MUMBAI: 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. LIC has seen massive inflows into this product, which offers returns that are half a percentage points more than the 10-year government securities.“We have decided to discontinue with the high interest rate of 7.5 per cent from December 1,” said the senior LIC executive. The executive said it would file for a revised plan having a lower interest rate of 6-6.5 per cent with the Insurance Regulator and Development Authority of India.

Source: Economic Times November 29, 2017 04:48 UTC