Got a lump sum sitting around from your annual bonus, an FD that just matured, or maybe you sold a property? Instead of letting that money earn minimal interest in a savings account, single premium life insurance plans let you pay once and secure benefits for years, even decades – without worrying about annual premium payments.
LIC’s single premium landscape has changed significantly in 2026. The old Single Premium Endowment Plan (917) that many of us remember is no longer available for fresh purchases. Instead, LIC is focusing on two strong products: an immediate annuity plan for retirees and a brand-new whole life plan that just launched in January 2026.
Let me walk you through what’s available, how they compare, and which one might work for your situation.
What Exactly Are Single Premium Plans?
The concept is simple: you pay the entire premium upfront – one time, that’s it – and the policy runs for many years (sometimes your entire life) without you ever having to pay another rupee.
As of 2026, LIC offers single premium structures in two main categories:
- Immediate annuity/pension:
LIC Jeevan Akshay VII (Plan 857) – your lump sum converts into guaranteed periodic income starting immediately. - Whole life savings + income:
LIC Jeevan Utsav Single Premium (Plan 883) – LIC’s newest launch, combining life cover with guaranteed additions and flexible income options.
The old workhorse, Single Premium Endowment Plan 917, was withdrawn in October 2024. If you already have it, it continues, but for fresh purchases in 2026, it’s off the table.
LIC Jeevan Akshay VII (Plan 857): Turn Your Lump Sum Into Lifetime Pension
Think of Jeevan Akshay VII as LIC’s answer to “I have money now, I need income forever.” It’s an immediate annuity plan – you hand over your lump sum to LIC, and they start paying you a pension right away, for as long as you live.
How It Actually Works
- Single premium payment:
Example: You have ₹50 lakhs from retirement corpus or a property sale. You pay this once to LIC. - Immediate income:
Based on your age and chosen annuity option, LIC calculates how much pension you’ll get. This starts from the next instalment date (monthly/quarterly/half-yearly/yearly) as per mode chosen. - Lifetime guarantee:
The annuity rate and option you choose at the beginning are locked in for life. Markets don’t affect it; LIC cannot reduce it later.
The 10 Annuity Options (High-Level View)
LIC offers 10 immediate annuity options (single life and joint life).
In practice, most clients choose either life with return of purchase price or joint life with return of purchase price, balancing income and legacy.
Who Should Buy Jeevan Akshay VII?
- Retirees who need immediate, predictable income
You’re 60+, retired, holding ₹30-50 lakhs, and need monthly cash flow. This converts your lump sum into a guaranteed pension starting right away. - Conservative investors scared of market volatility
If equity swings and reinvesting FDs stress you out, this offers fixed income for life with no market risk. - Those with adequate life insurance already
If your protection need is already covered (via term plans, etc.), you can focus purely on income without needing additional life cover.
The Downsides to Know
- Very low liquidity:
Once invested, most options do not allow you to withdraw your principal. It’s effectively locked for life. - Annuity income is fully taxable:
Every rupee of pension is added to your taxable income and taxed at your slab rate. - No inflation protection:
If you start with ₹30,000/month today, it will still be ₹30,000 after 15-20 years; its purchasing power will drop over time. - Not ideal for younger people:
For those in their 40s, locking large sums into a life-long annuity usually isn’t optimal given changing needs and better growth alternatives.
Key Facts at a Glance – Jeevan Akshay VII
LIC Jeevan Utsav Single Premium (Plan 883): The Brand New Whole Life Plan
This is LIC’s newest single premium offering, launched on January 6, 2026 and available for sale from January 12, 2026. It’s completely different from Jeevan Akshay.
While Jeevan Akshay is pure pension with limited life cover, Jeevan Utsav Single Premium (Plan 883, UIN 512N392V01) is a comprehensive whole life savings plan that gives you:
- Life cover up to around age 100
- Guaranteed additions every year (for a chosen period)
- Flexible income options (regular or accumulated)
- Loan facility
- Strong legacy benefit for your family
The Core Structure
How Guaranteed Additions Work
LIC adds ₹40 per ₹1,000 of Basic Sum Assured every year during the “Guaranteed Addition (GA) period.”
Example:
- Sum Assured: ₹20,00,000
- GA rate: ₹40 per ₹1,000
- Annual GA: 20,00,000 × 40/1000 = ₹80,000 per year
- If GA period = 10 years → total GA = ₹8,00,000
These GAs boost both your death benefit and support income calculations.
You choose the GA period (typically 7-17 years) at inception; your income options kick in after this.
The Two Income Options: Regular vs Flexi
You decide at purchase how you want survival benefits:
Option 1: Regular Income Benefit – “Pension-Like” Simplicity
After the GA period ends, LIC pays you 10% of Basic Sum Assured every year for life.
Example (₹20 lakh SA, 10-year GA period):
- Years 1-10: No income; GAs accumulate
- Year 11 onwards: ₹2,00,000 per year (10% of ₹20 lakh) for as long as you live
Perfect if you want to design retirement income starting at a chosen age.
Option 2: Flexi Income Benefit – Accumulate, Then Use When Needed
Instead of automatic payout, the 10% of BSA is credited into a notional account earning 5.5% p.a. compounded annually, and you withdraw as needed.
