Life insurance Corporation of India has launched a new insurance plan called 'Jeevan Shanti'. The plan is available for purchase through online and offline mode. To encourage online transactions, 2 per cent higher annuity value is being offered to online enrolments.
Jeevan Shanti plan is a non-linked, non-participating, single premium plan in which the policy holder has a choice between immediate annuity and deferred annuity. The minimum age for enrolment is 30 years while the maximum age is 85 years (79 for deferred annuity option). This policy can be taken on own life or as joint life with grandparent, parent, children, grandchildren, spouse or siblings. The plan also covers third gender.In the beginning of the policy for both immediate and deferred annuity options, policy rates are guaranteed. For both policy options incentives in the form of higher annuity rate would be provided to subscribers who opt for a higher purchase price i.e. upwards of Rs 5 lakh. (see table)
In addition to the higher annuity, a 2 per cent rebate is also offered for online enrolments, NPS subscribers and QROPS (Qualifying Recognized Overseas Pension Scheme)
In a total of 9 variants of the plan being offered, 7 choices for immediate annuity plan and 2 choices for deferred annuity plan are being provided by the LIC through Jeevan Shanti. Once option is chosen, it cannot be altered.The mode of annuity payments has been kept flexible which can be chosen over monthly, quarterly, half-yearly or yearly intervals.
Proceeds in case of death could be claimed as lump sum, in instalments or in annuity form.
The new policy plan can also be used as a collateral for loans after the policy completes 1 year, providing liquidity to the policy holders.
For NPS subscribers, all the annuity options that fall under immediate annuity would be available.
The minimum purchase price of this policy is Rs 1.5 lakh with no capping on the upper limit. In case of deferred annuity the time frame provided is 1-20 years.