LIC New Jeevan Shanti Pension Plan (858) – details review & benefits

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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