LIC New Jeevan Shanti Plan
LIC New Jeevan Shanti (Plan No. 858, UIN No. 512N338V02) is a single premium non-linked, non-participating plan that was launched on February 1, 2022. Labeled as plan no. 858, the LIC Jeevan Shanti Plan provides a multitude of options to be insured. The plan includes two Deferred Annuity options, both of which provide adequate coverage against any risk that one might encounter in life. For both options, the annuity rates were guaranteed at the time of inception of the policy.
The primary objective of the plan is to offer potential customers with myriad insurance options so as to give them enough flexibility to select an option that best suits their needs. LIC Jeevan Shanti policies are available both online and offline and therefore, individuals looking for policies that payout during their lifetime can explore purchase options both offline and online.
Features of LIC Jeevan Shanti Plan
The LIC Jeevan Shanti Plan includes myriad features. To understand the policy better, let us take a look at the various features of LIC Jeevan Shanti.
- Lifetime Income
The LIC Jeevan Shanti guarantees income at selected intervals for a lifetime through the investment of a one-time lump sum.
- Various Available Alternatives
An investor can choose from two options among Deferred Annuity Plans. The rates of deferred payment are guaranteed during the period of deferment. The deferred annuity plans also come with death benefits with is either:
Higher of the purchase price, with added accrued guaranteed additions minus the total annuity sum payable until the demise date
105% of the purchase price.
- Guaranteed Income
LIC Jeevan Shanti is composed of policies that will provide the insured with guaranteed income every month for a lifetime. Guaranteed incomes shall also be given at early demise to annuitants in context to the chosen alternatives.
- Tax Returns
The annuitants are eligible to avail of tax benefits under Section 80C on choosing a plan under LIC Jeevan Shanti. The one-time premium is tax-deductible and thus, is a considerable deduction when filing the income tax returns.
Annuity Options for LIC Jeevan Shanti Policy
Listed below are the various LIC Jeevan Shanti Deferred Annuity options. A customer might choose from among the given options to home in on a plan that best suits their desired financial goals throughout their lifetime and on death.
Deferred Annuity Options:
|Annuity Options||Policy Type||Benefit Payable on Survival||Benefit Payable on Death|
|Option 1||Single Life|
During deferment period:
Nothing will be payable during the deferment period.
After the deferment period:
As long as the annuitant lives after the deferment period, annuity payments will be paid as per the chosen mode of payment.
During the deferment period, the death benefit shall be:
The higher of :
On death of the annuitant after the deferment period:
The annuity payments shall cease immediately and the death benefit will be payable to the nominee.
|Option 2||Joint Life|
During Deferment Period:
At the deferment period when the primary or secondary annuitant survives, nothing will be paid.
Death benefits shall be paid to the nominees upon the demise of the last survivor.
After the deferment period:
After the deferment period as long as the primary and secondary annuitant is alive, the annuity payment will be paid on the premise of the chosen mode of payment.
The annuity payments will cease with immediate effect on the demise of the last survivor and the defined death benefit will be paid to the nominee.
During the deferment period:
On the first death of either of the covered lives nothing shall be payable.
On death of the last survivor, death benefit shall be:
The higher of :
After the deferment period:
On the first death of either of the lives covered 100% of the annuity amount shall continue to be paid as long as one of the annuitant is alive.
On death of the last survivor The annuity payments shall cease immediately and the death benefit will be payable to the nominee.
Benefits of LIC Jeevan Shanti Plan
The benefits of LIC Jeevan Shanti Policies are non-exhaustive. Listed below are a few benefits other than the ones previously mentioned.
- Frequency of annuity payments
The annuitant can make the annuity payment at various intervals regardless of the plan one takes. The policyholder can make the annuity payments at his/ her intervals on monthly, quarterly, half-yearly or yearly frequency.
- Death Benefit
In the LIC Jeevan Shanti plan, the deferred annuity plan comes with a benefit that is payable on the death of the annuitant.
- Loan Facility
The policyholder can avail loans against their LIC Jeevan Shanti annuity plans anytime after three months from the date of issuance of the policy or the expiry of the free-look period, whichever is later. Under Joint Life Policies, loans can be availed by the Primary Annuitant. In the absence of Primary Annuitant, the Secondary Annuitant can avail loans.
The maximum amount of loan that is granted under such policy shall be such that the annual interest amount effectively payable on loan does not exceed 50% of the annuity amount payable under the policy.
