LIC Jeevan Shanti Versus LIC Jeevan Akshay-VI: Which One To Choose

Life Insurance Corporation of India (LIC), the country's largest life insurance company, is offering pension plans apart from the term insurance and endowment insurance products that the LIC offers. LIC's Jeevan Shanti plan and LIC Jeevan Akshay-VI plan among other pension plans are being offered by the LIC which ensure pensions (annuity) on an immediate or deferred basis on a monthly, quarterly, half yearly or yearly basis according for LIC's website www.licindia.in. (Also Read: LIC Jeevan Shanti Policy: Premium, Pension And Other Details Here)

Here are details about premium to pay and pensions being offered by LIC Jeevan Shanti and LIC Jeevan Akshay 6 LIC policies:

LIC Jeevan Akshay VI Plan

LIC Jeevan Akshay is a pension plan which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant, according to LIC's website. Minimum purchase price for the LIC Jeevan Akshay is Rs 1 lakh for all distribution channels except online and Rs 1.5 lakh via online sale.

Also Read: LIC Jeevan Labh Policy: Premium, Benefits, Sum Assured And Other Details Here

Any individual between the age group of 30 and 85 years can buy this policy and no medical examination is required to avail the policy.

The following options for pension (annuity) are available under the LIC Jeevan Akshay-VI plan:

• Annuity payable for life at a uniform rate.
• Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
• Annuity for life with return of purchase price on death of the annuitant.
• Annuity payable for life increasing at a simple rate of 3 per cent per annum.
• Annuity for life with a provision of 50 per cent of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Annuity for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Annuity for life with a provision of 100 per cent of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of last survivor.

LIC Jeevan Akshay policy buyers can choose from one of the seven pensions mentioned above being offered under the plan.

Also Read: From Premium, Maturity To Tax Benefit: Key Things To Know About LIC New Jeevan Anand Plan

Amount of annuity payable under LIC Jeevan Akshay-VI at yearly intervals which can be purchased for Rs 1 lakh under different options is as under:

Source: LIC

LIC Jeevan Shanti Plan

LIC's Jeevan Shanti plan can be purchased by paying a single premium of a minimum Rs. 1.5 lakh and there is no upper limit for the premium.

Policy holders get nine different annuity options to choose from. The various annuity options are as follows, according to information on LIC's website.

• Option A: Immediate annuity for life
• Option B: Immediate annuity with guaranteed period of 5 years and life thereafter
• Option C: Immediate annuity with guaranteed period of 10 years and life thereafter
• Option D: Immediate annuity with guaranteed period of 15 years and life thereafter
• Option E: Immediate annuity with guaranteed period of 20 years and life thereafter
• Option F: Immediate annuity for life with return of purchase price
• Option G: Immediate annuity for life increasing at a simple rate of 3 per cent per annum
• Option H: Joint Life Immediate Annuity for life with a provision for 50 per cent of the annuity to the secondary annuitant on death of the primary annuitant
• Option I: Joint life immediate annuity for life with a provision for 100 per cent of the annuity payable as long as one of the Annuitant survives
• Option J: Joint life immediate annuity for life with a provision for 100 per cent of the annuity payable as long as one of the annuitant survives and return of purchase price on death of the last survivor

For instance an individual purchases Jeevan Shanti plan at the age of 45 with a deferment period of 20 years he/she will get the following annuity amount under the annuity option chosen by the policy holder.

Source: LIC

Both the Jeevan Akshay-VI and LIC Jeevan Shanti plans can be returned to the LIC if an individual is not satisfied with terms and conditions of the policy. Premium paid towards these LIC policies qualify for tax rebate under the section 80c of Income Tax Act.