If you want a guaranteed income you cannot outlive, LIC’s annuity (pension) plans convert a lump sum into a regular payout for life. The three main options — Jeevan Akshay-VII, New Jeevan Shanti and Smart Pension — look similar but suit different situations. Here is how to tell them apart.
LIC Jeevan Akshay-VII (857) — immediate pension
You pay a single lump sum and the pension starts straight away. This is the classic choice for someone at or near retirement who wants income to begin now. You lock in today’s annuity rate for life, and you can choose options such as return of purchase price to your nominee.
LIC New Jeevan Shanti (758) — deferred pension
You pay a lump sum now, but the pension starts after a deferment period of 1–12 years. Because LIC holds and grows your money during the wait, the eventual pension rate is higher than an immediate annuity. This suits someone who is, say, 50 today and wants a larger guaranteed income starting at 60.
LIC Smart Pension (879) — the newest option
Smart Pension is LIC’s latest single-premium annuity, with flexible immediate or deferred options and single or joint-life cover (you and your spouse). It is worth comparing directly against Akshay and Shanti for your exact age, because rates and options differ.
How to choose
- Need income now? Jeevan Akshay-VII.
- Have some years to wait for a higher pension? New Jeevan Shanti.
- Want the newest plan with joint-life flexibility? Smart Pension.
The honest tip
Annuity rates are locked for life, so the age at which you buy matters — older usually means a higher rate. But an equity SIP or NPS often builds a bigger corpus first; a sensible plan is to grow the money while you earn and buy the annuity at retirement to lock in lifelong income. Plan the whole thing with Plan Banao, and ask us for a personalised annuity quote.
Educational information, not individual advice. Exact pension depends on your age and LIC’s rate on the day you buy.