LIC’s One-Time Investment Plan : For those looking to build a steady and secure income source during retirement, LIC’s one-time investment pension plan offers a reliable solution. With a lump sum payment, policyholders can enjoy guaranteed monthly income for life, providing financial stability and peace of mind in their golden years. This scheme is especially beneficial for retirees, senior citizens, and individuals planning for long-term security.
What is LIC’s One-Time Investment Pension Plan?
LIC (Life Insurance Corporation of India) offers several annuity-based pension plans, but the most popular among them for one-time investment is the LIC Jeevan Akshay VII. This plan allows individuals to invest a lump sum and start receiving pension payouts either monthly, quarterly, half-yearly, or annually—depending on their preference.
Key Features of LIC’s One-Time Investment Plan:
- Single premium payment with lifetime pension benefit
- Immediate annuity begins after investment (no waiting period)
- Pension options include monthly, quarterly, half-yearly, or annual payouts
- Different annuity options like single life or joint life
- Guaranteed fixed pension amount for life
- Return of purchase price option available in select variants
- Eligible for tax benefits under applicable sections
Eligibility Criteria for LIC Jeevan Akshay VII:
- Minimum age at entry: 30 years
- Maximum age at entry: 85 years (depends on annuity option)
- Minimum purchase price: ₹1,00,000 (₹1.5 lakh for online)
- No maximum limit on investment
- Annuity starts immediately after investment
Types of Annuity Options Available
| Annuity Option | Description |
|---|---|
| Option A – Life Annuity | Pension paid for life; stops upon death |
| Option B – Life Annuity with Return of Purchase | Pension for life + return of investment after death |
| Option C – Annuity for 5/10/15/20 Years | Guaranteed payout for a period, then till lifetime |
| Option D – Joint Life Last Survivor (50%) | Pension continues to spouse at 50% rate after policyholder’s death |
| Option E – Joint Life Last Survivor (100%) | Full pension to spouse after policyholder’s death |
| Option F – Joint Life with Return of Purchase | Full pension to spouse + return of purchase price after both demise |
| Option G – Increasing Annuity | Pension increases by 3% annually for life |
Monthly Pension vs Investment – Sample Scenarios
| One-Time Investment (₹) | Annuity Option | Monthly Pension (Approx ₹) | Return of Purchase Price |
|---|---|---|---|
| ₹5,00,000 | Life Annuity (No Return) | ₹3,400 | No |
| ₹5,00,000 | Life Annuity + Return | ₹2,900 | Yes |
| ₹10,00,000 | Life Annuity (No Return) | ₹6,800 | No |
| ₹10,00,000 | Life Annuity + Return | ₹5,700 | Yes |
| ₹15,00,000 | Joint Life (50% to Spouse) | ₹7,500 | No |
| ₹15,00,000 | Increasing Annuity | ₹5,800 (1st Year) | No |
| ₹20,00,000 | Joint Life + Return of Purchase | ₹9,200 | Yes |
Who Should Consider This Pension Plan?
This plan is ideal for:
- Retirees seeking a guaranteed income stream
- Individuals without regular post-retirement pensions
- Parents who want to ensure lifelong financial support
- Spouses seeking joint income security
- Investors looking for low-risk, fixed returns
See more : EPFO 3.0 to Allow PF Withdrawals via ATM
Benefits of LIC Jeevan Akshay VII:
- Assured Returns: Pension amount remains constant (or increases, depending on option)
- Flexible Options: Choose annuity type as per your life goals and family needs
- Tax Benefits: Premium may be eligible for tax deduction under Section 80CCC
- Legacy Planning: Return of purchase price ensures wealth passes to nominee
- Government Backed Security: LIC is India’s largest insurer with strong credibility
Comparison with Other Retirement Options
| Feature | LIC Jeevan Akshay VII | NPS | Post Office Monthly Income |
|---|---|---|---|
| Investment Type | One-time lump sum | Periodic contributions | One-time or monthly |
| Pension Start | Immediate | After retirement age | Immediate |
| Return Guarantee | Fixed for life | Market-linked | Fixed |
| Withdrawal Flexibility | No (fixed annuity) | Partial allowed | No premature withdrawal |
| Risk | Very Low | Moderate to high | Low |
| Tax Benefits | 80CCC (limited) | 80CCD(1B) & others | ₹15,000 limit under 80C |
Important Considerations Before Investing:
- Once annuity option is selected, it cannot be changed later
- No option to surrender the policy (except under specific conditions)
- Annuity rates are fixed at the time of purchase
- Pension is taxable as per income tax slab
How to Buy LIC’s Jeevan Akshay VII:
- Visit LIC’s official website or nearest LIC branch
- Choose annuity option and enter details like age, investment amount
- Submit required documents (ID proof, age proof, bank details)
- Make lump sum payment
- Start receiving monthly/quarterly/annual pension
Documents Required:
- Identity Proof (Aadhaar, PAN)
- Age Proof (Birth certificate, Aadhaar)
- Address Proof (Utility bills, Aadhaar)
- Bank account details
- Photograph
LIC’s one-time investment plan under Jeevan Akshay VII offers a stable, secure, and worry-free retirement solution. With guaranteed monthly income, tax benefits, and options for lifelong or joint pensions, it stands as one of the most trusted pension instruments for Indian retirees. If you’re planning for a peaceful post-retirement life, this is a plan worth considering.
