LIC New Jeevan Shanti Plan 758

LIC New Jeevan Shanti Plan 758 - Overview

New Jeevan Shanti 758 plan by LIC 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 758 plan 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 758

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

• This life insurance 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 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 Jeevan Shanti Plan (758)

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

What are the 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

Just like in term insurance, this pension plan offers a death benefit to the nominee if the policyholder dies during the policy term. 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 payout is decided based on the nominees age and annuity rates at the time of the annuitant's 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.

The minimum purchase price for this option is ₹50,000.

If the buyer passes away and the purchase price is less than ₹1,50,000 then 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

• 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 758 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 New Jeevan Shanti Plan Calculator?

You can check the LIC Jeevan Shanti pension plan maturity and premium calculations using 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 personalized 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 758 Plan Details

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

• Loan Facility: After 3 months from the issuance of a policy you can apply for loan. A loan is available post deferment period as per LIC rules. If the Primary Annuitant is not living, the Secondary Annuitant can obtain the loan. The amount of loan is limited so that the annual interest will not exceed 50% of the annuity and the loan will not exceed 80% of the surrender value.

• Free Look Period: There is a 30-day “free look period” to read policy documents. In case of any doubts you can lodge that within this period and LIC will cancel the policy and return the cost of the policy back to you.

• 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 are LIC Jeevan Shanti Disadvantages?

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

What are LIC Jeevan Shanti Plan Returns?

LIC’s New Jeevan Shanti plan 758 offers guaranteed, fixed annuity rates that are locked in when you purchase the policy. The pension amount does not depend on market performance.

• Guaranteed income: Your annuity amount is fixed at the time you purchase the policy. It is based on the purchase price, age and chosen deferment period (1 to 12 years).

• Higher annuity rates: Higher purchase amounts and longer deferment periods may qualify for higher incentive-based annuity rates.

• Death benefit: The nominee receives the applicable death benefit if the policyholder dies during the policy term.

• No bonus-based returns: As a non-linked and non-participating plan, LIC Jeevan Shanti plan does not depend on bonuses or profit-sharing.

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