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LIC Jeevan Shanti Plan

LIC Jeevan Shanti Plan is a non-linked, non-participating, single premium annuity plan where you have the dual benefit of returns via immediate or deferred annuity. This plan can be availed online as well as through the offline mode. The payout modes of immediate and deferred are further divided into multiple options which provide return of annuity purchase price as well as returns. Each of these options have their own unique set of features and benefits.

Note: All information regarding LIC Jeevan Shanti Plan has been sourced from the official website of Life Insurance Corporation of India.

Features of LIC Jeevan Shanti Plan

As mentioned above, this plan comes in two options (immediate and deferred annuity) with a one-time premium payment. Under the immediate option, the returns can be availed post payment of all the premiums, while under the deferred option, you can avail returns only after a limited time period. The minimum deferment period of the policy is one year, while the maximum deferment period of the policy is 20 years.

Benefits of LIC Jeevan Shanti Plan

The benefits of the plans are listed below as per the respective options.

A. Immediate Annuity Plan

  • The annuity payment shall be made as per the payment mode selected as long as the policyholder is alive.
  • No death benefit will be payable in case of demise and the policy will cease to exist immediately.
  • The annuity payment is payable as per the payment mode selected as long as the policyholder is alive.
  • On death of the policyholder during the guaranteed period, the nominee will receive the annuity amount till the end of the guarantee period.
  • In case of death after the guaranteed period, no amount will be payable and the policy will cease to exist immediately.
  • The annuity payment shall be made as per the payment mode selected as long as the policyholder is alive.
  • In case of death of the policyholder, the annuity payment will stop immediately and the nominee will receive the Purchase Price.
  • The annuity payment shall be made as per the payment mode selected as long as the policyholder is alive.
  • No death benefit will be payable in case of demise and the policy will cease to exist immediately.
  • The annuity payment shall be made as per the payment mode selected as long as the policyholder is alive.
  • Upon death of the primary policyholder, 50% of the annuity amount will paid to the surviving secondary policyholder. In case of death of the secondary policyholder, the annuity payments will stop immediately.
  • In case of death of the secondary policyholder before the death of primary policyholder, the annuity payment will be made to the primary policyholder.
  • 100% of the annuity payment shall be made as per the payment mode selected as long as one of the annuitants is alive.
  • In case of death of the last survivor, the annuity payments will stop immediately.
  • 100% of the annuity payment is payable as per the payment mode selected as long as one of the annuitants is alive.
  • In case of death of the last survivor, the annuity payments will stop immediately and the Purchase Price shall be paid to the nominee.

B. Death Benefit (Deferred Annuity)

The amount will be higher of Purchase Price plus Accrued Guaranteed Additions (as specified below) minus Total annuity payments made till date of death, if any, OR 110% of the Purchase Price.

C. Accrued Guaranteed Additions (Deferred Annuity)

You will receive Guaranteed Additions per month where the value of Guaranteed Additions is (Purchase Price * Annuity rate p.a. payable monthly) / 12.

The annuity rate p.a. payable monthly shall be equal to monthly tabular annuity rate and shall depend on the age at entry of the policyholders and the selected deferment period.

Types of LIC Jeevan Shanti Plan

Immediate Annuity Plan

1. Option A - Under this option, you can avail immediate returns for a lifetime. You can select the mode of payouts - monthly, annual, bi-annual or quarterly. In case of death, the payment will stop immediately.

2. Option B - Under this option, you will receive guaranteed payment for a period of 5 years and life thereafter. In case of death during these 5 years, the beneficiary will receive the assured amount.

3. Option C - Under this option, you will receive guaranteed payment for a period of 10 years and life thereafter. In case of death during these 10 years, the beneficiary will receive the assured amount.

4. Option D - Under this immediate annuity option, you will receive guaranteed payment for a period of 15 years. Upon survival of the policyholder, he/she can avail the annuity for lifetime. In case of death during these 15 years, the beneficiary will receive the assured amount.

5. Option E - Under this option, you will receive assured annuity for a period of 20 years and life thereafter. In case of death during these 20 years, the beneficiary will receive the assured amount.

6. Option F - Under this option, your beneficiary or nominee is entitled to death benefits. Upon death of the policyholder, the nominee will get the entire purchase price.

7. Option G - This is an immediate annuity option which comes with a 3% increase every year.

8. Option H - This is a joint annuity option where in case one of the policyholders passes away, the other will receive 50% of the annuity amount till their survival.

