Planning for retirement just got easier with LIC’s innovative pension product, Jeevan Shanthi. This annuity plan offers a substantial monthly retirement income of up to ₹1 lakh, ensuring financial security in your golden years.
LIC’s New Jeevan annuity plans are designed to provide flexibility and benefits that cater to your retirement needs. By investing in this plan, you can secure a steady income stream, allowing you to enjoy your retirement without financial worries.
With LIC New annuity options, you can choose between immediate and deferred annuity plans, making it a versatile choice for retirement planners in India.
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Understanding LIC’s Jeevan Shanthi 2025 Plan
Understanding the intricacies of LIC’s Jeevan Shanthi2025 plan is crucial for making informed retirement decisions. This plan is designed to provide a steady income stream during retirement, ensuring financial stability.
Key Features and Benefits
LIC’s Jeevan Shanthi2025 is a non-linked, non-participating annuity plan that offers several key features and benefits. The plan provides comprehensive financial protection with guaranteed income for life after the chosen deferment period. Key features include flexible annuity options, a loan facility, and no requirement for medical examination.
Single Life vs. Joint Life Annuity Options
The Jeevan Shanthi2025 plan offers both Single Life and Joint Life annuity options. The Single Life annuity provides income for one person’s lifetime, while the Joint Life option covers both the primary annuitant and spouse, ensuring continued financial support for the spouse even after the primary annuitant’s death.
Eligibility Criteria for Jeevan Shanthi
Understanding the eligibility criteria for Jeevan Shanti is crucial before investing. The plan is designed to cater to individuals approaching or in their retirement years.
Age Requirements
The age requirements for Jeevan Shanti are specific. To be eligible, you must be between 30 and 79 years of age at the time of purchase (last birthday). The vesting age, when annuity payments begin, ranges from a minimum of 31 years to a maximum of 80 years.
Minimum and Maximum Purchase Price
The minimum purchase price for the policy is ₹1,50,000, making it accessible to a wide range of investors. There is no upper limit on the maximum purchase price, allowing high-net-worth individuals to invest larger amounts for proportionally higher returns.
The eligibility criteria can be summarized as follows:
- Age at entry: 30 to 79 years
- Vesting age: 31 to 80 years
- Minimum purchase price: ₹1,50,000
- No maximum limit on purchase price
To further illustrate the eligibility criteria, consider the following table:
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 30 years | 79 years |
| Vesting Age | 31 years | 80 years |
| Purchase Price | ₹1,50,000 | No Limit |
Deferment Period Explained
Understanding the deferment period is crucial when considering LIC’s Jeevan Shanti plan for your retirement. The deferment period refers to the time between purchasing the policy and when your annuity payments start. This period is significant because it affects how much you receive in annuity payouts.
LIC’s Jeevan Shanti offers flexible deferment options, allowing you to choose a period that suits your retirement planning needs. The flexibility in deferment periods means you can plan your retirement income according to your financial goals and requirements.
Options from 1 to 5 Years
LIC’s Jeevan Shanti plan provides deferment period options ranging from 1 to 5 years. This range gives you the flexibility to decide when you want your annuity payments to begin. Choosing the right deferment period depends on your financial goals and retirement plans.
Impact on Annuity Payouts
Selecting a longer deferment period typically results in higher annuity payouts because your investment has more time to grow. During this period, your invested amount earns returns, which are factored into the final annuity calculation. For instance, opting for a 5-year deferment can increase your monthly income by approximately 30-40% compared to immediate annuity options.
Deferment Period and Annuity Payouts Comparison
| Deferment Period | Annuity Payout Increase | Typical Monthly Income Benefit |
|---|---|---|
| 1 Year | Minimal Increase | Low |
| 3 Years | Moderate Increase | Medium |
| 5 Years | Significant Increase | High (approx. 30-40% more) |
Annuity Options Available in Jeevan Shanthi
With Jeevan Shanti, you can choose from a variety of annuity options to secure your retirement. The plan offers flexibility in choosing how you receive your annuity payouts, catering to different retirement needs and goals.
Immediate Annuity Options
Immediate annuity options under Jeevan Shanti begin payments right after purchase, making them ideal for those who need income to start flowing immediately. This option is beneficial for retirees who are looking for a steady income stream without any delay.
Deferred Annuity Options
Deferred annuity options, on the other hand, allow your investment to grow during the deferment period before payments begin. This option is suitable for those who do not need immediate income and can wait for their annuity payouts, potentially benefiting from a larger payout in the future.
| Annuity Type | Key Features | Benefit |
|---|---|---|
| Immediate Annuity | Payments start immediately after purchase | Ideal for those needing immediate income |
| Deferred Annuity | Payments start after a chosen deferment period | Allows investment to grow, potentially larger payouts |
How to Achieve ₹1 Lakh Monthly Income
To enjoy a stress-free retirement with a ₹1 lakh monthly income, understanding Jeevan Shanthi’s benefits is crucial. Achieving this financial goal requires a substantial initial investment.
