LIC of India has launched its new annuity plan Jeevan Shanti, Plan No. 850 with effect from 11/09/2018. Jeevan Shanti is a non-linked, non-participating, single premium annuity plan where the policyholder has the option to choose an immediate annuity or Deferred Annuity. Jeevan Shanti is allowed to all lives including the third gender.
Annuit rates in Jeevan Shanti Plan are guaranteed at the time of taking the policy for both Immediate and Deferred Annuity.
Unique Identification Number (UIN) of Jeevan Shanti Plan is 512N328V01
Table of Contents
1. What is immediate and deferred annuity means in Jeevan Shanti
First, we should know, what is annuity? So Google defines this as a fixed sum of money paid to someone each year, typically for the rest of their life. It is the simplest definition of an annuity. You pay a lump sum amount to an insurance company and the company will provide you a fixed amount at regular intervals (monthly, quarterly, half yearly or yearly) as per your choice. An annuity is two types based on when you will start getting your annuity amount 1) Immediate annuity and 2) Deferred annuity.
Immediate Annuity
So, as the name suggests, you have paid a lump sum amount to an insurance company and the company will start paying you the annuity (pension) from next month onward.
Deferred Annuity
A deferred annuity is an annuity where a policyholder pays a premium today and receive the annuity (pension) after some period of time already agreed upon while purchasing the annuity plan. A period after which annuity becomes payable is called deferment period and the date on which annuity is due for payment is called vesting date.
2. Annuity Options Available in LIC’s Jeevan Shanti-for Immediate Annuity
3. Annuity Options Available in LIC’s Jeevan Shanti-for Deferred Annuity
4. Accrued Guaranteed Additions in LIC’s Jeevan Shanti-Deferred Annuity cases
I a policyholder opt for the Deferred annuity, Guaranteed additions will accrue at the end of each policy month, till the end of deferment period only.
The rate of Guaranteed additions:
Guaranteed additions per month=(purchase price X Annuity rates p.a. payable monthly) / 12
Here Annuity rate p.a. payable monthly is equal to monthly tabular rates (ie 96% X Tabular annuity rates p.a. payable yearly per 1000 purchase price) and will depend upon age at entry of annuitant and deferment period opted for.
In case of death of the annuitant during the deferment period, Guaranteed Additions for the policy year in which the death of policyholder has occurred will accrue till the completed policy month.
5. LIC’s Jeevan Shanti-Eligibility Conditions and features
6. Benefits Payable in Jeevan Shanti
In Jeevan Shanti plan amount of annuity payable to policyholder will depend upon the option he/she has chosen to get the annuity. There are 10 options to choose from for Immediate annuity and 2 options for the deferred annuity.
Benefits payable in Immediate annuity options
below are the benefits payable in each option if chosen by the policyholder, table describes benefits payable on survival and on the death of the annuitant.
Benefits payable in Deferred annuity options
below are the benefits payable in each option if chosen by the policyholder, table describes benefits payable on survival and on the death of the annuitant.
7. LIC Jeevan Shanti-other features
- This plan is also available for third genders
- This policy is available for sale from LIC’s Online portal also.
- Surrender Option: Unlike LIC’s Immediate annuity plan Jeevan Akshay VI, this plan has surrender option. Policy can be surrendered after completion of 3 months from the date of issuance of the policy. Surrender option is available only if the policyholder has opted Option F or Option J in the immediate annuity and both the options in the Deferred Annuity. Surrender in any other option is not allowed.
- Backdating is not allowed.
- Policy can be assigned to LIC of India only (when a loan is taken on this policy). Assignment to any third party is not allowed
- A nomination is required in this policy as per Section 39 of Insurance Act 1938.
- Free look period of 15 days, from date of receipt of the policy. If the policy is taken online then 30 days.
- GST will be imposed as per the rates declared by government time to time.
Sir,
I am now 60. I want to purchase a joint life deferred (5years) Jeevan Shanti (Plan 850) annuity plan with my wife. My question is 1) if any one of the two dies in the period of deferment can the surviving one continue the plan or surrender it?
2) Can the policy be surrendered at any time after 3 months of purchase. If it is true then whether both the survivors have to sign the surrender form?
3) What is this “SURRENDER VALUE”? Is there any deduction from the original purchase price? OR there are some additions to it?
The policy will continue on second life. No, only first life have to sign the surrender form. Please contact LIC officer regarding the surrender details of Jeevan Shanti.