LIC Jeevan Shanti Benefits, Features & Eligibility Criteria

LIC’s New Jeevan Shanti is a Non-Linked, Non-Participating, Individual, Single

Premium, Deferred Annuity plan, which is designed to handle the different financial needs of individuals seeking a stable retirement income.

The investment policy comes with two annuity options. 

• Deferred annuity for Single life
• Deferred annuity for Joint life

Important: The annuity option, once chosen, cannot be changed.

Eligibility Criteria

The eligibility criteria for the LIC New Jeevan Shanti policy goes like this: 

Minimum Annuity: 

Key Features of LIC New Jeevan Shanti Plan 

1. Death Benefit

Death benefit for both annuity options will be: 

The higher of:

• The purchase price along with the accrued additional benefit on death (details below) minus the total annuity amount paid up to the date of death, if any

OR 

• 105% of the purchase price

2. Accrued Additional Benefit on Death

• This additional benefit builds up at the end of each policy month during the deferment period only.
• The rate of this additional benefit per month during the deferment period is calculated as:

Additional Benefit per month = (Purchase Price * Annuity rate per year payable monthly) / 12

3. Loan Facility

Policyholders are allowed to take a policy loan of 80% of the Surrender Value after three months from the policy start date or after the free-look period ends, whichever is later. 

4. Flexibility

Flexibility to choose from:

• Single Life Annuity and Joint Life Annuity.
• Mode of Annuity payments (yearly, half-yearly, quarterly, and monthly).

5. Free Look Period

Investors are given a choice to cancel the policy within 30 days from the date of receipt if they are not satisfied with the “Terms and Conditions.” 

6. Surrender Value

Policyholders can surrender the policy at any time during its term. The surrender value will be the higher of the GSV (Guaranteed Surrender Value) or the Special Surrender Value. 

Here’s how it is calculated: (GSV Factor * Purchase Price) minus total annuity amount paid up to the surrender date.

Key Benefits of LIC New Jeevan Shanti Plan 

Option 1) Deferred annuity for Single life

During Deferment Period:

• If the Annuitant/policyholder survives, no money will be paid. 
• The death benefit will be paid to the nominee, as explained above. 

After Deferment Period:

• Annuity payments will be made according to the chosen mode as long as the Annuitant is alive.
• If the Annuitant dies, the annuity payments will stop immediately, and the death benefit will be paid to the nominee(s).

Option 2) Deferred annuity for Joint life

During Deferment Period:

• If the Primary Annuitant and/or Secondary Annuitant survives, no payment will be made.
• If the last surviving annuitant dies, the death benefit will be paid to the nominee.

After Deferment Period:

• Annuity payments will be made according to the chosen mode as long as either the primary annuitant or secondary annuitant is alive.
• If the last surviving Annuitant passes away, payments will stop right away, and the death benefit will go to the nominee. 

Incentives Available Under LIC New Jeevan Shanti Plan

• Incentive for higher purchase price

Annuity rates increase for higher purchase prices in the below three slabs: 

• • ₹5,00,000 to ₹9,99,999
  • ₹10,00,000 to ₹24,99,999
  • ₹25,00,000 and above

The higher the purchase price and the longer the deferment period, the greater the incentive.

• Incentive for existing Policyholder and Nominee/ Beneficiary of the deceased Policyholder

Existing policyholders and nominees or beneficiaries of deceased policyholders can get an increased annuity rate if they buy a new policy through an Agent, Corporate Agent, Broker, or Insurance Marketing Firm. 

• Incentive for Direct Sale by way of an increase in the annuity rate 

Annuity rates increase for policies bought directly, without an Agent, Corporate Agent, Broker, or Insurance Marketing Firm. 

Optional Benefits/Riders Available Under LIC New Jeevan Shanti Plan

• For payment of Death Benefit

The Insured person can choose one of the options below for how the death benefit will be paid to the nominee. 

• • Lumpsum Death Benefit: The entire death benefit is paid out all at once. 
  • Installments: Instead of a lump sum, the nominee can receive the death benefit in installments over 5, 10, or 15 years. These are paid in advance at yearly, half-yearly, quarterly, or monthly intervals. 
  • Annuitisation of Death Benefit: Nomiees can use the death benefit to buy an Immediate Annuity from the Corporation. They will start receiving regular payments right after the policyholder’s death, based on their age and the current annuity rates.
• Option to take the plan for the benefit of the dependent person with a disability (Divyangjan)

In case the policyholder has a dependent person with a disability (Divyangjan), they can choose to buy a Deferred Annuity for a Single life (Option 1) on their own life for the benefit of Divyangjan as a nominee. The minimum Purchase Price for this benefit is ₹50,000. 

• • In the event of the Proposer's death, if the Purchase Price is less than Rs. 1,50,000, the Death Benefit must be used to purchase an Immediate Annuity based on the option chosen by the Proposer. This Immediate Annuity will be for the life of the Divyangjan who is the nominee.
  • If the option for annuitisation is chosen, the annuity payments to the dependent will be made regardless of any limits on minimum annuity payments, minimum age at entry, or Purchase Price criteria. 

Illustration of LIC New Jeevan Shanti Plan Benefits 

Aditya bought the LIC New Jeevan Shanti Plan; here are the basic details. 

Annuity Amount payable for different payment modes: 

Exclusions

The policy will be null and void if the Annuitant or Last Survivor (in a joint life annuity) commits suicide within 12 months from the policy start date. In this case, the higher amount of either 80% of the Premium paid or the Surrender Value will be paid. The Corporation will accept no other claims.

How to Buy LIC New Jeevan Shanti Plan?

Here’s how you can buy LIC New Jeevan Shanti Plan online from InsuranceDekho. 

1. Click here to enter all your personal information, including name, DOB, and mobile number. Once done, click on the “View Plans for Free” button. 
2. Now, you’ll see a list of different life insurance policies; among them, you have to select “LIC New Jeevan Shanti.” 
3. Plan and decide if you want to opt for 
   • Deferred annuity for Single life or 
   • Deferred annuity for Joint life.
4. Then, add details about your education, occupation, and annual income. Review the premium amount and click “Next Step.” If the premium amount is correct, click "Accept and Pay." 
5. After successful completion, the policy will be issued, and you’ll get confirmation via registered email or phone. 

Frequently Asked Questions (FAQs)

Ques 1. What is LIC New Jeevan Shanti policy? 

Ans. LIC New Jeevan Shanti is a single premium plan that offers deferred annuity options for both single and joint lives. 

Ques 2. Can I surrender the plan? 

Ans. Yes! The investor can surrender the policy at any time during the policy term. The surrender value will be the higher of the GSV (Guaranteed Surrender Value) or the Special Surrender Value.

Ques 3. What should I buy LIC New Jeevan Shanti policy? 

Ans. Buy LIC New Jeevan Shanti policy if you are seeking a reliable retirement income. The best part is that the plan offers guaranteed annuity rates and flexibility to choose between single-life and joint-life annuity options. 

Ques 4. Are loans available against the LIC New Jeevan Shanti policy?

Ans. Yes, loans are available after three months from the policy issuance or after the free-look period, whichever is later, subject to specific terms and conditions.

Ques 5. How do I receive the annuity payments?

Ans. Annuity payments can be received monthly, quarterly, half-yearly, or yearly as per the option chosen at the time of policy purchase.