LIC New Jeevan Shanti

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. Anyone can buy this plan through LIC’s online or offline channels at their convenience. The LIC New Jeevan Shanti Plan calculator is a special tool that allows users to calculate the benefits of the plan before buying it. 

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Introduction to LIC New Jeevan Shanti

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 after a certain duration called the ‘deferment period’.

  1. During 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.

  2. At the end of the deferment period

    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.

Important Features of LIC New Jeevan Shanti

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

  • LIC Jeevan Shanti 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 fall on.

  • A higher purchase price (above Rs.5 Lakhs) will earn you extra annuity rates.

  • The plan does not offer any maturity benefit.

LIC New Jeevan Shanti Plan Benefits

The plan offers a host of benefits to the buyer. These benefit amounts can be calculated using the LIC New Jeevan Shanti calculator.

  1. Death Benefit

    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 -

      1. 105% of the purchase price

      2. Purchase Price + total additional benefit minus total amount of annuity payable till death

    • In the case of a single life cover, once the annuitant dies and the death benefit is paid out by LIC, all annuities will end.

    • In the case of joint-life cover, the death benefit is only paid out after the death of both individuals. If only one death has occurred, annuity payments will continue as is but no death benefit is applicable.

  2. Regular Income / Annuity Payouts

    If you align the end of the deferment period with your retirement age, you can start receiving a regular income out of LIC New Jeevan Shanti as soon as your old income ends. These payments will continue for as long as you live. Even in the case of joint-life cover, this LIC pension plan continues to pay a pension till the last surviving person dies.

    You should use the LIC New Jeevan Shanti 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.

  3. Annuitisation of Death Benefit

    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 after your death. Once this investment is done, LIC will start crediting monthly income to the nominee’s account till he/she lives.

Eligibility Criteria of LIC New Jeevan Shanti

You can enjoy all the benefits discussed above only if the following conditions are met.

Criteria Minimum Maximum
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.

Additional Policy Details about LIC New Jeevan Shanti

  1. Surrender Value

    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 payable as annuity till

    the date of surrender. The GSV factors for LIC New Jeevan Shanti are -

    1. 75% if the policy is surrendered in the 1st, 2nd, or 3rd policy year.

    2. 90% if the policy is surrendered in the 4th year or after.

  2. Loan Facility

    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 from the date of policy issuance. The maximum loan amount is limited to 80% of the surrender value.

  3. Free Look Period

    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.

  4. Suicide Exclusion

    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.

FAQ's

  • Q: Can I pay premiums for LIC New Jeevan Shanti every month?

    Ans: No, the plan requires you to pay a lump sum amount at the time of purchase.
  • Q: What is the vesting age?

    Ans: When you reach the vesting age, your pension starts coming in. The end of the deferment period will signify the vesting age in the case of LIC New Jeevan Shanti.
  • Q: Can I buy LIC New Jeevan Shanti for my parents?

    Ans: Yes, you can include a parent under the joint-life cover option available with LIC New Jeevan Shanti. Note the joint-life annuity cover cannot be taken for more than two individuals.
  • Q: Why should I choose LIC pension plans?

    Ans: LIC functions with the backing of the Indian Government which makes it a reliable insurer. Every aspect of insurance buying, claims, and payment of proceeds has been digitalized. Moreover, the company has a host of new insurance products to choose from, catering to the unique needs of its customers. The flexibility of choice and increased savings are other reasons why LIC pension plans make a good investment.
  • Q: What is the LIC New Jeevan Shanti Calculator?

    Ans: It is an online tool by LIC that lets you estimate the benefits of a plan according to your needs. Based on the amount you invest, your required monthly income, expected retirement age, and current age, the calculator gives personalized results. Using the calculator before actually purchasing the plan gives you more clarity on how much more you need to save to get to your desired monthly income after retirement.
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