LIC Jeevan Akshay VII Plan (Table No. 857) is a popular immediate annuity plan by LIC in India that many people use for monthly pension. A lot of people look for annuity and interest rates of this policy. I recently got an email asking me What are the annuity rates of LIC Jeevan Akshay VII from February 2022?
So I thought providing a list of Jeevan Akshay interest rates in 2023 will be useful for many and hence, this article.
In LIC Jeevan Akshay Plan, the policyholder has the option to select the type of annuity from 10 available options on payment of a one-time lump sum amount. The annuity rates are guaranteed at the start of the policy, and then annuities are payable for the life of the annuitant(s).
If you want to know more about this policy, do read LIC Jeevan Akshay VII Review for a detailed analysis.
LIC Website link to Policy page – Link
So let’s straightaway have a look at the annuity rates of LIC Plan 857.
What is Jeevan Akshay VII Plan Annuity Rates? (2022-23)
Recently in February 2022, LIC increased the annuity rates of Jeevan Akshay VII Plan and launched the modified and latest version of the plan with product UIN 512N337V04 in 2023.
There is no straightforward way to look for the annuity rates or interest rate of Jeevan Akshay plan on LIC website or policy brochure. So to find out the LIC Jeevan Akshay 7 Interest Rate for 2023 or the latest annuity rates of LIC’s Jeevan Akshay VII (Plan No. 857, UIN : 512N337V04), I decided to use the LIC Online Premium Calculator on their website’s sales page (link).
Here is what the Jeevan Akshay Annuity calculator shows as the Immediate Annuity payable at yearly intervals that can be purchased for Rs 10 lakh premium under the 10 different options.
So here are the annuity rates for LIC’s Jeevan Akshay VII Plan Table 857 for different ages and different variants:
Annuity Rate of Option A of Jeevan Akshay VII:
- For age 30 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 6.90%
- For age 40 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 7.28%
- For age 50 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 7.95%
- For age 60 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 9.27%
- For age 70 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 12.05%
- For age 80 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 18.49%
Annuity Rate of Option B of Jeevan Akshay VII:
- For age 30 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 6.90%
- For age 40 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 7.28%
- For age 50 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 7.95%
- For age 60 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 9.27%
- For age 70 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 12.05%
- For age 80 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 18.49%
Annuity Rate of Option C of Jeevan Akshay VII:
- For age 30 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 6.90%
- For age 40 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 7.28%
- For age 50 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 7.95%
- For age 60 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 9.27%
- For age 70 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 12.05%
- For age 80 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 18.49%
Annuity Rate of Option D of Jeevan Akshay VII:
- For age 30 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 6.87%
- For age 40 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 7.23%
- For age 50 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 7.81%
- For age 60 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 8.72%
- For age 70 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 9.84%
- For age 80 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 10.48%
Annuity Rate of Option E of Jeevan Akshay VII:
- For age 30 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 6.87%
- For age 40 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 7.23%
- For age 50 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 7.81%
- For age 60 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 8.72%
- For age 70 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 9.84%
- For age 80 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 10.48%
Annuity Rate of Option F of Jeevan Akshay VII:
- For age 30 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.50%
- For age 40 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.56%
- For age 50 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.63%
- For age 60 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.73%
- For age 70 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.82%
- For age 80 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.93%
Annuity Rate of Option G of Jeevan Akshay VII:
- For age 30 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 5.01%
- For age 40 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 5.44%
- For age 50 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 6.15%
- For age 60 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 7.49%
- For age 70 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 10.23%
- For age 80 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 16.59%
Annuity Rate of Option H of Jeevan Akshay VII:
- For age 30 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 6.78%
- For age 40 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 7.09%
- For age 50 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 7.63%
- For age 60 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 8.68%
- For age 70 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 10.90%
- For age 80 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 16.00%
Annuity Rate of Option I of Jeevan Akshay VII:
- For age 30 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 6.66%
- For age 40 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 6.91%
- For age 50 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 7.34%
- For age 60 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 8.17%
- For age 70 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 9.94%
- For age 80 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 14.11%
Annuity Rate of Option J of Jeevan Akshay VII:
- For age 30 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.46%
- For age 40 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.52%
- For age 50 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.59%
- For age 60 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.67%
- For age 70 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.77%
- For age 80 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.87%
And since a lot of senior citizens (age 60 and above) use LIC Jeevan Akshay plan for annuity pension income, it might be a good idea to look at the annuity rates for senior citizens in Jeevan Akshay plan separately:
Senior Citizen Annuity Rates of Jeevan Akshay VII:
- Annuity rate for Senior Citizen aged 60 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 9.27%