Example:
- Year 11: ₹2 lakh credited
- Year 12: ₹2 lakh grows to ₹2.11 lakh (5.5%); another ₹2 lakh added → ₹4.11 lakh
- Year 13: ₹4.11 lakh grows, another ₹2 lakh added, and so on
You can withdraw partially or fully anytime as per policy rules.
This suits those who don’t need regular income immediately but want flexible, tax‑managed withdrawals and an emergency pool.
Death Benefit and Whole Life Coverage
If you die anytime before age ~100:
- Nominee gets Sum Assured on Death (higher of Basic Sum Assured or 1.25× tabular single premium)
- Plus accrued Guaranteed Additions
- Plus any accumulated but unpaid flexi income (if applicable)
If you survive up to the terminal age (e.g., 100), you receive a maturity-type benefit similar to the death benefit structure.
Additional Features
- High Sum Assured Rebate: Lower effective premium rate for higher BSA (e.g., ₹25-50 lakh+).
- Loan Facility: After conditions are met, you can take a loan without surrendering the policy.
- Optional Riders (extra premium):
Tax Angle – Jeevan Utsav Single Premium
- Premium: May qualify under Section 80C, subject to the ₹1.5 lakh overall limit.
- Death/Maturity: Benefits may qualify under Section 10(10D), subject to conditions (premium-to-sum-assured ratios, aggregate premium rules for policies after April 2023, etc.).
- Annual income: The 10% annual survival benefit is normally taxable; check with a CA for precise treatment.
Who Should Buy Jeevan Utsav Single Premium?
- People wanting an “FD alternative with life cover” – with guaranteed additions, lifelong cover, and structured income.
- Retirement planners in their 40s-50s – pay once, choose GA period so income begins around their retirement age.
- Those with sudden lump sum windfalls (inheritance, business sale, bonus).
- Conservative savers who want certainty and no market risk.
- Families wanting whole life protection and legacy planning up to age 100.
The Old Single Premium Endowment Plan 917 – Where Did It Go?
Many people still ask about LIC’s Single Premium Endowment Plan 917.
- Status: Withdrawn with effect from 1 October 2024 (Plan 917/UIN 512N283V02); a modified version with new plan number 717/UIN 512N283V03 exists, but the old 917 form is not sold now.
- What it was: Classic single premium endowment – one-time premium, bonuses added, and sum assured + bonus at maturity (10-25 years).
- If you already own it: Your policy continues; terms are honoured.
- For new buyers: Focus has shifted to Jeevan Utsav Single Premium for long-term savings with whole-life cover.
Side-by-Side: Jeevan Akshay VII vs Jeevan Utsav Single Premium
Quick Comparison Table
How to Choose: A Simple Decision Framework
Step 1: Define Your Primary Goal
- Need immediate income from lump sum right now?
→ Jeevan Akshay VII. - Want to build future income with life cover and flexibility?
→ Jeevan Utsav Single Premium.
Step 2: Consider Your Age
- 60+ and retired:
Jeevan Akshay is usually ideal for converting corpus into pension. - 40-55 planning for retirement:
Jeevan Utsav SP fits better; structure GA so income starts around 58-62. - 30s with long horizon:
Single premium plans are more about safety; for growth, SIPs in equity funds + term insurance often make more sense.
Step 3: Evaluate Liquidity Needs
- Can completely lock money? → Akshay is acceptable.
- Might need access in emergencies? → Utsav SP with loan + flexi option is safer.
- Need the cash within 3-5 years? → Better to avoid locking into either.
Step 4: Think About Taxes
- High tax bracket?
Remember annuity from Akshay is fully taxable each year. - Want potential tax‑efficient legacy?
Utsav’s death/maturity proceeds may qualify for Section 10(10D), subject to evolving rules.
My Honest Take: When Each Plan Makes Sense
- For retired parents (65+):
Jeevan Akshay VII, especially with return of purchase price, can be very practical – steady pension plus capital back to heirs. - For yourself in your 40s:
If you insist on a single premium insurance route, Jeevan Utsav SP with Flexi Income is more strategic – accumulation + future flexibility + whole‑life cover. - For someone in their 30s:
Better to build via term insurance + mutual funds rather than locking big single premiums. - For NRIs with India‑bound corpus:
Jeevan Utsav SP is attractive for rupee‑denominated guaranteed additions, structured income, and legacy planning.
Final Thoughts & Disclaimer
LIC’s single premium lineup in 2026 is focused and clear:
- Jeevan Akshay VII – immediate, guaranteed pension from a lump sum.
- Jeevan Utsav Single Premium – whole‑life cover with guaranteed additions and flexible income.
The old endowment 917 is now a legacy story; the real action for new investors is in these two products.
Disclaimer: Product features, eligibility, and tax treatment can change via LIC circulars and tax amendments. This guide reflects information as of January 2026. For latest features, premiums, and eligibility, always refer to LIC’s official website (licindia.in), current product brochures, and consult a licensed advisor. Insurance and annuity products involve long-term commitments, read all documents carefully before investing.
For personalized single premium illustrations or expert guidance on LIC Jeevan Akshay VII or LIC Jeevan Utsav Single Premium, visit lifeinsuranceadvisor.in or contact Shagun Verma on contact number 7651032666 for detailed assistance.
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