LIC's Jeevan Shanthi

LIC's Jeevan Shanthi

Plan No. 850

Highlights:

Pay Single Premium and get Guaranteed pension for Lifetime

Choose from 
1. Immediate pension or deferred pension options 
2. Joint life pension or increasing income every year 

 Death benefit in lumpsum or in yeraly installmentsLoan availability after completion of 1 year

Tax Benefit on premiums paid u/s 80C

Product Info:Jeevan Shanti is a Single Premium Payment plan with guaranteed pension for lifetimeIt has multiple options of taking pension from joint life pension for lifetime or increasing pension every yearThe pension can be commenced immediately, or it can also be deferredGuaranteed Bonus which will be added every month to the policyThe loan is available after the completion of 1 YearThe NPS subscribers can also opt for this pension planDeath benefit can be availed in lumpsum or in installmentsThe policy holder will get the tax benefit u/s 80C

LIC Jeevan Shanti plan is a single premium plan with dual option of returns that can be immediate or deferred annuity. It's a kind of pension plan where the benefit can be availed in many ways. It is completely non-linked, non-participating plan. People can be benefited in multiple ways with the aid of this plan. In both Immediate and deferred plans there are a lot of options to choose from. In the case of immediate annuity plans out of 9 options, 2 of them got option of life cover as well. In a deferred annuity plan, there are 2 options to buy, both covers the risks of life. In the case of immediate annuity plans, returns can be availed immediately. In deferred annuity plans, we can choose the time when we want the returns.

This plan is launched to give people multiple options to choose from. They can decide to get their pension immediately or can defer it with returns. The plan is further bifurcated in many options. For an immediate annuity, there are around 9 different options to choose from. Deferred annuity got 2 major options to select from. All these options are customized keeping in mind the need of the policyholder. This is a good way of getting an assured amount at the time of retirement. Both Immediate and deferred got their features and benefits. The plan that we can choose from is based on our needs. 

Immediate or Deferred Pension Plan

Jeevan Shanti offers two types of annuities Immediate and deferred with the one time premium payment. In the Immediate type of annuity, we can get the returns immediately after paying the premium. In the case of deferred annuity plan, we can get the returns only after some time period. Policy term can be decided by us in the case of deferred. The minimum term of the policy is one year, with a maximum term of around 20 years. Within immediate and deferred we have many options to choose from. All the different types of options are elaborated below.

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Best Pension option to Secure Future

Immediate Annuity

Option A - This is an immediate annuity plan in which the annuitant gets the returns immediately. He or she can enjoy these return for the lifetime. Payments can be received in convenient monthly, quarterly, bi-annual or annual returns. After the demise of the policyholder, annuity stops.

Option B - According to this option, there's a guaranteed payment for the period of 5 years. Since it's an immediate annuity plan, payments start immediately. If during these 5 years annuitant expires than also the beneficiary can get the assured amount. In the case of his survival, the amount can be availed till his lifetime.

Option C - This option assures returns for the period of 10 years. If something happens to the policyholder during this period than his nominee gets the amount of pension.

Option D - It's an immediate annuity with a guaranteed period of 15 years. After that period if policyholder survives than he can still avail the annuity amount till his lifetime.

Option E - This option assured annuity for the period of 20 years. During this time if annuitant expires than his beneficiary can still get the amount as decided amount for 20 years.

Option F - This is one of the immediate annuity plans in which the beneficiary can get the death benefits. In the case of demise of the policyholder, the nominee is entitled to get entire sum insured with the returns as applicable.

Option G - In this kind of immediate annuity plan, there's 3% increase every year.

Option H - It's kind of a joint annuity plan. At the time of the death of one policyholder, other person get 50% of pension amount till their survival.

Option I - It is also a kind of joint annuity plan. As per this option, if something happens to one of the annuitants, another person can enjoy 100% benefits.

Option J - In this joint life annuity plan If something happens to the annuitant, another person can get 100% annuity. They even get the cover at the time of the death of the policyholder. The amount that they are entitled to get is equivalent to the sum insured along with remaining returns if any.

