With flexible payment modes and the freedom to select the frequency of annuity payments, LIC Jeevan Shanti provides policyholders with the utmost convenience and control over their finances. Additionally, the plan offers a range of annuity options for joint-life and single-life policies, catering to diverse family structures.
In this article, we will explore the comprehensive features and benefits of the LIC Jeevan Shanti annuity plan, highlighting how it can help secure your financial future and provide a stable income stream during your retirement years.
Features and Benefits of the Jeevan Shanti Plan
Discussed below are the key benefits of LIC Jeevan Shanti Annuity Policy -
Immediate Annuity Plan
- Annuity payments continue as long as the policyholder is alive.
- In the event of the policyholder's demise, no death benefit will be paid and the policy will terminate immediately.
- The annuity payments will be made according to the selected payment mode while the policyholder is alive.
- If the policyholder passes away during the guaranteed period, the nominee will receive the annuity amount until the end of the guarantee period.
- After the guaranteed period, no payment will be made upon the policyholder's death - the policy will cease immediately.
- Annuity payments will cease immediately upon the policyholder's death and the nominee will receive the Purchase Price.
- In the event of the main policyholder's death, the surviving policyholder will receive 50% of the annuity amount. However, if the surviving policyholder also dies, the annuity payments will cease immediately.
- In case the secondary policyholder's demise precedes that of the main policyholder, the annuity payment will be directed to the main policyholder.
- 100% of the annuity payment will be made as long as at least one of the annuitants is alive.
- In the event of the last survivor's death, annuity payments will cease immediately.
- 100% of the annuity payment will be made as long as at least one of the annuitants is alive.
- In the event of the last survivor's death, annuity payments will stop immediately, and the nominee will receive the Purchase Price.
- Death Benefit - The payout amount will be determined as the higher value between the sum of the Purchase Price and Accrued Assured Additions minus the overall annuity payments made till the date of demise (if any), or 110% of the Purchase Price.
- Accumulated Guaranteed Additions - The Guaranteed Additions that you will receive each month are calculated as per the following formula: (Purchase Price x Annuity rate per annum paid monthly) / 12.
Types of LIC Jeevan Shanti Annuity Plans
Discussed below are the types of Jeevan Shanti Annuity policy options -
1.) Immediate Annuity Plan
- Option A: This choice provides immediate returns for a lifetime, with the flexibility to select monthly, annual, bi-annual, or quarterly payouts. However, in the event of the policyholder's death, the payments will cease immediately.
- Option B: With this option, you will receive guaranteed payments for a period of 5 years and the rest of your life thereafter. Note that if the policyholder passes away during these 5 years, the beneficiary will receive the assured amount.
- Option C: Under this option, you will receive guaranteed payments for a period of 10 years and the rest of your life thereafter. If the policyholder passes away during these 10 years, the beneficiary will receive the assured amount.
- Option D: This immediate annuity option ensures guaranteed payments for a period of 15 years. Upon survival of the policyholder, they can continue to receive the annuity for their lifetime. In case of the policyholder's death during these 15 years, the beneficiary will receive the assured amount.
- Option E: This choice offers an assured annuity for 20 years and the rest of your life afterwards. If the policyholder passes away during these 20 years, the beneficiary will receive the assured amount.
- Option F: This plan option guarantees death benefits to the designated beneficiary or nominee. In the unfortunate event of the policyholder's demise, the nominee will be eligible to receive the full purchase price.
- Option G: This immediate annuity option provides a yearly increase of 3% in payments.
- Option H: This joint annuity option ensures that if one of the policyholders passes away, the surviving policyholder will receive 50% of the annuity amount until their survival.
- Option I: Another joint annuity option where, in case of the demise of one of the policyholders, the surviving policyholder will receive 100% of the annuity amount.
- Option J: Under this joint annuity option, if one of the policyholders passes away, the surviving policyholder will receive 100% of the annuity amount. Upon the death of the last survivor, the purchase price will be returned.
2.) Deferred Annuity Plan
Option A - During the Deferment Period
- No payout will be given to the policyholder if they survive.
- In case of the policyholder's death, the defined benefit will be paid.
Option B - Post the Deferment Period
- The annuity payment will be provided as per the chosen payment mode as long as the annuitant is alive.
- If the policyholder passes away, the annuity payments will cease immediately and the defined death benefit will be paid.
Option C - During the Deferment Period
- No payout will be made if both the main and secondary policyholders survive.
