Thursday, 13 September 2018

LIC Jeevan Shanti Policy | Guaranteed Pension Plan


LIC Jeevan Shanti Policy | Guaranteed Pension Plan


LIC Jeevan Shanti Policy | Guaranteed Pension Plan

LIC Jeevan Shanti is a non-linked, non-participating, single premium guaranteed pension plan. LIC Jeevan Shanti is an annuity plan in which you can choose from the immediate pension or deferred pension options. The annuity rates are guaranteed at the beginning of the policy for both Immediate and Deferred Annuity and annuities are payable throughout the life time of Annuitant(s). In this post, let’s take a look at the details of LIC Jeevan Shanti policy.



LIC Jeevan Shanti policy can be taken on own life or as joint life with grandparent, parent, children, grandchildren, spouse or siblings. It is a comprehensive annuity plan with unique features for benefit of individuals and support for the family too. LIC Jeevan Shanti plan can be purchased through offline and online mode. To purchase LIC Jeevan Shanti Plan online, please log on to LIC official website.



Features and Benefits of LIC Jeevan Shanti Plan

Following are the key features and benefits of LIC Jeevan Shanti Plan.
1. LIC Jeevan Shanti is a single premium guaranteed pension plan. Just make one-time investment and get guaranteed life-long income.
2. The policyholder has an option to choose an Immediate Annuity or postpone it to a future date as Deferred Annuity.
3. The annuity rates are guaranteed at the beginning of the policy for both Immediate and Deferred Annuity.
4. Ten different annuity options to choose from to suit your need and circumstance.
5. The policy can be taken on own life or as joint life with grandparent, parent, children, grandchildren, spouse or siblings.
6. Guaranteed additions during the deferment period.
7. If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to LIC within 15 days (30 days if this policy is purchased online).
8. Loan facility shall be available after the completion of 1 policy year.
9. The policy can be surrendered at any time after three months from the completion of policy when Annuity Option is with the return of purchase price.
10. Option to take the plan for the benefit of handicapped dependant (Divyangjan) life.



Eligibility for LIC Jeevan Shanti Plan

Eligibility for LIC Jeevan Shanti Plan
Criteria
Immediate Annuity
Deferred Annuity
Minimum Age at Entry
30 years
30 years
Maximum Age at Entry
85 years except Option F and 100 years for Option F
79 years
Minimum Deferment Period
Not Applicable
One year
Maximum Deferment Period
20 years subject to Max. Vesting Age
Minimum Vesting Age
31 years
Maximum Vesting Age
80 years
Minimum Purchase Price
Rs.1,50,000
Maximum Purchase Price
No Limit
Minimum Annuity
Rs.1000 for monthly, Rs.3000 for quarterly, Rs.6000 for half yearly and Rs.12000 for yearly

Note that lower purchase price may be allowed in exceptional cases such as NPS and if the policy is purchased for the benefit of Divyangjan, as per terms and conditions of this plan.

Annuity Options under LIC Jeevan Shanti Policy

Following options are available under LIC Jeevan Shanti Policy

Immediate Annuity

Option A
Immediate Annuity for life
Option B
Immediate Annuity with guaranteed period of five years and life thereafter
Option C
Immediate Annuity with guaranteed period of ten years and life thereafter
Option D
Immediate Annuity with guaranteed period of fifteen years and life thereafter
Option E
Immediate Annuity with guaranteed period of twenty years and life thereafter
Option F
Immediate Annuity for life with return of Purchase Price
Option G
Immediate Annuity for life increasing at a simple rate of 3% per annum
Option H
Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on the death of the Primary Annuitant.
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.
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 the death of the last survivor.

Deferred Annuity

Option 1
Deferred annuity for single life.
Option 2
Deferred annuity for joint life.

Note that Annuity option fixed at the time of opting policy. No change in the selected option is allowed at a later stage of the policy period.



Benefits payable under LIC Jeevan Shanti Plan

Benefits payable on Survival or on Death under LIC Jeevan Shanti Plan

1. Immediate Annuity

Benefits payable under Immediate Annuity options are
Option
Benefits Payable
Option A
1. The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of Annuitant, nothing shall be payable and the annuity payment shall cease immediately.
Option B,C,D,E
1. The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of the Annuitant during the guaranteed period, the annuity shall be payable to the nominee(s) till the end of the guaranteed period. 3. On death of the Annuitant after the guaranteed period, nothing shall be payable and the annuity payment shall cease immediately.
Option F
1. The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of the annuitant, the annuity payment shall cease immediately and Purchase Price shall be payable to nominee(s).
Option G
1. The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of annuitant nothing shall be payable and the annuity payment shall cease immediately.
Option H
1. The annuity payments shall be made in arrears for as long as the Primary Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of Primary Annuitant, 50% of the annuity amount shall be payable to the surviving Secondary Annuitant as long as the Secondary Annuitant is alive. The annuity payments will cease on the subsequent death of the Secondary Annuitant. 3. If the Secondary Annuitant predeceases the Primary Annuitant, the annuity payments shall continue to be paid and will cease upon the death of the Primary Annuitant.
Option I
1. 100% of the annuity amount shall be paid in arrears for as long as the Primary Annuitant and/ or Secondary Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of the last survivor, the annuity payments will cease immediately and nothing shall be payable.
Option J
1. 100% of the annuity amount shall be paid in arrears for as long as the Primary Annuitant and/ or Secondary Annuitant is alive, as per the chosen mode of annuity payment. 2. On death of the last survivor, the annuity payments will cease immediately and Purchase Price shall be payable to the Nominee(s).

2. Deferment Annuity

Benefits payable under Deferment Annuity options are
Option
Benefits Payable
Option 1
During Deferment Period: 1. On survival of the Annuitant nothing shall be payable. 2. On death of the Annuitant, Death Benefit as defined below shall be payable to nominee(s). After Deferment Period: 1. The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Annuitant is alive. 2. On death of the Annuitant, the annuity payments shall cease immediately and Death Benefit as defined below shall be payable to nominee(s).
Option 2
During Deferment Period: 1. On the survival of the Primary Annuitant and/or Secondary Annuitant, nothing shall be payable. 2. On death of the last survivor, Death Benefit as defined below shall be payable to nominee(s). After Deferment Period: 1. The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Primary Annuitant and/or Secondary Annuitant is alive. 2. On death of the last survivor, the annuity payments shall cease immediately and Death Benefit as defined below shall be payable to nominee(s).

Death Benefit under LIC Jeevan Shanti Policy

Death Benefit shall be higher of
1. Purchase Price plus Accrued Guaranteed Additions minus Total annuity payments made till the date of death, if any
OR
2. 110% of Purchase Price
(Death benefit is applicable only in case of Deferred Annuity).



Accrued Guaranteed Additions under LIC Jeevan Shanti Policy

Accrued Guaranteed Additions (applicable only in case of Deferred Annuity): Guaranteed Additions shall accrue at the end of each policy month, till the end of Deferment Period only. The rate of Guaranteed Additions during the deferment Period shall be as under:
Guaranteed Additions per month = (Purchase Price*Annuity rate p.a. payable monthly) / 12.

Where Annuity rate p.a. payable monthly shall be equal to monthly tabular annuity rate and shall depend on the age at entry of the annuitant(s) and the 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 has occurred shall accrue till the completed policy month as on the date of death.



Mode of Annuity Payment under LIC Jeevan Shanti Policy

The modes of annuity available under the Immediate and Deferred annuity are yearly, half-yearly, quarterly, and monthly. The Annuity shall be payable in arrears.




Also read: LIC E-Term Plan

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LIC Jeevan Shanti Policy | Guaranteed Pension Plan







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