LIC New Jeevan Shanti Plan is a Non-Linked, Non-Participating, Individual, Single Premium, Deferred Annuity Plan. Policyholder has an option to choose between single life and Joint Life. You can purchase this plan offline as well as online.
|Plan Name||LIC New Jeevan Shanti Plan|
|Plan Type||Deferred Annuity Plan (Pension Plan)|
|Launch Date||21 October 2020|
List of Topic Covered
Key Features of LIC New Jeevan Shanti Plan
- LIC New Jeevan Shanti is a single premium guaranteed pension plan.
- Annuity rates are guaranteed throughout the lifetime of the pensioner.
- LIC closed the earlier LIC Jeevan Shanti (850) and launched the New Jeevan Shanti Plan (858)
- Before this LIC had launched an immediate annuity plan LIC Jeevan Akshay VII (857)
- No medical tests are required.
- Loan facility is available.
What is Annuity?
Annuity in simple words is a pension where you get a fixed amount for the rest of your life. Annuity (Pension) are of two types.
- Immediate Annuity – Here you start getting pension immediately. Suppose you have 10 lakhs and you bought an immediate annuity plan. So your pension will start immediately from next month.
- Deferred Annuity – Here your pension starts after a certain period of time in future. Suppose at the age of 35, you decided to buy a deferred annuity plan. So you will keep investing till the time you want to retire and after that you will start getting pension regularly.
LIC New Jeevan Shanti Plan Annuity Options & Benefits
There are two options available under this plan,
Option 1: Deferred annuity for Single life
- On survival of the annuitant during deferment period, nothing shall be payable.
- On death of an annuitant during deferment period, death benefit will be paid to the nominee.
- If the annuitant survives the deferment period, the annuity payment will be paid for the rest of his life.
- On death of an annuitant after the deferment period, death benefit will be paid to the nominee and policy will close.
Option 2: Deferred annuity for Joint life
- On survival of the primary annuitant or secondary annuitant during deferment period, nothing shall be payable.
- On death of both the annuitant during deferment period, death benefit will be paid to the nominee.
- On survival of primary or secondary annuitant after the deferment period, the annuity payment will be paid for the rest of his/her life.
- On death of both the annuitant after the deferment period, death benefit will be paid to the nominee and policy will close.
Death Benefit During Deferment Period :
Death benefit under both the options is defined as higher of,
- (Purchase Price + Accrued additional benefit on death*) – (Minus) Total annuity amount paid till date of death or,
- 105 % of purchase price.
* Accrued additional benefit on death : This shall accrue at the end of each policy month till the end of deferment period.
Formula for Additional Benefit on Death per month= (Purchase Price *Annuity rate p.a. payable monthly) / 12
Death Benefit after deferment period in LIC New Jeevan Shanti Plan
Annuitants will have to choose Death benefit under this plan as available in the following three options.
- Lump Sum Death Benefit – Under this plan, the entire death benefit shall be payable to the nominee in lump sum.
- Annuitisation of Death Benefit – Under this option the benefit amount payable on death i.e. Death Benefit shall be utilized for purchasing an Immediate Annuity.
- In Instalments – Under this option the benefit amount payable on death i.e. Death Benefit can be received in instalments over the chosen period of 5 or 10 or 15 years.
Eligibility conditions and other restrictions in LIC New Jeevan Shanti Plan Policy
|Purchase Price||₹ 1,50,000 (50k for NPS and handicapped person)||No Limit|
|Entry Age||30 years (Last birthday)||79 years (Last birthday)|
|Vesting Age||31 years (Last birthday)||80 years (Last birthday)|
|Deferment Period||1 Year||12 Years|
|Annuity||Monthly – Rs. 1,000|
Quarterly – Rs. 3,000
Half -yearly – Rs. 6,000
Yearly – Rs. 12,000
Reduction in annuity rates of LIC New Jeevan Shanti Policy
There is decrease in annuity rate in half-yearly, quarterly and monthly mode. The reduction will be as follows:
|Mode||Percentage Reduction in Annuity Rate|
Annuity payment mode in LIC New Jeevan Shanti Policy
The mode of annuity payments are yearly, half-yearly, quarterly and monthly mode.
