What is Jeevan Shanti’s Plan?
The LIC Jeevan Shanti is a single premium plan which is offered by the Life Insurance Corporation (LIC) of India. Under this plan, a policyholder has the liberty to choose from an Immediate Annuity option or a Deferred Annuity option. For both options, the rates of the annuity are guaranteed at the time of the inception of the policy. The annuities are payable to the annuitant(s) throughout their lifetime. An individual willing to buy the policy can easily do so through both online and offline methods.
LIC Jeevan Shanti Plan is a non-linked, non-participating, single premium annuity plan where you have the dual benefit of returns via an immediate or deferred annuity. This plan can be availed online as well as through offline mode. The payout modes of immediate and deferred are further divided into multiple options which provide the return of annuity purchase price as well as returns. Each of these options has its own unique set of features and benefits.
In this plan, you have to pay the entire premium in a lump sum amount. You can opt for an immediate annuity plan in which you can avail of the returns after paying all the premiums, while for the deferred annuity plan, you can avail of returns after some time. The minimum deferred period of the policy is one year and the maximum is 20 years.
|Name of Article||LIC Jeevan Shanti Plan 2023|
|launch||By Life Insurance Corporation of India (LIC).|
|Beneficiaries||Citizens of the country|
|purpose||Lifetime pension benefit|
Types of Jeevan Shanti LIC Plan
The plan can broadly be categorized into Immediate Annuity Plan and Deferred Annuity Plan, as mentioned above. The following are further categorizations of the plan available to the people to invest their money in:
Immediate Annuity Plan:
- Option A: In this type, one can avail of immediate returns for a lifetime. You have various modes of payouts such as monthly, quarterly, bi-annual, and annual. In case of the death of the policyholder, the payment will stop.
- Option B: This option offers a guaranteed payment for 5 years and life thereafter. If the policyholder dies, the beneficiary mentioned in the policy will receive the assured amount.
- Option C: Similar to option B, but with a longer period. In this option, you will receive a guaranteed payment for 10 years and life thereafter. Again, in case the policyholder dies during these 10 years, then the beneficiary will receive the assured amount.
- Option D: Similar to the above two options with an extended period. In this option, you will receive a guaranteed payment for 15 years and life thereafter. If case the policyholder dies during these 15 years, then the beneficiary will receive the assured amount.
- Option E: Similar to the above three options with another extended period. In this option, you will receive a guaranteed payment for 20 years and life thereafter. If case the policyholder dies during these 20 years, then the beneficiary will receive the assured amount.
- Option F: In this option, the sum assured will be provided to the beneficiary upon the policyholder’s death. The beneficiary/nominee will receive the entire purchase price amount.
- Option G: This option is for life and comes with a 3% simple rate per year.
Joint Annuity Plans (Immediate):
- Option H: This is owned by two people jointly. On the demise of one of the policyholders, the other policyholder receives 50% of the annuity amount till their survival.
- Option I: It is similar to the above option, but in case of the demise of one policyholder, the other receives 100% of the annuity amount.
- Option J: Under this option, when one policyholder dies, the other receives 100% of the annuity amount along with a return of purchase price on death when the second policyholder dies.
Deferred Annuity Plan:
- Option A: During the Deferment Period of a single holder, if he survives the period, he shall not receive anything. But, if he dies, the beneficiary will receive the death benefit.
- Option B: After the Deferment Period of a single holder, the annuity payment is paid till the annuitant is alive. When he dies, the annuity payments stop immediately and the death benefit will be paid to the beneficiary/nominee.
- Option C: During the Deferment Period of a joint policy, if both policyholders survive, then nothing shall be payable. Whereas, if both of them die, then the death benefit will be payable.
- Option D: After the Deferment Period of a joint policy, the annuity payment is paid as long as both holders are alive. When the last policyholder dies, the annuity payment will stop and the death benefit will be paid.
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 of returns only after a limited period. The minimum deferment period of the policy is one year, while the maximum deferment period of the policy is 20 years.
Eligibility – Who is the LIC Jeevan Shanti Plan for?
