Introduction of LIC ‘s Jeevan Akshay – VI (Plan No. 189 )
1. Introduction :
It was decided that the Immediate Annuity Plan , LIC ‘s Jeevan Akshay – V (Plan No.183 ) to pull in as of September 10, 2007 and to introduce a new plan – LIC ‘s Jeevan Akshay – VI instead. The new plan will take effect as of September 10, 2007 .
2. Type annuities available :
Various annuity options that the plan include :
1. Annuity for life
2. Annuity guaranteed for 5 , 10 , 15 or 20 years and for life thereafter
3. Annuity for life with return of purchase price on death
4. Annuity for life increasing at a simple rate of 3 % per year
5 . Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant .
6. Annuity for life with a provision for 100% of the interest to the spouse of the annuitant for life on death of the annuitant .
1. Modes of annuity :
Annuity can be paid in yearly , half-yearly , quarterly or monthly installments , with a minimum annuity as listed below :
Fashion Minimum Annuity p.a.
Monthly Rs . 6000 / -
Quarterly Rs. 4000 / -
Half-yearly Rs . 4000 / -
Annual Rs . 3000 / -
The first installment of the benefit is paid for a year , six months , three months or one month from the date of purchase of the annuity , depending on whether the mode of annuity is an annual , half-yearly , quarterly or monthly basis , respectively . Furthermore annuity may be paid with the following provisions on the death of the annuitant for different options as follows during the lifetime of the annuitant :
1. Under option ( i ) – payment of interest ceases .
2. Under option ( ii )
i . On death during the warranty period – annuity is paid to the candidate until the end of the guaranteed period after the same ends.
ii . On death after the warranty period – payment of interest ceases .
1. Under option ( iii ) – payment of interest ceases and the purchase price will be returned to the nominee.
2. Under option ( iv ) – payment of interest ceases .
3. Under option ( v ) – payment of annuity stops and 50 % of the annuity is to the surviving spouse has called paid during his / her lifetime . If the spouse to death, the annuitant , nothing is payable after the death of the annuitant .
4. Under option ( vi ) – payment of interest ceases and 100 % of the annuity is to the surviving spouse has called paid during his / her lifetime . If the spouse to death, the annuitant , nothing is payable after the death of the annuitant .
The amount of the benefit is insured during the period for which it is payable .
1. Annuity Rates:
Annuity rates for different types of annuities are included in attached documents 1-9 .
The policy can be purchased by payment of the single premium annuity rates by applying for the type and mode of annuity chosen by the policyholder can be worked . The annuity rates can also be used to work out the amount of annuity for a particular purchase .
These rates will apply for New Business set up in the framework of the plan under deferred annuity contracts ( which are not guaranteed annuity rates ) that vest on or after 10.09.2007 .
1. Incentives for high purchase price
Under the policy , where purchase price is high, stimulus by increasing the annuity rate table will be given to the annuitant .
Magnitude of the absolute amount of incentive under high price policy as a complement to the annuity rates per year per thousand rupees purchase price is as follows.
Method of Purchase Annuity ( in Rs . )
150.000 to 299.999 and 300.000 499.999 500.000 and up
Annual 3.00 3.75 4:00
Biannual 2.50 3.50 3.75
Quarterly 2.50 3.50 3.75
Monthly 2:00 3:25 3:50
1. Rebate for Corporation Employees:
A discount of 2 % of the purchase price will be available to eligible employees under the Corporation CEIS are .
1. Conditions of grant and features:
1. Minimum age at entry : 40 years last birthday
2. Maximum age at entry : 79 years last birthday
3. Minimum Purchase : Rs.50 , 000 / = or such amount which may secure a minimum annuity and ( d ) below.
4. Minimum Annuity Spread : Rs . 500 / = per month
Rs. 1000 / = per quarter
Rs. 2000 / = per semester
Rs. 3000 / = per year .
1. Commission & D.O. credit :
Agency Commission is payable @ 2 % of the purchase price . No bonus commission is .
D.O. credit is 5% of the purchase price .
No agency commission or credit DO ‘ s are based on the deferred annuity policies are unconditional.
2. underwriting :
No medical examination is required under this plan .
Standard age proof will be under all the annuity options needed except iii ) option , ie ” Annuity for life with return of purchase price on death.”
3. Policy stamping :
1. Under the annuity ii ) option when specified period is 15 or 20 years , the amount of stamp duty will be based on pay during the period of time because the annuity per year respectively, multiplied by 15 or 20 amounts . Overall annuity
2. Under the annuity option iv ) , the amount of stamp duty will be based on paying for 12 years the annuity multiplied by the annuity per annum for the first year amounts . Ie 13.98
3. Among all other annuity options , the amount of stamp duty will be based on paying for a period of 12 years, ie 12 multiplied by the annuity per year . Overall annuity
4. Grace period :
If a policyholder is not satisfied with the “Terms and Conditions ” of the policy , he / she can the policy within 15 days from the date of receipt of the policy to return to the Corporation back. The amount to be refunded in case the policy is returned within the cooling-off period, the amount of the premium paid by the policyholder , after deduction of the cost of stamp duty .
5 . Redemption Value:
No surrender value should be under this plan available.
No loan shall be given to the policyholders under this plan . By the Corporation
1. Assignment / Nominations :
No job is permitted under this policy .
Notification of change of nomination shall be submitted for registration at the office of the company, where this policy is operated as the type of annuity chosen , either for a guaranteed period and thereafter for life or refund the purchase price. When registering a nomination by the Corporation does not accept any responsibility or express an opinion on the validity or legal effect .
2. Normal requirements for claim :
For annuities in payment : Existence Certificate by the annuitant once in a year before the policy anniversary and the release of annuity checks under all the annuity options except presented in the following cases :
1. Under option ii ) during the guaranteed period
2. Under option iii )
Upon the death of the Annuitant : The normal documents which the applicant shall , while filing the claim in case of death of the Annuitant will claim form as prescribed by the corporation , along with the original invoice , a certificate of title, proof of death, that apply if , in the opinion of the Corporation .
It will be applicable in the event the option is exercised :
1. Annuity option ii ) and the death of the annuitant occurs before the expiry of the warranty
1. Option iii ) ie Annuity for life with return of purchase price on death of annuitant
2. option v) or vi ) ie annuity for life with a provision of 50 % / 100 % of the interest to the spouse for life on death of the annuitant
In other cases, the benefit is withdrawn .
Further, if the age is not admitted under the policy , proof of age of the Annuitant shall also be submitted .