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LIC’s New Jeevan Shanti Plan 2023: LIC modifies annuity payouts for policyholders

LIC’s New Jeevan Shanti Plan 2023: LIC modifies annuity payouts for policyholders

New Jeevan Shanti Plan: Under the new plan, the policyholders would now earn rewards from Rs 3 to Rs 9.75 per Rs 1,000 of the purchasing price. The bonus will depend on the purchase price and selected deferment period.

Policyholders can purchase a minimum plan of Rs 150,000. There is no upper cap specified by LIC. Policyholders can purchase a minimum plan of Rs 150,000. There is no upper cap specified by LIC.

New Jeevan Shanti Plan 2023: State-owned insurance group and investment company Life Insurance Corporation of India (LIC) has revised the annuity rates for its New Jeevan Shanti Plan, which is Plan No. 858. The New Jeevan Shanti Plan is a single premium plan. The enhanced annuity rates are already live for the new policyholders applying from January 5 onwards. 

Under the new plan, the policyholders would now earn rewards from Rs 3 to Rs 9.75 per Rs 1,000 of the purchasing price. The bonus will depend on the purchase price and selected deferment period. The deferment period can be defined as the period when the life insured has become unable to work until he starts receiving the benefit. 

In a statement explaining the terms and conditions, LIC said: “Life Insurance Corporation of India has revised annuity rates in respect of its annuity plan LICE’s New Jeevan Shanti (Plan No. 858) with effect from 05.01.2023. The modified version of this plan with enhanced annuity rates shall be available for sale from 05.01.2023. It ranges from Rs 3 to Rs 9.75 per Rs 1000 purchase price based on the Purchase Price and deferment period opted.”  

The new LIC plan offers two types of deferred annuities: single life and joint life. Policyholders, who are now employed or self-employed and want to earn a regular income in the future following a deferment period, can invest in the New Jeevan Shanti Plan 2023. 

Under the new plan, the policyholder will receive a guaranteed monthly income throughout his lifetime. When the primary annuitant passes away, the nominee/secondary annuitant can receive the guaranteed income. 

Eligibility 

Policyholders can purchase a minimum plan of Rs 150,000. There is no upper cap specified by LIC. 

But there are some specific minimum and maximum annuity criteria. See the list below:  

Minimum Age at Entry: 30 years (Last Birthday) 
Maximum Age at Entry: 79 years (Last Birthday) 
Minimum Vesting Age: 31 years (Last Birthday) 
Maximum Vesting Age: 80 years (Last Birthday) 
Minimum Deferment Period: 1 year 
Maximum Deferment Period: 12 years subject to Maximum Vesting Age 
Minimum Annuity 

Annuity Mode Monthly: Rs 1,000 per month 
Quarterly: Rs 3,000 per quarter 
Half-yearly: Rs 6,000 per half-year 
Annual: Rs 12,000 per annum 
Proposed monthly income 

If a policyholder purchases a policy for Rs 10 lakh and chooses a delayed annuity for a single life, he will receive a monthly pension of Rs 11,192.  

Annuity Amount Payable for various annuities (in Rs)

Purchase Price: Rs 10 lakh (excluding applicable taxes) 

Age of Annuitant at entry: 45 years (Last Birthday) 

Deferment Period: 12 years 

Age of Secondary Annuitant at entry: 35 years (Last Birthday) (applicable for Option 2 only)

Annuity Amount Payable for various annuity payment modes (in Rs)

Annuity Option Yearly  Half Yearly Quarterly Monthly
Option 1: Deferred annuity for Single life 1,39,900 68,551 33,926 11,192
Option 2: Deferred annuity for Joint life 1,32,200 64,778  32,059 10,576

 How to buy LIC Jeevan Shanti Plan 

Policyholders can buy this plan both offline through agents and online. One can purchase the plan online by visiting www.licindia.in. The policy comes with a free-look period of a month or 30 days from the date of receipt of the electronic or physical mode of the policy bond.

Published on: Jan 12, 2023, 12:28 PM IST
Posted by: Basudha Das, Jan 12, 2023, 12:16 PM IST