Pay Once, Receive Around ₹7,000 Every Month for Life? Here’s How LIC Jeevan Shanti Works

Planning for a regular income after retirement is one of the biggest financial concerns for many people. If you prefer a fixed monthly pension without worrying about market fluctuations, the LIC Jeevan Shanti Plan is one option worth exploring.

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The plan is offered by Life Insurance Corporation of India (LIC) and is designed for people who want a guaranteed pension by paying a single premium only once. Depending on your age and the annuity option you choose, the amount you receive every month will vary.

What is LIC Jeevan Shanti?

LIC Jeevan Shanti is a single-premium annuity plan. Unlike traditional insurance policies that require annual premiums, this plan requires only one lump-sum payment.

After purchasing the policy, you can choose to receive a guaranteed pension either immediately or after a selected deferment period.

Two Pension Options Available

The policy offers two broad choices:

1. Immediate Annuity

Under this option, your pension starts soon after the policy is issued. It is generally preferred by retirees or those looking for an immediate source of regular income.

2. Deferred Annuity

If you do not need income immediately, you can choose a deferment period such as 5, 10, 15 or 20 years. Your pension will begin after the selected period ends, and the payout amount is generally higher than the immediate annuity because of the waiting period.

How Much Investment is Needed for Around ₹7,000 Monthly Pension?

Many people search for policies that can provide around ₹7,000 per month through a one-time investment.

While the exact amount depends on factors such as your age, annuity option, and whether you choose a single-life or joint-life plan, a lump-sum investment of approximately ₹15 lakh to ₹16 lakh may generate a monthly pension of around ₹7,000 under certain annuity options.

For example, older LIC illustrations have shown that an investment of around ₹15.27 lakh under a specific immediate annuity option could provide a monthly pension of roughly ₹7,500. However, actual payouts should always be verified using the latest LIC annuity rates before purchasing the policy.

Who Can Buy the Policy?

Eligibility depends on the annuity option selected.

• Minimum entry age: 30 years
• Maximum age for Immediate Annuity: 85 years
• Maximum age for Deferred Annuity: 79 years

Applicants should check the latest LIC policy brochure for current eligibility conditions.

Key Benefits of LIC Jeevan Shanti

• One-time premium payment.
• Guaranteed pension for life.
• Choice between immediate and deferred pension.
• Multiple annuity options to suit different financial needs.
• Joint-life option available for spouses in eligible variants.
• Loan facility available under eligible conditions.
• Surrender option available after the applicable lock-in period, subject to LIC rules.

What Happens After the Policyholder’s Death?

The outcome depends on the annuity option selected.

In many variants of the policy, the purchase price (the amount invested) or 105% of the purchase price, as applicable, is paid to the nominee after the death of the annuitant or surviving annuitant. Some annuity options, however, may not provide a return of the purchase price, so it is important to understand the selected option before investing.

Is the Pension Tax-Free?

No. The pension received under LIC Jeevan Shanti is taxable and is added to your total income. It is taxed according to your applicable income tax slab.

Should You Consider This Plan?

LIC Jeevan Shanti may be suitable for investors who want a predictable and guaranteed lifelong income without depending on market performance. However, because annuity rates, tax implications, and returns vary based on age and the chosen option, it is advisable to compare the available annuity choices and review the latest LIC illustrations before making a decision.