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LIC Jeevan Akshay VII (No. 857) | Review + Benefits | Should you Buy (2025)?

Dev Ashish

LIC Jeevan Akshay VII (Plan 857) is an immediate annuity plan by LIC that provides annuity starting immediately to the policyholder on payment of a one-time lumpsum amount.

If you want to know more about this LIC Jeevan Akshay VII Review (2025) article, then you will get to know all the LIC Jeevan Akshay VII Plan Details and LIC Jeevan Akshay VII Policy Benefits here. We will also see how to arrive at Jeevan Akshay annuity rates using LIC Jeevan Akshay 7 Pension Plan Calculator.

LIC had launched this non-linked, non-participating, policy named Jeevan Akshay VII (LIC Table No. 857) first time in 2020, and then had revised the plan a total of 4 times across following versions – Plan UIN 512N337V01 was available from 2020 to Feb-2022. The UIN 512N337V02 was available from Feb-2022 to Aug-2022. The third UIN 512N337V03 was available from Aug-2022 to Feb-2023.

And finally the latest Jeevan Akshay VII product UIN 512N337V04 has been available for investment since 28-February-2023 after some revision in Jeevan Akshay 7 Interest Rate in 2025.

LIC Website link to Policy page – Link

Many investors buy annuity products to generate an income stream during retirement years or whenever they get some lumpsum money and wish to replace their salary income (generally post retirement).

Let’s see the features now.

Benefits of LIC Jeevan Akshay VII (857)

Let’s see what are the LIC Jeevan Akshay Policy Benefits. Here are the plan details and prominent features:

Now let’s discuss the most important feature – Annuity options available under LIC Jeevan Akshay VII plan.

LIC Jeevan Akshay VII Plan’s 10 Annuity Options (2025)

Yes. That’s correct – this LIC Plan 857 offers 10 different kinds of immediate annuity variants or options to policyholder to choose from. Remember that the annuity or pension amount is a taxable income.

Note – If you are not sure about the difference between Immediate Annuity and Deferred Annuity Plan like LIC New Jeevan Shanti review, then here is a short explainer. In immediate annuity, the annuity payment starts immediately after payment of the lumpsum investment. On the other hand, in a deferred annuity product, you defer the annuity payments for a few years and the payments start at the end of the deferment period.

Once you decide to purchase or invest in LIC Jeevan Akshay, you need to make a one-time, lumpsum payment upfront. To understand more about the LIC Jeevan Akshay VII Plan Details, you as a policyholder can then choose any of the 10 available annuity options discussed below:

  1. LIC Jeevan Akshay-VII Annuity Option A – Immediate Annuity payable for life at a uniform rate. After annuitant, nothing will be payable upon the death of the annuitant, and the annuity payment shall end immediately.
  2. LIC Jeevan Akshay-VII Annuity Option B – Immediate Annuity payable for a guaranteed period of 5 certain and thereafter as long as the annuitant is alive. What this means is that the plan will continue to pay the annuity for the guaranteed period of 5 years, even in case of demise of the annuitant during the guaranteed period. In such a case, the annuity will be paid to the nominee.
  3. LIC Jeevan Akshay-VII Annuity Option C – Immediate Annuity payable for a guaranteed period of 10 years and thereafter till the annuitant is alive. What this means is that the plan will continue to pay the annuity for the guaranteed period of 10 years, even in case of demise of the annuitant during the guaranteed period. In such a case, the annuity will be paid to the nominee.
  4. LIC Jeevan Akshay-VII Annuity Option D – Immediate Annuity payable for a guaranteed period of 15 years and thereafter till the annuitant is alive. What this means is that the plan will continue to pay the annuity for the guaranteed period of 15 years, even in case of demise of the annuitant during the guaranteed period. In such a case, the annuity will be paid to the nominee.
  5. LIC Jeevan Akshay-VII Annuity Option E – Immediate Annuity payable for a guaranteed period of 20 years and thereafter till the annuitant is alive. What this means is that the plan will continue to pay the annuity for the guaranteed period of 20 years, even in case of demise of the annuitant during the guaranteed period. In such a case, the annuity will be paid to the nominee.
  6. LIC Jeevan Akshay-VII Annuity Option F – Immediate Annuity for life with return of purchase price on death of the annuitant. So if the annuitant passes away, the annuity payment will stop immediately and the Purchase Price (or originally invested amount) will be paid to the nominees.
  7. LIC Jeevan Akshay-VII Annuity Option G – Immediate Annuity payable for life increasing at a simple rate of 3% per year. That is, for each completed policy year, the annuity payment will be increased at a simple rate of 3% per year.
  8. LIC Jeevan Akshay-VII Annuity Option H – Immediate Joint Life Annuity for life with a provision of 50% of the annuity payable to the spouse (or secondary annuitant) during his/her lifetime on death of the primary annuitant
  9. LIC Jeevan Akshay-VII Annuity Option I – Immediate Joint Life Annuity for life with a provision of 100% of the annuity payable to the spouse (or secondary annuitant) during his/her lifetime on death of the primary annuitant
  10. LIC Jeevan Akshay-VII Annuity Option J – Immediate Joint Life Annuity for life with a provision of 100% of the annuity payable to the spouse (or secondary annuitant) during his/her lifetime on death of the primary annuitant. In addition, the purchase price (or original investment) to be returned on the death of the last survivor.

