Life Insurance Corporation of India (LIC) has launched a new pension scheme. LIC's New Jeevan Shanti plan is a non-linked, non-participating, individual, single premium, deferred annuity plan. The plan can be bought online as well as offline offers two annuity options.
The minimum purchase price is Rs 1,50,000. Modes of annuity offered by LIC are yearly, half-yearly, quarterly and monthly, with the minimum annuity being Rs 12,000 per annum. There is no ceiling on the maximum purchase price. For purchase of over Rs 5,00,000 and above, there will be an increase in the annuity rate.
"The plan is available for ages from 30 years to 79 years. The Minimum Deferment Period is 1 year and Maximum Deferment Period 12 years subject to Maximum Vesting Age (80 years). The plan can also be purchased for the benefit of Divyangjan (Handicapped Dependant) with minimum purchase price of Rs 50,000," stated LIC.
The new pension scheme has two options:
OPTION 1: Deferred annuity for single life after deferment period would be made in arrears for as long as he annuitant is alive. "In case of unfortunate death, during or after Deferment period, Death benefit will be payable to the nominee of the annuitant," stated LIC.
Option 2: Deferred annuity for joint life after deferment period would be made in arrears for as long as the primary annuitant and/or secondary annuitant is alive. "On death of the last survivor, during or after deferment period, the death benefit will be payable to the nominee. The joint life annuity can be taken between any two lineal descendant/ascendant of a family (i.e. Grandparent, Parent, Children, Grandchildren) or spouse or siblings," it stated.
The insurer said under the new scheme loan facility is also available. "There is also a provision for immediate liquidity in case of dire need as the policy can be surrendered at any time during the policy term," it said.