LIC’s Jeevan Shanti – a Guaranteed Annuity Single Premium Plan 850 2

LIC’s Jeevan Shanti (Table No 850)- a Guaranteed Annuity Single Premium Plan Features

This Plan is a non-linked, non-participating, single premium annuity plan wherein the Policyholder has an option to choose an Immediate Annuity or Deferred Annuity. This plan shall be allowed to lives including third gender. The annuity rates are guaranteed at the inception of the policy for both Immediate and Deferred Annuity. Various annuity options and mode of annuity payment are available under the Plan. The option once selected cannot be changed. This plan can be purchased offline as well as online.

The benefits and other details of the plan are as under:

Annuity Options available: The options available under Immediate Annuity are:

  • Option A Immediate Annuity for life
  • Option B Immediate Annuity with guaranteed period of 5 years and life thereafter
  • Option C Immediate Annuity with guaranteed period of 10 years and life thereafter
  • Option D Immediate Annuity with guaranteed period of 15 years and life thereafter
  • Option E Immediate Annuity with 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 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 death of last survivor

The options available under Deferred Annuity are:

  • Option 1 Deferred annuity for Single life
  • Option 2 Deferred annuity for Joint life

Modes of Annuity Payments: Mode of annuity payments Annuity allowable under Immediate and Deferred annuity are yearly, half-yearly, quarterly or monthly installments. The Annuity shall be payable in arrears i.e. the annuity payment shall be after 1 year, 6 months, 3 months and 1 month from the date of commencement of policy for Immediate Annuity options or date of vesting for Deferred Annuity options depending on whether the mode of annuity payment is Yearly, Half yearly, Quarterly and Monthly respectively.

LIC’s Jeevan Shanti (Plan 850) – a Guaranteed Annuity Single Premium Plan Features