Do remember that the option chosen at the start of the LIC Table No. 857 policy is final and binding and cannot be changed later on. In the same way, the Annuity rates are decided and fixed and guaranteed at the beginning of the policy and remain the same. The annuity plan will then provide regular annuity payments of the calculated amount throughout the life time of the annuitant.

Sidenote – There is another simpler immediate annuity plan from LIC named LIC Saral Pension with just 2 ooptions to choose from. So those who want simplicity can also look at that plan – LIC Saral Pension Review.

Let’s say you buy a LIC annuity plan for Rs 20 lakh that offers an annuity rate is 6% per annum. In this case, you will get an annuity income of Rs 1.2 lakh per year or Rs 10,000 per month for life. The annuity rate for your plan is fixed at 6% for life, irrespective of whether it increases or decreases in later years for new buyers.

The annuity can be paid either at monthly, quarterly, half yearly or yearly intervals.

Ref: LIC Jeevan Akshay 7 Policy document & wordings.

LIC Jeevan Akshay VII Plan Annuity Rates (2025)

The major LIC Jeevan Akshay VII Policy Benefits or the annuity rate of LIC Jeevan Akshay plan you buy will depend on the policyholder’s age at the time of purchase and the and chosen annuity variant from the 10 available options. Generally, the annuity rates tend to increase with age. So, you will get higher rates if you buy a policy at age 65 versus what you will get when you buy at age 45.

To find out the LIC Jeevan Akshay 7 Interest Rate 2025 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 the website’s sales page (link) as the latest annuity rates are not available elsewhere on the LIC website.

Here is what the calculator shows as sample, i.e., annual amount of annuity payable at yearly intervals which can be purchased for Rs 10 lakh under different options for Immediate Annuity.

Data from LIC Website as of 28-May-2023

So if we reverse calculate the annuity rates using this table provided by LIC via its calculator, here are the annuity rates for LIC’s Jeevan Akshay VII Plan Table 857 for different ages and different variants:

Option A

Option D

Option F

Option G

Option H

Option I

Option J

As would be mighty clear by now once you have seen the indicative LIC Jeevan Akshay 7 Interest Rate 2025, 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.

Also, if we consider the taxation of annuity income, then obviously the effective annuity rates or returns will be much lower. These and annuity plans are best for those who are looking for constant stream of risk-free stable income and belong to comparatively lower tax slabs.

LIC Jeevan Akshay 7 Pension Illustrations

The LIC website offers following illustration (or sample) via the plan brochure that give out the full LIC Jeevan Akshay VII Policy Details

A 45-year old purchases Jeevan Akshay Plan jointly with spouse aged 35-years by paying Rs 10 lakh. Here are the annuity income under various variants in this case:

Can I use LIC Jeevan Akshay VII Plan for NPS Exit Annuity?

Yes. This LIC Table No. 857 plan does offer the option to take Immediate Annuity by NPS subscriber when the plan to exit from NPS. The annuity options as allowed as per PFRDA Regulations shall be available to NPS subscriber.

If a Government Sector NPS subscriber purchases this Plan as a default option, then Option J shall be available to the subscriber whose spouse is surviving on the date of purchase. Option F shall be available to the subscriber in the absence of his or her spouse.

How to purchase LIC Jeevan Akshay VII Plan online?

Step-by-step process to buy LIC’s LIC Jeevan Akshay VII Plan Online:

That’s how you can buy LIC Plan 857 online with rebates of about 2% on purchase amount.

Should You Buy LIC Jeevan Akshay VII Plan (857)?

That is the key question obviously after all the discussion, review of LIC Jeevan Akshay VII Review, and analysis of plan and policy benefits.

While there is no doubt about LIC being synonymous with trust in India, should you invest in LIC Jeevan Akshay VII Plan (857)?

Annuity plans have a very specific use case and that is to provide regular, reliable and stable income to the annuity buyer.

So for those who are looking for regular income, generally during retirement years, LIC Jeevan Akshay is definitely one of the most popular immediate annuity plans that offer regular pension income. But if you are in accumulation phase of life and don’t need pension or regular income as you are still actively working and getting salary/business income, then this is not for you.

Everybody doesn’t need to purchase an annuity plan. So first, you need to establish whether LIC Jeevan Akshay VII Plan does fit in your product suitability factor or not. And if it does, at what age should you purchase it (as annuity rates differ with age) and which variant (from 10 available) ones to choose from.

If you are looking for regular income post-retirement, then LIC Jeevan Akshay VII Plan (Table 857) can be one of the components of your income-generation bucket along with other options like SCSS and PMVVY, and POMIS or doing SWP from debt funds, regular interest income from FD, etc. You can also stagger your annuity purchases (instead of buying it in one go) to better optimize the overall annuity rate on your overall portfolio.

Hopefully, you would have found this LIC Jeevan Akshay VII Review of LIC’s popular Immediate Annuity plan (UIN – 512N337V04) useful and the policy details and LIC Jeevan Akshay Policy Benefits would be clear by now. You can use LIC’s Jeevan Akshay VII to generate annuity income throughout the life annuitant in India (2025). But make sure you understand and assess the suitability first.

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