LIC Jeevan Akshay II Calculator is an online tool that estimates the pension payable under LIC Jeevan Akshay II, UIN 512N221V01. It uses details such as the purchase price, age at entry, annuity option and payment mode to calculate an estimated annuity amount.

LIC Jeevan Akshay II was a single-premium immediate annuity product. The policyholder paid a lump-sum purchase price and started receiving a regular pension according to the chosen payment mode. The plan allowed the annuity to be received monthly, quarterly, half-yearly or yearly.

LIC Jeevan Akshay II has been withdrawn and is no longer available for new purchases. Therefore, this calculator is mainly useful for understanding an old policy, reviewing historical benefits or checking an earlier pension illustration. It does not provide a current LIC quotation.

Important notice: LIC Jeevan Akshay II is a withdrawn product. The results produced by this calculator are historical estimates. The original policy schedule and other records issued by LIC will determine the actual pension and benefits payable.

What Is LIC Jeevan Akshay II Calculator?

LIC Jeevan Akshay II Calculator estimates the regular pension that could be received after investing a single lump-sum amount in LIC Jeevan Akshay II. The amount invested to purchase the annuity is known as the purchase price.

The estimated pension depends on the annuitant’s age when the policy was purchased, the annuity option, guaranteed period, payment mode and applicable historical annuity rate. A change in any of these details can change the pension amount.

The calculator is useful because LIC Jeevan Akshay II offered five different annuity options. Some options provided pension only during the annuitant’s lifetime, while others offered guaranteed payments, return of purchase price or continuation of part of the pension to the surviving spouse.

A correct calculation requires the annuity rate applicable to the selected age, option and payment mode. A yearly annuity rate should not automatically be used to calculate monthly or quarterly pension.

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What Is LIC Jeevan Akshay II?

LIC Jeevan Akshay II, UIN 512N221V01, was an immediate annuity product designed to provide regular income after payment of a single purchase price. It was not a regular-premium insurance policy, and the policyholder was not required to pay premiums every year.

After purchasing the annuity, the policyholder received a pension at the selected interval. The first payment became due after one month in monthly mode, three months in quarterly mode, six months in half-yearly mode, or one year in yearly mode.

The minimum entry age was 40 years, and the maximum entry age was 79 years, based on the last birthday. The minimum purchase price was ₹50,000 or the amount required to secure a minimum yearly annuity of ₹3,000.

The official brochure did not specify any maximum limit for the purchase price or annuity. No medical examination was required to purchase the policy.

LIC Jeevan Akshay II did not acquire a paid-up value. It also did not provide surrender value or a policy loan. These conditions made it important to understand the selected annuity option carefully.

How LIC Jeevan Akshay II Worked

The policyholder first paid the purchase price as a single lump sum. LIC then determined the pension according to the annuitant’s age, selected annuity option, payment frequency, and applicable annuity rate.

The annuity was payable in arrears. This means that the pension instalment was paid after completion of the relevant payment period. In monthly mode, the first instalment became payable after one month. In yearly mode, it became payable after one year.

The pension generally continued throughout the annuitant’s life. What happened after the annuitant’s death depended on the option chosen at the time of purchasing the policy.

Under the basic lifetime pension option, payments stopped after death. Under the return-of-purchase-price option, the pension stopped and the purchase price was returned to the nominee. Other options provided a guaranteed payment period, a 3% simple annual increase, or continuation of 50% pension to the spouse.

LIC Jeevan Akshay II Annuity Options

Regular annuity for life

Under this option, pension was paid throughout the annuitant’s lifetime. After the annuitant’s death, pension payments stopped, and no further amount was payable to the nominee.

As this option did not provide return of purchase price or pension to a surviving spouse, its annuity rate could be different from the rates offered under options carrying additional benefits.

Annuity guaranteed for 5, 10, 15 or 20 years and life thereafter

This option allowed the annuitant to select a guaranteed period of 5, 10, 15 or 20 years. Pension was guaranteed for the selected period, irrespective of whether the annuitant survived the entire period.

If the annuitant died during the guaranteed period, the nominee continued receiving pension until the end of that period. If the annuitant was alive after the guaranteed period, pension continued for the rest of the annuitant’s life.

If death occurred after completion of the guaranteed period, pension stopped, and no further amount was payable.

Life annuity with return of purchase price

Under this option, pension was paid throughout the annuitant’s lifetime. After the annuitant’s death, pension payments stopped, and the original purchase price was returned to the nominee.

The amount returned under this option was not a maturity benefit. It became payable only after the annuitant’s death and only if this particular annuity option had been selected.

