The Insurance Regulatory and Development Authority of India (IRDAI) has asked the Life Insurance Corporation (LIC) to review the return on its flagship Jeevan Akshay pension plan which provides regular income against upfront premium. The directive aims to ensure that returns are in line with yield on LIC’s investments.
Anand Jathan, one of the top agents at LIC, said, “While there are investments like the Pradhan Mantri Vaya Vandana Yojana (PMVVY), which provide a return of 8%, these are only for a period of 10 years. Jeevan Akshay pension is guaranteed for life with a widow pension option.” He added that the return of capital made this equivalent to a fixed deposit.
According to Jathan, investors selling real estate also choose to park their funds in LIC’s guaranteed return scheme. LIC is encouraging sales of the Jeevan Akshay plan as it significantly increases its top line and bumps up its market share. Agents who bring in large policies are being rewarded and recognized.
