LIC has recently launched a new scheme for those who want a risk free pension plan for their whole life.
There
are various annuity plans prevailing in the market which carry their own
advantages and disadvantages.
One
of such annuity plans is LIC new Jeevan Shanti pension plan (858). Earlier
there was LIC Jeevan Shanti plan (850) which was replaced by LIC new Jeevan
Shanti policy (858).
What are the features of LIC new Jeevan Shanti pension plan (858)?
There
are two concepts in the market one is immediate annuity (Pension) and another
is deferred annuity.
When
we talk about deferred annuity then LIC new Jeevan Shanti pension plan comes
into view.
Because
the meaning of deferred annuity here is that you have to pay a premium only
once under LIC new Jeevan Shanti policy and that amount is held by LIC for the
deferred period which the customer decides.
During
the deferred period you will not get any amount but your fund will keep
increasing. After the deferred period expires you will start receiving your
pension for lifetime.
Here are the following characteristics of LIC new Jeevan Shanti
pension plan (858):-
- Single payment plan
- Entry age limit : minimum 30 years and maximum 79 years
- Vesting age limit: minimum 31 years and maximum 80 years
- Deferred period:minimum 1 year and maximum 12 years
- Purchase price of policy: minimum rupees 150000 and maximum no limit.
- You can take a Single life plan or Joint life plan.
- You can choose payment options like monthly, quarterly, half yearly and annually.
- You have to invest in this policy in such a way or your purchase price should be decided in such a way that it should result in minimum annuity of rupees 1000 per month (if policy taken for monthly annuity), rupees 3000 per quarter (for quarterly), rupees 6000 for half year (for half yearly) and rupees 12000 (if annually).
- Death benefits are also attached.
- Surrender benefit and Loan option also available in this policy.
How to apply for LIC new Jeevan Shanti pension plan?
To apply for this policy you have to reach the LIC branch or can contact the LIC agent.
They will guide you based on your age, amount of premium, deferred
period and what amount you would receive after the deferred period expires.
The
one of the LIC Jeevan Shanti benefits is that you will get a risk free pension.
Your amount gets accumulated and invested for a deferred period.
During
the deferred period your amount will increase and after the expiry of deferred
period you will receive a fixed periodical pension based on the term decided at
inception of the taking scheme.
So
consult with the best agent who guides you properly regarding this policy.
What is single life and joint life deferred annuity?
There
are two options given to customer either to opt for option 1 (Single life
deferred annuity) or for option 2 (Joint life deferred annuity)
Option 1: Single life deferred annuity
Under
this option you can take LIC's new Jeevan Shanti pension plan for a single
individual. The whole benefit of pension is given to that individual only. If
the policy holder wants to hold the nominee (for in case of death of the
holder), the death benefit amount is given to the nominee.
Option 2:
Joint life deferred annuity
Under
this policy you can take policy for two persons. The 2nd annuitant could be
spouse, grandparents, parents, children and grandchildren.
For
deciding the annuity rate, the age of the 2nd annuitant would also be taken
into consideration by LIC.
In
case of death of the 1st policy holder, 2nd policyholder will get pension as
per the policy.
Policyholders
can also hold a nominee (for in case of death of both policy holders). Death
benefit will be paid to the nominee.
What are the
LIC new Jeevan Shanti pension plan (858) death benefits?
The
LIC new Jeevan Shanti pension plan have the following death benefits:
In case of
single life deferred annuity
In
case of death of policy holder, nominee will get the death benefits which is
higher of the following:
- Purchase price + Accrued additional benefit on death - Total annuity amount paid till death. Or
- 105% of purchase price.
Option
also given for death benefit in lump sum or in installment.
In case of
joint life deferred annuity
In
this case death benefits will be paid to the nominee only after that of both
the applicants. If in case of death of the first applicant then the second
applicant will continue to receive the pension.
What are the
tax benefits of LIC new Jeevan Shanti pension plan (858)?
Policyholders
will get tax benefit under Section 80ccc of Income Tax Act 1961 under the
overall limit of maximum rupees 150000 under section 80c. The pension received
is taxable at normal slab rates.
Conclusions
So in the details of LIC new Jeevan Shanti pension plan we have seen that it has many benefits for those who want a risk-free fixed pension scheme. You can also apply online in which you can get a 2% rebate on buying this policy.
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