- Annuity rate for Senior Citizen aged and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 9.27%
- Annuity rate for Senior Citizen aged 60 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 9.27%
- Annuity rate for Senior Citizen aged 60 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 8.72%
- Annuity rate for Senior Citizen aged 60 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 8.72%
- Annuity rate for Senior Citizen aged 60 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.73%
- Annuity rate for Senior Citizen aged 60 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 7.49%
- Annuity rate for Senior Citizen aged 60 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 8.68%
- Annuity rate for Senior Citizen aged 60 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 8.17%
- Annuity rate for Senior Citizen aged 60 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.67%
- Annuity rate for Senior Citizen aged 70 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 12.05%
- Annuity rate for Senior Citizen aged 70 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 12.05%
- Annuity rate for Senior Citizen aged 70 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 12.05%
- Annuity rate for Senior Citizen aged 70 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 9.84%
- Annuity rate for Senior Citizen aged 70 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 9.84%
- Annuity rate for Senior Citizen aged 70 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.82%
- Annuity rate for Senior Citizen aged 70 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 10.23%
- Annuity rate for Senior Citizen aged 70 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 10.90%
- Annuity rate for Senior Citizen aged 70 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 9.94%
- Annuity rate for Senior Citizen aged 70 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.77%
- Annuity rate for Senior Citizen aged 80 and choosing Option A (i.e., Annuity payable for life at a uniform rate) – Annuity Rate is 18.49%
- Annuity rate for Senior Citizen aged 80 and choosing Option B (i.e., Annuity payable for a guaranteed period of 5 years) – Annuity Rate is 18.49%
- Annuity rate for Senior Citizen aged 80 and choosing Option C (i.e., Annuity payable for a guaranteed period of 10 years) – Annuity Rate is 18.49%
- Annuity rate for Senior Citizen aged 80 and choosing Option D (i.e., Annuity payable for a guaranteed period of 15 years) – Annuity Rate is 10.48%
- Annuity rate for Senior Citizen aged 80 and choosing Option D (i.e., Annuity payable for a guaranteed period of 20 years) – Annuity Rate is 10.48%
- Annuity rate for Senior Citizen aged 80 and choosing Option F (i.e., Annuity payable for life & return of purchase price) – Annuity Rate is 6.93%
- Annuity rate for Senior Citizen aged 80 and choosing Option G (i.e., Annuity payable for life increasing at 3% simple rate every year) – Annuity Rate is 16.59%
- Annuity rate for Senior Citizen aged 80 and choosing Option H (i.e., Annuity payable for life & 50% for spouse) – Annuity Rate is 16.00%
- Annuity rate for Senior Citizen aged 80 and choosing Option I (i.e., Annuity payable for life & 100% for spouse) – Annuity Rate is 14.11%
- Annuity rate for Senior Citizen aged 80 and choosing Option J (i.e., Annuity payable for life & 100% for spouse & return of purchase price) – Annuity Rate is 6.87%
So if you are a senior citizen who is looking at LIC Jeevan Akshay vs Fixed Deposit for interest/annuity income, then you would have found above analysis of senior citizens annuity rates for Jeevan Akshay plan 857 useful.
As we can see from the above list of LIC Jeevan Akshay Annuity rates, the actual annuity or pension amount one gets is dependent on the pension option chosen and the age at the time of purchase of the policy. But in general, the annuity rates tend to be higher for higher age bands. And this is the trend across all variants of LIC Jeevan Akshay Plan 857 pension policy. So, you will get higher interest/annuity rates if you buy a LIC Jeevan Akshay policy at age 60 versus what you will get as pension when you buy at age 40.
So you can use the above list as a LIC Jeevan Akshay Pension Calculator to find out how much pension amount you will get as per your age and choice of the 10 options of Jeevan Akshay Plan. And please remember that we should also consider taxes as the annuity income is taxable. So the actual post-tax annuity rates will be much lower.
And here is an example of the annuity income or pension you will recieve as per the illustration provided by LIC:
A 45-year old purchases Jeevan Akshay Plan jointly with spouse aged 35-years by paying Rs 20 lakh. Here is the annual pension or the annuity income under various variants in this example:
- Option A: Immediate Annuity for life – Rs 1,48,400 per year. This is an annuity rate of 7.44% per annum.
- Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter – Rs 1,48,200 per year. This is an annuity rate of 7.42% per annum.
- Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter – Rs 1,47,600 per year. This is an annuity rate of 7.38% per annum.
- Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter – Rs 1,46,600 per year. This is an annuity rate of 7.33% per annum.
- Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter – Rs 1,45,600 per year. This is an annuity rate of 7.28% per annum.
- Option F: Immediate Annuity for life with return of Purchase Price – Rs 1,29,600 per year. This is an annuity rate of 6.48% per annum.
- Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a. – Rs 1,12,800 per year. This is an annuity rate of 5.64% per annum.
- Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant – Rs 1,41,400 per year. This is an annuity rate of 7.07% per annum.
- Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives – Rs 1,35,000 per year. This is an annuity rate of 6.75% per annum.
- Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor – Rs 1,37,800 per year. This is an annuity rate of 6.39% per annum.
Now whatever be the annuity rate at the time of purchase, it will remain fixed for life irrespective of whether it increases or decreases in later years for the new buyers. Except for in Option G where it increases by 3% each year.
The annuity can be paid either at monthly, quarterly, half yearly or yearly intervals. The numbers we saw earlier correspond to the annual payout only. If you opt for other payout options like monthly, quarterly, etc., the annuity rates will be slightly lower.
Ref: LIC Jeevan Akshay 7 Policy document & wordings.
So that was about the list of Annuity rates of LIC’s Jeevan Akshay VII since February 2022 (updated till 2023) in India. I hope this is useful for those who plan their annuity income or for those senior citizens who do retirement planning based on annuities (and are looking for LIC Jeevan Akshay for senior citizens annuity rates) like Jeevan Akshay VII annuity pension plan.