Jeevan Shanti Pension Plan Table No. 850
If you are in search of such an investment option which requires only one time payment and then ensures fixed income at regular intervals for life, LIC's Jeevan Shanti Pension Plan (Table No.850) can be the right answer.
This single premium pension plan offered by Life Insurance Corpn Of India can be planned to receive a fixed income on monthly, quarterly, half-yearly or yearly intervals. You can opt to start receiving this annuity either immediately or from a certain point in future.
Of course one can pose a big Why Jeevan Shanti Pension Plan? when you can always earn regular income by putting your money in fixed deposits in any bank of your choice. Certainly you can but FDs do not promise fixed regular income as interest rates might fluctuate in future and chances are more towards downside than up. However, if you think interest rates on FDs can also increase in future, isn't it always wise to put your eggs in multiple baskets?
Start Receiving Pension Immediately i.e. Immediate Annuity plan. LIC Jeevan Shanti comes with multiple immediate annuity options, which include:
- Option A: for life.
- Option B: with a guaranteed period of 5 years and life thereafter.
- Option C: with a guaranteed period of 10 years and life thereafter.
- Option D: with a guaranteed period of 15 years and life thereafter.
- Option E: with a guaranteed period of 20 years and life thereafter.
- Option F: for life with Return of Purchase Price.
- Option G: for life increasing at a simple rate of 3% p.a.
LIC's Jeevan Shanti Pension Plan also offers a joint annuity option wherein half i.e. 50% of the annuity amount can be divided between the two annuitants. You can even make a handicapped dependent a beneficiary here. Given below are the options:
- Option A: 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
- Option B: 100% of the annuity payable as long as one of the Annuitant survives.
- Option C: 100% of the annuity payable as long as one of the Annuitants survives and return of Purchase Price on death of the last survivor.
Start Receiving Pension after a few years in future. This option is for those who are young and earning at the time of buying this policy and want to buy LIC Jeevan Shanti to secure their future hence want to start receiving pension or annuity at a point in future and not immediately. Available options can be
- Option A: Deferred annuity for Single life
- Option B: Deferred annuity for Joint life
Other advantageous features of LIC Jeevan Shanti Plan
Loan facility – One becomes eligible to avail loan on his investment after one year of buying this policy at rates applicable at the time of disbursement.
Withdrawal – One can always opt to withdraw your subscription from the policy after a period of three months. One is eligible to receive Purchase Price back in this case.
Free Look - One can even return the policy, if not satisfied with its terms and conditions, within 15 days of subscribing for the same.
Example 1 - Immediate Annuity Plan:
- Purchase Price - 10 lakhs
- Age at time of purchase - 45 years completed
- Annuity Mode - Annual
Here the subscriber or his/her nominee shall start receiving annuity of approx. R.74,300/- immediately and continues receiving the same amount for this his/her life. The amount paid at the time of purchasing this plan (which is Rs.10 Lakh in this case) is not refundable.
In case of Immediate Annuity Plan with guaranteed period of 5,10,15 or 20 years and life thereafter:
Here the subscriber or his/her nominee shall start receiving annuity of approx. R.74,200/- till 5 years for sure and, if alive, continues receiving the same amount for his/her life. The amount paid at the time of purchasing this plan (which is Rs.10 Lakh in this case) is not refundable. It works accordingly for other terms such as 10, 15 and 20 years as well.
In case of Immediate Annuity for life with Return of Purchase Price
Here annuity is paid annually till the life of the subscriber or the person ensured and purchase value is refunded to the nominee on death of him/her.
For example, an annual return of Rs.65,400/- is paid on an investment of Rs.10.00 Lakh and the investment value i.e. Rs.10.00 Lakh is returned to the nominee on death of the subscriber.
In case of equal annual increment in Annuity
This is another option where annuity is increased by 3% every year and continues till the death of the subscriber or policyholder. Purchase value is not refundable under this plan.
For example, the subscriber starts receiving Rs.56,200 p.a. on an investment of Rs.10.00 Lakh and the annuity keeps growing by 3% (i.e. Rs.1,686 every year in case of Rs.56,200) and it continues till the death of the subscriber.
In case of joint subscription for immediate annuity for life
One can, under this plan, opt to divide annuity between the two. The other person can be anyone of spouse or any other dependents. The subscriber keeps receiving an annuity till his death and after that the secondary subscriber starts receiving 50% of the actual annuity till his/her death. Principal amount is not refunded here.
For example, in case of investment of Rs.10.00 Lakh, the first beneficiary keeps receiving Rs.71,100/- per annum till his life and, after his/her death, secondary subscriber starts receiving Rs.35,550/- (i.e. 50% of Rs.71,199) for his/her life.
There are some more options which you might want to explore before making an investment. Just fill in the contact form given below, lets' talk and find out a customized LIC plan suitable for your needs and requirements.
Life Insurance Corporation offers a vast list of plans with multiple benefits including pension plans, term life insurance plan, whole life insurance, joint life insurance, pension plan for dependents, insurance for children's education and more. To buy LIC Jeevan Shanti in Chandigarh, Mohali, Panchkula, Zirakpur and Kharar, please call us at 9023009100. We are an authorized LIC agency and MDRT, USA Qualified Financial Advisor.