The eligibility criteria for the LIC Jeevan Shanti plan is listed below:
|Parameters||Criteria for Eligibility|
|Immediate Annuity||Deferred Annuity|
|Minimum age of entry||30 years (completed)||30 years (completed)|
|Maximum age of entry||85 years (completed)/ 100 years (completed) [for Option F]||79 years (completed)|
|Minimum Deferment Period||Not Applicable||1 year|
|Maximum Deferment Period||Not Applicable||20 years (subject to Maximum Vesting Age)|
|Minimum Vesting Age||Not Applicable||31 years (completed)|
|Maximum Vesting Age||Not Applicable||80 years (completed)|
Benefits of the LIC Jeevan Shanti Plan
The benefits of the LIC Jeevan Shanti plan can be summed up as follows:
- The LIC Jeevan Shanti plan assures a lifetime income through a one-time investment.
- It offers guaranteed additions during the period of deferment.
- The LIC Jeevan Shanti plan offers 9 different options of annuity to help serve the requirement of different individuals who are planning to buy the plan.
- The rates of the annuity are guaranteed from the inception of the plan.
- The LIC Jeevan Shanti plan offers the policyholder the option to choose between Immediate Annuity and Deferred Annuity options.
- After the completion of one policy year, the policyholder can avail of the facility of loans.
- The LIC Jeevan Shanti policy offers a free-look period of 15 days. A policyholder will be eligible to return the policy to the Corporation within these 15 days, in case he/she is not satisfied with the Terms and Conditions.
- The policy also offers the option of buying the plan for the benefit of handicapped dependent (Divyangjan) life.
- The LIC Jeevan Shanti policy offers the option of surrendering the plan. A policyholder will be able to surrender the plan anytime after 3 months from the completion of the policy.
- The LIC Jeevan Shanti policy can be taken for own life or joint life with a grandparent, parent, siblings, spouse, children, or grandchildren.
Exclusions of the LIC Jeevan Shanti Plan
The exclusions of the LIC Jeevan Shanti Plan are as follows:
For Immediate Annuity (applicable for Option F and Option J only): The policy will be invalid if the annuitant or any of the annuitants commits suicide within 12 months from the date of inception of the policy. The corporation will be liable to pay only the Surrender Value or 100% of the Purchase Price paid, whichever is higher.
For Deferred Annuity: The policy will be invalid if the annuitant or any of the annuitants commits suicide within 12 months from the date of inception of the policy. The corporation will be liable to pay only the Surrender Value or 80% of the Purchase Price paid, whichever is higher.
Why you should buy the LIC Jeevan Shanti policy?
The Life Insurance Corporation (LIC) of India is one of the oldest and most popular organizations in the country. It has a huge customer base of more than 250 million people. Being in the business for more than 60 years, the Life Insurance Corporation (LIC) of India is one of the most sought-after insurance providers. It has been one of the most trusted organizations across the nation.
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 the Life Insurance Corporation of India. Simply visit the website and register with a user ID and Password. Once logged in, select your preferred option concerning 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.
An individual will have to submit certain documents to avail LIC Jeevan Shanti Plan. The documents include:
Identity Proof – PAN card, Aadhaar card, Passport, etc.
Address Proof – Aadhaar card, Passport, Driving license, etc.
Jeevan Shanti Plan is a pension plan specifically designed for retirement purposes.
You have the option to choose from the Immediate Annuity Plan and Deferred Annuity Plan.
The minimum purchase price is Rs.1,50,00 and there is no upper limit; which is the be paid in a lump sum amount in one go.
You claim tax exemption under section 80C of the Income Tax Act.
If you are looking for a secure and enhanced insurance plan, the LIC New Jeevan Shanti plan can be a smart choice. One of the key pension plans, the LIC New Jeevan Shanti plan allows the policyholder to choose the Single Life or the Joint Life annuity option as per his needs. It is highly recommended that you read all the terms and conditions before you finalize buying the plan. Choose the annuity as per your preference and enjoy the plan benefits to the fullest.