Surrender options in some of the LIC policies.
Jeevan Akshay a popular immediate annuity plan from LIC was preferred choice for several individual’s when the interest rates were lower.The major attraction was that the annuity is constant over the policy period.
But when the interest rates offered by the SBI was 9.5 per cent for a ten year deposits it appeared better than this plan. Since the Jeevan Akshay never had surrender option, based on the representation now LIC is offering surrender option with rider on several of the annuity schemes barring Jeevan Akshay VI(modified).
Some of the features of surrender options:
Immediate Annuity plans:-
The surrender value will be allowed under plans where life assured has opted for annuity option Annuity for life with return of purchase price on death.
The surrender value under in some plans will be 100 per cent of the purchase price/ cash option.
For policies issued under plan 97, wherein 30 per cent of the purchase price has been paid to annuitant at the end of 7 years from date of commencement, surrender value will be 100 per cent of purchase price less the amount already paid.
On receipt of application for surrender of policies under these plans,branch will process the request.
In some of the immediate annuity plans it further said the surrender under these plans will be allowed only on merit.
Surrender in Varishtha pension the surrender will be allowed only for treatment of self or spouse subject to maximum of 98 per cent.