Review of LIC New Jeevan Shanti

Mr. Naveen recently bought the LIC New Jeevan Shanti plan in order to secure his future after retirement. The sole reason for buying this plan was to secure his financial needs post-retirement. 

LIC New Jeevan Shanti is a deferred annuity single premium plan where the policyholder has the option to choose between Joint life and Single life Deferred annuity. The plan can be bought online as well as offline.

Let us explore LIC New Jeevan Shanti in detail and see what convinced Mr. Naveen to buy this plan:

Features of LIC New Jeevan Shanti Plan

LIC New Jeevan Shanti is a single premium plan wherein the policyholder needs to pay a lump sum premium once, and can avail of LIC policy benefits throughout the policy term.

• Annuity Options: The plan comes with two deferment options and allows the policyholder to choose one as per their needs. The available options are:

  • Option 1: Deferred annuity for Single life

  • Option 2: Deferred annuity for Joint life

• Flexibility to choose annuity payment mode, i.e., yearly, half-yearly, quarterly and monthly.

• Under the plan, policyholders can choose the death benefit payout. They can opt for either a lump sum payout, Annuitisation or instalments

Benefits of LIC New Jeevan Shanti Plan

1. Death Benefit

   On the death of the policyholder, the death benefit payable will be the higher of:

   • Purchase Price plus Accrued Additional Benefit on Death (as specified below) minus Total annuity amount paid till the date of death, if any

   • 105% of the Purchase Price

2. Flexibility

   With the Jeevan Shanti plan LIC allows you to opt for the most suitable annuity payment mode. The available payment modes are yearly, half-yearly, quarterly, and monthly.

3. Option to cover Dependent with Disability

   In case the policyholder has a dependent family member with a disability, he/she can buy a Deferred Annuity for Single life (Option 1) on their own life for the benefit of a disabled person as a Nominee, provided the minimum purchase price is Rs. 50,000. The death benefit can be used to buy an immediate annuity.

4. Tax Benefits

   Premiums paid against LIC Jeevan Shanti Plan are eligible for tax deductions under section 80C of the Income Tax Act.

5. Incentives

   An additional annuity rate incentive is offered based on the purchase price of the annuity. This incentive is available in three purchase price slabs of ₹5,00,000 to ₹9,99,999, ₹10,00,000 to ₹24,99,999, and ₹25,00,000 and above. The higher your purchase amount and the longer the deferment, the greater the annuity benefit you receive.

6. Options for Death Benefit Payments

   The annuitant can choose from the following options:
   Lump sum death benefit: Under this, the complete death benefit will be paid to the nominee in a lump sum.
   Annuitusation: Under this option, the death benefit can be used fully or partly to purchase an Immediate Annuity for the nominee(s), based on their age and prevailing annuity rates. If the benefit amount or eligibility doesn't meet the annuity plan conditions, the amount will be paid as a lump sum.
   In Instalments: Under this, the death benefit amount payable in case of death can be received in instalments over a period of 5, 10, or 15 years.

Summing it up

Not only Mr. Naveen but also other customers who have bought the LIC New Jeevan Shanti plan are happy with everything it offers. They say that now they don't have to worry about their financial expenses and are looking forward to enjoying their post-retirement life to the fullest.

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