Deferred Annuity

As per the deferred annuity plans, the policyholder can get the benefit after a certain time period only. In this type of plan, there are 2 options to choose from. Both of them has been explained below.

Option 1

Before the deferred term - In this option, only a single life is covered. At the time of the death of the policyholder before the deferred annuity period beneficiary gets the death benefits.

After the deferred period - The annuity is given with returns as per the guarantee. In the case of the death of the policyholder, the beneficiary gets the death benefits ,annuity ceases immediately.

Option 2 (It's a joint life deferred plan.)

Before the Deferred Term - During the period of deferred annuity plan, if one of the annuitant demises than other get the death benefits.

After the deferred period - If one of the annuitants dies after the deferred perios than annuity ceases, other survivor gets the death benefits..

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Advantages

Guaranteed Pension Rate

Loan Facility

Secured and Peaceful Retirement Life

Conditions

Eligibility

Minimum Age at Entry: 30 Years

Minimum Purchase price:₹ 1,50,000/- subject to Minimum Annuity as specified below

Minimum Annuity:

Annuity Mode	Monthly	Quarterly	Half-yearly	Yearly
Annuity	₹ 1,000/- per month	₹ 3,000/- per quarter	₹ 6,000/- per half year	₹ 12,000/- per annum

 

Maximum Age at Entry:

1. Immediate Annuity: 85 years (last birthday) except Option F

                                                                        100 years (last birthday) for Option F

2. Deferred Annuity:    79 years (last birthday)

 

Minimum Deferment Period: 1 Year

Maximum Deferment Period: 20 Year

Minimum Vesting Age: 31 years (last birthday)

Maximum Vesting Age: 80 years (last birthday)

Annuity Mode : Yearly, Half yearly, Quarterly and Monthly

Joint Life: The joint life annuity can be taken between any lineal descendant/ascendant of a family (i.e. Grandparent, Parent, Children, Grandchildren) or spouse or siblings.

Pension Option :

Immediate Annuity --

Annuity Options	Annuity Description
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

 

Deferred Annuity –

Annuity Options	Annuity Description
Option 1	Deferred annuity for Single life
Option 2	Deferred annuity for Joint life

  

Why to Buy Jeevan Shanti Plan?

3. Tax benefits

As per section 80 c and 80 d tax benefits can be availed from this plan. One time premium that is paid can be completely covered in the payment of tax.

4. Easy of buying

The best part of this plan is it can be purchased through LIC Dhamodharan.

5. Guaranteed Income

By investing in this plan there is surety of monthly income that policyholder can get. Period of Income is applicable for the lifetime. In some options, there's guarantee of Income even if the annuitant dies in between. It is completely based on the option that we have chosen.

6. Assured returns

In case of the deferred plan there' surety of getting returns. These returns are added every month to the policy. After the deferred period, benefits can be availed.

Immediate or Deferred Annuity, Which Type or Option to Choose From?

Jeevan Shanti plan of LIC got 2 types of annuity that have got many options to choose. It may be a daunting task to select the suitable from so many options. With the small analogy, it may be easier to decide. Both types of annuity plan got its pros and cons. The suitable plan is based on our requirement completely. Shown below options from both immediate as well as deferred.

Jeevan Shanti Graph

(Assumed Investment is  Rs.10,00,000. Proposar Age assumed is 42 years )

You can do analysis based on your financial goals and needs and choose the options or type of annuity that is most suitable.

CONTACT US

• Nidhi Financial Planner

  Sarojnivas X24A, 3rdMain Road, Thirumalai Nagar, Hasthinapuram, Chennai 600064

   K Dhamodharan.M.Com.,HDCM.,LL.B

• Chief Life Insurance Advisor

• licdhamu@gmail.com

• +919940857995., 7358210672 
  

IMPORTANT LINKS

• LIC of India
• LIC Forms
• LIC Premium - Pay Direct
• Update Aadhar And PAN to Policy
• Update PAN and Aadhar to Mutual Fund - CAMS
• Update PAN and Aadhar to Mutual Fund - Karvy
• LIC Bonus Information
• Star Health Insurance
• LIC Policy Income Tax Rule

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