LIC Jeevan Shanti Review: Know All About the Policy. Do you want to invest in LIC Jeevan Shanti Plan to secure your retirement?
Good idea! Coverfox wants to help you here, so we’ve listed the most important aspects of the plan here! Be sure to read the features and benefits of the pension plan.
Also, find out more about the types of super annuity plans and you can find them. How to buy online! Simple enough? let’s get it started!
LIC Jeevan Shanti Plan is a non-linked, non-participating, single premium annuity plan where you have the dual benefit of returns through an immediate or deferred annuity.
This plan can be availed through online as well as offline mode. Immediate and deferred payment modes are further divided into several options that provide a return of annuity purchase price as well as returns.
Each of the options has its own unique set of features and benefits.
Features of LIC Jeevan Shanti Plan
As mentioned above, the scheme comes in two options (immediate and deferred annuity) with a one-time premium payment.
Under the instant option, the returns can be availed under the post-payment of all premiums, whereas under the deferred option you can avail of the returns only after a limited period.
The minimum postponement period of the policy is one year, while the maximum of the policy postponement period is 20 years.
Benefits of LIC Jeevan Shanti Plan
1. Immediate Annuity Plan
- The annuity will be paid as per the selected payment mode as long as the policyholder is alive.
- No death benefit will be payable in the event of death and the policy will not cease to exist immediately.
- Annuity payment is payable as per the selected payment mode as long as the policyholder is alive.
- In case of the death of the policyholder during the guarantee period, the nominee will receive the annuity amount by the end of the guarantee period.
- In case of death after the guarantee period, no amount will be payable and the policy will not cease to exist immediately.
- On the death of the primary policyholder, 50% of the annuity amount will be paid to the surviving secondary policyholder.
- In the event of the death of the secondary policyholder, the annuity payment will stop immediately.
- 100% of the annuity payment will be made according to the selected payment mode until one of the annuities is alive.
- As long as one of the annuities is alive, 100% of the annuity payment is payable according to the selected payment mode.
- In the case of the death of the last survivor, the annuity payment will stop immediately and the purchase price will be paid to the nominee.
2. Death Benefit (Deferred Annuity)
This amount shall be the total annuity payment, if any, made up to the date of death minus zero guaranteed excess (as specified below) along with the purchase price or 110% of the purchase price.
3. Accrued Guaranteed Additions (Deferred Annuity)
You will receive Guaranteed Addition per month where the Guaranteed Addiction is priced (Purchase Price * Annuity Rate PA. Payable Monthly) / 12.
Annuity Rate PA Paid Monthly will be equal to Monthly Tabular Annuity Rate and age at entry of policyholders and selected the postponement will depend on the duration.
|Minimum Age at Entry||30 years (completed)|
|Annuity Mode||Minimum Annuity|
|Monthly||Rs. 1,000 per month|
|Quarterly||Rs. 3,000 per quarter|
|Half-Yearly||Rs. 6,000 per half-year|
|Annual||Rs. 12,000 per annum|
|Minimum Purchase Price||Rs. 1,50,000|
|Maximum Purchase Price||No Limit|
Note: In specific cases like NPS, a lower purchase price may be allowed and if the scheme is availed for the benefit of PWD as per the terms and conditions of the scheme.
Types of LIC Jeevan Shanti Plan
Immediate Annuity Plan
- Option A-Under this option, you can avail of immediate returns for a lifetime. You can choose the mode of payment – monthly, yearly, bi-annual, or quarterly. In case of death, the payment will be stopped immediately.
- Option B– Under this option, you will be getting a guaranteed payment for 5 years and life thereafter. In the event of death during these 5 years, the beneficiary will receive the guaranteed amount.
- Option C– Under this option, you will receive a guaranteed payment for 10 years and life thereafter. In the event of death during these 10 years, the beneficiary will receive the guaranteed amount.
- Option D -Under this instant annuity option, you will receive a guaranteed payment for 15 years. When the policyholder is alive, he can avail of the annuity for life. In the event of death during these 15 years, the beneficiary gets the assured amount. Will be received.
- Option E– Under this option, you will receive a fixed annuity for 20 years and life thereafter. In the event of death during these 20 years, the beneficiary will receive the assured amount.
- Option F-According to this option, your beneficiary or nominee is entitled to the death benefit. On the death of the policyholder, the nominee will get the full purchase price.
- Option G – It is an immediate annuity option that comes with an increase of 3% every year.
- Option H -This is a joint annuity option where if one of the policyholders dies, the other will receive 50% of the annuity amount until they are alive.
- Option I-Joint Annuity Options Where one of the policyholders dies, the other will receive 100% of the annuity amount.
- Option J-Under this joint annuity option, if one of the policyholders dies, the other will receive 100% of the annuity amount and a refund of the purchase price on the death of the last survivor.
Deferred Annuity Plan
Option A – During the Deferment Period:
- Nothing will be paid to the policyholder if he survives.