- Upon the death of the last surviving policyholder, the specified death benefit will be paid.
Option D - After the Deferment Period
- The annuity payment will be made according to the selected payment mode as long as both policyholders are alive.
- Once the last surviving policyholder passes away, the annuity payment will cease immediately, and the defined death benefit will be paid.
Listed below are the key features of this LIC Jeevan Shanti annuity policy -
- Flexible annuity options: The plan offers a wide range of options for selecting an annuity, allowing you to choose a plan that suits your needs.
- Available incentives: Opting for a higher purchase price can result in an increase in the annuity rate. Additionally, a 2% rebate on the annuity rate is available for online purchases or through the Qualifying Recognized Overseas Pension Scheme (QROPS).
- Ease of loan facility: After completing one policy year, policyholders can avail of the option to take loans on the LIC Jeevan Shanti plan.
- Special Divyangjan cover: In the case of a dependent with a disability, there is a provision to reduce the investment amount.
- Free Look period: The policy offers a 15-day free look period, allowing policy buyers to cancel their purchase if they are not satisfied with the terms and conditions provided.
Why Should You Purchase LIC Jeevan Shanti Plan?
Let’s take a look at the reasons why you should buy LIC Jeevan Shanti Plan -
- Easy Purchase Modes: The LIC Jeevan Shanti plan can be purchased both online and offline, providing the utmost convenience and flexibility. Online purchase offers the added advantage of easily tracking the policy status and payments.
- Multiple Annuity Options: The policy offers a wide range of annuity options, including immediate and deferred annuity, allowing the insured individual to choose the option that best suits their needs.
- Assured Returns: The plan ensures regular monthly returns, which are accumulated over the deferred period and can be easily received by the policyholder.
- Guaranteed Income: Another benefit of this LIC plan is that policyholders are guaranteed a fixed monthly income for their entire lifetime. Various options are available to ensure the nominee or secondary annuitant continues to receive the income in case of the main annuitant's early demise.
- Tax Benefits: The plan provides tax benefits as per the prevailing tax laws and rates set by the government. The tax paid will not be considered when calculating the benefits received under the plan.
Exclusions from LIC Jeevan Shanti Annuity Policy
If the annuitant of an individual plan or both the main and secondary annuitants of a joint plan die by suicide within the initial 12 months of policy commencement, the following provisions apply:
- Immediate Annuity Plan (Applicable for Options F and J): The greater amount, either 100% of the purchase price or the surrender value, will be refunded. After this, no further claims can be made.
- Deferred Annuity: Either 80% of the purchasing price or the surrender value will be refunded (whichever is higher). After this refund, no additional claims can be submitted.
Eligibility Criteria to Apply for LIC Jeevan Shanti Plan
Check out the table below for the eligibility criteria for LIC Jeevan Shanti annuity policy -
|Maximum Age at Entry
- For Deferred - 79 years
- For Immediate - (apart from Option F) 85 years
- Only for Option 5: 100 years
|The Minimum Vesting Age
|The Maximum Vesting Age
|The Minimum Deferment Period
|The Maximum Deferment Period
||20 years (subject to the vesting age)
How to Apply for LIC Jeevan Shanti Annuity Policy?
You can easily apply for the LIC Jeevan Shanti Plan through both online and offline channels. Simply follow the instructions provided below for the method that is the most convenient for you.
Follow the steps mentioned below to apply for the LIC Jeevan Shanti plan online -
- Visit the official website of LIC and navigate to the section labeled 'Buy Online Policies'.
- Click on the option that says 'Click Here' after scrolling down on the website.
- Locate the 'Jeevan Shanti' policy among the available options and select 'Click Here To Buy'.
- Within the policy details, click on 'Pension' to access the specific policy.
- Choose 'Buy Online' under LIC's Jeevan Shanti policy.
- On clicking 'Click To Buy Online', you will be prompted to provide COVID-related information and contact details.
- Enter the OTP sent to your mobile number for verification.
- After filling in the necessary personal and product details, click on 'Calculate Premium'.
- Complete the payment of the premium.
As an applicant, you also get the choice of applying for the LIC Jeevan Shanti Plan offline by visiting your nearest LIC branch or contacting an LIC agent. Note that it is important to carefully evaluate the plan to ensure it aligns with your long-term goals and adequately covers your needs for a comfortable retirement lifestyle.
For more details regarding the LIC Jeevan Shanti plan, go through the following FAQ section.
Frequently Asked Questions