Required Investment Amount
The amount needed to secure a ₹1 lakh monthly income through Jeevan Shanthi varies based on factors like age at entry and deferment period. Typically, an investment of approximately ₹1.25-1.5 crore is required.
Optimal Deferment Period Selection
Choosing the right deferment period can significantly impact the initial investment. Opting for a 5-year deferment period can reduce the required investment amount, making it more manageable.
LIC provides incentives for higher purchase prices by increasing annuity rates across three slabs: ₹5,00,000 to ₹9,99,999, ₹10,00,000 to ₹24,99,999, and ₹25,00,000 and above. For those who cannot make a lump sum investment, considering a combination of pension plans or a systematic investment approach over the years before retirement might be more feasible.
- A substantial initial investment of approximately ₹1.25-1.5 crore is needed to achieve a monthly income of ₹1 lakh.
- The exact investment amount varies based on age at entry, deferment period, and annuity option.
- Selecting a 5-year deferment period can significantly reduce the initial investment.
- LIC offers incentives for higher purchase prices through increased annuity rates.
- For those unable to invest a lump sum, alternative pension plans or systematic investments can be considered.
Investment and Payout Calculations
Understanding the investment and payout calculations is crucial for maximizing your returns from LIC’s Jeevan Shanti plan. The plan offers various payout frequencies to suit different financial needs and budgeting styles.
Payout Examples
For a ₹5,00,000 investment, the monthly payouts range from ₹2,666 to ₹4,000, depending on the age and deferment period. To achieve a monthly income of ₹1 lakh, an investment of approximately ₹1.25-1.5 crore is required.
| Investment Amount | Monthly Payout | Quarterly Payout | Half-Yearly Payout | Yearly Payout |
|---|---|---|---|---|
| ₹5,00,000 | ₹2,666 – ₹4,000 | ₹8,000 – ₹12,000 | ₹16,000 – ₹24,000 | ₹32,000 – ₹48,000 |
| ₹25,00,000 | ₹13,333 – ₹20,000 | ₹40,000 – ₹60,000 | ₹80,000 – ₹1,20,000 | ₹1,60,000 – ₹2,40,000 |
Quarterly, Half-Yearly, and Yearly Options
The plan also offers quarterly, half-yearly, and yearly payout options. For instance, a ₹25 lakh investment can yield ₹1.6-2.4 lakh annually, providing a flexible income stream.
Death and Survival Benefits
Jeevan Shanthi provides financial security through its death and survival benefits. This plan ensures that policyholders and their beneficiaries receive financial support under various circumstances.
Death Benefit Calculation
The death benefit under Jeevan Shanthi is calculated as the higher of the purchase price plus accrued additional benefits minus total annuity paid, or 105% of the purchase price. This ensures that beneficiaries receive a fair amount after the annuitant’s death.
Survival Benefit Terms
Survival benefits are structured as regular annuity payments that continue as long as the annuitant is alive. Notably, nothing is payable upon the survival of the annuitant beyond the annuity payments.
The key aspects of death and survival benefits in Jeevan Shanthi include:
- Comprehensive death benefit protection to ensure financial security for the family.
- Death benefit calculation based on the higher of the purchase price plus accrued benefits minus annuity paid, or 105% of the purchase price.
- For joint life annuity options, payments continue to the surviving spouse.
- Survival benefits are received as regular annuity payments as long as the annuitant is alive.
- Nominees can receive death benefits in installments over 5, 10, or 15 years.
Incentives for Higher Purchase Price
The Jeevan Shanti plan by LIC provides a significant boost to annuity rates for higher purchase price slabs, enhancing retirement income. This plan is designed to reward larger investments with better returns, making it an attractive option for those planning their retirement.
Premium Slabs and Corresponding Benefits
LIC’s Jeevan Shanti plan categorizes purchase prices into three slabs: ₹5,00,000 to ₹9,99,999, ₹10,00,000 to ₹24,99,999, and ₹25,00,000 and above. As the purchase price increases, so does the annuity rate, providing a direct benefit to the investor.
| Purchase Price Slab | Annuity Rate | Benefits |
|---|---|---|
| ₹5,00,000 to ₹9,99,999 | Enhanced Rate 1 | Moderate Increase in Annuity |
| ₹10,00,000 to ₹24,99,999 | Enhanced Rate 2 | Significant Boost in Monthly Income |
| ₹25,00,000 and above | Enhanced Rate 3 | Substantial Enhancement in Retirement Income |
Enhanced Annuity Rates
The annuity rates are enhanced as the purchase price moves up the slabs. For instance, investments of ₹25,00,000 and above attract the highest annuity rate, significantly boosting the monthly income for retirees. This structure encourages larger investments, providing a more comfortable retirement.
