Life Insurance Corporation (LIC) of India apart from offering term and endowment insurance plans is also offering pension plans. LIC Jeevan Shanti is one of the pension plans being offered by the country’s largest life insurer. LIC Jeevan Shanti plan is a single premium plan wherein the policyholder has an option to choose an immediate or deferred annuity, LIC noted on its website licindia.in. Under the LIC Jeevan Shanti plan, the annuity or pension rates are guaranteed at the inception of the policy for both Immediate and Deferred Annuity and annuities are payable throughout the life time of the policyholder, LIC added.
Here are details of pensions, premium, annuity or pension options provided by LIC under Jeevan Shanti plan:
The policyholder gets nine different annuity options to choose from to suit every need and circumstance, LIC said.
LIC Jeevan Shanti plan can be purchased by any individual in the age group 30 years and 79 years for deferred annuity and 85 years for immediate annuity.
Minimum purchase price of the policy is Rs. 1.5 lakh and there is no maximum limit for the purchase price, according to LIC.
The policy holder gets to choose from the pension options mentioned below:
For instance an individual purchases Jeevan Shanti plan at the age of 45 with a deferment period of 20 years he/she will get the following annuity amount under the annuity option chosen by the policy holder.
|Annuity Option||Annuity Amount (Rs.)|
|Option A: Immediate Annuity for life||74,300|
|Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter||74,200|
|Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter||73,900|
|Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter||73,500|
|Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter||72,900|
|Option F: Immediate Annuity for life with return of Purchase Price||65,400|
|Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a||56,200|
|Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant||71,100|
|Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives||68,300|
|Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor||64,900|
|Option 1: Deferred annuity for Single life||206,600|
|Option 2: Deferred annuity for Joint life||227,200|
The premium paid towards LIC Jeevan Shanti Policy qualifies for income tax relief under the Section 80C of the Income Tax Act.