as you don’t have the surrender option (Except in options F & option J).

In the rising interest rate scenario, your funds get locked in LIC Jeevan Akshay VII.

Annuity pay-outs are fully taxable under the Income Tax Act, which impacts post-tax returns.

LIC Jeevan Akshay VII interest rate 2025 can be used with the LIC Jeevan Akshay VII calculator to project post-tax income.

12. LIC Jeevan Akshay VII for Senior Citizens – Is It Suitable?

For many senior citizens, the focus shifts from wealth accumulation to securing a stable post-retirement income.

LIC Jeevan Akshay VII is often considered by retirees because it provides a guaranteed annuity for life, which can help in planning regular expenses after retirement.

Senior citizens can choose from multiple annuity options, including single life, joint life, or annuity with return of purchase price, depending on their financial priorities and family situation.

The plan allows for flexible annuity modes, such as monthly, quarterly, half-yearly, or annual payments, which can be aligned with personal cash flow requirements.

Additionally, options like Option G, which increases annuity by a simple 3% per year, may appeal to seniors concerned about inflation.

However, it is important to note that the capital invested in the plan gets locked, except under options F and J.

Furthermore, the annuity is taxable under the Income Tax Act, which may reduce the effective income received.

The absence of liquidity and limited surrender options in other annuity plans could affect those who may need to access their retirement corpus for emergencies.

Overall, LIC Jeevan Akshay VII provides a structured and predictable income stream for senior citizens, but the decision to invest in it should consider inflation, tax implications, and alternative investment avenues that may provide more flexibility or higher post-tax returns.

13. LIC Jeevan Akshay VII vs. Other Investment Options

As we discussed, LIC Jeevan Akshay VII is like a mirage. It may look beneficial, but it is not value for money.

Now, let us look at other investment options where you get regular income.

The following instruments are also Lumpsum investment options.

i) LIC Jeevan Akshay VII vs. Bank Fixed Deposit

In the following options, you have the advantage of spreading out the investment under various instruments (diversification). We can avoid the concentration of funds in one place.

	Bank FD	SCSS	RBI floating rate Bond
Interest Rate (As of Aug 2023)	6.5% – 7.5%	8.2%	8.05%
Tenure	3 – 5 years	5 years	7 years
Frequency of Pay-out	Monthly, Quarterly, Half-yearly, Annual	Quarterly	Half-yearly
Maximum Investment Amount	No limit	Rs. 30 Lakhs	No Limit
Taxation	Exempt up to Rs. 50 K as Per Sec 80 TTB	Exempt up to Rs. 50 K as Per Sec 80 TTB	Fully Taxable
Premature Withdrawal	Allowed	Allowed	Allowed (For Senior citizens)
Return on the Purchase price (Investment Amount)	Returned at the end of Tenure

A point to be noted here, the above options provide a standard regular cash flow without taking into account economic inflation.

Only under the RBI Floating rate bond option, does your interest change as when there is a change in the market.

In order to get inflation-adjusted regular cash flow, it is always wise to invest in mutual funds.

Here a portion of your fund is invested in equity, which grows & replenishes the debt part over the long term.

Under this strategy, your corpus outlives you.

Bank FD interest is taxable under the slab rate, while SCSS has partial tax exemption, unlike LIC Jeevan Akshay VII.

ii.) LIC Jeevan Akshay VII Vs. Inflation-adjusted income

Assume a 60:40 ratios for equity and debt, respectively. Out of ₹10 Lakhs, ₹6 Lakhs is invested in equity for wealth accumulation, and ₹4 Lakhs is invested in debt for regular income needs.

Equity returns are assumed to be 12% p.a., and debt returns are assumed to be 6% p.a. 

This strategy helps combat inflation, unlike the fixed annuity payouts of LIC Jeevan Akshay VII.

iii) LIC Jeevan Akshay VII vs. LIC Jeevan Lakshya

The Jeevan Lakshya Individual Life Assurance Plan from LIC is a non-linked, participating plan. It combines corpus savings with life insurance protection.

