LIC New Jeevan Shanti | LIC New Jeevan Shanti Plan 2025 | LIC New Jeevan Shanti deferred annuity | LIC New Jeevan Shanti single premium | LIC New Jeevan Shanti pension plan | LIC New Jeevan Shanti eligibility age | LIC New Jeevan Shanti minimum premium
The LIC New Jeevan Shanti Plan (Plan No. 858) is a single-premium, non-linked, non-participating, deferred annuity plan offered by the Life Insurance Corporation of India (LIC). Launched on October 21, 2020, and revised with updated annuity rates effective from January 5, 2023, this plan is designed to provide policyholders with a guaranteed stream of income during their retirement years. It is an ideal choice for individuals seeking financial security and a steady income post-retirement. This article explores the features, benefits, eligibility criteria, and more about the LIC New Jeevan Shanti Plan in 2025.
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Overview of LIC New Jeevan Shanti Plan
The LIC New Jeevan Shanti Plan is tailored for individuals who want to secure their financial future after retirement by making a one-time lump-sum investment. The plan offers deferred annuity options, where the policyholder pays a single premium upfront, and the annuity (pension) payments begin after a chosen deferment period. This deferment period allows the investment to grow, resulting in higher annuity payouts. The plan is particularly suitable for working professionals, self-employed individuals, or anyone with surplus funds looking for a reliable, guaranteed income stream during their golden years.
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| LIC New Jeevan Shanti Plan |
The plan offers two primary annuity options: Single Life Deferred Annuity and Joint Life Deferred Annuity, providing flexibility to meet diverse retirement needs. The annuity rates are guaranteed at the policy's inception, ensuring predictability and financial stability. Additionally, the plan includes benefits like death benefits, loan facilities, and surrender options, making it a versatile retirement planning tool.
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LIC New Jeevan Shanti Plan Highlights
| Feature/Benefit | Details |
|---|---|
| Plan Type | Single-premium, non-linked, non-participating, deferred annuity plan |
| Minimum Purchase Price | ₹1,50,000 (₹50,000 for Divyangjan policies) |
| Maximum Purchase Price | No upper limit |
| Minimum Entry Age | 30 years (last birthday) |
| Maximum Entry Age | 79 years (last birthday) |
| Deferment Period | 1 to 12 years |
| Annuity Options |
1. Single Life Deferred Annuity 2. Joint Life Deferred Annuity |
| Annuity Payout Modes | Monthly, Quarterly, Half-Yearly, Yearly |
| Minimum Annuity Amount | ₹12,000 (yearly), ₹3,000 (quarterly), ₹1,000 (monthly) |
| Guaranteed Annuity Rates | Fixed at policy inception, unaffected by market fluctuations |
| Death Benefit |
During deferment: Purchase price + guaranteed additions Post-deferment: Depends on annuity option |
| Loan Facility | Available after 3 months, up to 80% of surrender value |
| Surrender Value | Higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) |
| Free-Look Period | 15 days (offline), 30 days (online) |
| Tax Benefits | Premiums eligible under Section 80C (up to ₹1.5 lakh); annuity payouts taxable |
| Special Provision for Divyangjan | Lower purchase price (₹50,000); death benefit can fund immediate annuity for disabled dependent |
| Incentive for Existing Policyholders | 0.15% higher annuity rate for existing LIC policyholders or nominees |
| High Purchase Price Incentive | Higher annuity rates for larger investments |
| Medical Examination | Not required |
Key Features of LIC New Jeevan Shanti Plan
Single Premium Plan:
- The policy requires a one-time lump-sum payment, with a minimum purchase price of ₹1,50,000 (excluding GST). There is no upper limit on the maximum investment, allowing flexibility for high-net-worth individuals.
Deferred Annuity Options:
- Policyholders can choose a deferment period ranging from 1 to 12 years, during which no annuity payments are made, but the investment accumulates guaranteed additions.
- After the deferment period, annuity payments begin and continue for the lifetime of the annuitant(s).
Two Annuity Options:
- Single Life Deferred Annuity: The annuity is paid to the primary annuitant for their lifetime. Upon their death, the nominee receives the death benefit, which can be the purchase price or a higher amount based on the policy terms.
- Joint Life Deferred Annuity: The annuity is paid as long as either the primary or secondary annuitant (e.g., spouse, parent, or child) is alive. This ensures continued financial support for the surviving annuitant.
Flexible Annuity Payout Modes:
- Policyholders can choose to receive annuity payments monthly, quarterly, half-yearly, or yearly, based on their financial needs and convenience.
