Looking for a stable and secure lifelong income after retirement, so you don’t have to worry about money in your old age? The Life Insurance Corporation of India’s (LIC) ‘New Jeevan Shanti Policy’ perfectly meets this urgent need. It’s a guaranteed pension plan that ensures regular income for life with a single premium investment. Its biggest advantage is that you know the pension amount at the time of investment, making future financial planning a breeze. This plan is an excellent choice for investors who want a fixed income while avoiding risk.
Key Takeaways
Quick Read- Guaranteed Lifetime Pension
- Plan Function
- Eligibility and Investment Limit
- Two Main Policy Options
Guaranteed Lifetime Pension
The LIC New Jeevan Shanti Policy is a single-premium annuity plan. This means you only need to invest once, and in return, you receive a pension for life or for a fixed period. You can choose from the unique option of receiving a monthly, quarterly, semi-annual, or annual pension, as per your convenience.
Plan Function
Suppose you make a large lump sum investment of ₹10 lakh. Depending on your age and the option you choose, you can start receiving a guaranteed pension of approximately ₹1 lakh per year after retirement. This plan is especially beneficial for those who want to be completely free from financial stress in old age.
Eligibility and Investment Limit
The minimum investment amount in this plan is ₹1.5 lakh, while there is no maximum investment limit. Anyone between the ages of 30 and 79 can purchase this plan.
Two Main Policy Options
In an immediate annuity, the pension starts immediately after the investment. In a deferred annuity, you invest, but the pension starts after a fixed period (such as 5, 10, or 15 years). This period helps earn higher returns.
Return on Investment
For example, if an individual invests a lump sum of ₹11 lakh at the age of 55 and opts for a 5-year deferment period, they can start receiving a pension of approximately ₹1,02,850 per year from the age of 60.
Key Benefits of the Plan
This is an LIC plan, so your investment is completely safe and backed by a government guarantee. Tax benefits are available on the deposit and pension under the Income Tax Act. In case of an emergency, the invested amount can be withdrawn by surrendering the policy. You can choose any payment method, from monthly to annual, as per your convenience. Once you invest, you are fully guaranteed a lifelong pension.
Two Plan Options
A deferred annuity for single life provides a pension to only one person. A deferred annuity for joint life provides a pension to both spouses, and the accumulated amount is returned to the nominee upon the policyholder’s death.
Why is it the Best Choice
In today’s times, when market volatility and risk have increased significantly, the LIC New Jeevan Shanti Plan is ideal for investors seeking guaranteed income. For individuals expecting a monthly pension after retirement—whether for household expenses, medical expenses, or other needs—this plan is completely free from market risk and is fully backed by a government guarantee. If you want to ensure a stable income after retirement and avoid financial worries, this LIC plan could be excellent for you.