9. Option I - Anther joint annuity option where in case one of the policyholders passes away, the other will receive 100% of the annuity amount.

10. Option J - Under this joint annuity option, in case one of the policyholders passes away, the other will receive 100% of the annuity amount and return of Purchase Price on death of last survivor.

Deferred Annuity Plan

1. Option A - During Deferment Period:

  • Nothing shall be paid to the policyholder upon survival.
  • In case of death, the benefit will be paid: (Defined Below)

2. Option B -After Deferment Period

  • The annuity payment is payable as per the payment mode selected as long as the annuitant is alive.
  • Upon death of the policyholder, the annuity payments will stop immediately and the death benefit will be payable: (Defined Below)

3. Option C - During Deferment Period:

  • Upon survival of both (primary and secondary) the policyholders, nothing shall be payable.
  • Upon death of the last survivor, the death benefit will be payable: (Defined Below)

4. Option D - After Deferment Period

  • The annuity payment is payable as per the payment mode selected as long as both the policyholders are alive.
  • Upon death of the last survivor, the annuity payment will stop immediately and the death benefit will be payable: (Defined Below)

Why to Buy LIC Jeevan Shanti Plan?

  1. You are entitled to tax benefits under Sec 80CCC of the Income Tax Act 1961.

  2. This plan comes in two types - immediate annuity and deferred payment - which are further divided into multiple options and offer great flexibility. There are 10 options under immediate annuity and 2 under deferred payment.

  3. You have the flexibility to select the type of annuity you want - immediate annuity or deferred payment.

  4. This plan can be purchased online as well as through the offline channel.

  5. You will receive guaranteed income on a monthly basis. Based on the option selected, the guaranteed income can be availed even for a lifetime and return of purchase price in case of death of the policyholder.

  6. Under deferred payout, you will receive assured returns every month to your policy.

How to Buy LIC Jeevan Shanti Plan Online?

The most convenient way to purchase LIC Jeevan Shanti Plan online is from the official website of Life Insurance Corporation of India. Simply visit the website and register with a user ID and Password. Once logged in, select your preferred option with respect to this plan and make the premium payment. You can pay via credit card/debit card/net banking. Post payment, the policy will be delivered to your registered email ID.

Attributes of LIC Jeevan Shanti Plan

  • The minimum investment required for this plan is ₹1,50,000 with no limit on the maximum investment.

  • The minimum age for eligibility is 30 years while the maximum can be between 79 or 85 or 100 years.

  • The premium payment has to be made once as a lump sum amount of ₹1,50,000 with no limit on the maximum investment.

  • The maturity amount can be taken via immediate annuity or deferred payment. Under immediate annuity, the payment of returns start immediately post premium payment. While under deferred payment, the annuity payment starts after a limited time period as selected by the policyholder. The time period can range between 1-20 years.

  • You can avail a loan against these plans post 1 year. Under immediate annuity, this can be availed only for Option F&J. Under deferred payout, a loan can be taken for both the options.

  • You have an option to surrender the policy post 3 months of purchase. Under immediate annuity, this can be availed only for Option F&J. Under deferred payout, the surrender can be availed for both the options.

  • The plan comes with a free look-up period of 15 days.

  • If you have a handicapped dependent, you are entitled to a special provision for reducing the minimum amount of investment.

  • Under immediate annuity, you are entitled a death benefit under option F&J. Under deferred payout, the death benefit can be availed for both the options.

  • You have the flexibility to choose annuity payment as per your convenience - annually, bi-annually, monthly or quarterly.

FAQs on LIC Jeevan Shanti Plan

What are the eligibility criteria for LIC Jeevan Shanti Plan?

The minimum age of entry is 30 years while the maximum age of entry ranges between 79-100 years. In terms of premium payment, the minimum amount is ₹1,50,000, which can be paid as a lump sum, with no limit on the maximum amount of investment.

Which type of annuity option to choose from?

This plan comes with two types of annuity options to choose from. It is advisable that you determine your financial goals and needs. Post evaluation you will be able to make a better decision with respect to selecting the suitable policy.

What are the tax benefits on LIC Jeevan Shanti Plan?

You are entitled to tax benefits under Sec 80CCC of the Income Tax Act, 1961, on LIC Jeevan Shanti Plan.

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