Guaranteed Annuity Rates:
- The annuity rates are fixed at the time of policy purchase and remain unchanged throughout the policy term, providing certainty in retirement planning.
Loan Facility:
- After three months from policy issuance or the expiry of the free-look period, policyholders can avail of a loan against the policy, up to 80% of the surrender value. The loan interest should not exceed 50% of the annual annuity amount.
Surrender Value:
- The policy can be surrendered at any time during the policy term. The surrender value is the higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). The GSV is calculated as a percentage of the purchase price minus any annuity payments made.
Free-Look Period:
- A 15-day free-look period is provided for offline purchases, and a 30-day period for online purchases, allowing policyholders to review and return the policy if dissatisfied.
Tax Benefits:
- Premium payments may qualify for tax deductions under Section 80C of the Income Tax Act, 1961, up to ₹1.5 lakh per financial year. However, annuity payouts are taxable as per the policyholder’s income tax slab rate.
Support for Divyangjan (Disabled Dependents):
- The plan allows a lower minimum purchase price of ₹50,000 for policies purchased for the benefit of a disabled dependent. In case of the policyholder’s death, the death benefit can be used to purchase an immediate annuity for the dependent.
Benefits of LIC New Jeevan Shanti Plan
Guaranteed Lifetime Income: The plan ensures a steady, predictable income stream for the policyholder’s lifetime, reducing financial uncertainties in retirement.
Death Benefit: In case of the policyholder’s death during the deferment period, the nominee receives the purchase price plus guaranteed additions. After the deferment period, the death benefit depends on the annuity option chosen.
Flexibility in Planning: The choice of deferment periods (1–12 years) and annuity payout frequencies allows policyholders to customize the plan to their financial goals.
Financial Security for Dependents: The Joint Life option ensures that the surviving annuitant (e.g., spouse) continues to receive annuity payments, providing lifelong financial support.
No Medical Examination Required: The plan does not require a medical examination, making it accessible to a wide range of individuals, including those with health concerns.
Incentive for Existing Policyholders: Existing LIC policyholders or nominees of deceased policyholders receive a 0.15% increase in the annuity rate if they purchase the plan within one year of a policy’s maturity or the policyholder’s death.
High Purchase Price Incentive: Higher purchase prices result in better annuity rates, rewarding larger investments with increased payouts.
Eligibility Criteria
| Parameter | Single Life Deferred Annuity | Joint Life Deferred Annuity |
|---|---|---|
| Minimum Entry Age | 30 years (last birthday) | 30 years (last birthday) |
| Maximum Entry Age | 79 years (last birthday) | 79 years (last birthday) |
| Minimum Purchase Price | ₹1,50,000 (₹50,000 for Divyangjan) | ₹1,50,000 (₹50,000 for Divyangjan) |
| Maximum Purchase Price | No limit | No limit |
| Deferment Period | 1–12 years | 1–12 years |
| Minimum Annuity | ₹12,000 p.a. (yearly), ₹3,000 (quarterly), ₹1,000 (monthly) | Same as Single Life |
How the Plan Works: A Premium Illustration
To understand how the LIC New Jeevan Shanti Plan works, consider the following example:
- Policyholder: Mr. Pradip Kumar, aged 50 years
- Plan: LIC New Jeevan Shanti (Plan No. 858), Single Life Deferred Annuity
- Purchase Price: ₹25,00,000 (excluding GST)
- Deferment Period: 10 years
- Annuity Mode: Yearly
After paying ₹25,00,000, Mr. Kumar’s annuity payments begin at age 60 and continue for his lifetime. Based on LIC’s annuity rates (subject to revision), he might receive an annual pension of approximately ₹2,50,000–₹3,00,000 (indicative, varies by age and deferment period). If Mr. Kumar passes away during the deferment period, his nominee receives the purchase price plus guaranteed additions. After the deferment period, the death benefit depends on the annuity option chosen.
Why Choose LIC New Jeevan Shanti in 2025?
- Reliability of LIC: As a government-backed institution, LIC is a trusted name in India, offering financial security and credibility.
- Customizable Retirement Planning: The flexibility to choose deferment periods, annuity modes, and single or joint life options makes it adaptable to various financial needs.
- Protection Against Market Volatility: Unlike market-linked pension plans, the guaranteed annuity rates shield policyholders from economic fluctuations.
- Tax-Deferred Growth: During the deferment period, the investment grows without being subject to annual taxes, allowing for effective compounding.
