The Indian government owns the insurance firm Life Insurance Corporation (LIC). Its headquarters are in Mumbai, India, and it was established on September 1st, 1956. LIC offers a variety of Life insurance products, including those in the pension, health, unit-linked, and other components. The LIC New Jeevan Shanti Plan is one unique policy that provides lifetime pension plans to the insured. The main benefit of the LIC New Jeevan Shanti Plan is that it enables lifelong pension payments by only requiring a single lump sum investment. Read LIC Jeevan Shanti’s review to know more.
Read more: LIC Nivesh Plus Plan
LIC New Jeevan Shanti Plan Review
The New LIC New Jeevan Shanti Plan from LIC is a single-premium, non-linked, deferred annuity plan that gives policyholders the option of either a Single Life Annuity or a Joint Life Annuity. In addition, the policyholders are given a guarantee regarding the annuity rates at the time of the policy’s creation. Moreover, they are paid post-deferment period for the duration of the annuitants’ lives.
This policy went into effect on October 21st, 2020. Prior to this, the LIC Jeevan Shanti review was offered in two variations: immediate and deferred annuities, with quick annuity options ranging from A to J. The deferred annuity option is now available under LIC’s New Jeevan Shanti Plan with the issuance of a new policy.
Eligibility of LIC New Jeevan Shanti Plan
|Entry age||Deferment Period||Vesting Age|
|Immediate||30 years||85 years||Not available||Not available||Not available||Not available|
|Deferred||30 years||79 years
|1 year||20 years||31 years||80 years|
Features and Benefits of LIC Jeevan Shanti
Some of the significant characteristics and advantages of LIC’s New Jeevan Shanti Insurance are listed below:
- The LIC New Jeevan Shanti Plan is a lifelong pension plan with only a single investment.
- Different annuity types are available through the LIC New Jeevan Shanti Plan to meet the various needs of those considering purchasing the policy.
- The LIC New Jeevan Shanti Plan offers guaranteed additions throughout the deferment period.
- The maximum price of the purchase plus accrued added benefits on death excluding the total payable annuity amount until death, or the purchase price’s 105%, is the option that the policyholders can use to receive the death benefit.
- In between the policy’s terms of LIC Jeevan Shanti Pension Plan, policyholders may surrender their insurance coverage. However, the higher the exceptional value of surrender or the guaranteed value of surrender must be paid as the surrender value.
- After a period of three months, there is also a Jeevan Shanti LIC Plan Surrender option.
- After the LIC Jeevan Shanti Pension Plan has been in effect for a year, a loan can only be obtained.
- The period of free-look for LIC Jeevan Shanti Pension Plan online insurance purchases has been extended to 30 days.
- If unsatisfied, the LIC Jeevan Shanti Pension Plan may be returned within 15 days.
- When the deferment period begins, a death benefit is paid if the annuitant passes away.
- Pension will only be paid if the primary and secondary policyholders remain alive after the deferment period has expired.
Additional Benefits of LIC New Jeevan Shanti Plan
- According to the terms and conditions set forth by Her Majesty Revenue & Customs, you can purchase Jeevan Shanti LIC Plan as a Qualifying Recognized Overseas Pension Scheme (QROPS) with the help of the transfer of UK tax-exempt assets.
- Nothing will be paid out under a single life deferred annuity if the annuitant survives the deferment period under Jeevan Shanti LIC Plan.
- The LIC New Jeevan Shanti Plan provides three different annuity rate reductions: half-yearly (2%), quarterly (3%), and monthly (4%).
- The handicapped were considered when crafting the Jeevan Shanti LIC Plan, and special provisions exist for such cases.
- By increasing the annuity rate, which will be applicable for policies bought online, and as QROPS, policyholders will receive a 2% rebate.
Types of LIC Jeevan Shanti Plan
LIC New Jeevan Shanti Plan avails two categories:
- Immediate Annuity Plan
- Deferred Annuity Plan
1. Immediate Annuity LIC New Jeevan Shanti Plan
- Option A: If you choose this option of the LIC New Jeevan Shanti Plan, you can receive immediate lifetime returns. You can choose between monthly, yearly, bi-yearly, or quarterly payouts. Death will result in an immediate termination of the payment.
