LIC to stop selling Jeevan Akshaya

Vastavam web: Life insurance  Corporation of  india will stop selling the popular annuity product Jeevan Akshay from next month, as falling interest rates have made it impossible to sustain returns at the current level. It may, however, reintroduce the plan by offering a lower rate, a senior executive said.

Jeevan  Akshay had been a cash cow for the state-run insurer, generating close to a fourth of its new business income. The single-premium plan contributed Rs 10,000 crore to LIC’s revenue so far this financial year and Rs 22,000 crore for the past two years.

The scheme that offers a regular income is currently paying a yield of 7.5 per cent.