Annuity increasing at a simple rate of 3% per year

Under this option, the pension increased by 3% of the initial annuity for every completed policy year. The annual increase was calculated at a simple rate and was not compounded.

For example, if the starting yearly pension was ₹30,000, the annual increase would be ₹900. The pension would become ₹30,900 in the second year, ₹31,800 in the third year and ₹32,700 in the fourth year.

After the annuitant’s death, pension payments stopped and no further benefit was payable under this option.

Life annuity with 50% pension to spouse

Under this option, the primary annuitant received the full pension throughout life. After the primary annuitant’s death, the surviving spouse received 50% of the pension for the remainder of the spouse’s life.

Pension payments stopped after the spouse’s death. If the spouse died before the primary annuitant, the full pension continued to the primary annuitant and stopped after the primary annuitant’s death.

Benefits of LIC Jeevan Akshay II

The main benefit of LIC Jeevan Akshay II was regular pension after payment of a one-time lump sum. There was no requirement to pay yearly or monthly premiums after purchasing the annuity.

The four payment modes allowed the annuitant to choose a suitable income frequency. Monthly pension could be used for regular household expenses, while quarterly, half-yearly or yearly modes could be selected for less frequent financial requirements.

The five annuity options offered different combinations of pension and protection. The guaranteed-period option protected pension payments for a chosen minimum period. The return-of-purchase-price option provided the original purchase price to the nominee after the annuitant’s death.

The spouse option allowed 50% of the pension to continue to the surviving spouse. The increasing-annuity option provided a gradual rise in pension, although a simple annual increase of 3% should not be considered complete protection against inflation.

Highlights of LIC Jeevan Akshay II Calculator

LIC Jeevan Akshay II Calculator provides an estimated pension without requiring lengthy manual calculations. It can show the annual pension, payment frequency, and approximate amount of each instalment.

The calculator also helps compare the available annuity options. An option that provides a higher initial pension may offer fewer benefits after death. An option that returns the purchase price or continues pension to the spouse may provide a different pension amount.

Another important feature is the inclusion of the high purchase-price incentive. The historical brochure offered an addition to the annuity rate when the purchase price reached certain limits. The incentive depended on both the purchase-price slab and payment mode.

The calculator can also explain what will happen after the annuitant’s death. This helps distinguish guaranteed-period payments, spouse pension and return of purchase price from a regular maturity benefit.

How to Calculate Pension Using LIC Jeevan Akshay II Calculator

The basic calculation is:

Yearly pension = Purchase price ÷ 1,000 × Applicable annuity rate

The amount payable in each instalment can then be calculated as:

Pension instalment = Annualised pension ÷ Number of payments in a year

Yearly mode has one payment, half-yearly mode has two payments, quarterly mode has four payments and monthly mode has twelve payments.

However, the correct annuity rate must first be selected. The rate can depend on the annuitant’s age, annuity option, guaranteed period, purchase price and payment mode.

The yearly pension should not simply be divided by 12 to produce a monthly result unless the yearly calculation already uses the applicable monthly-mode rate. Historical incentives and annuity rates could differ according to the selected mode.

High Purchase-Price Incentive

LIC Jeevan Akshay II provided an increase in the annuity rate for higher purchase prices. This incentive was expressed as an additional yearly annuity amount per ₹1,000 of purchase price.

No additional incentive was available for a purchase price below ₹1,50,000.

For purchase prices from ₹1,50,000 to ₹2,99,999, the addition was ₹1.00 in yearly and half-yearly modes, ₹1.25 in quarterly mode and ₹1.50 in monthly mode.

For a purchase price of ₹3,00,000 or more, the addition was ₹2.00 in yearly and half-yearly modes, ₹2.50 in quarterly mode and ₹3.00 in monthly mode.

This incentive was added to the relevant annuity rate. It was not calculated as a percentage of the total purchase price.

How to Use LIC Jeevan Akshay II Calculator

Enter the original purchase price paid for the policy. Select the annuitant’s age when the policy was purchased and choose the applicable annuity option.

If the guaranteed-period option is selected, choose the relevant period of 5, 10, 15 or 20 years. After that, select the monthly, quarterly, half-yearly or yearly payment mode.

Enter or confirm the historical annuity rate applicable to the selected combination. Press the Calculate button to see the estimated annual pension, payment frequency and instalment amount.

The result may also show the benefit payable after the annuitant’s death. Use the Reset button to clear the entered details and perform a fresh calculation.

