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
2) Benefits under the 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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LIC Jeevan Shanti Guaranteed Pension Plan – Should you opt
LIC Jeevan Shanti – Single Premium Annuity Plan – One Time Investment
Options to choose:
1. Immediate annuity or
2. Deferred annuity rates are guaranteed at the inception of the policy.
10 options for immediate annuity
2 option for deferred annuity: 1. Single life 2. Joint life
Min age at entry: 30 years
Max age at entry: for immediate annuity except option “f” & “1”: 85 years
For immediate annuity for option “f” & “j”: 100 years
Deferred annuity: 79 years
Deferment period: 1 year to 20 years
Guaranteed addition every month for deferment period.
Close relatives as joint life annuitants [means: grandparents / parents / children / grand children or spouse or siblings]
LIC Jeevan Shanti Loan facility
Surrender value from 3 months of completion [without insisting for medical certificate] death benefit – 3 payments options:
1. Lump sum.
2. Annuitization [annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant]
Income Tax Benefit for Premium Payment
LIC Jeevan Shanti Plan Surrender Value
The policy can be surrendered at any time after three months from the completion of policy (i.e. 3 months from the Date of issuance of policy) or after expiry of the free-look period, whichever is later under the following annuity options only:
a. Immediate Annuity
i) Option F: Immediate Annuity for life with return of Purchase Price.
ii) 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 death of last survivor.
b. Deferred Annuity
i) Option 1: Deferred annuity for Single life
ii) Option 2: Deferred annuity for Joint life
If the chosen annuity option is other than specified above, surrender of policy shall not be allowed. On the payment of the surrender value, the policy shall terminate and all other benefits shall cease.
The surrender value payable shall depend on the age (last birthday) of the Annuitant at the time of surrender/date of vesting of the policy.
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this is a nice plan thanks for giving more information. If any one wants this plan in bangalore please contact me.
The LIC of India takes all of their customers to be real SUCKERS of the highest order. Let us assume I, a senior citizen, make an investment of Rs 10 Lakhs. Who, with a minimum mathematical intelligence will opt for options A to E, and loose the entire investment, Rs 10 Lakhs, upon my death and my nominee/next of kin RECEIVE NOTHING? Their attitude explains why the private insurances are thriving dime a dozen, doing a better job. Unlike LIC, all these private insurers are expanding their reach. With all Govt. back up and support, LIC of India is struggling. Come on, give us something of substance, LIC.
Put Rs 10 L (10,00,000) anywhere, other than LIC for 5 years and a senior citizen gets the following (8% interest): (I am not including operators like ESAF Bank, which gives 9.25% interest for 365 – 727 days for Senior Citizens, like me)
Year Year Interest Total Interest Balance
1 82,999.51 82,999.51 1,082,999.51
2 89,888.42 172,887.93 1,172,887.93
3 97,349.12 270,237.05 1,270,237.05
4 105,429.05 375,666.10 1,375,666.10
5 114,179.61 489,845.71 1,489,845.71
After deferment of 5 years, his/her investment accrues to 14 lakhs 89 thousand 845.71, which if put into fixed deposit schemes, provide annual returns of 1,19,187 (monthly Rs 9932). I agree that the income is taxable. So is the income from annuity of LIC.
Upon the death of the annuitant, the initial deposit 1,489,845.71 (and not 10 Lakhs as per LIC) will be returned to the nominee/next of kin.
Jeevan Shanthi plan cant be compared with any investments. This is Purely a Pension Plan with Guaranteed Income for Lifetime. Whether it is 5% or 6%, No investment can give you lifetime guarantee.
Understand the need of the product first then start comparing. You cant give one product to suit all your needs. so jeevan shanthi is for people who wants only pension till their life. In this segment jeevan shanthi stands THE BEST.
Dear Nambi madam,
Pls don’t mis guide the innocent people and don’t put hard earn money of someone in Danger… Jivan shanti is the WORST plan ever.. what is the fun if nominee don’t reCeive the PRINCIPAL amount … Not returning the policy price is the biggest CHEAT by LIC… Pls don’t spread misleading and false information among the public… As a agent you may be getting Percentage but it is not the honest way of earning by ppl like u…. Please refrain from such useless LIC product and publicity…
Hi just one query if an LIC agent purchases the policy Online would I get the 2 per cent annuity benefit?
If I buy this policy for 5 lacs and has deferred period of 5 yrs…i will get annuity at the end of 5yrs? Till how long? If I need the money can I withdraw say in the 7th year? How much do I get then?
No u can’t withdraw
You can anytime surrender this policy.
Yes. You can anytime withdraw the money. If you do not withdraw you will continue to receive annuity till the money is not withdrawn i.e. lifetime.