LIC New Jeevan Shanti is a pension plan that also comes with the benefit of insurance protection. With this plan, customers will not only be able to save for their future after retirement but also create a financial backup for their families in case of unfortunate circumstances.Read more
Anyone can buy this plan through the Life Insurance Corporation of India’s online or offline channels at their convenience. If the buyer wants to check the premium before purchase, they can use the LIC New Jeevan Shanti calculator. This is a special tool that allows users to calculate the benefits of the plan and the premium charged against it before purchase.
LIC New Jeevan Shanti is the only deferred annuity scheme among all LIC pension plans. What this means is that policyholders start receiving the annuities / pension after a certain duration called the ‘deferment period’.
Only the risk cover remains active and no pension is payable. This is particularly helpful for people who are still working and have some years before they choose to retire.
Income will start flowing monthly, quarterly, half-yearly, or yearly as per the chosen mode. These will continue throughout the lifetime of the policyholder, effectively creating an income source for themselves and their families after retirement.
The plan requires a one-time investment by way of a single premium amount or purchase price.
You can add your spouses, children, or parents under the plan’s joint-life cover option.
No annuity payments are made during the deferment period.
An additional benefit amount accrues every month during the deferment period. It is payable along with the death benefit.
LIC Jeevan Shanti plan offers flexibility in the death benefit payout. You can choose either a lump sum amount or installments for 5, 10, or 15 years.
It can also be bought to benefit a disabled person who is directly dependent on you. If you die, the death benefit can be used to purchase an immediate annuity from LIC, which will create an instant income source for the dependent to survive on.
A higher purchase price (above Rs.5 Lakhs) will earn you extra annuity rates.
The plan does not offer any maturity benefit.
The plan offers a host of benefits to the buyer. These benefit amounts can be calculated using the LIC New Jeevan Shanti calculator.
The life insurance cover with LIC New Jeevan Shanti ensures that the family has enough funds to support themselves, if and when the life assured dies. Some points to note -
The coverage continues during as well as after the deferment period.
The death benefit will be equal to whichever of the following is the highest -
105% of the purchase price
(Purchase Price plus total additional benefit) minus the total amount received as annuity till death
Single Life Cover - Once the annuitant dies and the death benefit is paid out by LIC, pension payments will end.
Joint-life Cover - The death benefit is only paid out after the death of both individuals. If only one death has occurred, pension payments will continue as is but no death benefit is applicable.
If you align the end of the deferment period with your retirement age, you can start receiving a regular income as soon as your old income ends.
These payments will continue for as long as you live.
In the case of a joint-life cover, this LIC policy continues to pay a pension till the last surviving person dies.
With LIC New Jeevan Shanti, you can not only create a regular income stream for yourself but also for the family after your demise. If you choose this option, the nominee has to use the death benefit amount to buy an immediate annuity LIC pension plan. Once this investment is done, LIC will start crediting monthly income to the nominee’s account till he/she lives.
You should use the LIC Jeevan Shanti pension plan calculator to see how much monthly income you will receive in the future 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 be aware of the following eligibility conditions to purchase this policy.
You can enjoy all the benefits discussed above only if the following conditions are met.
|Entry Age||30 years||79 years|
|Vesting Age||31 years||80 years|
|Deferment Period||1 year||12 years depending on the o 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|
You will have to keep these conditions in mind while using the LIC New Jeevan Shanti calculator to get accurate estimates of the benefits and costs.
You can surrender the policy at any point. Doing so will entitle you to the Guaranteed Surrender Value (GSV) or the Special Surrender Value, whichever is higher. You can calculate the GSV yourself using the following formula -
GSV = (GSV Factor X Purchase Price) minus the total amount paid as annuity till the date of surrender
The GSV factors for LIC New Jeevan Shanti are -
75% if the policy is surrendered in the 1st, 2nd, or 3rd policy year.
90% if the policy is surrendered in the 4th year or after.
You can apply for a loan against the benefits under this policy if you are in urgent need of money. Note that you can only avail of this facility after completing 3 months of the policy term. The maximum loan amount is limited to 80% of the surrender value.
You get 15 to 30 days to go over the policy documents to report any objections. In doing this, LIC will cancel the policy and refund the purchase price back to you.
LIC does not entertain death claims arising out of suicide within the first 12 months of the LIC New Jeevan Shanti policy. Nominees will get 80% of the premium amount or the surrender value, whichever is higher at that time.
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