- Support for Dependents: The plan’s provisions for disabled dependents and joint life options ensure comprehensive financial protection for families.
Comparison with Other Retirement Options
While the LIC New Jeevan Shanti Plan offers guaranteed returns, it’s worth comparing it with alternatives like Senior Citizens Savings Scheme (SCSS), Fixed Deposits (FDs), or Mutual Fund Systematic Withdrawal Plans (SWPs):
- SCSS: Offers a fixed interest rate (e.g., 8.2% p.a. in 2025) but has a maximum investment limit of ₹30 lakh and a 5-year tenure. Unlike LIC’s plan, SCSS does not provide lifetime income.
- FDs: Provide fixed returns but are taxable annually, and reinvestment is required upon maturity. They lack the lifetime income guarantee of Jeevan Shanti.
- SWPs: Offer market-linked returns with flexibility but carry investment risks, unlike the guaranteed payouts of Jeevan Shanti.
The LIC New Jeevan Shanti Plan stands out for its lifetime income guarantee and flexibility, though annuity payouts are taxable, unlike some debt mutual fund withdrawals.
How to Purchase LIC New Jeevan Shanti Plan
Online Purchase:
- Visit the official LIC website (licindia.in).
- Navigate to “Buy Policy Online” and select “LIC’s New Jeevan Shanti.”
- Enter personal details, choose the annuity option, and calculate the premium.
- Receive an OTP, confirm details, and make the payment via credit/debit card or net banking.
- The policy document is delivered to your registered email.
Offline Purchase:
- Visit an LIC branch or contact an authorized LIC agent.
- Submit required documents: identity proof (Aadhaar, PAN, passport), address proof, and income proof (if required).
- Complete the application process and make the lump-sum payment.
Documents Required
- Identity Proof: Aadhaar card, PAN card, passport, or driving license.
- Address Proof: Utility bill, Aadhaar card, passport, or voter ID.
- Age Proof: Birth certificate, Aadhaar card, or passport.
- Income Proof: Bank statements or salary slips (if requested).
- Medical Records: Not mandatory, but may be required in specific cases.
Conclusion
The LIC New Jeevan Shanti Plan (Plan No. 858) is a robust retirement planning tool that offers guaranteed income, flexibility, and financial security. Its single-premium structure, customizable deferment periods, and options for single or joint life annuities make it a versatile choice for individuals planning their post-retirement life. With added benefits like loan facilities, surrender options, and support for disabled dependents, the plan caters to a wide range of financial needs. By leveraging the LIC New Jeevan Shanti Calculator and consulting with LIC agents, individuals can make informed decisions to secure a financially stable retirement in 2025 and beyond.
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|---|---|
| LIC New Jeevan Shanti Plan | Click Here |
| Maharashtra Government Scheme | Click Here |
| Central Government Scheme | Click Here |
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LIC New Jeevan Shanti Plan FAQs
Q. What is the LIC New Jeevan Shanti Plan?
The LIC New Jeevan Shanti (Plan No. 858) is a single-premium, deferred annuity plan that provides guaranteed lifetime income after a chosen deferment period. It offers Single Life and Joint Life annuity options to secure retirement finances.
Q. Who is eligible to buy this plan?
Individuals aged 30 to 79 years can purchase the plan with a minimum investment of ₹1,50,000 (₹50,000 for Divyangjan policies). There is no maximum investment limit.
Q. What is the deferment period, and how does it affect the annuity?
The deferment period is the time between the policy purchase and the start of annuity payments (1–12 years). A longer deferment period increases the annuity amount due to guaranteed additions during this phase.
Q. Are the annuity payouts taxable?
Yes, annuity payments are taxable as per the policyholder’s income tax slab rate. However, premium payments may qualify for tax deductions under Section 80C, up to ₹1.5 lakh annually.
Q. Can I surrender the policy if needed?
Yes, the policy can be surrendered at any time. The surrender value is the higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). GSV is calculated as a percentage of the purchase price minus annuity payments made.
Q. What happens if the policyholder dies during the deferment period?
For Single Life, the nominee receives the purchase price plus guaranteed additions. For Joint Life, the annuity continues for the surviving annuitant, and the death benefit is paid upon the last survivor’s death.
Q. Can I take a loan against the policy?
Yes, a loan is available after three months from policy issuance, up to 80% of the surrender value, with interest not exceeding 50% of the annual annuity amount.
Q. Is there a free-look period?
Yes, a 15-day free-look period is offered for offline purchases, and a 30-day period for online purchases, allowing policyholders to return the policy if dissatisfied.