Are you looking to invest in an LIC Jeevan Shanti Plan to secure your retirement? Good idea! Coverfox wants to help you here, so we've listed out the most important aspects of the plan here! Make sure to read the features and benefits of the pension plan. Also, get more information on the types of super annuity plans and how you can buy them online! Simple enough? Let's get started!
LIC Jeevan Shanti Plan is a non-linked, non-participating, single premium annuity plan where you have the dual benefit of returns via immediate or deferred annuity. This plan can be availed online as well as through the offline mode. The payout modes of immediate and deferred are further divided into multiple options which provide return of annuity purchase price as well as returns. Each of these options have their own unique set of features and benefits.
Note: All information regarding LIC Jeevan Shanti Plan has been sourced from the official website of Life Insurance Corporation of India.
As mentioned above, this plan comes in two options (immediate and deferred annuity) with a one-time premium payment. Under the immediate option, the returns can be availed post payment of all the premiums, while under the deferred option, you can avail returns only after a limited time period. The minimum deferment period of the policy is one year, while the maximum deferment period of the policy is 20 years.
The benefits of the plans are listed below as per the respective options.
A. Immediate Annuity Plan
B. Death Benefit (Deferred Annuity)
The amount will be higher of Purchase Price plus Accrued Guaranteed Additions (as specified below) minus Total annuity payments made till date of death, if any, OR 110% of the Purchase Price.
C. Accrued Guaranteed Additions (Deferred Annuity)
You will receive Guaranteed Additions per month where the value of Guaranteed Additions is (Purchase Price * Annuity rate p.a. payable monthly) / 12.
The annuity rate p.a. payable monthly shall be equal to monthly tabular annuity rate and shall depend on the age at entry of the policyholders and the selected deferment period.
| Terms | Criteria |
|---|---|
| Minimum Age at Entry | 30 years (completed) |
| Annuity Mode | Minimum Annuity |
| Monthly | Rs. 1,000 per month |
| Quarterly | Rs. 3,000 per quarter |
| Half-Yearly | Rs. 6,000 per half year |
| Annual | Rs. 12,000 per annum |
| Terms | Details |
|---|---|
| Minimum Purchase Price | Rs. 1,50,000 |
| Maximum Purchase Price | No Limit |
Note: Lower Purchase Price may be permitted in specific cases like NPS and if this plan is availed for the benefit of Divyangjan, according to the terms and conditions of this plan.
1. Option A - Under this option, you can avail immediate returns for a lifetime. You can select the mode of payouts - monthly, annual, bi-annual or quarterly. In case of death, the payment will stop immediately.
2. Option B - Under this option, you will receive guaranteed payment for a period of 5 years and life thereafter. In case of death during these 5 years, the beneficiary will receive the assured amount.
3. Option C - Under this option, you will receive guaranteed payment for a period of 10 years and life thereafter. In case of death during these 10 years, the beneficiary will receive the assured amount.
4. Option D - Under this immediate annuity option, you will receive guaranteed payment for a period of 15 years. Upon survival of the policyholder, he/she can avail the annuity for lifetime. In case of death during these 15 years, the beneficiary will receive the assured amount.
5. Option E - Under this option, you will receive assured annuity for a period of 20 years and life thereafter. In case of death during these 20 years, the beneficiary will receive the assured amount.
6. Option F - Under this option, your beneficiary or nominee is entitled to death benefits. Upon death of the policyholder, the nominee will get the entire purchase price.
7. Option G - This is an immediate annuity option which comes with a 3% increase every year.
8. Option H - This is a joint annuity option where in case one of the policyholders passes away, the other will receive 50% of the annuity amount till their survival.
9. Option I - Anther joint annuity option where in case one of the policyholders passes away, the other will receive 100% of the annuity amount.
10. Option J - Under this joint annuity option, in case one of the policyholders passes away, the other will receive 100% of the annuity amount and return of Purchase Price on death of last survivor.
