LIC Jeevan Shanti, one plan that guarantees you long term tranquillity and higher annuity benefits. LIC of India launched this plan to facilitate policyholders in gaining a return their submitted money over a period of time. The plan gives online as well as the offline facility to purchase the policy.
The single premium is to be submitted for the whole policy tenure. The hassle of annual premium payment is eliminated here. There is no sum insured. In place of sum assured, annuities are applicable which are paid, till the policyholder is alive or after the death of the policyholder, whichever is chosen.
There two types of Annuities, namely-
Immediate Annuity
The rate at which Annuity is payable is determined at the time of the purchase and remains the same through the policy term. The policyholder will get 12 annuity options listed below-
- Option 1- Immediate Annuity for whole life
- Option 2- Immediate Annuity for 5 years and life afterward
- Option 3- Immediate Annuity for 10 years and life afterward
- Option 4- Immediate Annuity for 15 years and life afterward
- Option 5- Immediate Annuity for 20 years and life afterward
- Option 6- Immediate Annuity for entire life with payment of Purchase price
- Option 7- Immediate Annuity increasing @ 3% paid for life
- Option 8- Joint life Immediate Annuity where 50% of the annuity is paid to the second annuitant after the death of the first Annuitant/Policyholder
- Option 9- Joint Immediate Annuity for life where 100% of annuity amount is paid to either of two Annuitants till they survive.
- Option 10- Joint Immediate Annuity applicable to two Annuitants where 100% of the annuity is paid as long as one of the people sustains. Also, the return of Purchase Price following the death of the last survivor.
Deferred Annuity
Two options are valid if you choose Deferred Annuity, namely-
- Option 11- Deferred Annuity for Individual life
- Option 12- Deferred Annuity for Joint life
How you can become eligible for LIC Jeevan Shanti?
| Minimum Purchase Price | Rs 1,50,000 |
| Maximum Purchase Price | No limitation |
| Entry Age (Deferred annuity) | 30 years to 79 years |
| Entry Age (Immediate annuity) | 30 years to 85 years |
| Deferment Period (annuity payment period) | 1 year to 20 years |
Benefits Payable Under Immediate Annuity Options
Under Option 1-
- Annuity Payment is given until the Annuitant stays alive with reverence to the mode selected.
- No annuity is paid once the death occurs. The policy will cease immediately.
Under Option 2, 3, 4, 5-
- Payment of Annuity is provided till period policyholder sustains.
- In case of demise of the Annuitant during the guaranteed period(5/10/15/20 years), the annuity is paid to the nominees.
- No annuity is payable if death occurs after the expiry of the guaranteed period.
Under Option 6-
- Annuities are paid for the period in which Annuitant remains alive. No payment after his/her death and policy will get terminated.
- Purchase Price payment is made to assigned nominees after death.
Under Option 7-
- Annuity payment is promised as long as Annuitant lives. Once death occurs, the policy will get dissolved and no annuity is payable.
Under Option 8-
- Annuities are provided until unless both or one of the Annuitants remain alive.
- 50% of the Annuity amount is payable to secondary Annuitant if the primary member passes away.
- If both Annuitants passes away, the policy is considered as dissolved.
Under Option 9-
- Annuities are paid up to 100% as long as anyone of the annuitants exists.
- No payment is made thereafter if both of them pass away. The policy will automatically get dissolve.
Under Option 10-
- Annuities will be paid just like it is paid in Option 9.
- On the death of both annuitants, Purchase Price is paid designated nominees. The policy will remain no more active.
Benefits Payable Under Deferred Annuity Options
Under Option 11-
- Annuities are paid after the completion of the deferment period to the annuitant.
- On the death of annuitant after the deferment period, the nominees will receive the death benefit.
- No annuities are paid during the deferment period if the annuitant survives this period.
Under Option 12-
- No Annuities are payable during the deferment period if both annuitants survive.
- The death benefit is paid to nominees if the last sustaining annuitant dies within deferment period
- On completion of the deferment period, the annuities are paid in arrears. Once death occurs of the primary and secondary annuitant, the policy will be closed.
Conclusion
According to my perspective, LIC Jeevan Shanti is an investment that promises you assured returns over the premium deposited in one go. Additionally, it gives you the loan facility and a death benefit. The death benefit will ensure complete financial security to the family of the policyholder after its death.
