Comparison Between LIC Jeevan Akshay VI and Fixed Deposit

Are you looking for the long term pension goal with minimum investement? Then, you should go into Jeevan Akshay. It's more attractive than band FD.

Jeevan Akshay VI

Here, you pay a lump sum to LIC and in return, LIC pays you a fixed sum of money for a certain period of time.

Eg: You pay LIC a sum of Rs 10 lakh on 1st January 2017. In return, LIC pays you Rs 60,000 per year (pre-tax) for the rest of your life.

Eg: You pay LIC a sum of 10 lakh on 1st January 2017. In return, LIC pays you Rs 50,000 for the rest of your life and the same amount after your death to your wife for the rest of her life.

You can get this money monthly, quarterly or annually, as per your choice. This type of pension plan is called an ‘annuity.’ There are many types of annuities. The annuity types offered by LIC under Jeevan Akshay VI are:

Annuity for life

This is the simplest version of an annuity. In this option, you pay a lump sum to LIC and in return, LIC pays you a fixed sum of money for the rest of your life. The annuity payments stop when you die. If the total amount you have received from LIC over the years is less than the lump sum you paid, too bad. However, in return for this feature, the annuity rate in this type of plan is higher than the other options on offer. The rate offered also increases rapidly as you grow older (because statistically, you are more likely to die with advancing age).

New Jeevan Nidhi

This a conventional insurance policy which offers you a sum assured on your life and also a return linked to the profits earned by LIC.

It also gives you:

1. Guaranteed additions equal to 5% of the sum assured for each completed year with the policy for the first 5 years.
2. A simple reversionary bonuses and final additional bonus

It is difficult to work out the return on this policy because it is linked to the profits that LIC is offering to share with you. These depend on the performance of the company.

On maturity, you can use the amount you receive to buy an annuity from an LIC in two ways.

1) The annuity can either start right away or

2) You can invest the matured lump sum as a single premium for a policy that will mature further down the line.