LIC New Jeevan Shanti Plan

LIC’s New Jeevan Shanti is a non-linked, single premium paying plan offering the policyholder an option to opt from Single Life and Joint Life Deferred Annuities. The annuity rates are pre-stated and guaranteed at the inception of the policy and are payable throughout the lifetime of the annuitant once the deferred period is over. For ease, the plan is available for online and offline purchases.

Below mentioned are the highlights of LIC New Jeevan Shanti Plan

• Plan Type

  Pension Plan

• Annuity Options

  Two different annuity options

• Annuity Type

  Deferred Annuity

• Entry Age

  30 years - 79 years

• Vesting Age

  31 years - 80 years

The following are the eligibility criteria and restrictions to buy the Jeevan Shanti plan by Life Insurance Corporation of India.

• Minimum Purchase Price

  Rs. 1,50,000 (subject to a minimum annuity specified)
  Rs. 50,000 (in case the policy is purchased for the benefit of a dependent person)

• Maximum Purchase Price

  No Limit

• Minimum Deferment Period

  1 year

• Maximum Deferment Period

  12 years subject to maximum vesting age

• Joint Life Annuity

  Available for (between any two of)
  > Lineal Discedent: Grandparent, Parent
  > Or Lineal Ascendent: Children, Grandchildren
  > Or Spouse
  > Or Siblings

The minimum annuity is payable as specified

* No restriction of minimum annuity should be applied if the policy is purchased for the benfit of a dependent person with a disability.

Two deferred annuity options are available to select from

• Option 1

  Deferred Annuity for Single Life

• Option 2

  Deferred Annuity for Joint Life

* Once an annuity option is selected, no alternations are allowed.

Death Benefit:

The pension holder can receive death benefit under LIC Jeevan Shanti in a lump sum, in instalments, or annuities. Once the option is opted by the annuitant, no changes are allowed to be made by the nominee. The death benefit under both Option 1 and Option 2 is calculated as

Higher of

Purchase Price + Accrued Additional Benefit on Death – Total Annuity Amount Payable till the date of death (if any)
>or 105% of the Purchase Price

Where

Accrued Additional Benefits on Death are added to the end of each policy month until the end of the Deferment Period. The rate of Additional Benefit on Death during the deferment period can be calculated as

The death benefit under LIC of India’s New Jeevan Shanti is provided as per the conditions applicable to the deferment period and the option selected at the time of inception of the policy

Let’s understand how the New Jeevan Shanti plan work with an example.

Say, Amit, at the age of 45 years, decides to plan his retirement after working hard throughout his life. After researching, he plans to buy LIC New Jeevan Shanti. He purchases a plan with a purchase price of Rs. 10 lakh and for a deferment period of 12 years.

* All the annuity rates originated from Life Insurance Corporation of India official website. You can take the help of LIC New Jeevan Shanti calculator to know the annuity payment prices for your requirement and adequate retirement planning.

Jeevan Shanti plan from LIC of India provides additional features that make the purchase worthwhile for those years of life when you require most of the backup. Let’s look into the features of the plan to enhance the benefits per your requirements

Payment of annuity can be made in yearly, half-yearly, quarterly, and annual modes. Hence as per the mode selected, the annuity payment will start from the date of vesting.

Incentives are available under New Jeevan Shanti from LIC of India as follows

a. Incentive for Higher Purchase Price

For higher purchase price by way of an increase in the annuity rate

b. Incentive for Direct Sale

If the policy is purchased online and as QROPS, a rebate of 2% by way of an increase in the annuity rate is applicable.

If you opt for annuity payment other than annual (say half-yearly or quarterly, or monthly), then a reduction by way of a decrease in the annuity is as follows

The policyholder is allowed to surrender the policy anytime during the policy term. The surrender value shall be

Higher of

Guaranteed Surrender Value (GSV)
Or, Special Surrender Value

Where

The Guaranteed Surrender Value is calculated as

GSV Factors are applicable as

• The corporation determines Special Surrender Value and is priorly approved by IRDAI.

The loan is available on the LIC New Jeevan Shanti policy only after the policy is completed 3 months from the Date of Issuance of the policy or after the expiry of the free-look period, whichever is later. Policy loan is also available during and after the deferment period per the terms and conditions of the Life Insurance Corporation of India. The maximum loan amount is determined as the effective annual interest amount payable on the loan, does not exceed 50% of the annual annuity amount and should be a maximum of 80% of the Surrender Value.

The annuitant is entitled to tax benefits under Section 80 CCC of the Income Tax Act, 1961 where taxes are applicable under the annuity received as per the tax slab of the annuitant.

A freelook period of 30 days (15 days in case of offline purchase) from the policy buying date is available if the policyholder is not satisfied with the policy’s terms and conditions. The policyholder can return the policy within the specified days stating the reasons for objections to receiving the policy. LIC of India will cancel the policy and return the premium paid after deducting the charges. The provision of a Free Look Period is only applicable on the new purchase of a Deferred Annuity Plan.

The suicide is under the exclusion of LIC New Jeevan Shanti Plan. Under the circumstance of suicide committed by any Annuitant or Last Survivor (in case of Joint Life Annuity Option) within 12 months from the date of risk commitment, the amount higher than 80% of the premium paid or Surrender Value shall be payable. Any other claims will not be considered after that.

The documents required to buy a LIC Jeevan Shanti pension plan are as follows.

• Age proof: PAN card, Aadhaar, Passport, Driving License, or School Certificate.
• Income proof: Form 16, Income Tax Returns, Bank Statement, Salary Slip, Pension Passbook.
• Address proof: Voter ID, Passport, Bank Passbook, Ration Card, Electricity Bill, Gas Bill, Water Bill, Credit Card Bill, Rental Agreement.
• Photo ID proof: Bank passbook with proposer photograph, PAN card, Aadhaar, Passport, Driving License, Voter ID, Ration Card.

After withdrawing the Jeevan Shanti plan, Life Insurance Corporation of India issued New Jeevan Shanti from LIC of India in 2023 with updated benefits and only deferred annuity available to purchase. The ease of buying the plan makes it preferable for pension buyers, and they can check the status, use the payment options, etc. By investing in the plan, be stress-free about the returns, as the plan offers guaranteed returns to the annuitant. In case you plan to buy LIC New Jeevan Shanti for a dependent with a disability (handicapped), the plan provides special provisions.

It is advisable to connect with a financial expert before buying a plan for help with questions on policy. You can connect over LIC customer support or visit the nearest LIC branch for assistance. The experts at RenewBuy can make the process easy and help you stay protected for your golden years.