- Option B: LIC New Jeevan Shanti Plan will provide you with guaranteed payment under this option for the first five years and then for the rest of your life. The beneficiary of the policy will get the amount assured in the event of death within these five years.
- Option C: LIC New Jeevan Shanti Plan will provide you with guaranteed payment under this option for the first ten years and then for the rest of your life. The beneficiary will get the assured sum in the event of death in the duration of these ten years.
- Option D: For fifteen years, you will get a guaranteed payment if you choose this immediate annuity option by LIC New Jeevan Shanti Plan. The Policyholder may use the lifetime annuity if they survive. If the beneficiary dies within these fifteen years, they will receive the guaranteed sum.
- Option E: LIC New Jeevan Shanti Plan will provide you with an assured annuity under this option for the first twenty years and then for the rest of your life. If the beneficiary passes away within the duration of 20 years, they will get the guaranteed sum.
- Option F: Your nominee or beneficiary can receive death benefits under this option. The nominee of the Jeevan Shanti LIC Plan will receive the total purchase price in the event of the Policyholder’s passing.
- Option G: This option by LIC New Jeevan Shanti Plan is for an annuity of immediate access that increases by 3% annually.
- Option H: This option by LIC New Jeevan Shanti Plan is a joint annuity in which, in the event of the death of one Policyholder, the remaining Policyholder will get 50% of the annuity payment while they are still alive.
- Option I: Another option by LIC New Jeevan Shanti Plan of joint annuity provides that, in the event of the death of one Policyholder, the other person will get 100% of the total annuity.
- Option J: The other Policyholder will get 100% of the total amount of the annuity and a return of the purchase price under this joint annuity option if one of the policyholders passes away.
2. Deferred Annuity New Jeevan Shanti LIC Plan
1. Option A – During Deferment Period:
- Upon survival, the Policyholder will receive nothing.
- The benefit of the policy will be granted in the event of death.
2. Option B – After Deferment Period:
- As long as, for the time being, the annuitant of the policy is alive, the annuity payment will be made according to the chosen payment method.
- The payments on the annuity cease immediately upon the Policyholder’s passing, and the benefit of death is paid.
3. Option C – During Deferment Period:
- Nothing will be paid if neither Policyholder (primary or secondary) survives.
- The benefit of death will be paid when the final survivor passes away.
4. Option D – After Deferment Period:
- As long as, for the time being, both policyholders are still alive, the payment of annuity will be made under the payment method chosen.
- The annuity payment will end immediately upon the passing of the last survivor, and the benefit of death will be given.
How to Buy LIC New Jeevan Shanti Plan Online?
Anyone who wants to purchase a LIC New Jeevan Shanti Plan needs only go to the business’ website.
- Visit LIC’s official website – https://licindia.in/.
- Under “Buy Policy Online,” click “LIC’s Jeevan Shanti.”
- Then, under LIC’s New Jeevan Shanti, click “Buy Online.”
- Click “Click to Buy Online” and input the necessary information.
- After entering the OTP, click “Calculate Premium.”
- Fill in your personal information.
- Verify the premium information before clicking “Confirm & Proceed.”
- After making the online payment, your LIC insurance policy will be sent to the registered email address.
Pension & Death benefits of LIC New Jeevan Shanti Plan
There are numerous benefits of the LIC New Jeevan Shanti Plan when it comes to Pension and Death:
- Jeevan Shanti LIC Plan does not offer a maturity benefit option.
- Benefits will be paid on death or survival, depending on the annuity option chosen.
- If the annuitant passes away during the deferment period of the Jeevan Shanti LIC Plan, a death benefit is paid.
- The annuity option may be changed, effective as of the date of death of the Policyholder.
- Pension with LIC Jeevan Shanti Pension Plan will only be paid if the primary and secondary policyholders remain alive after the deferment period has expired.