Incentive in LIC New Jeevan Shanti Policy
The following incentives for higher purchase price are applicable under this plan. This will be for per Rs. 1,000 purchase price (Rs.)
|Purchase Price||Incentive (For Rs. 1,000/- purchase price)|
|5,00,000 to 9,99,999||1.50|
|10,00,000 to 24,99,999||2.10|
|25,00,000 to 49,99,999||2.45|
|50,00,000 to 99,99,999||2.60|
|1,00,00,000 & above||2.70|
A rebate of 2% by way of increase in the annuity rate shall be applicable for policies purchased Online, and as QROPS.
Surrender Value in LIC New Jeevan Shanti Plan
- The policy can be surrendered at any time during the policy term.
- The surrender value payable shall be higher of Guaranteed Surrender Value or Special Surrender Value.
Loan Facility in LIC New Jeevan Shanti Plan
Loan facility is available after completing 3 months in the policy.
Tax Benefit in LIC New Jeevan Shanti Plan
- Premiums paid are exempted under section 80C of the income tax act of 1961.
- The maximum exemption can be availed is 1.5 Lakhs
- Pension amount received will be taxable.
- Death amount received are exempted under section 10(10D).
Free Look Period in LIC New Jeevan Shanti Plan
If the policyholder is not satisfied with the policy, he or she can return the policy to the corporation stating the reason for the same in 15 days(offline) and (30 days) if purchased online. After receiving the request, the Corporation shall cancel the policy and return the purchase price after deduction of stamp duty, charges, and annuity paid.
How to buy LIC New Jeevan Shanti Plan
You can buy this plan offline as well as online.
For offline you can contact agents or brokers. You can also visit the company’s branch office and buy the plan.
Step by step process to buy LIC Saral Jeevan Bima Plan Online
- Log on to www.licindia.in website.
- Click on Buy Policies online.
- Click on Pension heading.
- Then select LIC New Jeevan Shanti Plan.
- Click on buy online.
- You will be asked if you have been diagnosed with COVID in the past three Months?
- If you will say yes then your journey will end but if you will say no then in the next screen you have to enter your personal details and an OTP will be sent to your phone.
- Then choose your purchase price, select annuity option, pension mode and hit calculate premium.
- After this a screen will show you your total (purchase price + GST) and the annuity amount payable.
- Then you have to confirm and proceed for EKYC.
- At last pay the purchase price online and fulfil the underwriting requirements if any.
Documents required to buy LIC New Jeevan Shanti Plan
- You need to have the following documents to buy this plan.
- LIC Proposal form, duly filled and signed by the pensioner/Policyholder/Annuitant
- Photograph of the Pensioner
- Age proof of the Pensioner
- Identity proof of the Pensioner/Annuitant
- Address proof of the Pensioner
- Income proof of the proposer if the sum assured or the premium of the policy is high
- PAN card of the proposer
- Cheque on the name of “Life Insurance Corporation of India/LIC of India” towards policy premium.
How to make claim in LIC New Jeevan Shanti Plan
How to make Maturity Claim or Surrender in LIC New Jeevan Shanti Plan
There is no maturity benefit under this policy as this is a pension plan.
If you are making a surrender claim, you have to inform the company in writing or contact your agent for this.
How to make a Death claim in LIC New Jeevan Shanti Plan
In case of death claim, nominee can get the purchase price by submitting required documents.
Below are the list of documents which nominee has to submit to get the purchase price.
- Claim Form ‘A’ in Form No.3783.
- If policy has run for 3 years or more from date or risk, claim Form No.3783A may be used
- Certified extract from death register issued by hospital/Doctors/District level authorities.
- The original policy document with Deed of assignment
Paisa kaudi Recommendation on LIC New Jeevan Shanti Plan
Annuity plans are for those who are looking for fixed returns and income in their older age. However you should also think about inflation, taxation and annuity age ( The maximum deferment period is 12 years) in this plan. I think there are other options as well in the market. You can consider other products like PMVVY, Tax-free bonds etc.
In case you face any issue, contact your agent or visit your respective servicing branch.
Read the Review of LIC Jeevan Akshay VII Plan
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