LIC New Jeevan Shanti

LIC New Jeevan Shanti- Plan Overview

LIC New Jeevan Shanti- 758 is a deferred annuity, single premium plan designed to secure the policyholder's financial future after retirement. This LIC pension plan offers lifetime guaranteed income to the policyholders. The plan comes with two Annuity Options. The options available are: 

Option 1: Deferred annuity for Single life 

Option 2: Deferred annuity for Joint life

Important Features of LIC New Jeevan Shanti

• LIC Jeevan Shanti plan offers flexibility in the death benefit payout. You can choose either a lump sum amount or installments for 5, 10, or 15 years.

• The plan offers a unique feature: it can be used to provide financial security for a disabled dependent. If you pass away, the death benefit can be used to purchase an immediate annuity from LIC, ensuring a steady income stream for your dependent.

• A higher purchase price (above Rs.5 Lakhs) will earn you extra annuity rates.

• The plan does not offer any maturity benefit.

Eligibility Criteria of LIC New Jeevan Shanti

You can only enjoy all the above benefits if the following conditions are met.

LIC New Jeevan Shanti Plan Benefits

The plan offered by the LIC comes with a host of benefits. Take a look below to explore the benefits provided by the plan:

Listed below are some other benefits of the plan, other than the ones previously mentioned:

1. Option to take the plan for Disabled Dependents:

   Suppose the person buying the plan has a dependent with a disability. In that case, they can choose the Deferred Annuity for a Single life option, with the dependant as the nominee, with a minimum purchase price of 50,000/-. If the policyholder passes away and the purchase price is less than 1,50,000, the death benefit will be used to buy an immediate annuity for the dependent. The annuity payments to the dependant will be based on prevailing Immediate Annuity rates without any restrictions.

   In the event of the policyholder's death:

   • If the purchase price is less than Rs. 1,50,000, the death benefit will be automatically used to purchase an immediate annuity for the disabled dependent.
   • This immediate annuity will provide the dependent with a regular income stream based on the prevailing market rates for immediate annuities, without any restrictions.

2. Incentive on High Purchase Price

   You get rewards for choosing a higher purchase price in three categories:

   • Rs 5,00,000 to Rs 9,99,999; 

   • Rs 10,00,000 to Rs 24,99,999; and 

   • Rs 25,00,000 and above. 

   The incentive depends on the purchase price and how long you wait before starting annuity payments (deferment period). The reward increases as you move to a higher purchase price category and choose a more extended deferment period.

What is the LIC Jeevan Shanti Pension Plan Calculator?

To check the LIC Jeevan Shanti pension plan maturity and premium calculations, you can use the LIC New Jeevan Shanti calculator. This online free-of-cost tool helps you see how much monthly income you will receive based on your investment. This will help you decide if the plan suffices for your future needs or if you need to save/invest more in it.

This LIC calculator factors in your current age, retirement age, purchase price, deferment period, etc, to give personalised and accurate information. Therefore, you should know the following eligibility conditions to purchase this policy.

You will have to keep the eligibility conditions in mind while using the LIC New Jeevan Shanti calculator to get accurate estimates of the benefits and costs.

Sample Premium Illustration of LIC New Jeevan Shanti Plan - 758

Below is a sample premium illustration for the LIC New Jeevan Shanti Plan - 758.

• Purchase Price: ₹10,00,000 (excluding applicable taxes)

• Age of Annuitant at Entry: 45 years (Last Birthday)

• Deferment Period: 5 years

• Age of Secondary Annuitant at Entry: 35 years (applicable for Option 2 only)

Policy Details about LIC New Jeevan Shanti

• Surrender Value
  Policyholders can surrender their LIC New Jeevan Shanti policy at any time. They will receive a higher Guaranteed Surrender Value (GSV) or Special Surrender Value upon surrender.
  To calculate the GSV, use the following formula:
  GSV = (GSV Factor × Purchase Price) - Total Annuity Paid Until Surrender
  GSV Factors:

  • 75% if surrendered in the 1st, 2nd, or 3rd policy year.

  • 90% if surrendered in the 4th year or later.

• Loan Facility
  You can apply for a loan against your policy benefits if you need immediate money. This option becomes available after you have completed 3 months of the policy term. The maximum loan amount is capped at 80% of the surrender value.

• Free Look Period
  You have a 15 to 30-day free look period to review the policy documents. If you have any concerns, you can report them within this timeframe, and LIC will cancel the policy and refund your purchase price.

What Is Not Covered In LIC's New Jeevan Shanti Plan?

• Suicide Exclusion
  LIC does not entertain death claims arising out of suicide within the first 12 months of the LIC New Jeevan Shanti policy. Nominees will get 80% of the premium or surrender value, whichever is higher at that time.

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