LIC’s New Jeevan Shanti (Pension Plan)

Description

 

The LIC Jeevan Shanti Plan offers several features that make it an attractive investment option. Let’s explore these features in detail:

1. Lifetime Income: LIC Jeevan Shanti provides a guaranteed income at regular intervals for the entire lifetime of the policyholder. This ensures financial security during retirement or any other stage of life.
2. Flexible Options: The plan offers flexibility in choosing from various available alternatives, allowing policyholders to select the one that best suits their financial needs. These alternatives include immediate annuity options and deferred annuity options.
3. Deferred Annuity: Under the deferred annuity option, policyholders can defer their annuity payments to a future date. The annuity rates are guaranteed during the deferment period, providing a secure source of income in the future.
4. Death Benefit: The plan includes death benefits for the nominee in case of the policyholder’s demise. The death benefit is calculated based on either the higher of the purchase price with accrued guaranteed additions minus the total annuity sum paid until the date of death or 105% of the purchase price.
5. Guaranteed Income: LIC Jeevan Shanti ensures that policyholders receive guaranteed income every month, providing financial stability. In the event of the policyholder’s early demise, the nominee receives the annuity benefits based on the chosen options.
6. Tax Benefits: Policyholders can avail of tax benefits under Section 80C of the Income Tax Act for the premium paid for LIC Jeevan Shanti. This tax deduction helps in reducing the taxable income, resulting in potential savings on income tax.
7. One-time Premium: The plan requires a one-time premium payment, making it a convenient option for individuals who want to secure their retirement income with a lump sum investment.

 

The LIC Jeevan Shanti Plan offers a range of benefits to policyholders, making it a comprehensive retirement and income solution. Here are some additional benefits of the plan:

1. Frequency of Annuity Payments: Policyholders have the flexibility to choose the frequency of annuity payments according to their preferences. The options include monthly, quarterly, half-yearly, or yearly payments, allowing for customized income planning.
2. Death Benefit: In the case of the deferred annuity plan, a death benefit is provided. This benefit ensures that the nominee receives the applicable death benefit amount in the event of the annuitant’s demise.
3. Loan Facility: Policyholders can avail loans against their LIC Jeevan Shanti annuity plans after a waiting period of three months from the policy issuance date or after the expiry of the free-look period, whichever is later. Loans can be taken by the primary annuitant in joint life policies. The loan amount is determined to ensure that the annual interest payable on the loan does not exceed 50% of the annuity amount.
4. Plan for the Benefit of Persons with Disabilities: The plan offers an option for the proposer to choose a Single Life Deferred Annuity Plan on their own life, with a person with a disability (Divyangjan) as the nominee. In this case, on the annuitant’s demise, the death benefit is utilized to purchase an immediate annuity for the life of the nominee with a disability.
5. Free Look-Up Period: LIC Jeevan Shanti Plans provide a free look-up period of up to 15 days. During this period, policyholders can review the policy’s terms and conditions. If dissatisfied, they can return the policy, stating the reason for dissatisfaction. This provision ensures that policyholders have the opportunity to assess the suitability of the plan.
6. Surrender Value: Policyholders have the option to surrender the policy at any time during the policy term. The surrender value is determined based on either the Guaranteed Surrender Value or the Special Surrender Value, whichever is higher. The Guaranteed Surrender Value factors vary based on the policy year.

 

Eligibility Criteria:

Parameters	Criteria for Eligibility
Minimum Entry Age	30 years (completed)
Maximum Age of Entry	79 years (completed)
Minimum Vesting Age	31 years (completed)
Maximum Vesting Age	80 years (completed)
Minimum Deferment Period	1 year
Maximum Deferment Period	20 years (subjected to the vesting age)

 

Minimum Annuity:

Mode of Annuity	Monthly	Quarterly	Half- Yearly	Annually
Minimum Annuity (per month)	Rs 1,000	Rs 3,000	Rs 6,000	Rs 12,000