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  • LIC Jeevan Shanti

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Jeevan Shanti is a new single premium, non-linked, non-participating annuity plan announced by the Life Insurance Corporation of India (LIC). This policy is available with both immediate annuity or deferred annuity options. Policyholders can choose to receive the annuity amount on a monthly, quarterly, half-yearly, or yearly basis. The rate of annuity is guaranteed at the time of purchase of the policy and the benefits are paid throughout the lifetime of the annuitant. Customers can purchase this plan online or offline depending upon their convenience.

    Eligibility criteria for LIC Jeevan Shanti

    The eligibility criteria outlined for enrollment in LIC Jeevan Shanti are listed as follows:

    • The minimum entry age for this pension plan is 30 years.
    • The maximum entry age is capped at 85 years for an immediate annuity plan and 79 years for a deferred annuity plan.
    • The deferment period for this policy is set between 1 year and 20 years.
    • The minimum vesting age of the policyholder is 31 years while the maximum vesting age is 80 years.

    Features of LIC Jeevan Shanti

    Some of the notable features of LIC Jeevan Shanti are listed as follows:

    • The minimum purchase price of this policy is Rs.1.5 lakh, and there is no limit on the maximum purchase price.
    • The annuity amount is paid as per the purchase price of the policy and other policy terms. The minimum monthly annuity amount under this policy is Rs.1,000.
    • This policy can also be taken as a joint life annuity plan along with spouse, children, siblings, parents, grandparents, or grandchildren.
    • There are multiple options available under both immediate annuity and deferred annuity pensions plans.
    • This pension plan offers incentives for higher purchase price under both immediate and deferred annuity plans. These incentives are available for a purchase price of Rs.5 lakh and above.
    • The policy can be surrendered only under certain conditions after about 3 months of its completion. The surrender charges can be extremely high under this policy.
    • Loan facility is available under this policy after the completion of one year. The loan amount is subject to a maximum of 80% of the surrender value of the policy, and it shall not exceed 50% of the annual annuity amount.
    • The premium amount paid for this policy is exempt from taxes as per Section 80C of the Income Tax Act. However, the annuity received under this plan is taxed as per the regular norms.
    • If the policyholder is not satisfied with the policy, it can be returned without incurring any cost with 15 days from the date of purchase. In the case of online plans, this free-look period is extended to 30 days.

    Benefits of LIC Jeevan Shanti

    The benefits offered under LIC Jeevan Shanti are listed in this table:

    Options Extent of coverage
    Immediate annuity plans
    • Multiple plan variants are available to address varying requirements of policyholders.
    • These variants provide immediate annuity for a specific number of years and life thereafter. One specific variant offers immediate annuity with the option of returns of the purchase price after the death of the policyholder.
    • Joint life annuity benefit can also be purchased if required.
    • Upon the death of the annuitant, the annuity payments shall stop immediately and the outstanding amount shall be paid to the nominee.
    Deferred annuity plans
    • The annuitant shall choose the age at which the annuity payments shall stop.
    • If the policyholder dies during the deferment period, the benefit amount shall be paid to the nominee as per the policy terms.
    • If the annuitant dies after the start of the annuity, the outstanding amount shall be paid to the nominee as per the policy terms.

    Optional benefits of LIC Jeevan Shanti

    Policyholders or nominees have various options when it comes to receiving benefits under LIC Jeevan Shanti:

    • Following the death of the insured, the nominee can choose to receive the death benefit as lump sum payment, annuity payments, or installment payments as per their requirements.
    • This policy can be purchased as a Qualifying Recognized Overseas Pension Scheme (QROPS), subject to certain terms and conditions.
    • This policy can be bought for the benefit of a handicapped dependent (Divyangjan) with certain flexible options. In this case, the minimum purchase price can be also be reduced to some extent. If the purchase price is lowered, the annuity will be reduced proportionately.

    Exclusions of LIC Jeevan Shanti

    The following exclusions apply to LIC Jeevan Shanti policy:

    • In the case of immediate annuity plans, the return of purchase price following the suicide of the policyholder is allowed only under certain options.
    • If the annuitant commits suicide within 12 months from the date of commencement of the policy, 100% of the purchase amount or the surrender value shall be paid to the nominee.
    • In the case of deferred annuity plans, up to 80% of the purchase price or surrender value shall be paid to the nominee if the annuitant commits suicide within 12 months from the date of commencement of the policy.

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