LIC New Jeevan Shanti Plan 858 is a single premium retirement plan that offers guaranteed income for life. The plan has been withdrawn by LIC of India and is replaced with LIC New Jeevan Shanti Plan no. 758 in September 2025. The plan comes with two annuity options: single life and joint life. The 858 plan is great for people who want a steady income without having to worry about market risks.
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Let's learn more about the LIC Jeevan Shanti policy, including its features, benefits, and how it can help you reach your retirement goals.
The LIC New Jeevan Shanti 858 is a single-premium, deferred annuity plan for individuals that provides financial support to policyholders after their retirement. Simply explained, it postpones the payment of the annuity amount to 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. The plan is now available as LIC Jeevan Shanti 758 for purchase through offline and online channels.
LIC Jeevan Shanti plan (858) 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.
You can only enjoy all the above benefits if the following conditions are met. Here are the LIC Jeevan Shanti policy details about its eligibility:
| Criteria | Minimum | Maximum |
| Entry Age | 30 years | 79 years |
| Vesting Age | 31 years | 80 years |
| Deferment Period | 1 year | 12 years, depending on the Maximum Vesting Age |
| Purchase Price | Rs.1,50,000 | No Limit |
| Annuity | Monthly - Rs.1,000 Quarterly - Rs.3,000 Half-Yearly - Rs.6,000 Yearly - Rs.12,000 | Depends on the purchase price |
Here are the benefits of LIC New Jeevan Shanti Plan:
| Policy Type | Survival Benefit | Death Benefit |
| Deferred Annuity for Single Life | During the deferment period: No payments will be made to the policyholder during this time. After the deferment period: The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Annuitant is alive. | During the deferment period: The death benefit paid will be the higher of: The purchase price plus the accrued additional benefit on death minus the total annuity amount payable till date of death or 105% of the purchase price. After the deferment period: Upon the policyholder's death, the annuity payments will immediately cease, and only the death benefit will be payable to the nominee. |
| Deferred Annuity for Joint Life | During Deferment Period: No benefit will be paid After the deferment period: The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Primary Annuitant and/or Secondary Annuitant is alive. | During the deferment period: If the last surviving annuitant dies during the deferment period, a death benefit will be paid. This benefit is calculated as the greater of:
|
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. 858), the annuitant must choose how the death benefit will be paid to the nominee(s). This choice must be made when buying the LIC Jeevan Shanti policy, but can be changed later during the annuitant's lifetime. Options include:
Lumpsum: The entire death benefit is paid to the nominee(s) in one lump sum.
Annuitization: The death benefit is used to buy an Immediate Annuity for the nominee(s), which gives them a steady stream of income for the rest of their lives. The amount of money that is paid out depends on the nominee's age and the current annuity rates.
Installments: The nominee(s) can get the death benefit in equal payments over 5, 10, or 15 years. You can choose this option for the whole amount or just part of it, and it helps you keep track of your money over time.
| Mode of Installment Payment | Minimum Installment Amount |
| Monthly | 5,000/- |
| Quarterly | 15,000/- |
| Half-Yearly | 25,000/- |
| Yearly | 50,000/- |
Option to take the plan for Disabled Dependents (Divyangjan):
If the policy buyer has a disabled dependent, they can choose the Deferred Annuity for Single Life option under the LIC Jeevan Shanti plan, with the dependent as the nominee.
Minimum purchase price: Rs 50,000.
If the buyer passes away and the purchase price is less than Rs 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.
Rebates:
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.
Online Purchase
Sample Premium Illustration of LIC New Jeevan Shanti Plan - 858
Below is a sample premium illustration for the LIC Jeevan Shanti Plan.
Purchase Price: Rs 10,00,000 (excluding applicable taxes)
Age of Annuitant at Entry: 45 years (Last Birthday)
Deferment Period: 12 years
Age of Secondary Annuitant at Entry: 35 years (applicable for Option 2 only)
| Annuity Option | Annuity Amount (Rs) | |||
| Yearly | Half-yearly | Quarterly | Monthly | |
| Option 1: Deferred Annuity for Single Life | 1,39,900 | 68,551 | 33,926 | 11,192 |
| Option 2: Deferred Annuity for Joint Life | 1,32,200 | 64,778 | 32,059 | 10,576 |
To check the LIC Jeevan Shanti pension plan maturity and premium calculations, you can use the LIC New Jeevan Shanti calculator. This will help you determine if the plan meets 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.
Surrender Value
The policy can be surrendered anytime during the policy term. The surrender value will be the higher of the Guaranteed Surrender Value or the Special Surrender Value.
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.
Suicide is the exclusion in LIC Jeevan Shanti 858 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.
LIC Resources
|
LIC Online Services |
LIC Investment Plans |
LIC Other Plans |
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar Insurance Brokers Private Limited does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
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