LIC Jeevan Shanti is a new single premium guaranteed
pension plan which is launched on 12th September 2018. It offers the
guaranteed pension with options like an immediate pension or deferred pension.
You may be aware that LIC’s Jeevan Akshay VI also offers
the guaranteed pension plan. However, LIC’s Jeevan Akshay is an immediate
annuity plan. Maybe for this reason, LIC came with plan LIC Jeevan Shanti. This
plan offers both immediate pension and deferred pension plan.
Before proceeding further, first, let us understand few
terminologies used in retirement plans.
What is the meaning of annuity?
In simple term, you can say it as a Pension, where you
will get regular income up to the specified period or conditions. There are two
types of annuity.
1) Immediate Annuity-In this case, you invest a lump sum
in a product and your pension or annuity starts immediately. Let us say you
have around Rs.1 Cr and if you buy immediate annuity plans, then the pension
will start immediately from next month.
2) Deferred Annuity-In this case your annuity starts
after a certain period. Let us say your current age is 30 years and you are
planning to retire at the age of 60 years. If you buy a deferred annuity plan,
then you will invest up to your retirement age i.e. up to 60 years of age.
After 60 years of retirement, your pension will start.
Eligibility Conditions
1
|
Minimum Purchase Price
|
Rs. 1,50,000/-
|
2
|
Maximum Purchase Price
|
No Limit
|
3
|
Minimum Annuity
|
Annuity Mode
|
Minimum Annuity
|
Monthly
|
Rs. 1,000 Per Month
|
Quaterly
|
Rs. 3,000 Per Quarter
|
Haly-Yearly
|
Rs. 6000 Per Half-Year
|
Annual
|
Rs. 12,000 Per Annum
|
4
|
Maximum Annuity
|
No Limit
|
5
|
|
Immediate Annuity
|
Deferred Annuity
|
Minimum Age
|
30 Years
|
30 Years
|
Maximum Age
|
85Years(except Option F) and 100
Years for Option F
|
79 Years
|
Minium Deferment Period
|
Not Appicable
|
1 Year
|
Maximum Deferment period
|
20 Years
|
Minimum Vesting Age
|
31 Years
|
Maximum Vesting Age
|
80 Years
|
Exceptional
cases where Rs.1.5 lakh minimum purchase is exempted-
If the plan is purchased for the benefit of a handicapped
dependent, then the minimum purchase price is Rs.50,000.
If the plan is purchased by the NPS subscribers.
Annuity
Options
ANNUITY
|
OPTION ANNUITY DESCRIPTION
|
|
|
Option A
|
Immediate Annuity for life
|
Option B
|
Immediate Annuity with guaranteed period of 5 years and life
thereafter
|
Option C
|
Immediate Annuity with guaranteed period of 10 years and life
thereafter
|
Option D
|
Immediate Annuity with guaranteed period of 15 years and life
thereafter
|
Option E
|
Immediate Annuity with guaranteed period of 20 years and life
thereafter
|
Option F
|
Immediate Annuity for life with return of Purchase Price
|
Option G
|
Immediate Annuity for life increasing at a simple rate of 3%
p.a.
|
Option H
|
Joint Life Immediate Annuity for life with a provision for 50%
of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
|
Option I
|
Joint Life Immediate Annuity for life with a provision for 100%
of the annuity payable as long as one of the Annuitant survives.