- In case of death, the benefit will be paid off: (defined below)
Option B -After Deferment Period
- The annuity payment is payable according to the selected payment mode as long as the annuity is alive.
- On the death of the policyholder, the annuity payment will stop immediately and the death benefit will be payable: (defined below)
Option C – During Deferment Period:
- In case both policyholders (primary and secondary) survive, nothing will be payable.
- On the death of the last survivor, the death benefit will be payable: (defined below)
Option D – After Deferment Period
- As long as both policyholders are alive, annuity payment is payable according to the mode of payment selected.
- On the death of the last survivor, the annuity payment will stop immediately and the death benefit will be payable: (defined below)
Additional Features of LIC Jeevan Shanti Plan
- Incentives for higher purchase price:
- The incentives given below are available under immediate and deferred annuity:
- Incentives for higher purchase price through an increase in annuity rate are as follows:
FOR PER 1000 PURCHASE PRICE (IN RS.)
|Mode of Annuity||5,00,000 to 9,99,999||10,00,000 to 24,99,999||25,00,000 to 49,99,999||50,00,000 to 99,99,999||1,00,00,000 & above|
In addition to this, a 2% discount will be applicable for policies sold online, NPS subscribers, and cuprous by way of an increase in annuity rate.
Why Buy LIC Jeevan Shanti Plan?
- You are entitled to tax benefits under SEC 80 CCC of Income Tax Act 1961.
- The scheme comes in two types – immediate annuity and deferred payment – which are further divided into multiple options and provide great flexibility. There are ten options under immediate annuity and two under deferred payment.
- You have the flexibility to choose the type of annuity you want for yourself – immediate annuity or deferred payment.
- This plan can be purchased online as well as through offline channels.
- You will receive a guaranteed income every month. Guaranteed income can also be availed for lifetime and return of purchase price in case of death of the policyholder depending on the option selected.
- Under deferred payment, you will get assured returns every month in your policy.
How to Buy LIC Jeevan Shanti Plan Online?
The most convenient way to buy LIC Jeevan Shanti Plan online is from the official website of the Life Insurance Corporation of India.
Just go to the website and register with a user ID and password. Once logged in, your favorite about this plan Select the option and make the premium payment.
You can pay via Credit Card / Debit Card / Net Banking. Post payment, the policy will be delivered to your registered email ID.
To avail of LIC Jeevan Shanti Yojana, a person has to submit certain documents. Documents include:
- Identity proof – PAN card, Passport, Aadhar Card, etc.
- Address proof – Aadhaar card, driving license, passport, etc.
Attributes of LIC Jeevan Shanti Plan
- The minimum investment required for this scheme is ₹ 1,50,000 with no maximum investment limit.
- The minimum age for eligibility is 30 years while the maximum can be between 79 or 85 or 100 years.
- The premium payment should be made as a one-time lump sum amount of Rs 1,50,000 with no maximum investment limit.
- The maturity amount can be availed through an immediate annuity or deferred payment. Under immediate annuity, the return of payment starts immediately after the premium payment. While under deferred payment, the annuity payment starts after the limited period selected by the policyholder. The period can be between 1-20 years.
- You can take a loan instead of these plans after 1 year. Under immediate annuity, this option can only be availed for F&J. Under deferred payment, a loan can be availed for both options.
- You have the option to surrender the policy post after 3 months of purchase. Under Immediate Annuity, this can only be availed for option F&J. Under deferred payment, surrender can be availed for both options.
Exclusion of LIC Jeevan Shanti Plan
For Immediate Annuity (applicable only for Option F and J):
The plan becomes void if the annual/primary annuity / secondary annual (whether prudent or insane) risk commits suicide within 12 months from the date of commencement. The amount paid over 100% of the purchase price or surrender value. Will be paid.
For Deferred Annuity:
If the annual/primary annuity / secondary annual (whether prudent or insane) risk commits suicide within 12 months from the date of commencement, the plan becomes void. The amount paid over 80% of the purchase price or surrender value will be paid.
Jeevan Shanti Plan Review
Under the LIC Jeevan Shanti Plan, individuals are given the option to choose from immediate or deferred annuities. The policy offers nine different annuity options to suit every need and situation. LIC Jeevan Shanti Plan can be availed both online and offline.
Also Read: How to know LIC policy status online
FAQs on LIC Jeevan Shanti Plan
Q. What are the eligibility criteria for LIC Jeevan Shanti Plan?
A. The minimum age of admission is 30 years while the maximum age of admission is between 79-100 years. In the context of premium payment, the minimum amount is 1,50,000, which can be paid as a lump sum, with no limit on the maximum amount of investment.
Q. What type of annuity option to choose?
A. The scheme comes with two types of annuity options to choose from. It is advised that you set your financial goals and needs. After the evaluation, you will be able to make better decisions regarding the selection of the appropriate policy.
Q. What are the tax benefits of the LIC Jeevan Shanti Plan?
A. You are entitled to tax benefits under Section 80CCC of Income Tax Act, 1961 on LIC Jeevan Shanti Plan.