If an original policy schedule or LIC-issued pension quotation is available, the rate and pension amount mentioned in that document should be used instead of a sample rate.

Real Calculation Example

Consider a purchase price of ₹3,00,000 and an entry age of 60 years. The selected option is regular annuity for life and the payment mode is yearly.

The official historical brochure illustrates a yearly life-annuity rate of ₹77.80 per ₹1,000 of purchase price at age 60. As the purchase price is ₹3,00,000, an additional yearly-mode incentive of ₹2.00 per ₹1,000 applies.

The final illustrative annuity rate is:

₹77.80 + ₹2.00 = ₹79.80 per ₹1,000

The estimated yearly pension is calculated as follows:

₹3,00,000 ÷ 1,000 × ₹79.80 = ₹23,940

Therefore, the estimated historical pension is ₹23,940 per year.

This example applies only to the stated age, regular life-annuity option and yearly payment mode. It should not be used to claim an official monthly pension by simply dividing ₹23,940 by 12. The relevant monthly-mode rate and incentive would be required for a proper monthly calculation.

What Happens After the Annuitant’s Death?

Under regular annuity for life, pension payments stop immediately after the annuitant’s death and no further amount is payable.

Under the guaranteed-period option, the nominee continues receiving pension until the selected guaranteed period ends if the annuitant dies within that period. If death occurs after the guaranteed period, pension stops.

Under the return-of-purchase-price option, pension stops and the original purchase price is returned to the nominee.

Under the 3% increasing-annuity option, pension stops after the annuitant’s death and no further payment is made.

Under the spouse option, 50% of the pension continues to the surviving spouse for life. Payments stop after the spouse’s death.

Does LIC Jeevan Akshay II Have a Maturity Benefit?

LIC Jeevan Akshay II did not provide a conventional maturity benefit because it was an immediate annuity product without a fixed maturity date. Its main purpose was to provide regular pension during the annuitant’s lifetime.

The return of purchase price under the applicable option should not be described as maturity value. It became payable to the nominee after the annuitant’s death and only when that specific option was chosen.

If the policyholder selected another option, the purchase price was not automatically returned. The calculator should therefore show the regular pension and option-specific benefit rather than presenting a maturity amount.

Surrender Value, Policy Loan and Paid-up Value

According to the official brochure, LIC Jeevan Akshay II did not provide a surrender value. The policyholder could not close the policy after commencement and claim a standard surrender amount.

No policy loan was available. The policy also did not acquire paid-up value because the complete purchase price was paid at the beginning as a single lump sum.

The product included a 15-day cooling-off period. If the policyholder did not agree with the policy’s terms and conditions, the policy could be returned within the stated period, subject to LIC’s applicable conditions.

Important Limitations of the Calculator

LIC Jeevan Akshay II has been withdrawn and cannot be purchased as a new policy. The calculator is intended for understanding historical benefits and reviewing an existing policy.

The official brochure provides sample annuity rates for selected ages and options. It does not provide every possible rate combination in the brief illustration. A calculator should not present assumed or interpolated rates as official LIC rates.

The estimated result may vary because of the selected option, age, guaranteed period, payment mode, applicable incentive and rounding method. The calculator also does not replace the original policy bond or schedule.

If there is any difference between the online estimate and LIC’s records, the annuity and benefits stated in the issued policy documents will apply.

Frequently Asked Questions

Is LIC Jeevan Akshay II still available?

No. LIC Jeevan Akshay II is a withdrawn product and is not available for new purchases.

What is the UIN of LIC Jeevan Akshay II?

The UIN is 512N221V01.

Was it a single-premium policy?

Yes. The policyholder paid a single lump-sum purchase price. There were no recurring premiums.

Did LIC Jeevan Akshay II return the purchase price?

The purchase price was returned to the nominee only when the life-annuity-with-return-of-purchase-price option had been chosen.

Could the policy be surrendered?

No surrender value was available under the product according to the official brochure.

Was a policy loan available?

No. LIC Jeevan Akshay II did not provide a policy loan facility.

Does the calculator provide the exact pension?

The calculator provides a historical estimate. The pension stated in the original policy schedule is the contractual amount.

Conclusion

LIC Jeevan Akshay II Calculator helps estimate historical pension using the purchase price, age at entry, annuity option and payment mode. It also explains guaranteed-period payments, return of purchase price, increasing pension and continuation of 50% pension to a surviving spouse.

As LIC Jeevan Akshay II has been withdrawn, the calculator should be used only for educational purposes or to understand an existing policy. An accurate estimate requires the correct historical annuity rate for the selected age, option and payment mode.