|
Option J
|
Joint Life Immediate Annuity for life with a provision for 100%
of the annuity payable as long as one of the Annuitant survives and return of
Purchase Price on death of last survivor
|
For Deferred Annuity Plans
Option 1
|
Deferred Annuity for Single Life
|
Option 2
|
Deferred annuity for Joint Life
|
Features and Benefits
· Non-linked
· Non-participating
· Single Premium Annuity
Plan
- Immediate Annuity
- Deferred Annuity
· Guaranteed Annuity rates
at the inception of the policy for both annuity types
· Various annuity options
- No change in selected option
is allowed
· Annuity Options for
Immediate Annuity
· Annuity Options for
Deferred Annuity
- Option 1
- Deferred annuity for Single
Life
- Option 2
- Deferred annuity for Joint
Life
· Modes of Annuity
Payments
- Immediate Annuity
- Yly/Hly/Qly/Mly
- Annuity payable in arrears
from DOC of the Policy
- After 1 year, 6 months, 3
months and 1 month
- Deferred Annuity
- Yly/Hly/Qly/Mly
- Annuity payable in arrears
from Date of Vesting
- After 1 year, 6 months, 3
months and 1 month
· Benefits payable on
Survival
- Immediate Annuity – Option F
(Single Life)
- Annuity payments as long as
the Annuity is alive
- Immediate Annuity – Option J
(Joint Life)
- Annuity payable as long as
the Primary Annuitant and/or Secondary Annuitant is alive
· Benefits payable on
Death
- Immediate Annuity – Option F
(Single Life)
- Annuity will cease and
Purchase Price payable to nominee
- Immediate Annuity – Option J
(Joint Life)
- Annuity payable as long as
the Primary Annuitant and/or Secondary Annuitant is alive
· Benefits payable on
Death – Option 1 (Single Life)
- Death Benefit shall be HIGHER
of
- Purchase Price (+) Accrued
Guaranteed Additions (-) Total Annuity payouts till date of death
- 110% of Purchase Price
- Death during the deferment
period
- ABOVE death benefit is
payable
- Death after Deferment Period
- Annuity Payments will cease
and the ABOVE death benefit is payable to nominee
· Benefits payable on
Survival
- Deferred Annuity – Option 1
(Single Life)
- During Deferment period
Nothing is Payable
- After Deferment period –
Annuity Payments
- Deferred Annuity – Option 2
(Joint Life)
- During Deferment Period
- On the survival of the
Primary and/or Secondary annuitant, nothing is payable
- After Deferment Period
- Annuity Payments as long as
Primary and/or Secondary annuitant is alive
· Benefits payable on
Death – Option 2 (Joint Life)
- Death Benefit shall be HIGHER
of
- Purchase Price (+) Accrued
Guaranteed Additions (-) Total Annuity payouts till date of death
- 110% of Purchase Price
- Death during the deferment
period
- On the first death nothing
is payable
- On death of the last
survivor ABOVE death benefit is payable to nominee
- Death after Deferment Period
- On first death 100% annuity
will continue to be paid
- On death of the last
survivor ABOVE death benefit to nominee
· ACCRUED GUARANTEED
ADDITIONS
- For DEFERRED ANNUITY OPTION
- Guaranteed Additions will
accrue at the end of each policy month till the end of Deferment period
only
- Death during Deferment Period
- Guaranteed additions for the
policy year in which the death has occurred shall accrue till the
completed policy month as on the
date of death
· ACCRUED GUARANTEED
ADDITIONS
- Guaranteed Additions per
month will be equal to
(Purchase Price X Annuity rate p.a payable monthly)/12
- Annuity rate p.a payable
monthly shall depend on the age at entry of the annuitant(s) and the
deferment period only
· Immediate Annuity
- 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
· Deferred Annuity
- 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)
· JOINT LIFE ANNUITY
- Can be taken between
- any lineal
descendant/ascendant of a family
- Grandparent
- Parent
- Children
- Grandchildren
- Or Spouse
- Or Siblings
· Incentive for High
Purchase Price
- Incentive by way of increase
in tabular annuity rate
· Absolute amount of
incentive as an addition to the annuity rates p.a per Rs.1000 purchase price
- 5 lacs and above :
Rs.1.50/Rs.1.40/Rs.1.35/ Rs.1.30
- 10 lacs and above :
Rs.2.10/Rs.2.00/Rs.1.95/ Rs.1.90
- 25 lacs and above :
Rs.2.45/Rs.2.35/Rs.2.30/
· Option available for
Payment of Death
- 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
- Annuitisation of Death
Benefit
- In Installment
- At the proposal stage
- Options can be subsequently
modified by the Annuitant
- Options cannot be changed by
the nominee
· Lumpsum 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
- Full or part amount of the
death benefit
· Option to take Immediate
Annuity by NPS subscriber
- All options available
- NPS subscriber
- Government employees
- Private Companies
- All subscribers of NPS lite
For more details Call\WhatsApp : 9900773971
Mail To : licbangalore91@gmail.com