- Plan for the benefit of person with disability as an option
The proposer has the option of choosing a Single Life Deferred Annuity Plan on own life, with the Divyangjan as a nominee. In such case, on the death of the annuitant, the death benefit shall be compulsorily utilized to purchase an immediate annuity for the life of Divyangjan who would be the nominee.
- Free look-up period
LIC Jeevan Shanti Plans offer a free look-up period up to 15 days during which the policyholder can review the terms and conditions of the policy. If the policyholder is not satisfied with the terms and conditions, he/ she may return the policy stating the reason for dissatisfaction. However, the free look-up period is only applicable on the purchase of a new Deferred Annuity Plan.
- Surrender Value
The policyholder can surrender the policy anytime during the policy term. The Surrender Value shall be higher of Guaranteed Surrender Value or Special Surrender Value.
The applicable Guaranteed Surrender Value Factors are:
|Policy Year||1||2||3||4||5 and above|
Special surrender value is reviewable and is determined from time to time subject to prior approval of IRDAI.
Eligibility for LIC Jeevan Shanti Plan
The table below states the eligibility for LIC Jeevan Shanti.
|Parameters||Criteria for Eligibility|
|Minimum Entry Age||30 years (completed)|
|Maximum Age of Entry||79 years (completed)|
|Minimum Vesting Age||31 years (completed)|
|Maximum Vesting Age||80 years (completed)|
|Minimum Deferment Period||1 year|
|Maximum Deferment Period||20 years (subjected to the vesting age)|
LIC Jeevan Shanti Policies have a minimum purchase price of Rs 1.5 Lakh subject to the minimum annuity mentioned below:
|Mode of Annuity||Monthly||Quarterly||Half- Yearly||Annually|
|Minimum Annuity (per month)||Rs 1,000||Rs 3,000||Rs 6,000||Rs 12,000|
Exclusions for LIC Jeevan Shanti Plan
LIC Jeevan Shanti Plan comes with exclusions that is listed as follows:
Deferred Annuity Plan
If the annuitant or any of the annuitants commits suicide within 12 months right from the policy’s commencement date, the LIC Jeevan Shanti Plan will become void. The corporation shall only be liable to pay 80% of the purchase price or the surrender value, whichever is greater.
How To Apply For LIC Jeevan Shanti Plan?
The LIC Jeevan Shanti Plan is available both online and offline. Follow the steps laid down below to purchase the policy through the method that best suits your convenience.
To apply Online:
- Visit the official website of LIC and scroll down to find ‘Buy Online Policies’. Tap on ‘Click Here’.
- Among all the policies, you can see ‘Jeevan Shanti’. Tap on ‘Click Here To Buy’.
- Click on ‘Pension’ to find the policy. Click on ‘Buy Online’ under LIC’s Jeevan Shanti.
- Once you tap on ‘Click To Buy Online’, you will be asked to fill out some information related to COVID and contact details.
- You’ll be required to enter the OTP shared on your mobile number. Once that’s done, fill out the required details (personal and product) and click on ‘Calculate Premium’.
- Pay the premium and the policy is yours to take home.
To Buy Offline:
The customer also has an option to visit the nearest LIC branch or call the LIC agent to purchase LIC Jeevan Shanti Plan offline. Before investing in a plan, ensure that the plan meets your long-term goals and covers all your needs while you plan a life of leisure post-retirement.
Documents Required To Buy LIC Jeevan Shanti Policy
To proceed with buying LIC Jeevan Shanti Plan, the insured must fetch the types of documents listed below:
- Address Proof– An address proof can include driving license, passport, voter card, Aadhar card etc.
- Identity Proof- PAN Card, Aadhar card, passport etc. can be your identity proof.
Frequently Asked Questions
No, LIC Jeevan Shanti Plans do not offer maturity benefits. However, the proposer may home in on immediate annuity benefits and deferred annuity benefits during the lifetime and death of the annuitant or any annuitants when buying these policies.
Yes, the amounts payable on death can be received in installments for the chosen period of 5, 10 or 15 years instead of a lump sum amount. The amount opted by the annuitant can either be in absolute value or as a percentage of the total claim proceeds payable.
The amount of payables are listed below:
|Mode of Installment Amount||Minimum Installment Payable|
Yes, the policy offers guaranteed monthly additions by the end of each month wherein the value of the addition is a product of the purchase price and the annuity rate per annum monthly payable.