LIC New Jeevan Shanti (Plan No.858), is a non-linked, single premium, deferred annuity plan. This plan gives you 2 different plan options to choose – Single Life Annuity and Joint Life Annuity. The annuity rates under this plan are guaranteed to the policyholders at the inception of the policy and are paid post deferment period throughout the lifetime of annuitants.
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Eligibility Criteria
| Minimum Entry Age | 30 years |
| Maximum Entry Age | 79 years |
| Minimum Vesting Age | 31 years |
| Maximum Vesting Age | 80 years |
| Minimum Deferment Period | 1 year |
| Maximum Deferment Period | 12 years subject to maximum vesting age |
| Minimum Annuity | Monthly- Rs.1,000 Quarterly- Rs.3,000 Half-Yearly- Rs.6,000 Annually- Rs.12,000 |
| Minimum Purchase Price | Rs.1,50,000 |
| Maximum Purchase Price | No Limit |
| Free Look Period | 15 days |
| Annuity Payment Mode | Monthly, Quarterly, Half-Yearly, and Annually |
| Surrender | After 3 months of issuance of a policy |
| Investment | One-time |
Annuity Options-
- Deferred Annuity for Single Life – Under this option, no amount is payable during the deferment period. After the deferment period, you will receive the pension as per the option you have selected as long as you are alive.
- Deferred Annuity for Joint Life:- Under this plan, no amount is payable during the deferment period. After the deferment period, you will receive the pension as per the option you have selected as long as the primary or secondary holder alive.
Death Benefits during deferment period
Higher of the below will be payable –
Purchase Price + Additional Benefit on Death – The total Annuity amount payable till date of death
OR
105% of Purchase price.
(Additional benefit on Death=(purchase price*Annuity rate per annum payable monthly)/12)
This Additional benefit on death is applicable only during the deferment period but not while you are issuing the pension.
LIC’s New Jeevan Shanti (Plan No.858)
Life Insurance Corporation (LIC) is an Indian insurance company owned by the Government of India. It was founded on 1st September 1956 and is headquartered in Mumbai, India. LIC caters to different segments of insurance products including health, pension, unit-linked, and others.
One of its key pension plans- LIC’s New Jeevan Shanti (Plan No.858), is a non-linked, single premium, deferred annuity plan that allows the policyholder to choose between Single Life and Joint Life Annuity. The annuity rates are guaranteed to the policyholders at the inception of the policy and are paid post deferment period throughout the lifetime of annuitants.
This policy was launched on 21st October 2020. Before this, the LIC Jeevan Shanti was available in two different variants- Immediate and Deferred Annuity under which Option A to Option J was available under Immediate Annuity Option. With the issuance of a new policy, the deferred annuity option is available under LIC’s New Jeevan Shanti Plan.
Eligibility Criteria
| Minimum Entry Age | 30 years |
| Maximum Entry Age | 79 years |
| Minimum Vesting Age | 31 years |
| Maximum Vesting Age | 80 years |
| Minimum Deferment Period | 1 year |
| Maximum Deferment Period | 12 years subject to maximum vesting age |
| Minimum Annuity | Monthly- Rs.1,000 Quarterly- Rs.3,000 Half-Yearly- Rs.6,000 Annually- Rs.12,000 |
| Minimum Purchase Price | Rs.1,50,000 |
| Maximum Purchase Price | No Limit |
| Free Look Period | 15 days |
| Annuity Payment Mode | Monthly, Quarterly, Half-Yearly, and Annually |
| Surrender | After 3 months of issuance of a policy |
| Investment | One-time |
LIC New Jeevan Shanti: Tax Benefits
Investment under LIC New Jeevan Shanti plan is eligible for tax benefit under Section 80CCC. Benefit under Section 80CCC comes under the overall limit of Rs 1.5 lacs under Section 80C.
The annuity income (pension income) is taxable at your income tax slab rate.
Additional Benefits
- Policyholders can avail of a 2% rebate by an increase in annuity rate that shall be applicable for policies purchased online and as QROPS.
- This insurance plan can be purchased as a Qualifying Recognized Overseas Pension Scheme (QROPS) through the transfer of UK tax-relieved assets subject to terms and conditions offered by Her Majesty Revenue & Customs (HMRC).
- The insurance policy offers a reduction in annuity rates- Half Yearly (2%), Quarterly (3%), and Monthly (4%).
- Under Single Life Deferred Annuity, nothing will be paid on the survival of the annuitant during the deferment period.
LIC’s New Jeevan Shanti- How Does it Work?
Let’s take the help of an example to answer the above question.
Purchase Price (excluding applicable taxes): Rs.10 lakh
Age of Annuitant at entry: 45 years
Deferment Period: 12 years
Age of Secondary Annuitant at entry: 35 years (applicable for Joint Life Annuity only)
How Can I buy LIC’s New Jeevan Shanti (Plan No.858) Online?
Policyholders are required to follow the below-mentioned steps to purchase LIC’s Jeevan Shanti Insurance Policy online:
- Visit the official website of LIC.
- Scroll down and click ‘LIC’s Jeevan Shanti’ under ‘Buy Policy Online’.
- Click ‘Buy Online’ under LIC’s New Jeevan Shanti.
- Tap on ‘Click to Buy Online’ and enter the required details.
- Click ‘Calculate Premium’ and then enter the OTP received on your registered number.
- Enter your personal information.
- Check the premium details and click ‘Confirm & Proceed’.
- Make the payment online and you will receive your insurance policy on your registered email id.
How can you reach LIC
Call: You can call the customer care number (02268276827) or
SMS: SMS LICHELP < Policy No.>and send it to 9222492224 or SMS LICHELP < Policy No.>and send it to 56767877.