  • Non-linked
  • Non-participating
  • Single Premium Annuity Plan
    • Immediate Annuity
    • Deferred Annuity
  • Guaranteed Annuity rates at the inception of the policy for both annuity types
  • Various annuity options
    • No change in selected option is allowed
  • Annuity Options for Immediate Annuity
    • Option A to Option J
  • Annuity Options for Deferred Annuity
    • Option 1
      • Deferred annuity for Single Life
    • Option 2
      • Deferred annuity for Joint Life
  • Modes of Annuity Payments
    • Immediate Annuity
      • Yly/Hly/Qly/Mly
      • Annuity payable in arrears from DOC of the Policy
        • After 1 year, 6 months, 3 months and 1 month
    • Deferred Annuity
      • Yly/Hly/Qly/Mly
      • Annuity payable in arrears from Date of Vesting
        • After 1 year, 6 months, 3 months and 1 month
  • Benefits payable on Survival
    • Immediate Annuity – Option F (Single Life)
      • Annuity payments as long as the Annuity is alive
    • Immediate Annuity – Option J (Joint Life)
      • Annuity payable as long as the Primary Annuitant and/or Secondary Annuitant is alive
  • Benefits payable on Death
    • Immediate Annuity – Option F (Single Life)
      • Annuity will cease and Purchase Price payable to nominee
    • Immediate Annuity – Option J (Joint Life)
      • Annuity payable as long as the Primary Annuitant and/or Secondary Annuitant is alive
  • Benefits payable on Death – Option 1 (Single Life)
    • Death Benefit shall be HIGHER of
      • Purchase Price (+) Accrued Guaranteed Additions (-) Total Annuity payouts till date of death
      • 110% of Purchase Price
    • Death during the deferment period
      • ABOVE death benefit is payable
    • Death after Deferment Period
      • Annuity Payments will cease and the ABOVE death benefit is payable to nominee
  • Benefits payable on Survival
    • Deferred Annuity – Option 1 (Single Life)
      • During Deferment period Nothing is Payable
      • After Deferment period – Annuity Payments
    • Deferred Annuity – Option 2 (Joint Life)
      • During Deferment Period
        • On the survival of the Primary and/or Secondary annuitant, nothing is payable
      • After Deferment Period
        • Annuity Payments as long as Primary and/or Secondary annuitant is alive
  • Benefits payable on Death – Option 2 (Joint Life)
    • Death Benefit shall be HIGHER of
      • Purchase Price (+) Accrued Guaranteed Additions (-) Total Annuity payouts till date of death
      • 110% of Purchase Price
    • Death during the deferment period
      • On the first death nothing is payable
      • On death of the last survivor ABOVE death benefit is payable to nominee
    • Death after Deferment Period
      • On first death 100% annuity will continue to be paid
      • On death of the last survivor ABOVE death benefit to nominee
  • ACCRUED GUARANTEED ADDITIONS
    • For DEFERRED ANNUITY OPTION
    • Guaranteed Additions will accrue at the end of each policy month till the end of Deferment period only
    • Death during 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
  • ACCRUED GUARANTEED ADDITIONS
    • Guaranteed Additions per month will be equal to
      (Purchase Price X Annuity rate p.a payable monthly)/12
    • Annuity rate p.a payable monthly shall depend on the age at entry of the annuitant(s) and the deferment period only
  • Immediate Annuity
    • Minimum Purchase Price: Rs.1,50,000
    • Minimum Age at entry: 30 yrs (lbd)
    • Maximum Age at entry
      • 85 yrs (lbd) except Option F
      • 100 yrs (lbd) for Option F
    • Deferment Period is NOT APPLICABLE
  • Deferred Annuity
    • Minimum Purchase Price: Rs.1,50,000
    • Minimum Age at entry: 30 yrs (lbd)
    • Maximum Age at entry: 79 yrs (lbd)
    • Deferment Period is applicable
      • Minimum deferment period: 1 year
      • Maximum deferment period: 20 yrs (subject to maximum vesting age)
      • Minimum vesting age: 31 yrs (lbd)
      • Maximum vesting age: 80 yrs (lbd)
  • JOINT LIFE ANNUITY
    • Can be taken between
      • any lineal descendant/ascendant of a family
        • Grandparent
        • Parent
        • Children
        • Grandchildren
      • Or Spouse
      • Or Siblings
  • Incentive for High Purchase Price
    • Incentive by way of increase in tabular annuity rate
  • Absolute amount of incentive as an addition to the annuity rates p.a per Rs.1000 purchase price
    • 5 lacs and above : Rs.1.50/Rs.1.40/Rs.1.35/ Rs.1.30
    • 10 lacs and above : Rs.2.10/Rs.2.00/Rs.1.95/ Rs.1.90
    • 25 lacs and above : Rs.2.45/Rs.2.35/Rs.2.30/
  • Option available for Payment of Death
    • Available for Immediate Annuity Options Option F and Option J
    • Available for Deferred Annuity Options Option 1 and Option 2
    • Annuitant has to choose any of the following options
      • Lump Sum Death Benefit
      • Annuitisation of Death Benefit
      • In Installment
    • At the proposal stage
    • Options can be subsequently modified by the Annuitant
    • Options cannot be changed by the nominee
  • Lumpsum death benefit
    • Entire purchase price/death benefit to nominee
  • Annuitisation of death benefit
    • Benefit payable on death shall be utilized by the Nominee for purchasing an Immediate Annuity
  • In Installment
    • Benefit payable on death can be received in installments over a chosen period of 5/10/15 years with interest
    • Full or part amount of the death benefit
  • Option to take Immediate Annuity by NPS subscriber
    • All options available
    • NPS subscriber
      • Government employees
      • Private Companies
      • All subscribers of NPS lite

 

2 thoughts on “LIC’s Jeevan Shanti – a Guaranteed Annuity Single Premium Plan 850

  1. Reply ajit Sep 12,2018 2:26 AM

    Dear sir,
    I want to invest fifteen lakhs. What would be my annual pension under deferred annuity for 1 year.

  2. Reply Ipaxi Sep 12,2018 10:37 AM

    Provide Pension Chart/Calculator

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