LIC Jeevan Shanti Guaranteed Pension Plan – Should you opt?

LIC Jeevan Shanti Guaranteed Pension Plan Review


After long time LIC has launched a new pension plan, LIC Jeevan Shanti Guaranteed Pension Plan No.850. LIC Jeevan Shanti is a single premium annuity plan that came with various options.   What is the eligibility to join LIC Jeevan Shanti Pension Plan? What are various annuity options available in this plan? Would you get guaranteed Pension plan as indicated by LIC? Should you opt for LIC Jeevan Shanti Guaranteed Pension Plan No. 850? Let's review some of these common FAQs which most of us have.

Also Read: Which is the best LIC Insurance Plan suitable to you?

Overview of LIC Jeevan Shanti Guaranteed Pension Plan


LIC Jeevan Shanti is a single premium annuity plan. Its a one-time investment plan that comes in two options – immediate annuity or deferred annuity. There are multiple options available in immediate annuity plan and deferred annuity plan comes with two options.

What is Annuity?


If you are already aware of this, skip this section. First let us understand what an Annuity means. An annuity can be termed as pension in which you get regular income up to the specified period or condition. There are two types of annuity:

Immediate annuity – in this case, you invest a lump sum and your annuity starts immediately.

Deferred annuity – in this case, the annuity starts after a certain period.

Features of LIC Jeevan Shanti Guaranteed Pension Plan


Recently launched on 12th September, 2018, LIC Jeevan Shanti is a non- linked, non-participating single premium annuity plan. 

The policy can be taken on own life or jointly with a grandparent, parent, spouse, sibling, grandchildren or children.

The annuity rates are guaranteed at the time of inception of policy for both immediate and deferred annuity and annuities are payable throughout the lifetime of annuitants.

The plan can be purchased online as well as off line.

Loan facility shall be available after the completion of 1 year of the policy. Policy loan is available under the option F and J of the immediate annuity plan and both the options of the deferred annuity plan. 

Eligibility to join LIC Jeevan Shanti Guaranteed Pension Plan


There are certain eligibility criteria for LIC Jeevan Shanti Guaranteed Pension Plan.

1) The minimum age to enter the policy is 30 years.

2) The maximum age in immediate annuity is 85 years, except option F and 100 years in option F. In a deferred annuity, it is 79 years.

3) The minimum deferment period is 1 year, while the maximum is 20 4) years.

4) The minimum annuity is Rs 1,000 per month, Rs 3,000 quarterly, Rs. 6000 half-yearly Rs. 12,000 annually. There is no upper limit of the maximum annuity.

5) The minimum purchase price of the policy is Rs 150,000. There are certain exceptional cases where this limit is exempted. If the plan is purchased for handicapped dependent, then the minimum purchase price is Rs 50,000 and if the plan is purchased by NPS subscribers. There is no maximum upper limit to it.

LIC Jeevan Shanti Guaranteed Pension Plan – Annuity Options


In this plan, both the options of annuity are available – immediate annuity plan and deferred annuity plan. Please note that you are not allowed to change the option in at a later stage of the policy period, so choose the option very wisely at the buying the policy.

1) Immediate annuity for life

A) Immediate annuity with guaranteed period of 5 years and life thereafter.

B) Immediate annuity with guaranteed period of 10 years and life thereafter.

C) Immediate annuity with guaranteed period of 15 years and life thereafter.

D) Immediate annuity with guaranteed period of 20 years and life thereafter.

E) Immediate annuity for life with return of purchase price

F) Immediate annuity for life with increasing at a rate of 3% per year.

G) Joint life immediate annuity for life with a provision of 50% of the annuity to the secondary annuitant on death of the primary annuitant.

H) Joint life immediate annuity for life with a provision of 100% of the annuity payable as long as one of the annuitant survives.

I) Joint life immediate annuity for life with a provision of 100% of the annuity payable as long as one of the annuitant survives and return of the purchase price on death of last survivor.

