LIC’s Jeevan Shanti is a single premium plan wherein the Policyholder has an option to choose an Immediate or Deferred Annuity. The annuity rates are guaranteed at the inception of the policy for both Immediate and Deferred Annuity and annuities are payable throughout the lifetime of Annuitant.
LIC Jeevan Shanti comes with a variety of annuity option to choose from-
Immediate Annuity
- Option A: Immediate Annuity for life.
- Option B: Immediate Annuity with a guaranteed period of 5 years and life thereafter.
- Option C: Immediate Annuity with a guaranteed period of 10 years and life thereafter.
- Option D: Immediate Annuity with a guaranteed period of 15 years and life thereafter.
- Option E: Immediate Annuity with a guaranteed period of 20 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% p.a.
- 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 along as one of the Annuitant survives.
- Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable along 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
Benefit
Immediate Annuity
| Options | Benefit |
|---|---|
| Option-A | ·The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
·On the death of Annuitant, nothing shall be payable and the annuity payment shall cease immediately. |
| Option-B, C, D, E | ·The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
·On the death of the Annuitant during the guaranteed period, the annuity shall be payable to the nominee(s) till the end of the guaranteed period. ·On the death of the Annuitant after the guaranteed period, nothing shall be payable and the annuity payment shall cease immediately. |
| Option-F | ·The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
·On the death of the annuitant, the annuity payment shall cease immediately and Purchase Price shall be payable to the nominee |
| Option-G | ·The annuity payments shall be made in arrears for as long as the Annuitant is alive, as per the chosen mode of annuity payment.
·On the death of annuitant nothing shall be payable and the annuity payment shall cease immediately |
| Option-H | ·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.
·On the 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 ·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 | ·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.
·On the death of the last survivor, the annuity payments will cease immediately and nothing shall be payable. |
| Option-J | ·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.
·On the death of the last survivor, the annuity payments will cease immediately and Purchase Price shall be payable to the Nominee(s). |
Deferred Annuity
| Options | Benefit |
|---|---|
| Option-1 | During Deferment Period:
·On survival of the Annuitant nothing shall be payable ·On the death of the Annuitant, Death Benefit as defined below shall be payable to the nominee After the Deferment Period: ·The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Annuitant is alive. ·On the death of the Annuitant, the annuity payments shall cease immediately and Death Benefit as defined below shall be payable to the nominee |
| Option-2 | During Deferment Period:
·On the survival of the Primary Annuitant and/or Secondary Annuitant, nothing shall be payable. ·On the death of the last survivor, Death Benefit as defined below shall be payable to the nominee. After the Deferment Period: ·The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Primary Annuitant and/or Secondary Annuitant are alive. ·On the death of the last survivor, the annuity payments shall cease immediately and Death Benefit as defined below shall be payable to the nominee. |
Death benefit
The death benefit is applicable only if the policyholder has chosen the deferred annuity option. In that case a death benefit of Purchase Price + Accrued Guaranteed Additions- Total annuity payments made till the date of death( if any )OR 110% of Purchase Price.
Rebate
| Mode Reduction in (Yearly) | annuity rate |
|---|---|
| Half-yearly | 2% |
| Quarterly | 3% |
| Monthly | 4% |
Eligibility
| Age at entry | Minimum-30 years | Maximum- 85 years(except option F)
100 years (option F) 79 (for deferred annuity) |
| Purchase price | Minimum- 1,50,000 | Maximum- no limit |
| Annuity | Annuity Mode | Minimum Annuity |
| Monthly
Quarterly Half-yearly Annual |
Rs.1000 per month
Rs.3000 per quarter Rs.6000 per half year Rs.12000 per annum |
|
| Deferred Annuity | Immediate Annuity | |
| Minimum Deferment Period
Maximum Deferment Period Minimum Vesting Age Maximum Vesting Age |
Not Applicable | 1 year
20 years 31 years 80 years |
Surrender value
The policy can be surrendered anytime after three months from the Date of issuance of the policy or after the expiry of the free-look period under the following annuity options only:
Immediate annuity- Option F, Option J:
Deferred annuity- Option 1, Option 2
The surrender value payable shall depend on the age (last birthday) of the Annuitant at the time of surrender/date of vesting of the policy. On the payment of the surrender value, the policy shall terminate and all other benefits shall cease.
Policy loan
Loan facility shall be available after the completion of 1 policy year. Policy loan shall be allowed under the following annuity options only: Immediate annuity- Option F, Option J and deferred annuity- option 1, option 2. The maximum amount of loan that can be granted under the policy will be when the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount and also will be maximum of 80% of Surrender Value
Tax
Tax benefit is available for the policyholder of LIC Jeevan Shanti plan under the income tax act section 80.
Free Look Period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy, after deducting the documentation charges full amount will be re-funded.
Exclusion
Suicide
For Immediate Annuity (applicable only for Option F and J)
The policy shall be void if the Annuitant/Primary Annuitant/ Secondary Annuitant commits suicide at any time within 12 months from the date of commencement of risk, an amount which is higher of 100% of the Purchase Price paid or Surrender Value shall be payable.
For Deferred Annuity:
The policy shall be void if the Annuitant/Primary Annuitant/ Secondary Annuitant commits suicide at any time within 12 months from the date of commencement of risk, an amount which is higher of 80% of the Purchase Price paid or Surrender Value shall be payable.
