Life Insurance Corporation of India’s (LIC) New Jeevan Shanti (Plan No. 858) is a boon for those who want to live a life of peace and tranquility after retirement. The biggest advantage of this robust scheme is that it eliminates the need for repeated deposits; simply invest once and enjoy a guaranteed pension for life. In today’s inflation-driven era, where fixed deposit rates fluctuate, this LIC scheme guarantees a stable pension of up to ₹1 lakh annually. Let’s understand every detail of this impressive plan.
LIC New Jeevan Shanti Plan
LIC’s New Jeevan Shanti Plan is a ‘single premium’ annuity plan, which means you have to deposit a lump sum as a premium. It is ideal for professionals and employed individuals who have a pool of retirement funds or PF funds. With this plan, you can fix your pension amount at the time of investment, which is completely protected from future market fluctuations. After investing in this scheme, you have to choose a minimum waiting period of 1 year and a maximum of 12 years, i.e., a deferred period. Generally, a 5-year lock-in period is quite popular, during which the money grows steadily.
Two Pension Options
This plan offers two main investment options. The first is the “Deferred Annuity for Single Life,” which is for individual investment and provides a lifelong pension to the policyholder. The second is the “Deferred Annuity for Joint Life,” which is for a husband, wife, or two family members, where the pension continues to flow to the other after the death of one. The minimum entry age for this policy is 30 years, and the maximum age is 79 years. You can invest a minimum of ₹1.5 lakh, while there is no fixed maximum investment limit.
How does this annuity plan work
The math behind this plan is very simple and transparent. If you choose a single life plan and something untoward happens to the policyholder, the entire sum deposited is returned to the nominee. In a joint plan, if one partner dies, the other partner continues to receive the pension, and if both partners die, the entire fund is transferred to the nominee.
This policy not only provides you with a pension but also provides firm protection for your principal amount. The policyholder can choose to receive the pension monthly, quarterly, half-yearly, or annually, depending on their preference.
Formula for Earning ₹1 Lakh Annual Pension
Now let’s talk about the crucial calculation everyone has been waiting for. If you are 55 years old and invest a lump sum of ₹11 lakh in this plan and leave it for a 5-year deferment period, you will receive a guaranteed annual pension of approximately ₹1,01,880.
If you choose to receive this pension on a half-yearly basis, it will be ₹49,911, and on a monthly basis, you will receive a stable income of ₹8,149. By depositing just ₹11 lakh once, you can secure a stable income of ₹1 lakh annually for your old age. Even if you make a minimum investment of ₹1.5 lakh, you still receive a guaranteed monthly pension of ₹1,000.
Benefits and Security of this Scheme
The LIC New Jeevan Shanti Plan is not limited to pension; it offers many other benefits, including the ability to surrender the policy at any time after purchase if you face an urgent financial need. Furthermore, you can avail a loan against this policy within three months of investment, which provides significant support in meeting your financial needs.
You have multiple options for receiving your pension, and once determined, the pension amount remains unchanged for life. This flexibility and government guarantee make this scheme a preferred choice among the Indian middle class.