Age	Equity Portion			Shift from Equity to Debt	Debt Portion
	Opening Balance	Yearly withdrawal	Closing Balance		Opening Balance	Yearly withdrawal	Closing Balance
61	6,00,000		6,72,000		4,00,000	64,800	3,55,312
62	6,72,000		7,52,640		3,55,312	64,800	3,07,943
63	7,52,640		8,42,957		3,07,943	64,800	2,57,731
64	8,42,957		9,44,112		2,57,731	64,800	2,04,507
65	9,44,112		10,57,405		2,04,507	64,800	1,48,090
66	10,57,405	4,00,000	7,36,294	4,00,000	5,48,090	68,688	5,08,166
67	7,36,294		8,24,649		5,08,166	68,688	4,65,846
68	8,24,649		9,23,607		4,65,846	68,688	4,20,988
69	9,23,607		10,34,440		4,20,988	68,688	3,73,438
70	10,34,440		11,58,572		3,73.438	68,688	3,23,035
71	11,58,572	11,58,572	0	11,58,572	14,81,607	72,809	14,93,326
72	0		0		14,93,326	72,809	15,05,747
73	0		0		15,05,747	72,809	15,18,914
74	0		0		15,18,914	72,809	15,32,871
75	0		0		15,32,871	72,809	15,47,666
76	0		0		15,47,666	77,178	15,58,717
77	0		0		15,58,717	77,178	15,70,432
78	0		0		15,70,432	77,178	15,82,849
79	0		0		15,82,849	77,178	15,96,012
80					15,96,012	77,178	16,09,964
81					16,09,964	81,809	16,19,845
82					16,19,845	81,809	16,30,318
83					16,30,318	81,809	16,41,420
84					16,41,420	81,809	16,53,189
85					16,53,189	81,809	16,65,663

The first-year annuity amount is assumed to be similar to the Option F – Immediate Annuity for life with return of Purchase Price, i.e., ₹ 64,800 Lakhs.

Every five years, the debt portion is replenished from equity, and every five years, your annual withdrawal increases by 6% to combat inflation.

At the age of 71, the equity portion is fully shifted to debt.

Even after this shift, the corpus outlives you, leaving you with approximately ₹16 Lakhs at the age of 85, which is higher than the return of the LIC Jeevan Akshay Plan’s purchase price.

The 60:40 ratios and the shift to debt at the age of 71 are illustrative and can be adjusted.

Asset allocation and the shifting of funds between asset classes can be tailored to your risk appetite.

This investment strategy demonstrates the efficient use of your hard-earned retirement corpus. 

iv)LIC Jeevan Akshay VII vs. LIC Jeevan Azad

LIC Jeevan Azad is a non-linked, non-participating, individual savings plan for life insurance that combines savings and life insurance.

LIC Jeevan Azad also provides tax benefits on the premium paid under Section 80C/80CCC, while annuity pay-outs from Jeevan Akshay VII remain fully taxable.

14. LIC Jeevan Akshay VII vs. Other Investment Options – Review Conclusion

After comparing and analyzing LIC Jeevan Akshay VII with other investment plans it is clear that Bank FDs give better returns than LIC Jeevan Akshay VII in the longer run.

Considering tax-adjusted returns, Bank FDs, SCSS, and mutual fund strategies outperform LIC Jeevan Akshay VII in real post-tax terms.

15. Final verdict on LIC Jeevan Akshay VII – Good or Bad?

LIC Jeevan Akshay VII plans offer different pension options that you can choose based on your needs. Options may include a lifetime pension, joint-life pension, and pension with a return of purchase price.

You need to make a one-time lump-sum payment to purchase the plan. This payment is non-refundable (except under option F and option J), as the plan primarily focuses on providing a regular income stream.

The plan provides a fixed source of income during your retirement years. But you can’t rely solely on this income to meet your post-retirement expenses.

There are better investment options that yield you better returns than LIC Jeevan Akshay VII. Also, you have the flexibility in your investment which is missing in LIC Jeevan Akshay VII.

Here your funds get locked & you can’t utilise the capital for any emergencies.

From a return perspective, LIC Jeevan Akshay VII is not beneficial.

Those who want to lead a stress-free retirement life should prudently invest the retirement corpus.

Any ready-made annuity plans will not provide you one-time solution for your retirement income.

For retirees, it’s crucial to understand that the fixed annuity from LIC Jeevan Akshay VII is fully taxable, which reduces post-tax retirement income.

Tax-efficient alternatives with inflation-adjusted returns may provide higher net retirement income.

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