Last October, LIC Jeevan Shanti was launched, offering a lucrative annuity plan. After the deferment period, an annuity plan, also known as a pension plan, will secure your future. Annual, half-yearly, quarterly, and monthly annuities are available.
What is the LIC Jeevan Shanti Plan, and what does it cover?
The LIC Jeevan Shanti is a single premium deferred annuity plan that allows the subscriber to choose between Single life and Joint life options. It's a deferred plan, which means you'll get your pension after a set period of time, as opposed to an immediate annuity plan, which begins as soon as you begin investing. As a result, the annuity rate will be guaranteed at the start of the policy, and annuities will be paid after the deferment period has ended for the rest of the annuitant's life (s). It's a non-linked plan, which means it won't be affected by market fluctuations or underlying asset performance.
Benefits of both Single and Married Life
If the policyholder survives the deferment period, no payment will be made. The death benefit will be paid if the policyholder dies. After the deferment period, however, annuity payments will be made in arrears for the rest of the policyholder's life. The annuity payments will stop immediately if the policyholder dies, while the death benefit will be paid to the nominee (s). If the Primary Annuitant and/or Secondary Annuitant survives during the deferment period, the death benefit will be paid to the nominee, but if the last survivor dies, the death benefit will be paid to the nominee (s).
Price and eligibility for purchase Under this pension plan
The minimum purchase price is Rs. 1,50,000, which is subject to the minimum annuity, while the maximum purchase price is unlimited. The minimum entry age for LIC Jeevan Shanti is 30 years, and the maximum entry age is 79 years. The minimum and maximum vesting ages, on the other hand, are 31 and 80 years, respectively.
A policyholder's minimum deferment period will be one year, and their maximum deferment period will be twelve years, both subject to the maximum vesting age.
However, LIC states that if the pension policy is purchased for a dependent person with a disability, the proposal will be accepted without any minimum annuity restrictions, and the minimum purchase price will be Rs. 50,000 in such cases.
Calculation of Annuity
The following calculation shows the annuity benefits (annuity amount payable - INR) of the planning, taking into account the purchase price of Rs. 10 lakh (excluding taxes), the age of the annuity at 45 years, the deferment period at 12 years, and the age of the secondary annuitant at 35 years.
Benefits after Death
In both single life and joint life options, death benefits will be the higher of the purchase price plus accrued additional benefit on death minus total annuity amount payable till death - if any, or 105 percent of the Purchase Price. Furthermore, the monthly annuity rate PA will be equal to the annuity rate per unit Purchase Price applicable for monthly mode, without any incentive, and will be determined by the Option selected, the annuitant(s)' age at entry, and the deferment period selected. If the policyholder dies during the deferment period, an additional death benefit for the policy year in which the death/surrender occurred will be accrued until the policy month is completed, or until death.
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