LIC New Jeevan Shanti: Get up to Rs 1,20,496 or more as annual annuity, here's how

LIC's New Jeevan Shanti is a deferred annuity plan offered by the Life Insurance Corporation of India (LIC) that guarantees a lifetime of annuity payments. This annuity plan can be purchased by paying a lump sum amount and is available to anyone between the ages of 30 and 79. The plan also offers a rebate of 2% by way of an increase in the basic annuity rate for those who purchase the plan online.

One of the key benefits of the plan is the deferred annuity option, which can be purchased after a minimum of one year and a maximum of 12 years. This means that policyholders can opt to start receiving annuity payments after a specific period. The plan also offers various annuity modes, including monthly, quarterly, half-yearly, or yearly intervals.

The minimum purchase price for this annuity plan is Rs. 1,50,000, subject to the minimum annuity as specified by LIC. There is no maximum limit for the purchase price or annuity amount. Additionally, if you purchase the plan for Rs. 5,00,000 or more, you will receive a higher amount of annuity due to available incentives.

The plan offers two options for deferred annuity: deferred annuity for a single life or deferred annuity for a joint life. Once the option is chosen, it cannot be altered. The plan also provides a minimum vesting age of 31 years and a maximum vesting age of 80 years, ensuring that policyholders can receive annuity payments throughout their lifetime.

Suppose a 35-year-old individual decides to purchase LIC's New Jeevan Shanti annuity plan with a lump sum payment of Rs. 10,00,000. They choose the deferred annuity option for a single life with a deferment period of 10 years. Based on the plan's annuity rate chart, the individual will receive an annual annuity of Rs. 1,20,496 if they choose yearly payment intervals.

However, if the same individual chooses to purchase the annuity plan with a higher lump sum payment of Rs. 25,00,000, they would receive a higher annuity amount due to the available incentives. As per the plan's FAQ, a higher purchase price leads to a higher amount of annuity due to the incentives offered by the plan. The annuity amount in this case would be Rs. 3,01,234 per annum.

Moreover, the plan allows the individual to choose from various payment intervals for the annuity, including monthly, quarterly, half-yearly, or yearly intervals. The individual can choose any payment mode as per their preference.

The plan also offers a death benefit payment to the nominee(s) in case of the annuitant's death. The nominee(s) can choose to receive the benefit amount in a lump sum or in installments over a period of 5, 10, or 15 years.

Additionally, the plan does not require any medical examination for purchase, making it a hassle-free option for individuals who may not be able to obtain medical clearance for other insurance policies.