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What are Annuity Rates of LIC Jeevan Akshay VII From February-2022? | (Update 2023)

Dev Ashish

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:

Annuity Rate of Option B of Jeevan Akshay VII:

Annuity Rate of Option C of Jeevan Akshay VII:

Annuity Rate of Option D of Jeevan Akshay VII:

Annuity Rate of Option E of Jeevan Akshay VII:

Annuity Rate of Option F of Jeevan Akshay VII:

Annuity Rate of Option G of Jeevan Akshay VII:

Annuity Rate of Option H of Jeevan Akshay VII:

Annuity Rate of Option I of Jeevan Akshay VII:

Annuity Rate of Option J of Jeevan Akshay VII:

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:

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:

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.

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