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LIC Jeevan Shanti Table No 850
“Single premium guaranteed immediate and deferred pension cum investment plan of LIC”
On the occasion of its 62nd birthday, LIC of India has launched superb pension cum investment plan LIC Jeevan Shanti . The best part with this plan is its guaranteed pension rates. Weather you buy LIC Jeevan Shanti under immediate option or deferred option, the pension rates will remain guaranteed throughout life of the policyholder. LIC Jeevan Shanti can be bought on single life or on the Joint life. The concept of joint life has been redefined in LIC Jeevan Shanti. LIC Jeevan Shanti can be purchased in the name of husband and wife jointly, a father and son jointly, father and daughter jointly, father and grandson jointly, mother and granddaughter jointly etc. All possible combination of three generations from grandparents parents to kids but their ages should be greater than 30 years. Age above 30yrs in Single life or in joint life is the minimum criteria to buy LIC Jeevan Shanti.
Question: What are options available under which Jeevan Shanti can be bought?
Answer: LIC Jeevan Shanti can be bought under Immediate Pension or Deferred Pension. The details of Immediate and Deferred pension are detailed below:
Under Immediate Pension(Annuity), the prospect can choose any of the following options in LIC Jeevan Shanti:
- Option A :-Immediate Pension for life
- Option B :-Immediate Pension with guaranteed period of 5 years and life thereafter
- Option C :-Immediate Pension with guaranteed period of 10 years and life thereafter
- Option D :-Immediate Pension with guaranteed period of 15 years and life thereafter
- Option E :-Immediate Pension with guaranteed period of 20 years and life thereafter
- Option F :-Immediate Pension for life with return of Purchase Price
- Option G :-Immediate Pension for life increasing at a simple rate of 3% p.a.
- Option H :-Joint Life Immediate Pension for life with a provision for 50% of the Pension to the Secondary Pensioner on death of the Primary Pensioner.
- Option I :-Joint Life Immediate Pension for life with a provision for 100% of the Pension payable as long as one of the Pensioner survives.
- Option J :-Joint Life Immediate Pension for life with a provision for 100% of the Pension payable as long as one of the Pensioner survives and return of Purchase Price on death of last survivor
The options available under Deferred Pension are:
- Option 1 Deferred Pension for Single life
- Option 2 Deferred Pension for Joint life
Question: What are the modes available for taking pension in LIC Jeevan Shanti?
Answer : Mode of annuity payments Annuity allowable under Immediate and Deferred annuity are yearly, half-yearly, quarterly or monthly installments. The pension shall be payable in arrears.
Question: What are the main features of LIC Jeevan Shanti?
Answer: LIC Jeevan Shanti is Non-linked, Non-participating, Single Premium Annuity Plan ( Immediate Annuity/ Deferred Annuity), Guaranteed Annuity rates, Pension is guaranteed for life of Single life or for joint life.
Question: What are benefits available in LIC Jeevan Shanti on survival?
Answer: On Survival, under immediate pension option F (Single Life), Pension payments are paid as long as the annuitant is alive and on death, the pension will cease and purchase price(initial investment without GST) is payable to nominee. Under Deferred pension option, there are two cases
Case 1 for Single Life : On Survival nothing is paid during the deferment period and after the deferment period pension is payable to the pensioner whole life. On Death during deferment period purchase prize + Accrued Guaranteed Additions will be paid to the nominee. After deferment period higher of 110% of Purchase Price or Purchase Price (+) Accrued Guaranteed Additions (-) Total Annuity payouts till date of death is payable to the nominee.
Case 2 for joint life: On Survival, nothing is paid the during the deferment period and after the deferment period pension is payable till the life of primary annuitant and after the death of primary annuitant the pension is payable till the life of secondary annuitant. On death during the deferment period of primary annuitant nothing is payble to the secondary annuitant till the end of deferment period and after deferment period guaranteed annuity is payable to the survivor till the end of his life and on the death of secondary annuitant after deferment period, higher of 110% of Purchase Price or Purchase Price (+) Accrued Guaranteed Additions (-) Total Annuity payouts till date of death is payable to the nominee.
- Minimum Purchase Price: Rs.1,50,000
- Minimum Age at entry: 30 yrs (lbd)
- Maximum Age at entry
- 85 yrs (lbd) except Option F
- 100 yrs (lbd) for Option F
- Deferment Period is NOT APPLICABLE
Question: What are conditions for deferred pension in LIC Jeevan Shanti?
Answer: Under deferred Annuity in LIC Jeevan Shanti following are the conditions:
- Minimum Purchase Price: Rs.1,50,000
- Minimum Age at entry: 30 yrs (lbd)
- Maximum Age at entry: 79 yrs (lbd)
- Deferment Period is applicable
- Minimum deferment period: 1 year
- Maximum deferment period: 20 yrs (subject to maximum vesting age)
- Minimum vesting age: 31 yrs (lbd)
- Maximum vesting age: 80 yrs (lbd)
Question: What are options available for payment on death in LIC Jeevan Shanti?
Answer: Following are the options available for payment on death in LIC Jeevan Shanti:
- Available for Immediate Annuity Options Option F and Option J
- Available for Deferred Annuity Options Option 1 and Option 2
- Annuitant has to choose any of the following options
- Lump Sum Death Benefit :-Entire purchase price/death benefit to nominee
- Annuitisation of Death Benefit : Benefit payable on death shall be utilized by the Nominee for purchasing an Immediate Annuity
- In Installment : Benefit payable on death can be received in installments over a chosen period of 5/10/15 years with interest or Full or part amount of the death benefit
- At the proposal stage
- Options can be subsequently modified by the Annuitant
- Options cannot be changed by the nominee
Question: What are the options NPS subscriber can take in Immediate Annuity under LIC Jeevan Shanti ?
Answer: All options can be take in Immediate Annuity under LIC Jeevan Shanti by NPS subscriber in LIC Jeevan Shanti.
Question : Why one should purchase LIC Jeevan Shanti?
Answer : In today’s scenario interest rates are changing all over the world, specially in India the interest rates are lowest in 2018 on comparing interest rate in banks since independence lot of uncertainty is there among real estate PM Narendra Modi’s planning, housing for all slashing down Property rates all over India specially in metros like Delhi Mumbai Chennai Kolkata and Madras and people are not considering investment in property as their first priority now as it used to be a decade back. Investment experts do not suggest to invest lump sum amount n Mutual fund or stock market as market is very volatile these days investment in mutual funds and stock market for a layman May loose all his money so there are no such options are available for investment where one can get guaranteed Returns throughout life which are 100% safe and giving returns better than other option of investment for entire life not for just a single life but for Joint life as well.
People are finding it quite lucrative because LIC Jeevan Shanti is the only product which clearly States pension rates 20 years from now or 30 years from now or 40 years from now or entire life of two people buying LIC Jeevan Shanti jointly.
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