LIC Jeevan Shanti

Table 850

Plan Type

A Non Linked, Non Participating, Single Premium, Annuity Plan

1. Non Linked – Not market Linked
2. Non Participating – Not eligible for any bonuses
3. Single Premium – Only 1 Premium to be paid
4. Annuity Plan – Pension Plan

Plan Options

• Immediate Annuity
• Deferred Annuity
  1. Single Life (Option 1)
  2. Joint Life (Option 2)

Pension Payment Plan

1. Yearly
2. Half-yearly
3. Quarterly
4. 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?

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

Leave a comment if you have any questions…