The whole concept of the Jeevan Shanti plan of LIC revolves around the idea of a non-participating, unlinked, single premium annuity plan. There is a great role for a deferred annuity which means that the pensions will kickstart only after a specific number of years.
One of the best things about this plan is that it can be availed both online and offline. In the case of payout, it is carried out in multiple options through which there will be the availability of annuity return purchase price along with the returns. The best thing about the options is that they come with a unique and special set of benefits as well features.
LIC Jeevan Shanti Plan features
In the case of features, the LIC Jeevan Shanti Pension Plan usually comes with two options namely deferred and immediate annuity which is accompanied by a one-time premium payment.
- Under the immediate option, the feature of availing the returns is usually accessed after the payment of all the premiums.
- Under the deferred option, the individual can avail of the returns for a conservative period. The maximum deferment policy of the policy is said to be around 20 years whereas, on the contrary, the minimum deferment period is one year only.
Deferred Annuity Plan
The following are certain deferred annuity plans:-
Option A – During the Deferment period
- Upon survival, no amount of money will be paid to the policyholder.
Option B – After the deferment period
- Here, the payment of the annuity will be made through a mode that has been selected by the policyholder as long as he is alive.
- If the policyholder has died, the annuity will stop as soon as possible.
Option C – During the deferment period
- In case both the primary as well as the secondary policyholders are alive, no amount will be payable.
Option D – After the Deferment period
- If the last survivor dies then the annuity payment will stop as soon as possible.
Types of LIC Jeevan Shanti Plan
The following are the types of LIC Jeevan Shanti Plan:-
An individual can opt for immediate returns for a lifetime where he or she can select their mode of payouts which is annual or monthly.
Under this option, the individual will get a guaranteed payment for a specific period of 5 years and then the life after that. If things don’t turn out the way and the individual dies during the 5 years, the assured amount will be received by the beneficiary.
Under this option, the individual will get a specific payment for a fixed period of 10 years and then life after that. If the individual dies within 10 years then the specified amount will be received by the beneficiary.
Under this, the individual will receive payment for a time of 15 years. Thereafter upon the policyholder’s survival, the individual will be able to avail of the annuity for the lifetime. Hereafter if the individual dies within the specified date, the beneficiary will receive the amount.
Under this scheme, the individual will receive for 20 years and if the person dies within his time, then the specified amount will be received by the beneficiary.
Under this scheme, the death benefits will be entitled entirely to the nominee or beneficiary. This is because if the policyholder dies then the entire purchase price will be received by the nominee.
This scheme is an immediate annuity that has a 3% increase every year.
It is a joint annuity option where if the policyholder passes away then the other will receive half of the annuity as long as they live.
It is yet again another joint annuity where if the policyholder dies then the whole of the annuity will receive by the other.
Under this scheme as well if the policyholder dies then the annuity amount of the whole will be received by the other along with the return of purchase price on the death of the last of the survivor.
Eligibility Criteria for LIC Jeevan Shanti
The eligibility criteria under the LIC pension plan Jeevan Shanti are as follows:-
- The minimum age at the time of entry should be 30 years.
- The annuity mode should be of the minimum annuity.
- In terms of monthly, it must be 1,000 per month. In terms of quarterly, it must be 3,000 for every quarter and in the case of half-yearly, it should be 6,000 per half-year. Finally, under the annual condition, it must be 12,000 per annum.
Benefits of LIC Jeevan shanti plan
The benefits under the immediate annuity plan and deferred annuity are as follows:-
Immediate annuity plan
- To carry out the annuity payment, it must be done as per the selected payment by the individual and this is done until the policyholder is alive.
- There will be no payable of the death benefit in case of demise then the policy will cease to exist immediately.
- In terms of payment, it must be done as per the payment selected by the individual until the policyholder is alive.
- In case, the policyholder dies during the session of the guaranteed period then the annuity amount until the end of the guaranteed period will be received by the nominee.
- If the primary policyholder dies then half of the annuity amount will be paid to the secondary policyholder provided that he or she is alive.
- In case the secondary policyholder dies before the death of the primary policyholder, the annuity payment will be made to the primary policyholder only.
- In case the last survivor dies then the annuity payments will be stopped then and there and the purchase price will be paid directly to the nominee.
Deferred annuity plan
Under this, the amount will be higher than the purchase price plus accrued guaranteed additions after this, the former value would be minus total annuity payments made until the date of death.
Accrued Guaranteed Additions or deferred annuity
The individual will receive the guaranteed additions every month and the value of the guaranteed additions will be calculated by the following, purchase price*annuity rate per annum payable monthly)/12. Here, the annuity rate per annum payable monthly should be equated to the monthly tabular annuity rate. In the meantime, it should be depended on the age when the entry was made by the policyholders to the selected deferment period.
Lic Jeevan Shanti plan calculator
With the help of the LIC Jeevan Shanti Plan Calculator, the individual will be able to calculate the yearly, half-yearly, quarterly, or else monthly pension amounts with regards to the pension holder’s age, deposit amount as well as the year of deferment.
Why buy LIC Jeevan Shanti Plan
An individual is entitled to the benefits of tax under the Sec 80CCC of the Income Tax Act 1961. Through the LIC Jeevan Shanti Plan, it is guaranteed for the individual receives income every month. This will be done
Thus, it can be said that LIC Jeevan Shanti is a guaranteed return annuity plan that comes with the deferred annuity option. Here, the individual will have the leverage of dual benefits of returns either through a deferred or immediate annuity. Now that you have all the information regarding LIC Jeevan Shanti Plan, you are all set to invest your share in LIC Jeevan Shanti Plan.
Official link – https://licindia.in/Products/Pension-Plans/LIC-s-New-Jeevan-Shanti-(Plan-No-858)-(UIN-512N338
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