When it comes to securing life after retirement, the Life Insurance Corporation of India (LIC) has consistently been a trusted name. Among its popular offerings, the LIC New Jeevan Shanti pension plan stands out as a thoughtful and well-structured solution for individuals seeking long-term financial stability. But what exactly makes it so appealing?
In this article, we’ll dive deep into the LIC New Jeevan Shanti plan, understand its features, benefits, eligibility, and why it could be a smart choice for your retirement planning. Whether you’re in your 30s planning early or nearing your 60s thinking about life post-retirement, this guide is tailored for you.
🧾 What is LIC New Jeevan Shanti?
LIC New Jeevan Shanti is a non-linked, non-participating, single premium annuity plan. That means you make a one-time payment, and in return, you or your joint annuitant receive guaranteed pension payments at regular intervals—either for life or as per selected options.
It offers deferred annuity options, allowing you to choose when you want to start receiving the pension. You can opt for the plan on a single life or joint life basis, depending on your family needs.
🎯 Key Features of LIC New Jeevan Shanti
Let’s break down the primary features that make this policy worth considering:
- ✅ One-time premium: Pay once and enjoy guaranteed pension benefits.
- ✅ Deferred annuity: Choose your deferment period from 1 to 12 years.
- ✅ Single or joint life: Ideal for individuals or married couples looking to secure a pension for both lives.
- ✅ Guaranteed annuity: The annuity amount is guaranteed at the time of policy issuance.
- ✅ Loan availability: You can avail loans after three months or upon completion of the free-look period.
- ✅ Surrender value: You can surrender the policy under certain circumstances and receive a lump sum.
These features ensure both flexibility and security, essential for effective retirement planning.
👨👩👧👦 Who Should Consider LIC New Jeevan Shanti?
This plan is ideal for:
- Retirees looking for steady post-retirement income
- Individuals in their 40s or 50s wanting to lock in future pension
- Couples planning for a joint retirement income
- Risk-averse investors who prefer guaranteed returns over market-linked volatility
It’s especially useful if you have received a lump sum from your gratuity, provident fund, or have sold a property and want to convert that into a regular income source.
📊 LIC New Jeevan Shanti Plan Options
The plan provides the following two annuity options:
🔹 Option 1: Deferred annuity for Single Life
In this option, the annuitant receives the pension after the chosen deferment period. Upon the annuitant’s death, the nominee gets back the purchase price.
🔹 Option 2: Deferred annuity for Joint Life
Both annuitants receive annuity payments. After the death of one annuitant, the surviving annuitant continues to receive the annuity. Upon the demise of both, the nominee gets back the purchase price.
These options provide flexibility to choose what suits your family’s needs best.
🧮 Eligibility Criteria for LIC New Jeevan Shanti
Here’s a quick overview of the eligibility terms:
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 30 years | 79 years |
| Deferment Period | 1 year | 12 years |
| Annuity Start Age | 31 years | 90 years |
| Minimum Purchase Price | ₹1,50,000 | No upper limit |
| Minimum Annuity | ₹12,000 per annum | No upper limit |
You can choose the purchase price and deferment period based on your retirement goals and current financial situation.
💸 Pension Payment Modes Available
Flexibility is key when it comes to receiving your pension. LIC New Jeevan Shanti offers multiple payment modes:
- Monthly
- Quarterly
- Half-Yearly
- Yearly
Choose the frequency that suits your cash flow needs. For example, someone used to receiving a salary might prefer monthly income to simulate a similar routine post-retirement.
Sample Premium Illustration for LIC New Jeevan Shanti
To give you a clearer picture of what kind of income you can expect, let’s take a real-life example based on LIC’s official premium illustration of the LIC New Jeevan Shanti policy:
✅ Sample Scenario:
- Purchase Price: ₹10,00,000 (excluding applicable taxes)
- Annuity Option: Option 1 (Single Life) and Option 2 (Joint Life)
- Age of Annuitant: 45 years (Last Birthday)
- Age of Secondary Annuitant: 35 years (applicable in Joint Life option)
- Deferment Period: 12 years
Here’s how the annual pension (annuity) would look like across different payment frequencies:
| 🧾 Annuity Option | 🗓️ Yearly | 🗓️ Half-yearly | 🗓️ Quarterly | 🗓️ Monthly |
|---|---|---|---|---|
| 🔹 Option 1: Deferred Annuity for Single Life | ₹1,41,000 | ₹69,139 | ₹34,217 | ₹11,288 |
| 🔸 Option 2: Deferred Annuity for Joint Life | ₹1,32,100 | ₹64,729 | ₹32,034 | ₹10,568 |
This example clearly demonstrates how annuity amount decreases slightly with more frequent payouts, as LIC adjusts for early cash flows.
🎯 What This Means for You
If you invest ₹10 lakh today and start your annuity after 12 years, you’ll receive:
- ₹1,41,000 per year if you choose the Single Life option
- ₹1,32,100 per year under the Joint Life option (which continues until both annuitants pass away)
This steady income continues as long as you (and your partner, in joint life) are alive, offering long-term peace of mind.
📉 What Happens in Case of Death?
In the unfortunate event of the annuitant’s death (or both annuitants in the joint option), the purchase price is returned to the nominee. This ensures your investment doesn’t go to waste and your loved ones are financially protected.
💼 Loan and Surrender Provisions
✔️ Loan Facility
You can avail a loan against the policy after three months from the policy commencement or after the expiry of the free-look period—whichever is later. This adds a layer of liquidity and flexibility.
✔️ Surrender Value
You are allowed to surrender the policy at any time after three months or after the free-look period if the policy is under special circumstances such as critical illness or need for funds. Upon surrender, you will receive the surrender value, which includes the purchase price with deduction based on LIC’s rules.
🌱 Tax Benefits
LIC New Jeevan Shanti offers tax benefits under current Indian tax laws:
- Premiums paid are eligible for deduction under Section 80C of the Income Tax Act.
- Annuity received is considered income and taxed as per your applicable tax slab.
Always consult with a tax advisor to fully understand the implications based on your income.
🤔 Should You Invest in LIC New Jeevan Shanti?
If you’re seeking a guaranteed income stream during your retirement years without market-linked risks, this plan is worth serious consideration. Here’s a quick summary of the pros and cons:
✅ Pros:
- Stable and predictable pension
- No impact from market volatility
- Available for both single and joint life
- Loan and surrender options add flexibility
- Backed by LIC’s trusted reputation
❌ Cons:
- Lower returns compared to aggressive investment options
- No participation in profits or bonuses
- Income taxed as per slab
So, if security and peace of mind rank higher than high returns in your retirement goals, this plan ticks the right boxes.
📌 Final Thoughts on LIC New Jeevan Shanti
Retirement should be a time to relax, travel, and spend quality time with your loved ones—not worrying about monthly bills or income. LIC New Jeevan Shanti offers a dependable pension plan with guaranteed returns and minimal hassle.
Whether you’re self-employed, a salaried professional, or someone nearing retirement, this plan deserves a place in your financial portfolio. It’s like planting a tree today and enjoying its shade for years to come. 🌳
Before purchasing, it’s wise to speak to a certified LIC advisor or financial planner who can help customize the plan based on your needs.
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