LIC New Jeevan Shanti Plan 858 Details with Example

This Jeevan Shanti plan of LIC is already available to take the market, but from January 5, 2023, some changes have been made in this plan, due to which this Jeevan Shanti plan is now known as LIC New Jeevan Shanti Plan. Looking at all these changes, we have updated this post again, in which all the information about this plan is available. After reading this article, any person will be able to know about this scheme very well and will be able to explain it to anyone, so definitely read this post from beginning to end.

What is LIC New Jeevan Shanti Plan 858?

LIC New Jeevan Shanti Plan is a non-linked, non-participating, single premium deferred annuity plan that offers guaranteed returns. It is designed to provide a secure and regular income stream to the policyholders during their retirement years. As a single premium plan, the policyholder has to pay a lump sum premium amount at the inception of the policy.

If you understand it in simple words, then this Plan is non linked to the stock market, nor is the return received in this Plan participating to the stock market; whatever returns you get in this plan are fixed and guaranteed, neither less nor more.

Along with this, plan is a single premium deferred annuity plan, in which the premium has to be paid in one go. And then, after a few years of participating in the scheme, the pension benefits start. There is no immediate benefit in this plan; In this Plan, time has been fixed to get the benefit of a pension.

If we talk about LIC’s Jeevan Akshay plan, then it is an immediate annuity plan in which the benefit of pension starts only after taking the LIC plan.

You can read this post to learn more about the LIC Jeevan Akshay Plan.

Let us first know about all the basic details of LIC New Jeevan Shakti plan, and then try to understand this plan on the basis of this.

LIC New Jeevan Shanti Plan Details

All the above-mentioned details are defined below so that you can understand all the aspects of this scheme very well.

Also Read:- LIC Kanyadan policy details 2023

What is an annuity option?

Annuity option means what option is available to take this plan; here you get to see two options:

• Single Life: In single life, only one person can take advantage of the pension plan. In this pension plan, you get the benefit of a pension as long as you are alive, and when you die or do not live, then in this situation, death benefits or whatever the amount of insurance cover is, are given to your nominee.

• Joint life: In joint life, two people can take advantage of the pension plan. In this pension plan, you get the benefit of a pension as long as you are alive, and when you die, the other person starts getting the benefit of a pension, and when he also dies, whatever the amount of death benefits or insurance cover is, it is given to your nominee.

Now how much will be this death benefit or how much will be the amount of insurance cover? We will understand it in the example.

Who can take the policy together in a Joint Life Pension?

If you want to take the Joint Life Pension Plan, then you can take the Joint Life Pension Plan together with your spouse, children, parents, grandparents, grandchildren or siblings.

Eligibility Criteria for LIC Jeevan Shakti Plan

Minimum Entry Age : The minimum entry age for taking this plan has been kept at 30 years; that is, anyone of the age of 30 years or above can take this Jeevan Shanti plan.

Maximum Entry Age : The maximum entry age for taking this scheme has been kept at 79 years; That is, any person of the age of 79 years or less can take this Jeevan Shanti plan.

Minimum Purchase Price : The minimum purchase price of this plan has been kept at Rs. 1,50,000. That is, to implement this plan, a minimum investment of Rs. 1,50,000 will have to be made.

Maximum Purchase Price : There is no maximum purchase price for this plan; you can invest as much as you want in it.

Minimum Vesting Age : The minimum vesting age in this plan has been kept at 31 years. Vesting age means maturity, which shows when you will start getting a pension.Understand this with an example: if your age is 30 and you choose one year’s deferment period while taking this plan, then you will start getting the benefit of a pension after you are 31 years old.

Maximum Vesting Age : Talking about the maximum vesting age in this Plan, it has been kept at 80 years, which means that if you are 79 years old and you want to take this Plan, then you have only a 1-year deferment period on the basis of which you can take this plan. If you want to increase your pension amount, then you have to take advantage of this scheme at a young age so that your pension amount can increase.

Minimum Deferment Period : The minimum deferment period in this Plan has been kept at 1 year. The meaning of deferment is that after how many years do you want to get a pension? If you choose a term of 5 years while taking the plan, then you will start getting pension benefits after 5 years The point to note is that the longer the deferment period, the higher the rate of pension you will get. That means you will get a higher pension amount

Maximum Deferment Period : Talking about the Maximum Deferment Period in this Plan, it has been divided into two parts, in which 12 years have been kept for Single Life and 10 years for Joint Life. That is, if you opt for a single life pension, you can choose a Maximum Deferment Period of 12 years, and if you opt for a joint life pension, you can choose a Maximum Deferment Period of 10 years.

