LIC New Jeevan Shanti 758

LIC New Jeevan Shanti 758- Plan Overview

LIC New Jeevan Shanti 758 is a deferred annuity, single-premium individual plan designed to secure the policyholder's financial future after retirement. Simply explained, it defers the payment of the annuity amounts for a certain time period chosen by you. It can be purchased by making a single premium payment. The New Jeevan Shanti pension plan by LIC of India offers lifetime guaranteed income in the form of annuity payments to the policyholders. Under this plan, the benefits are paid on death or survival and are fixed and guaranteed.

To understand the plan better, here are the LIC Jeevan Shanti Policy details about the annuities you need to know:

The LIC Jeevan Shanti plan comes with two Annuity Options. The options available are:
Option 1: Deferred annuity for Single life.
Option 2: Deferred annuity for Joint life.

The annuity starts after a deferment period selected by the policyholder.

Key Features of LIC New Jeevan Shanti

• LIC Jeevan Shanti plan (758) offers flexibility in the death benefit payout. You can choose either a lump sum amount or instalments for 5, 10, or 15 years.

• The plan offers a unique feature of providing financial security for a disabled dependent. If you pass away, the death benefit can be used to purchase an immediate annuity from LIC, ensuring a steady income stream for your dependent.

• You will get incentives if you choose to pay for a higher amount for purchasing the policy. The incentives start from the purchase price of Rs 5 Lakhs.

• The LIC Jeevan Shanti plan allows the policyholders to avail a loan against the policy.

• Annuity payout can start after a minimum deferment period of 1 year.

Eligibility Criteria of LIC New Jeevan Shanti

You can only enjoy all the above benefits if the following conditions are met. Here are the LIC Jeevan Shanti 758 policy details about its eligibility:

Benefits of LIC New Jeevan Shanti Plan

Here are the benefits of LIC New Jeevan Shanti Plan:

Listed below are some other benefits of the plan, other than the ones previously mentioned:

Options for Death Benefit Payment

Under the LIC New Jeevan Shanti Pension Plan (Plan No. 758), the annuitant is required to indicate the mode of death benefit payment to the nominee(s). This decision is mandatory at the time of buying the LIC Jeevan Shanti policy but can be altered during the annuitant's lifetime.

Lumpsum: The entire death benefit is made available to the nominee(s) as a one, time payment.

Annuity: The death benefit amount is invested in an Immediate Annuity scheme for the nominee(s), thus providing them with a fixed income for life. The pay, out is decided based on the nominees age and annuity rates at the time of the annuitants death.

Installments: The death benefit can be divided into equal installments and paid to the nominee(s) over 5, 10, or 15 years. This choice can be exercised for the complete or a fraction of the amount and is useful in time, wise regulation of the funds.

Option to take the plan for Disabled Dependents:
If the policy buyer has a disabled dependent, they can choose the Deferred Annuity for Single Life option under the LIC Jeevan Shanti plan (Plan No. 758), with the dependent as the nominee.

Minimum purchase price: ₹50,000.

If the buyer passes away and the purchase price is less than ₹1,50,000, the amount will automatically be used to buy an Immediate Annuity for the dependent.

The dependent will then receive regular income based on current annuity rates, without any restrictions.

Incentive on 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. 

Special Incentive:
You can get a 0.15% bonus on the annuity rate when you buy the LIC New Jeevan Shanti plan through an agent or broker, if any of the following apply:

• Your existing LIC policy matured within the last 1 year, or

• You're a nominee or beneficiary buying the plan within 1 year of the policyholder’s death, or

• You already have an active LIC Jeevan Shanti policy.

What is the LIC Jeevan Shanti Plan Calculator?

To check the LIC Jeevan Shanti pension plan maturity and premium calculations, you can use the LIC New Jeevan Shanti calculator. This online free-of-cost tool helps you see how much monthly income you will receive based on your investment. This will help you decide if the plan suffices for your future needs or if you need to save/invest more in it.

This LIC calculator factors in your current age, retirement age, purchase price, deferment period, etc, to give personalised and accurate information. Therefore, you should know the following eligibility conditions to purchase this policy.

You will have to keep the eligibility conditions in mind while using the LIC New Jeevan Shanti 758 calculator to get accurate estimates of the benefits and costs.

Sample Premium Illustration of LIC New Jeevan Shanti Plan 758

Below is a sample premium illustration for the LIC Jeevan Shanti Plan 758.

Purchase Price: ₹25,00,000 (excluding applicable taxes)

Age of Annuitant at Entry: 45 years (Last Birthday)

Deferment Period: 5 years

Age of Secondary Annuitant at Entry: 42 years (applicable for Option 2 only)

Based on these inputs, the LIC Jeevan Shanti calculator will compute the annuity amounts. So, on the investment of Rs 25 lacs, the annuitant will get approximately Rs 16,000 as monthly annuity. Here is the detailed calculation:

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).

LIC Jeevan Shanti Plan Details

Surrender Value: The policy can be surrendered anytime during the policy term.

Loan Facility: You can apply for a loan after 3 months of policy issuance. A loan is available during and after the deferment period, per LIC rules. For a joint life annuity, the Primary Annuitant can take the loan; if not alive, the Secondary Annuitant can. The loan amount is capped so that yearly interest doesn't exceed 50% of the annual pension and is limited to 80% of the surrender value.

Free Look Period: You have a 30-day free look period to review the policy documents. If you have any concerns, you can report them within this timeframe, and LIC will cancel the policy and get a refund your purchase price.

Tax: Any applicable statutory taxes imposed on LIC Jeevan Shanti or other insurance plans, as per the laws of India, will be collected according to the current tax rates. The policyholder will pay the tax amount separately from the premium. This tax amount will not be included in the calculation of the benefits payable under the plan.

What Is Not Covered In LIC's New Jeevan Shanti Plan?

If the Annuitant or the Last Survivor (in case of a joint life annuity) dies by suicide within 12 months from the start of the policy, whether mentally stable or not, the policy will be considered void. In such a case, LIC will pay the higher of the following two amounts:

• 80% of the premium paid, or

• The surrender value of the policy

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