LIC Jeevan Shanti – Single Premium Guaranteed Pension Plan

In Stock Market | Last Updated October 16, 2017|3 Comments

LIC Jeevan Shanti is a Single Premium Guaranteed Pension Plan (Plan 850). It is a non-linked, non-participating, one-time investment annuity plan wherein policyholder can select from the immediate pension or deferred pension options. LIC Jeevan Shanti plan is like old Jeevan Akshay VI. This plan can be purchased online or offline. It is comprehensive plan with unique features for the benefit of individual as well as for the family. The tagline of LIC Jeevan Shanti plan is “Pay Just One Time – A Peaceful Retired Life Guaranteed – Shanti Guaranteed.” Let’s try to explore the detail of New LIC Plan – LIC Jeevan Shanti.

LIC Jeevan Shanti is an annuity plan. Annuity means a fixed sum of money or pension paid to someone for every year, typically for the rest of the life. This plan offers option of immediate or differed annuity. This means you can start receiving pension either immediately on the maturity of this policy or at deferred annuity option.

LIC Jeevan Shanti – Single Premium Guaranteed Pension Plan

Key Features

  • Single Premium Annuity Plan – Immediate or deferred annuity
  • Guaranteed Annuity Rates at the inception of the policy for both annuity types
  • Annuity Option fixed at the time of opting policy. No change in the selected option is allowed.
  • 10 different immediate annuity options.
  • Joint life annuity option available.

Eligibility

LIC Jeevan Shanti

From above eligibility details it is clear that minimum purchase price for this policy is 1.5 Lakh and minimum annuity is Rs.1000 per month. (Rs.12000 yearly).

Also Read – Top 5 Best LIC Policy for 2018 – 2019

Annuity Options

The annuity options under immediate annuity are given below.

  • Option A Immediate Annuity for life
  • Option B Immediate Annuity with a guaranteed period of 5 years and life thereafter
  • Option C Immediate Annuity with a guaranteed period of 10 years and life thereafter
  • Option D Immediate Annuity with a guaranteed period of 15 years and life thereafter
  • Option E Immediate Annuity with a guaranteed period of 20 years and life thereafter
  • Option F Immediate Annuity for life with return of Purchase Price
  • Option G Immediate Annuity for life increasing at a simple rate of 3% p.a.
  • Option H Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on the death of the Primary Annuitant.
  • Option I Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
  • Option J Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on the death of the last survivor

The annuity options under deferred annuity are given below.

  • Option 1 Deferred annuity for Single Life at vesting age
  • Option 2 Deferred annuity for Joint Life at vesting age

Annuity payment interval is monthly, quarterly, half-yearly and yearly.

LIC Jeevan Shanti Plan – Benefits

Benefits of LIC Jeevan Shanti plan for immediate annuity.

Benefits payable on Survival

Annuity Option A to F – For Single Life – Annuity Payments in arrears as per the chosen mode of annuity.

Annuity Option G – For Single Life – Annuity Payments in arrears as per the chosen mode of annuity + Increase in annuity payment @3% per annum for every completed policy year.

Annuity Option H to J – For Joint Life – Applicable Annuity will be paid in arrears as per the chosen mode of annuity.

Benefits payable on Death

Annuity Option A & G – Annuity Payment shall cease.

Annuity Option B to E – On death of annuitant during guaranteed period of 5/10/15/20 years, nominee receives annuity payments till expiry of guaranteed period.

Annuity Option F – Annuity Payment shall cease. Purchase price shall be payable to nominee.

Annuity Option H – On the death of the primary annuitant – 50% of the annuity amount to the surviving secondary annuitant till his/her survival.

Annuity Option I & J – 100% of the annuity amount shall continue to be paid as long as one annuitant is alive.

Benefits of LIC Jeevan Shanti plan for the Deferred annuity.

Benefits payable on Survival

Option 1 – No payment during deferment period. Annuity payments will be made in arrears to the Annuitant as per mode of annuity.

Option 2 – No payment during deferment period. Annuity payments will be made in arrears to the primary and secondary annuitant.

Benefits payable on Death

Option 1 – On the death of the annuitant during Deferment period – Death benefit to Nominee as per the option exercised by the Annuitant. On the death after deferment period no payment shall be made.

Option 2 –

During the Deferment Period – On first death of either of the covered Life – No payment. On death of the last survivor – Death benefit to Nominee as per option exercise by annuitant.

After Deferment Period – On first death of either of the covered Life – 100% of Annuity amount shall continue to be paid as long as one of the Annuitant is alive. On death of last survivor – No Annuity payment.

LIC Jeevan Shanti – Review

The positive and negative about LIC Jeevan Shanti Policy are given below.

  • This plan provides new deferred Annuity option for single and joint life.
  • This plan also covers Divyangjan Lives (Handicapped)
  • Interest rate (Pension) increases with the increase in Deferment Period.
  • Single Policy with Immediate & Deferment Annuity Type.
  • First policy to have Joint Life pension option with parents and grandparents.
  • Annuity increase with rate of 3% is at lower side. Inflation is increasing at much faster rate.
  • This plan offers 2% discount on online purchase so, it is better to purchase online.

LIC Jeevan Shanti Poster

LIC Jeevan Shanti Policy Poster

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12 Comments

  1. G.Lakshmi Narayana says:

    Sir, I am now attained the age of 60 yrs and my spouse age 50 yrs. If we pay as single premium of RS 5.0 lAKHS each how much monthly pension we get, if we opt 15 yrs term. after 10/15 yrs the amount invested by us is refunded to us if we alive or to our nominees. if so how much. please clarify.

    • Madhu says:

      Dear Sir,

      I am Madhu, an LIC Advisor. People will have different opinion but LIC is ONE. So, its up to you to trust or not to trust.

      Coming back to your question:

      Your Single Premium would be: Rs. 5,09,000
      Monthly Pension would be: 3367 approx

      Your Wife’s Single Premium would be: Rs. 5,09,000
      Monthly Pension would be: Rs. 3042 approx

      The above example is for 15 years term. If the proposer is alive after the term, then the amount will be given back to you. Else, your nominee will get it. Since, you are getting the interest amount as pension every month.. You will get your 509000 as final returns.

      Thanks,
      Madhu
      8249836760

  2. Dipak patel says:

    Your money will be blocked for ever in this plan. There is no surrender values. There are many hidden clauses . DONT BELIEVE OR TRUST LIC PEOPLE.

    • Tirtho Banerjee says:

      Sir, I am requesting you to read the plan features carefully before posting any comments. “Don’t believe or trust LIC people”, but believe in LIC.

  3. Anil Sehgal says:

    Option J – What is rate of interest payable ? Wife 1944 born & Husband 1941 (born 03-10-1941)

    • Mony says:

      6.73 percent that is 67300 per year till both of your life and purchase price 10 lakhs returned to your son/daughter whoever is the nominee.

  4. D.M.Banerjee says:

    What is the rate of interest in jeevan shanti plan

  5. Raj A G says:

    Excellent Pension Plan, ideal for the young generation, HNIs and NRIs who wish to plan for their retirement

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