LIC Jeevan Shanti Policy

LIC Jeevan Shanti is non-linked, the single premium on an annual plan, which comes with the double benefit of returns on the immediate or deferred annuity. For both options, the rates of the annuity are guaranteed at the starting of the policy. This plan will be used as secured fixed payouts at regular intervals throughout your life. By chance, if the policyholder has a LIC pension plan, then he/she can withdraw only one-third portion of the amount when it matures and should purchase an Annuity from LIC with the remaining amount. So it is ideal to know the various alternative options.

How LIC Jeevan Shanti Plan Works

LIC Jeevan Shanti is a solitary premium plan wherein the Policyholder has a choice to pick an Immediate or Deferred annuity. The policyholder has to pay a solitary premium to buy an annuity. Lic will pay them a standard amount for the rest of their life on a month to month, quarterly or half-yearly or every year depends upon the plan which they pick.

Annuity Options

As mentioned above, LIC Jeevan Shanti has 2 options, which are Immediate Annuity and Deferred Annuity.

Immediate Annuity

In this option, the policyholder will start getting their payments immediately. They will purchase the plan by making the payment once; the payouts will start based on the payout terms [monthly, half-quarter, quarter, annually]

Policyholders get the annuity payment till the policyholder is alive as per the payment mode.

Options: 

  • Option A: In this option, Policyholder has immediate Annuity for life. He/she can select the mode of payments monthly, annually, quarterly, and half-quarter. In this case, if death happens of policyholders, then the annuity will stop immediately.
  • Option B: In this option, Policyholder gets guaranteed payment for 5 years and life thereafter. Within these 5 years, if policyholders died, then the assured amount will be given to the beneficiary.
  • Option C: In this option, Policyholder gets guaranteed payment for 10 years and life thereafter. Within these 10 years, if the policyholder died, then the assured amount will be given to the beneficiary.
  • Option D: In this option, Policyholder gets guaranteed payment for 15 years and life thereafter. Within these 15 years, if policyholders died, then the assured amount will be given to the beneficiary.
  • Option E:  In this option, Policyholder gets guaranteed payment for 20 years and life thereafter. Within these 20 years, if policyholders died, then the assured amount will be given to the beneficiary.
  • Option F:  In this option, Policyholder beneficiary or nominee will get the benefits of policy on policyholder’s death. The nominee/beneficiary will get the entire purchase of the price.
  • Option G: In this option, the Immediate Annuity option will increase by 3% every year.
  • Option H: In this option, on the death of the primary policyholder, the secondary policyholder will get a 50% annuity amount until the secondary policyholder’s death.
  • Option J: In this option, on the policyholder’s death, the secondary policyholder will get the 100% of annuity and in the return of purchase price on the death of the secondary policyholder.

Joint Annuity Benefits:

  • If the policyholder’s death happens in between the guarantee period, the nominee will get the annuity till the guarantee period.
  • In joint policy, if the last survivor death happens, the annuity will stop immediately and the purchase amount will go to the nominee.
  • In the joint-life immediate annuity for a life with a provision of 100% of the annuity, an annuity is payable as long as one of the annuitants survives.

Deferred Annuity

In this option, Policyholders will start getting money only after certain years. It’s really helpful for those who want to lock their retirement time. They can enjoy their retirement time without worrying about their financial crisis. For the deferment period, the Policyholder will get guaranteed additions, which will be fixed during the time of buying the plan/policy. They can choose Deferred annuity for a single life and joint life.

lic jeevan shanti deferred annuity

    • Option A [During Deferment]: In this option, Policyholder gets the payments after the deferred period, if the policyholder’s death in between deferred period, the nominee will get the death benefit. In the death benefits, they get 110% of the purchase price.
    • Option B [After Deferment Period]: In this option, the Policyholder gets the installments as long as the policyholder is alive. They can pick the installment mode. On the death of the policyholder’s death, the annuity will get stop and the death benefit will be payable.
    • For the joint-life plan, the annuity will be paid till both policyholders are alive and on the last survivor’s death, death benefits will be payable to the nominee.

    Eligibility For LIC Jeevan Shanti Policy

    Minimum Age limit30 years (completed)
    Minimum Annuity[Monthly]Rs. 1,000 per month
    Minimum Annuity [Quarterly]Rs. 3,000 per quarter
    Minimum Annuity [Half-Yearly]Rs. 6,000 per half-year
    Minimum Annuity [Annual]Rs. 12,000 per annum
    Minimum PurchaseRs. 1,50,000
    Maximum PurchaseNo Limit

    For Joint Life

    Maximum Age Entry85 years and deferred annuity 79 years
    Minimum Deferment Period1 year
    Maximum Deferment Period20 years subject to Maximum Vesting Age
    Vesting Age31 years (completed) – 80 years (completed)

    Why Buy Jeevan Shanti Policy

    • You can get the tax benefits under the sec 80CCC.
    • Flexibility of choosing the Annuity.
    • You can purchase this plan online and offline both
    • Guaranteed income monthly/ annually, depends on Policyholder choice.
    • Under deferred payout, Policyholders will be receiving the assured monthly returns on their policy.
    • The premium installment must be made once as a single shot amount of Rs.1, 50,000 with no limit on the most maximum investment.

    Benefits Under LIC Jeevan Shanti

    • Policyholder can take a loan against this policy [minimum 1-year completion of policy is a must]
    • You get 15 days of free look period, wherein policyholders are not happy or not satisfied by the policy terms and conditions, they can return the policy.
    • This policy has an option of handicapped dependent [Divyangjan life]
    • The policyholder can surrender their policy after the 3 months of policy completion.
    • A Policyholder can take this plan as a joint plan with your children, spouse, siblings, parents and even grandparents.

    Documents Required For LIC Jeevan Shanti Policy

    • Id proof
    • Address Proof
    • Passport size photograph