Table 850
Plan Type
A Non Linked, Non Participating, Single Premium, Annuity Plan
- Non Linked – Not market Linked
- Non Participating – Not eligible for any bonuses
- Single Premium – Only 1 Premium to be paid
- Annuity Plan – Pension Plan
Plan Options
- Immediate Annuity
- Deferred Annuity
- Single Life (Option 1)
- Joint Life (Option 2)
Pension Payment Plan
- Yearly
- Half-yearly
- Quarterly
- Monthly
Benefit Option 1 (Single Life)
Benefits Option 2 (Joint Life)
Death Benefit
(Purchase Price + Accrued Guaranteed Additions*) – Total annuity amount payable till date of death
OR
110% of Purchase Price
Whichever is higher
*Guaranteed Additions per month = (Purchase Price X Annuity rate p.a. payable monthly**) / 12
Payment Options
- Lumpsum
- Annuity
- Installment
Minimum/Maximum
- Maximum Annuity : No Limit
- Minimum Age at Entry : 30 Years
- Maximum Age at Entry : 79 Years
- Minimum Deferment Period : 1 Years
- Maximum Deferment Period : 20 Years
- Minimum Vesting Age : 31 Years
- Maximum Vesting Age : 80 Years
Taxation, Surrender Value and Loan Facility
Returns
Case for Radhey Shyam Babu
- Purchase Price : 10 Lac + GST
- Age at entry : 45 years
- Annuity Mode : Yearly
- Deferment Period : 20 years
- Age of Secondary Annuitant : 35 years
Returns for Option 1
- Yearly : 1,76,000
- Half-Yearly : 86,211
- Quarterly : 42,658
- Monthly : 14,070
- Effective Returns 3.57%
Returns for Option 2
- Yearly : 1,93,500
- Half-Yearly : 94,786
- Quarterly : 46,902
- Monthly : 15,470
- Effective Returns – Kindly post in Comments Section.
Things to consider before buying …
- Are you too conservative?
- Inflation will leave only pennies in your hands after a few years due to meagre returns
- What is the purpose of taking this Plan?
- To get Insurance cover
- Have you considered Term Plans for your insurance coverage?
- Saving of Tax
- Have you considered investing in PPF or NPS?
- Grow money ?
- Have you considered alternate investment opportunities like Mutual Funds – Debt funds, Index funds?
- To get Insurance cover
Assumed returns from other alternatives
| Year | Investment @ 12% (Equity) | Investment @ 8% (Debt) |
| 2020 | ₹ 10,00,000 | ₹ 10,00,000 |
| 2030 | ₹ 34,78,550 | ₹ 23,31,639 |
| 2040 | ₹ 1,08,03,848 | ₹ 50,33,834 |
| 2050 | ₹ 3,35,55,113 | ₹ 1,08,67,669 |
Video Review of LIC Jeevan Shanti Plan
