LIC Jeevan Shanti is a one-time premium payment annuity plan, by LIC India. This plan is very helpful to get fixed payouts at regular intervals for the whole life.
|Company||LIC of India|
|Plan Name||LIC Jeevan Shanti|
|Plan Type||Annuity (Pension Plan)|
|Plan Details||Table No.850|
|Active Since||12th September 2018|
How LIC Jeevan Shanti Works: You need to pay a single one-time payment for this annuity. Then LIC will regularly pay you fixed amounts for the rest of the life. You can get these regular amounts monthly, quarterly, half-yearly or annually till life.
The payouts that you are getting regularly is called an annuity. There is two option available to opt-in this plan, listed below:
- Immediate Annuity
- Deferred Annuity
To get these regular payouts there are 12 options available. We’re here to let you give a better understanding of it with the help of examples.
What We Think About Annuities & LIC Jeevan Shanti:
If you want a fixed income for life then annuities are perfect for you. By investing in these types of plans you can secure a fix monthly income for the whole life.
But these plans have one advantage & one disadvantage that, In the future, if the interest rates decreased then you there is no problem because your interest rates are locked. You will get the same fix amounts.
But if the interest rate increased then you will feel bad because your interest rates are locked so you will get the same fixed income with low-interest rates.
One more thing that if you have a pension plan with LIC India then you can’t withdraw more than 1/3 of it’s after maturity. Because LIC has a condition that you have to buy an annuity from LIC India with the remaining 2/3.
Available Annuity Options in LIC Jeevan Shanti
There are many options available to opt both in Immediate Annuity and Deferred Annuity, have a look below:
Immediate Annuity: Its name is saying almost everything, means your payouts will start immediately. You have to just pay a single premium to buy this plan and your payment will start immediately. You also have options to choose how you want to get payment, monthly, half-yearly or yearly.
Have a look below options available to opt-in LIC Jeevan Shanti Immediate Annuity:
- Immediate Annuity for Whole Life
- Immediate Annuity for Whole Life with a Guaranteed Period of 5 Years
- Immediate Annuity for Whole Life with a Guaranteed Period of 10 Years
- Immediate Annuity for Whole Life with a Guaranteed Period of 15 Years
- Immediate Annuity for Whole Life with a Guaranteed Period of 20 Years
- Immediate Annuity for Whole Life with Full Refund of Purchase Price
- Immediate Annuity for Whole Life with Increasing Simple Rate of Interest of 3% P.A
- Immediate Annuity with Joint Life Option for Whole Life, in this option 50% will be paid to the second annuitant on the death of the primary annuitant.
- Immediate Annuity with Joint Life Option for Whole Life, in this option, 100% annuity Will be Paid as long as one of the annuitants alive.
- Immediate Annuity with Joint Life Option for Whole Life, in this option, 100% annuity Will be Paid as long as one of the annuitant alive and refund of the policy purchase price on the death of the last member.
Eligibility To Opt ( Immediate Annuity )
Every policy has its own terms or we can say every insurance plan has an eligibility requirement that you need to fulfill to opt that plan. So Jeevan Shanti has some conditions, have a look on these below:
|Purchase Price||Rs 1,50,000||No Limit|
|Entry Age||30 Years||85 Years ( 100 Years For Point Num 6 )|
Immediate Annuity for Joint Life ( Point Number 8, 9, & 10 ) Can be opted by only grandparents, parents, children, grandchildren, wife and siblings.
Deferred Annuity: Here in this option you will get payouts after a few years by purchasing it with a one-time single payment. So Deferred Annuity is the best for youngsters who have extra savings and want to plan their retirement for a fixed income. There is two option available in a deferred annuity, find below:
- Deferred Annuity for Single Life
- Deferred Annuity for Joint Life
Eligibility To Opt ( Deferred Annuity )
|Purchase Price||Rs 1,50,000||No Limit|
|Entry Age||30 Years||79 Years|
|Deferment Period||1 Year||20 Year ( Subject To Max Vesting Age )|
|Vesting Age||31 Years||80 Years|
3 Other Benefits of LIC Jeevan Shanti
- Easy Loan Facility: You can take a loan from LIC India when 1 year completed of your policy. Check their interest rates & if required, then apply for a loan easily.
- Surrender: You can surrender your policy whenever you want after the 3 months from policy completion, But only if you opted Annuity with return of purchase price.
- Free Look Period: The Best thing about this policy is that you have a free look period. This means if after purchasing of policy you are not satisfied or thinking to invest somewhere else then you can return the policy within the 15 days of receiving policy documents.
FAQ – Frequently Asked Question
What is the eligibility to buy LIC Jeevan Shanti plan?
If you are 30, you can buy Jeevan Shanti Plan offered by LIC India. Because 30 years is the minimum and 79-100 years is the maximum age to buy it. 1,50,000 is the minimum amount that you required to invest and there is no limit of the maximum amount to invest.
Which type of annuity option is available to choose in LIC Jeevan Shanti?
There are two types of annuity options available in this plan. 1st is Immediate Annuity and 2nd is deferred annuity. So we suggest opting wisely according to your financial goal.
Is there any tax benefit on LIC Jeevan Shanti?
Yes, you are eligible to get tax benefit under section 80CCC of the Income Tax Act, 1961 on the LIC Jeevan Shanti plan.
Can I purchase two or more Jeevan Shanti policy on my name?
Yes, there is no restriction on it. You can purchase any number of policies.
Is the pension amount Tax-free?
No, The pension you will get is taxable but the return of purchase price is Tax-free.
What documents do I need to buy Jeevan Shanti?
You require the following documents to buy the policy.
- PAN Cards
- Aadhar Cards
- Passport Size photo
- Latest IT Return
This is Tejas and I’m a web designer cum insurance professional writer. I love to write about insurance products available in India. I write to help and educate people that how insurance can help them to secure their future.
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Actually, I'm the biggest fan of LIC India But this plan is an annuity plan and not good for all but also good for those who are planning retirement. If you have a good amount that is useless than it is ok to invest in it otherwise everyone should compare online and invest in good plans. This is my point of view!