- The death benefit under Jeevan Shanti LIC Plan will be paid to the annuitant’s nominee throughout the deferment period.
With the LIC New Jeevan Shanti Plan, not happy? With LIC Jeevan Shanti Pension Plan there is, however, a solution for you. Insurers of Jeevan Shanti LIC Plan strive to appear transparent to policy buyers because of the strict policies and regulations set forth by the insurance regulatory body IRDAI. However, only some are aware that certain insurers, such as the Life Insurance Corporation (LIC), even permit new clients to return policies, like Jeevan Shanti, within a specific time frame.
According to the official LIC website, the insurance company provides a 15-day free trial period for the LIC New Jeevan Shanti Plan. For policies purchased online, the time frame is increased to 30 days. A policy buyer has the right to return the insurance, citing disagreements and objections.
Documents Required to Purchase LIC New Jeevan Shanti Plan
The following documents must be in possession of anyone who wants to purchase the LIC New Jeevan Shanti Plan:
- Address Proof: a driver’s license, a passport, an Aadhar card, etc.
- Identity proof examples include a valid passport, PAN card, and Aadhar card.
Exclusions of LIC Jeevan Shanti Plan
The exclusions that are not protected by a LIC Jeevan Shanti policy are as follows:
If the primary and second annuitants of a joint plan, or the annuitant of a single plan, die by suicide during the first 12 months of the Jeevan Shanti LIC Plan start date, then:
- Plan of Immediate Annuity (Applicable to Options F and J):
The 100% of the price of purchase or the surrender value, whichever is higher, would be reimbursed. No further claims may be made.
- Deferred Annuity:
You would receive the higher of 80% of the price of purchase or the surrender value. No further claims may be made under Jeevan Shanti LIC Plan.
Read more: Difference Between LIC Jeevan Anand And New Jeevan Anand
The LIC New Jeevan Shanti Plan might be wise if you want a safe and improved insurance plan. The LIC New Jeevan Shanti Plan, one of the essential pension plans, gives policyholders the option of selecting either a Single Life or Joint Life annuity depending on their needs. LIC Jeevan Shanti’s review will help if you read all the terms and conditions before purchasing the plan. Then, choose the annuity to fully take advantage of the plan’s benefits.
LIC New Jeevan Shanti Plan – FAQs
To be eligible for the LIC New Jeevan Shanti Plan, what conditions must one meet according to the LIC Jeevan Shanti review?
Ans. Entry requirements are 30 years old for men and 79 to 100 years for women. The minimum premium payment is one hundred fifty thousand rupees, which can be made in a single payment. There is no maximum investment amount.
What kind of annuity options are available?
Ans. There are two different annuity options available with LIC Jeevan Shanti Review. First, it is a good idea to identify your financial needs and goals. Then, following the evaluation, you will be in a better position to choose the best policy.
What are the LIC New Jeevan Shanti Plan’s tax advantages listed under the LIC Jeevan Shanti review?
Ans. According to Section 80CCC of the Income Tax Act of 1961, you are entitled to tax benefits on the LIC New Jeevan Shanti Plan.
What does LIC New Jeevan Shanti Plan guaranteed surrender value mean?
Ans. The Guaranteed Surrender Value of LIC New Jeevan Shanti Plan can be determined using a straightforward formula: (Guaranteed Surrender Value Factor X Purchase Price) – Total Annuity Amount payable until the surrender date. Following is the Guaranteed Surrender Value:
- Policy Year: 1; GSV Factor: 75%
- Policy Year: 2; GSV Factor: 75%
- Policy Year: 3; GSV Factor: 75%
- Policy Year: 4; GSV Factor: 90%
- Policy Year: 5; GSV Factor: 90%
Is it possible to buy the Joint Life option just with my spouse?
Ans. No, you can buy the Joint Life Option according to LIC Jeevan Shanti Review with any descendant or ascendant in your family. In other words, you and your infant, family, brother or sister, grandparent, or grandkid can all purchase the plan together.