1. Option A - During Deferment Period:
2. Option B -After Deferment Period
3. Option C - During Deferment Period:
4. Option D - After Deferment Period
Incentive for higher Purchase Price:
The below incentives are available under Immediate and Deferred Annuity:
Incentive for higher purchase price by way of increase in the annuity rate is as under:
| For per 1000 Purchase price (in Rs.) | |||||
|---|---|---|---|---|---|
| Mode of Annuity | 5,00,000 to 9,99,999 | 10,00,000 to 24,99,999 | 25,00,000 to 49,99,999 | 50,00,000 to 99,99,999 | 1,00,00,000 & above |
| Yearly | 1.50 | 2.10 | 2.45 | 2.60 | 2.70 |
| Half-Yearly | 1.40 | 2.00 | 2.35 | 2.50 | 2.60 |
| Quarterly | 1.35 | 1.95 | 2.30 | 2.45 | 2.55 |
| Monthly | 1.30 | 1.90 | 2.25 | 2.40 | 2.50 |
Along with this, a rebate of 2% by way of increase in the annuity rate shall be applicable for policies sold online, NPS subscribers and QROPS.
You are entitled to tax benefits under Sec 80CCC of the Income Tax Act 1961.
This plan comes in two types - immediate annuity and deferred payment - which are further divided into multiple options and offer great flexibility. There are 10 options under immediate annuity and 2 under deferred payment.
You have the flexibility to select the type of annuity you want - immediate annuity or deferred payment.
This plan can be purchased online as well as through the offline channel.
You will receive guaranteed income on a monthly basis. Based on the option selected, the guaranteed income can be availed even for a lifetime and return of purchase price in case of death of the policyholder.
Under deferred payout, you will receive assured returns every month to your policy.
The most convenient way to purchase LIC Jeevan Shanti Plan online is from the official website of Life Insurance Corporation of India. Simply visit the website and register with a user ID and Password. Once logged in, select your preferred option with respect to this plan and make the premium payment. You can pay via credit card/debit card/net banking. Post payment, the policy will be delivered to your registered email ID.
An individual will have to submit certain documents to avail LIC Jeevan Shanti Plan. The documents include:
The minimum investment required for this plan is ₹1,50,000 with no limit on the maximum investment.
The minimum age for eligibility is 30 years while the maximum can be between 79 or 85 or 100 years.
The premium payment has to be made once as a lump sum amount of ₹1,50,000 with no limit on the maximum investment.
The maturity amount can be taken via immediate annuity or deferred payment. Under immediate annuity, the payment of returns start immediately post premium payment. While under deferred payment, the annuity payment starts after a limited time period as selected by the policyholder. The time period can range between 1-20 years.
You can avail a loan against these plans post 1 year. Under immediate annuity, this can be availed only for Option F&J. Under deferred payout, a loan can be taken for both the options.
You have an option to surrender the policy post 3 months of purchase. Under immediate annuity, this can be availed only for Option F&J. Under deferred payout, the surrender can be availed for both the options.
The plan comes with a free look-up period of 15 days.
If you have a handicapped dependent, you are entitled to a special provision for reducing the minimum amount of investment.
Under immediate annuity, you are entitled a death benefit under option F&J. Under deferred payout, the death benefit can be availed for both the options.
You have the flexibility to choose annuity payment as per your convenience - annually, bi-annually, monthly or quarterly.
Suicide:
For Immediate Annuity (applicable only for Option F and J):
The plan becomes void if the annuitant/primary annuitant/secondary annuitant (whether sane or insane) commits suicide within 12 months from the date of risk commencement. An amount that is greater of 100% of the purchase price paid or surrender value shall be paid.
For Deferred Annuity:
The plan becomes void if the annuitant/primary annuitant/secondary annuitant (whether sane or insane) commits suicide within 12 months from the date of risk commencement. An amount that is greater of 80% of the purchase price paid or surrender value shall be paid.
Under LIC Jeevan Shanti Plan, individuals are given the option to choose from immediate or deferred annuity. The policy offers nine different annuity options to suit every need and circumstance. LIC Jeevan Shanti Plan can be availed both online and offline.
What are the eligibility criteria for LIC Jeevan Shanti Plan?
The minimum age of entry is 30 years while the maximum age of entry ranges between 79-100 years. In terms of premium payment, the minimum amount is ₹1,50,000, which can be paid as a lump sum, with no limit on the maximum amount of investment.
Which type of annuity option to choose from?
This plan comes with two types of annuity options to choose from. It is advisable that you determine your financial goals and needs. Post evaluation you will be able to make a better decision with respect to selecting the suitable policy.
What are the tax benefits on LIC Jeevan Shanti Plan?
You are entitled to tax benefits under Sec 80CCC of the Income Tax Act, 1961, on LIC Jeevan Shanti Plan.
