LIC's to stop Jeevan Akshay plan from next month

The state-owned Life Insurance Corporation of India (LIC) has decided to stop its popular annuity scheme Jeevan Akshay from the next month, said an Economic Times report.

The LIC may reintroduce the plan by offering a lower rate, a senior offcial said the ET, adding "We have decided to discontinue with the high interest rate of 7.5% from December 1."

The executive reportedly said that single-premium guaranteed products help insurers boost revenue, but with the yield on the 10-year government bond at around 7.05%, it has become difficult to offer a high return.  

LIC would reportedly file for a revised plan having a lower interest rate of 6-6.5% with the Insurance Regulator and Development Authority of India.

Earlier in the month of September 2017, the IRDA had asked LIC to review the return on its flagship plan. The suggestion reportedly came at a time, when the LIC is witnessing record inflows into the plan.