LIC's Jeevan Shanti Plan 850

          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

• Option A to Option J

·         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

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