If you’re looking for a secure and comfortable retirement, Life Insurance Corporation of India’s (LIC) New Jeevan Shanti Plan could be the perfect option. With a single, one-time investment, this pension plan allows policyholders to receive a fixed pension for life, helping you to enjoy financial independence well after retirement. Here’s a closer look at how the LIC New Jeevan Shanti Plan can ensure you stay worry-free even after the age of 60.
What Makes the LIC New Jeevan Shanti Plan Unique?
The New Jeevan Shanti Plan from LIC is a unique, single-premium annuity policy. It requires only one initial investment, making it a straightforward option with no recurring payments. After the initial investment, the plan ensures a lifetime pension for the policyholder, which can start as early as five years after the purchase, depending on the age of entry.
This plan is versatile, suited for both salaried individuals and business owners, and offers flexibility in choosing how and when the pension should begin.
Eligibility for LIC New Jeevan Shanti Plan
- Minimum Age: 30 years
- Maximum Age: 79 years
- Premium Payment: Single payment (one-time investment)
The younger you are when investing in this plan, the lower the pension amount initially, but the earlier you begin, the sooner you secure your retirement funds.
Investment Amount and Options
The New Jeevan Shanti Plan requires a minimum investment of Rs 1.5 lakh, with the option to invest more for a higher pension payout. There are two types of annuity options under this plan:
- Deferred Annuity for Single Life: The pension amount is guaranteed for the lifetime of the policyholder.
- Deferred Annuity for Joint Life: This provides a pension for both the policyholder and a secondary annuitant (spouse or close family member).
Pension Payout: How It Works
In the New Jeevan Shanti Plan, the pension begins five years after the initial investment. For example, if you invest at age 45, your pension payments start when you reach age 50. Similarly, if you start the plan at age 55, your pension will begin after you turn 60. The policy allows you to choose the payment frequency — monthly, quarterly, bi-annually, or annually.
Example: How to Secure Rs 1 Lakh Pension
Here’s how the New Jeevan Shanti Plan can work to generate a pension close to Rs 1 lakh:
- If you invest Rs 11 lakh at age 45: After five years, at age 50, you will start receiving an annual pension of around Rs 99,440.
- If you invest Rs 11 lakh at age 55: Your pension will begin at age 60, and you’ll receive approximately Rs 1,02,850 annually for the rest of your life.
Additional Benefits of LIC’s New Jeevan Shanti Plan
Besides a guaranteed pension, LIC’s New Jeevan Shanti Plan comes with extra features that enhance its value:
- Return of Investment to Nominee: If the policyholder passes away, the nominee receives the invested amount along with interest. This helps ensure that your family remains financially protected even in your absence.
- Surrender Option: Unlike many pension plans, the New Jeevan Shanti Plan offers a higher surrender value. This provides flexibility if your financial situation changes, as you can surrender the policy if required.
- Loan Facility: The plan also provides the option to take a loan against the policy. You’re eligible for a loan starting three months after the policy is initiated. This can be helpful in cases of emergency, as it lets you access funds without surrendering your policy.
Choosing the Right Pension Plan for Your Needs
LIC’s New Jeevan Shanti Plan offers peace of mind with its single-premium structure and lifetime pension benefit. It’s an excellent choice for anyone seeking financial security after retirement. Whether you are an employee looking for a steady income or a businessperson who wants a reliable source of funds in your later years, the plan offers options that can be tailored to your needs.