Annuity Mode : Talking about Annuity Mode in this plan, the options of Monthly, Quarterly, Half-yearly, and Yearly are available. Annuity mode means that at what time interval you want to get pension, if you choose the option of yearly, then you will get more pension on a yearly basis, and if you choose the monthly option, then you will get pension on a monthly basis, but the amount of pension will be reduced.

The deduction will be applicable in all modes except annual mode. This deduction is as follows:

Also Read:- LIC Jeevan Kiran Plan 870 Details

Minimum Annuity : Talking about the minimum annuity, it means that you can choose the minimum pension amount. To know this, see the table below

Maximum Annuity : Talk about maximum annuity; there is no limit to it; you can select as much pension amount here as you want.

Benefits of LIC Jeevan Shakti Plan

Loan Benefit : Talk about loans in this policy, and then after 3 months of taking the policy, you can take a loan on this policy anytime, for which you will have to pay interest.

Surrender Benefit : Talking about policy surrender, you can surrender your policy anytime during the policy term. If you surrender the policy in the first 3 years, then you get only 75% of the amount of your purchase price, and if you surrender your policy after 4 years or so, then you get only 90% of the purchase price.

Tax Benefit : Talking of tax benefits, you can claim a deduction under Section 80C of the Income Tax Act on whatever you pay towards the purchase price. In this case, the annuity is also taxable, and the death claim is tax-free under section 10(10D), which means your nominee will not have to pay any tax at the time of the death claim.

Death Benefit for LIC Jeevan Shanti Plan

Death benefit during the deferment period : We can also call the deferment period the policy term; this means that if the annuitant dies during the policy term, then there can be two cases of death benefit.

• In the first case : if the policy holder has taken out a single-life pension plan and he dies during the deferment period, then whatever the purchase price of the policy holder is and the number of years of interest along with it are given to the nominee.

• In the second case : if the policy holder has taken a joint life pension plan and he dies during the deferment period, then in this case, the second person is appointed for this plan, and after the completion of the moratorium period, he takes the benefit of the pension. If the second person also does not live during the deferment period, then in this case the death benefit that is available in the single-life pension plan will be the same.

Death benefit after deferment period : It means that in this case the policyholder starts getting pension after the completion of the policy term, and during this period if the policyholder dies, then in this case also there can be two cases of death benefit.

• In the first case : if the policy holder has taken a single life pension plan and dies while receiving the pension, then in this case, the purchase price of the policy holder and the interest accrued on the policy will be minus by the pension received by the policy holder, after which the balance amount will be given to the nominee.

• In the second case : If the policy holder has taken a joint life pension plan and dies while taking the pension, then the second person in the plan gets the benefit of this pension, and if he also dies, then in this case the nominee will get the same amount as in the single-life pension plan mentioned above.

Also Read:- LIC all Pension Plans in 2023

Death Benefit Option : There are 3 options available for death benefits in this plan.

1. lump-sum death benefit : This option means that whenever you die, the lump sum amount (purchase price) along with interest will be given to your nominee.
2. Annuity of Death Benefit : In this option, if you want an annuity, which means you want to retain the benefit of this pension even after your death, then you will have to opt for joint life, and only then, after your death, will the other person also get the benefit of the pension. 
3. In installments : In this option, if you do not want to take the full amount at once, you can choose the option of receiving the pension amount in 5 years. This option is used for the full or partial part of the death benefit payable under the policy. The amount chosen by the policyholder can be either in absolute value or as a percentage of the total claim proceeds payable. In this case, the installments can be paid in advance at yearly, half-yearly, quarterly, or monthly intervals. The minimum installment amount to be paid under this option is given in the table below.

Proposal Form

If we talk about the proposal form, then to buy this plan, you will have to fill out Form Number 441. By filing this form, you can buy this plan.

Maturity

Talk about maturity; there is no maturity in this plan; only the pension amount and death benefit are available. That means you get the pension as long as you are alive, and when you are no more, the amount of the death benefit is given to your nominee.

How to Apply for LIC New Jeevan Shanti Plan

There are two options to apply for the LIC New Jeevan Shanti Plan. One online and the other offline.

To apply online, you need to visit the official website of LIC (www.licindia.in), select the plan, fill out the application form with accurate details, and then submit it along with all the documents.

For offline applications, you need to visit your nearest LIC branch or apply through any LIC agent. He will give you all the information related to it and will help you take this plan.

Conclusion

The LIC New Jeevan Shanti Plan is a comprehensive and reliable retirement plan offered by LIC, designed to provide financial security and guaranteed returns during the golden years of life. With its flexible payout options, tax benefits, and loan facility, it caters to the diverse needs of individuals planning for their retirement. By choosing the LIC New Jeevan Shanti Plan, individuals can ensure a worry-free and financially stable future for themselves and their loved ones.

Also Read:- LIC Best Plans in 2023

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