Benefits of LIC New Jeevan Shanti

The annuity is fixed from the beginning, so you know how much you'll receive later. This plan gives tax benefits, flexible payout options, and lifetime income, making it a safe choice for long-term financial planning.

Let's look at the key benefits of LIC Jeevan Shanti in detail:

What are the Benefits of LIC New Jeevan Shanti?

Look at the section below to explore all the benefits a policyholder may avail of by investing in the LIC New Jeevan Shanti Plan.

Annuity Options 

LIC of India provides two annuity options under this plan

• Deferred annuity for single life 

• Deferred annuity for joint life 

Option 1: Single-Life Option

During deferment time 

• In case of survival, nothing shall be paid. 

• In case of the annuitant's death, the death benefit will be paid to the nominee. 

After the Deferment period 

• The annuity payments shall be paid in form of arrears till the time annuitant is alive 

• In case of annuitant’s death, the annuity payments shall immediately cease and death benefit shall be paid to the nominee 

Option 2: Joint-Life Option

During Deferment Period 

• In case of the survival of any annuitant, no amount shall be paid. 

• In case of the death of both annuitants, the death benefit shall be paid out to the nominee

After Deferment Period 

• The annuity payment shall be made in form of arrears as per the chosen mode for as long as the primary or secondary annuitant is alive. 

• In case of last survivor’s death, the annuity payments shall immediately cease and death benefit shall be paid to the nominee.

Death Benefit

In case of the policyholder's demise during the policy term, the death benefit is paid to the nominee or legal heir, which is the higher of:

• The Purchase Price + Accrued Additional Benefit on Death – Total annuity amount payable till date of death, if any or,

• 105% of Purchase Price.

Guaranteed Income

 The Jeevan Shanti LIC plan offers the policyholder a guaranteed regular annuity (income) throughout their lifetime after the deferment period ends. 

Flexibility

The annuity payments can be received monthly, quarterly, half-yearly, or annually, as per the policyholder's choice.

Tax Benefits 

You can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, on the premiums paid and the benefits received in LIC Jeevan Shanti, respectively.

Instalment Option 

The death benefit is also payable in installments if lump sum is not preferred. It can be applied for full or partial payments as under:

Option to take plan for dependents with Disability (Divyangjan) 

If you have a disabled dependent, you can choose the Single life option, with the dependent as the nominee, with a minimum purchase price of Rs 50,000/-.
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 annuity will offer the dependent a regular income, calculated according to the current market rates for immediate annuities, without any limitations or conditions.

Incentive for 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.
  
  

Ease of Purchase

The LIC Jeevan Shanti plan can easily be bought both offline and online through LIC agents or other agents, or directly through the LIC website. 

Eligibility Criteria of LIC New Jeevan Shanti Plan

Note: Annuity Option: The payment method chosen for receiving regular income, such as monthly or yearly; Immediate Annuity: Payments start immediately after a lump-sum investment is made; Deferred Annuity: Payments start at a future date after a period of investment growth;Deferment Period: The waiting period between buying the annuity plan and when the payouts begin; Purchase Price: The one-time lump sum amount you pay to start the policy; Primary Annuitant: The person whose life is mainly covered and receives regular annuity from the policy; Secondary annuitant: The second person (usually a spouse or lineal family member) who will continue to receive the pension after the primary annuitant passes away; Vesting Age: The age when you become eligible to start receiving annuity payouts; Accrued Additional Benefit: The total amount paid to the nominee on the policyholder’s death, including the Sum Assured on Death, Accrued Bonuses, Final Additional Bonus (if any), and Guaranteed Additions (if applicable).

In the End

Overall, LIC New Jeevan Shanti is a good investment option for individuals who are looking for guaranteed returns with flexibility in terms of annuity options and payout frequencies. It also provides tax benefits and a loan facility, making it a lucrative investment option

It is important to note that the specific benefits and features of New Jeevan Shanti LIC plan may vary based on the policyholder's age, premium amount, chosen annuity option, and other factors. It is advisable to carefully review the policy's terms and conditions and consult with an insurance advisor to understand the plan in detail before making a purchase decision.

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