India’s largest life insurer Life Insurance Corporation of India (LIC) has launched a new pension plan by the name ‘Jeevan Shanti’. LIC Jeevan Shanti is an online plan that can be bought directly from the company’s website. This plan was formally launched on Wednesday by LIC’s Chairman Mr. V.K. Sharma. Being a pension plan, this cover aims to provide annuity throughout the lifetime of the policyholder.
This is a single premium, non-linked, non-participating annuity plan that comes with immediate annuity or deferred annuity options. If the immediate annuity option is chosen, the annuity will start from as early as the next month. If the deferred annuity option is chosen, the policyholder may choose between a deferment period of 1 year and 20 years.
The minimum purchase price LIC Jeevan Shanti is Rs.1.5 lakh, and there is no maximum cap on the purchase value of the policy. This cover is available only as a single premium policy. The annuity payments of this policy will vary based on the initial purchase price and deferment period chosen by the policyholder.
Policyholders are free to choose the annuity payments in monthly, quarterly, half-yearly, or annual intervals. LIC Jeevan Shanti can be taken by anyone without undergoing a medical examination.
Only people who have completed at least 30 years of age can enter this policy. The maximum entry age for this policy is capped at 85 years (for immediate annuity). Additional incentives can be availed by policyholder if the purchase price is higher than Rs.5 lakh.
This policy also comes with a lot of other flexible benefits. For instance, policyholders can avail joint life annuity option along with a family member. If there is a handicapped dependent, this policy can be bought with that person as the nominee or second annuitant. In case of immediate annuity plans, there are provisions to get back 100% of the purchase price following the death of the policyholder.