LIC New Jeevan Shanti (Table Number 858) is non linked non-participating, single premium, deferred annuity plan.
LIC Jeevan Shanti is a pension plan and you will get a lifelong guaranteed pension from the plan.
Here you pay a one-time single premium. Defer ( wait) for some years and get regular annuity/pension from the plan. The plan is not linked to the market and thus offers a guaranteed rate of return for all your life. In other words, The annuity or rate of return is guaranteed, and thus 100% safe.
Table of Contents
Eligibility to take New LIC Jeevan Shanti Plan
| Annuity Mode | Monthly | Quarterly | Half-yearly | Yearly |
| Minimum Annuity | Rs 1000 per month | Rs 3000 per quarter | Rs 6000 Half-yearly | Rs 12000 Yearly |
Annuity options
Here, in this plan two options are available
- Deferred annuity for single life: In this option, you can take an annuity/ pension for your life after the stipulated time (as chosen by you). The minimum deferment period is 1 year.
- Deferred annuity for Joint life: This option is similar to the above one but here instead of single life joint lives are covered.
What will be paid to you in New Jeevan Shanti Plan
During the deferment period ( Option 1- Single Life Annuitant) |
| You will not get any payment during this period but in case of any unfortunate event with the annuitant death benefit will be paid to the nominee |
After the deferment period ( Option 1- Single Life Annuitant) |
| You will get Pension Payment/ annuity payment as you have chosen for.
In case of any unfortunate event with the annuitant, the annuity payment will be stopped immediately and the death benefit will be paid to the nominee. |
During the deferment period ( Option 2- JointLife Annuitant) |
| During this period nothing is paid to you or to the second holder
However, in case of any unfortunate event(on the death of the last survivor) death benefit will be paid to the nominee. |
After the deferment period ( Option 2-Joint Life Annuitant) |
| You will get regular Pension Payment as chosen by you till the secondary annuitant is alive.
Upon the death of the last survivor, the annuity payment will be stopped immediately and the death benefit will be paid to the nominee |
What is life cover in New Jeevan Shanti Plan?
In New Jeevan Shanti Plan, in case of death, a HIGHER amount ( from below two options)will be paid
- 105 % of the purchase price ( The amount of one-time payment you initially paid to LIC- taxes if any)
- The purchase price plus accrued additional benefit on death minus total annuity amount paid to date, if any.
What will be accrued additional benefit on death?
purchase price * annuity rate per annum payable monthly/ 12 * no. of yrs
The above-said amount of money will be e added each month until the end of the deferment period. This amount is the additional benefit on death.
Let’s take the example of Mr. A
Purchase Price ( The amount Mr. A paid to LIC initially) – 10 lac
Deferment period -10 yrs Annuity rate ( assumed)- 8%
The accrued additional Benefit will be
10 lac*8%/12*10 yrs
Mode of annuity payments
You can take annuity in yearly, half-yearly, quarterly, or monthly mode. Moreover, the annuity will be payable in arrears.
For instance, if you are vesting date is the 1st of January 2021 and you have chosen an annual annuity option then you will get a pension on January 2022 that is after completion of one year from the vesting date.
Similarly, if you had chosen quarterly mode then you will receive a pension after the completion of a quarter. Pension in arrears means pension will be paid after the completion of the period and not at the start of the period.
Surrender Value
The policy can be surrendered at any time during the policy term.
The surrender value payable shall be higher of Guaranteed Surrender Value or Special Surrender Value.
Guaranteed Surrender Value (GSV):
Guaranteed Surrender Value = (GSV Factor * Purchase Price) minus total
annuity amount payable up to the date of surrender.
Where, applicable Guaranteed Surrender Value (GSV) Factors shall be:
| Policy Year | 1 | 2 | 3 | 4 | 5 & above |
| GSV Factor | 75% | 75% | 75% | 90% | 90% |
Special Surrender Value
The Special Surrender Value is reviewable and shall be determined by the
Corporations from time to time subject to prior approval of IRDAI.
Policy Loan
You can take the Policy loan at any time after three months from the completion of policy (i.e. 3 months from the date of issuance of policy)
or after the expiry of the free-look period, whichever is later.
Even you can take a policy loan during or after the deferment period subject to terms and conditions of the corporation in this regard.
Under the joint-life annuity option, Primary Annuitant cam take the loan and in the absence of the Primary Annuitant, the same can be availed by the Secondary Annuitant.
The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount and shall be subject to maximum
of 80% of Surrender Value.
Should You Invest in the New Jeevan Shanti Plan
The review will be added soon