Key advantages of higher purchase prices include increased annuity rates and better returns on investment. The plan is particularly beneficial for those looking to invest substantial amounts for their retirement.
How to Purchase LIC’s Jeevan Shanthi Plan
Purchasing LIC’s Jeevan Shanthi plan is a straightforward process that can be completed either online or offline.
Online Application Process
The online application for LIC’s Jeevan Shanti plan is simple. Visit the official LIC website, navigate to the ‘Buy Policy Online’ section, and select Jeevan Shanthi. Follow the prompts to enter your details, calculate your premium, and complete the OTP verification. Finally, make the payment through your preferred mode.
Offline Purchase Options
For those preferring in-person assistance, the LIC new policy can be purchased by visiting any LIC branch office. Representatives will guide you through the application process, requiring identification documents, age proof, and address proof.
Loan Facility and Surrender Options
Understanding the loan and surrender options in Jeevan Shanti is crucial for policyholders to make informed decisions about their financial planning.
Loan Terms and Conditions
LIC’s Jeevan Shanti plan allows policyholders to avail loans after three months from the date of policy issuance or after the free-look period, whichever is later. The loan terms are flexible, allowing policyholders to borrow during or after the deferment period.
Surrender Value Calculation
Policyholders have the flexibility to surrender their Jeevan Shanti policy at any time during the policy tenure. The surrender value is calculated based on the higher of the special surrender value or the guaranteed surrender value.
The loan and surrender options are designed to provide financial flexibility to policyholders. Here are some key aspects:
- Loans can be availed after the initial three months or after the free-look period, offering flexibility in financial planning.
- The loan terms specify that borrowing can be done during or after the deferment period, catering to different financial needs.
- Policyholders can surrender their policy if their financial situation changes, ensuring they can adapt to new circumstances.
- The surrender value is calculated to ensure policyholders receive a fair amount based on the higher of the special or guaranteed surrender value.
| Feature | Description | Benefit |
|---|---|---|
| Loan Facility | Available after 3 months or free-look period | Financial flexibility during deferment period |
| Surrender Option | Available throughout policy tenure | Adaptability to changing financial situations |
| Surrender Value | Higher of special or guaranteed surrender value | Fair payout upon surrender |
Policy Exclusions and Free-Look Period
When considering LIC’s Jeevan Shanthi plan, it’s essential to understand the policy exclusions and the free-look period. These aspects are crucial for making an informed decision about your retirement plan.
The Jeevan Shanthi plan comes with a free-look period, allowing policyholders to review the terms and conditions of the policy. If you’re not satisfied, you can return the policy within 15 days from the receipt date for offline purchases and 30 days for online purchases.
Suicide Clause
In the unfortunate event of the annuitant’s suicide within 12 months from the policy commencement date, LIC will void the policy. In such cases, the beneficiaries will receive either the surrender value or 80% of the premium paid, whichever is higher.
Policy Cancellation Process
To cancel your Jeevan Shanthi policy within the free-look period, you must submit a written request stating your reasons for cancellation. Upon cancellation, the premium paid will be refunded after deducting any annuity already paid and stamp duty charges.
| Key Features | Details |
|---|---|
| Free-Look Period | 15 days (offline), 30 days (online) |
| Suicide Clause | 12 months from policy commencement |
| Cancellation Refund | Premium paid minus annuity and stamp duty |
How to File a Claim
Filing a claim for LIC’s Jeevan Shanthi plan involves a straightforward process that can be initiated by visiting the nearest LIC branch. The branch official will guide you through the complete process, ensuring that all necessary steps are taken care of.
Required Documentation
To file a claim, you will need to provide certain documents, including the original policy document, a death certificate in case of a death claim, ID proof of the nominee, and completed claim forms. For annuity payments, survival certificates may be required periodically to confirm the annuitant is still alive.
Claim Settlement Process
The claim settlement process involves verification of documents, assessment of the claim, and processing of the payment. LIC aims to settle death claims promptly, usually within 30 days of receiving all required documentation and completing verification. This ensures that the beneficiaries receive the death benefit in a timely manner, providing financial support during a difficult time.
Conclusion: Is Jeevan Shanthi Right for Your Retirement?
LIC’s New Jeevan Shanti is a great retirement option. It offers a reliable way to secure a steady income, including ₹1 lakh monthly with adequate investment. The plan is flexible with deferment periods, annuity options, and payout frequencies. Consider your age and financial goals to decide if it aligns with your retirement strategy.