2) In deferred annuity plan, there are two options-

A) Deferred annuity for single life.

B) Deferred annuity for joint life.

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Benefits available in LIC Jeevan Shanti Guaranteed Pension Plan


The benefits available under this plan vary a lot, according to the option chosen on survival or death during the tenure of the policy.

1) Benefits under the immediate annuity plan

LIC Jeevan Shanti Guaranteed Pension Plan-Benefits-Under immediate annuity plan

2) Benefits under the deferred annuity plans

LIC Jeevan Shanti Guaranteed Pension Plan-Benefits-Under deferred annuity plans

Are there any rebates available?


There are certain rebates available under this plan:

There is an increase in an annuity if your purchase price is more than Rs 5 lakh.

If the plan is purchased online, there is a discount of 2% by way of increasing the annuity.

How to surrender LIC Jeevan Shanti Guaranteed Pension Plan?


The policy can be surrendered after the completion of 3 months or expiry of the free-look period, whichever is later in the deferred annuity plan. However, in the immediate annuity plan, it is available under option F and J.

Comparison of LIC Jeevan Shanti pension plan vs. Jeevan Akshay vs. Jeevan Nidhi vs. Pradhan Mantri Vaya Vandana Yojana


The policy of LIC Jeevan Shanti came as a surprise as it comes with deferred annuity option along with the immediate annuity plan. The previous plan of LIC-Jeevan Akshay was for non-government pension seekers and it comes with a single option of immediate annuity. Before Jeevan Shanti, Jeevan Nidhi was the plan for deferred annuity which provides insurance cover also. Pradhan Mantri Vaya Vandana Yojana was another popular scheme of LIC which served only senior citizens.

Also Read: Best Term Insurance Plans for 2018-19

Should you opt for LIC Jeevan Shanti Guaranteed Pension Plan?


Jeevan Shanti Plan is a single premium plan which ensures you receive a fixed sum of money either immediately or after a certain period. However, investment in such products yields low returns (which is baked into the annuity). We all know that LIC products would provide  anywhere between 5% to 6% returns only. The annuity increase is only 3% compared to normal inflation of over 5%, which is also a major negative factor in this pension plan. If you apply in online pension plan, you would get a 2 % discount. If you are a low risk taker, you can invest in such pension plans through online. Alternatively, you can look for monthly income plans which can provide better returns.

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Suresh

LIC Jeevan Shanti Guaranteed Pension Plan – Should you opt

16 comments

  • sivaraman

    Great explanation,,,This is similar to Jeevan Akshay 6 I believe….But to get guaranteed income this looks good.

    • S Srikanth

      It’s a best policy where you can take policy as joint life were you will get pension after that the joint holder also get the same pension what you got plus you can appoint a nominee either you son or daughter or grand children who will get the full amount what you invested

  • Vijaykumar. Shukla

    Can NRIs invest in Jeevan ShantiGuaranteed insurance pension plan ? Please reply.

  • ANIL GOYAL

    Can an NRI invest in the scheme?

  • Sharad Tripathi

    Dear Mr Suresh,

    ref to this post, pls advice the working/ table as to how much shud be the investment to get an annuity of Rs 50k – 60k and 70k per month and what XIRR will these equate to in order to compare with certain Mutual Funds ?

    i have approx about 4 years to retire. so, which option is the best ?

    pls let me know your email and phone nbr.

    B/Rgds
    Sharad Tripathi

  • Ketan Mistry

    The review looks be quite framed and biased. This product is capable of giving lifelong guaranteed income with a very good rate of interest along with insurance.
    Hence please provide complete and unbiased review of the product, so that maximum people can take the benefit of good products.

    • Hi Ketan, There is nothing hidden. Look at the returns from LIC, which gives low returns. LIC is trusted brnad, however gives low returns. One need to accept this fact. You can prove that the returns given here are wrong along with illustration. 

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