JEEVAN AKSHAY

Promoter: Life Insurance Corporation of India (LIC)

Type: Immediate Annuity For Life

Some of the common questions answered

`What is an Annuity ?’

• Payment once a year against a single investment called `Corpus’

`Is the payment compulsorily once a year or is there any option to receive payment much earlier ?’

• Payment under an Annuity can be received once a year or twice a year or 4 times a year or 12 times a year with a slight variation.

`What is an Immediate Annuity ?’

• Payment of Annuity as above immediately. Thus, payment can be after 1 month from the date of investment or after 3 months or after 6 months or after 1 years.

`On what factors does the quantum of Annuity depends ?’

• Your age at which the Annuity is supposed to be received by you (called vesting age) and Annuity options you have chosen. One point to be borne in mind is that the quantum of Annuity keeps increasing with age.

`Who is an Annuitant ?’

• A person entitled to receive the Annuity installments.

`What are the various Annuity options available under Jeevan Akshay?’

• Option 1 : Annuity payment at the same rate guaranteed as long as the annuitant is alive. Nothing is payable on death. Obviously, this option carries maximum interest.

• Option 2 : Annuity payment at the same rate guaranteed for 5 years irrespective of whether the annuitant is alive or not and paid as long as the annuitant outlives 5 years. Nothing is payable on death after 5 years.

• Option 3 : Annuity payment at the same rate guaranteed for 10 years irrespective of whether the annuitant is alive or not and paid as long as the annuitant outlives 10 years. Nothing is payable on death after 10 years.

• Option 4: Annuity payment at the same rate guaranteed for 15 years irrespective of whether the annuitant is alive or not and paid as long as the annuitant outlives 15 years. Nothing is payable on death after15 years.

• Option 5: Annuity payment at the same rate guaranteed for 20 years irrespective of whether the annuitant is alive or not and paid as long as the annuitant outlives 20 years. Nothing is payable on death after20 years.

• Option 6: Annuity payment at the same rate guaranteed as long the annuitant is alive with return of `Corpus’ on death, whenever it occurs. Interest under this option is the lowest, but the additional feature of this option is that the purchase price of the annuity is available to the nominee as and when the annuitant is not alive for investment purpose.

• Option 7: Annuity payment increasing @ 3.00% per annum, simple, guaranteed for life. Nothing is payable on annuitant’s life.

• Option 8: Annuity payment at the same rate guaranteed as long as the annuitant is alive with 50% of the same guaranteed to the spouse on death of the annuitant, as and when it occurs.

• Option 9: Annuity payment at the same rate guaranteed as long as the annuitant is alive with 100% of the same guaranteed to the spouse on death of the annuitant, as and when it occurs.

`What is the effect of Income -tax on the investment made ?’

• Premium paid during currency of the policy along with other listed savings enjoys full exemption from income-tax upto Rs 1,00,000/- under section 80C of the Income-Tax Act 1961.

`What is the effect of Income -tax on the Annuity installments received under Jeevan Akshay ?’

• Annuity Installments received under Jeevan Akshay are deemed `salary’ and taxed as such.

`What is so special about Jeevan Akshay ?’

• Jeevan Akshay is an Immediate Annuity Plan. Installments are guaranteed for life. To that extent, cash problem arising at different intervals is solved once for all.

• Certain periodic compulsory financial committments can be taken care of by these annuity installments.

• As an Annuitant, you can opt for higher annuitant installments that allows you more freedom to spend in preference to return of `Corpus’ on your death.

• These annual installments can themselves pay your regular life insurance premium. Alternatively, with one single deposit under Jeevan Akshay, you can plan your regular life insurance portfolio so that your recurring premium payment will not pose any problem.

`I am an NRI investor. Can I invest on Jeevan Akshay ?’

• Yes, You can.

`How do I go about investing on Jeevan Akshay?’

• Please send an email to mail@bimahelpline.com