LIC launches its first online, immediate annuity plan



Life Insurance Corporation of India (LIC) has launched its first online product, Jeevan Akshay VI, an immediate annuity product, on Thursday.

While private players have been selling insurance products online for past three years, LIC is taking the first step into online space.

On payment of a lump sum, a policyholder is entitled to an annuity from the very next month under any one of the seven annuity options chosen by him. The options are annuity payable for life at a uniform rate, annuity payable for five, 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 the spouse on death of the annuitant.

The other two options are annuity for life with a provision of 100 per cent of the annuity payable to spouse in case of the death of the policyholder and annuity for life with a provision of 100 per cent of the annuity payable with the purchase price being returned to the last survivor.

The product is available for ages 30 to 85 years.

The product was launched by J Hari Narayan, chairman, Insurance Regulatory & Development Authority (Irda) during the senior divisional managers’ conference of LIC in Mumbai. The Irda chairman remarked that there is a need for more annuity products.

LIC’s Jeevan Akshay VI is the only immediate annuity product available inIndia.

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