LIC New Jeevan Shanti (Plan No. 758, latest UIN 512N338V08) is a non‑linked, non‑participating, single‑premium deferred annuity plan that lets you invest once and receive guaranteed pension after a chosen deferment period, for single or joint life.
Plan type and core idea
- Single‑premium deferred annuity: You pay a one‑time purchase price; annuity (pension) starts after a deferment period you choose (minimum 1 year, up to around 12 years).
- Non‑par, non‑linked: No bonuses and no market link; annuity rates are locked‑in at inception and stay guaranteed for life of the annuitant(s).
Annuity options
LIC New Jeevan Shanti offers two annuity options, which you must choose at inception and cannot change later:
- Option 1: Deferred annuity for Single Life
- Option 2: Deferred annuity for Joint Life
- Two annuitants (e.g., husband–wife or parent–child).
- No payout during deferment.
- After deferment, annuity is paid while either of the two lives is alive, as per chosen mode.
- On death of last survivor (or on earlier death during deferment, as defined), a death benefit is paid to nominee and annuity ceases.
Exact death‑benefit formula (funded amount vs purchase price multiples etc.) must be taken from LIC’s Sales Brochure/CIS for 512N338V08.
Eligibility, premium and deferment
Recent descriptions (and earlier 758/858 documentation) indicate the following structure; use the latest LIC brochure for exact grids:
- Minimum entry age: 30 years (completed).
- Maximum entry age: 79 years (completed).
- Minimum deferment period: 1 year; maximum 12 years (subject to entry age so that vesting age stays within LIC limits).
- Minimum purchase price: ₹1.5 lakh; ₹50,000 when purchased for a dependent person with disability or in certain NPS contexts.
- Maximum purchase price: No upper limit, subject to underwriting/AML.
- Annuity modes: Yearly, half‑yearly, quarterly, monthly.
The current LIC sales brochure for New Jeevan Shanti (2025 version linked from the LIC site) carries the precise combination table of entry age vs deferment period vs vesting age and must be used for compliance.
Benefits
During deferment
- No annuity is paid during deferment; the purchase price accrues guaranteed annuity rights according to the rate fixed at inception.
- If death occurs during deferment, a death benefit is payable to nominee; LIC/press‑release mention options like lump sum, buying annuity, or instalments, within IRDAI pension rules.
After deferment (on vesting)
- Annuity starts at the end of deferment and is paid for life (single life) or till last survivor’s death (joint life), as per chosen frequency.
- Annuity amount is guaranteed; no future revision or bonus applies.
Death benefit (post‑vesting)
- On death of the annuitant (or last survivor), a defined death benefit (linked to purchase price and annuity already paid) is paid to nominee and annuity stops.
- Nominee can typically choose mode of receiving this benefit – lump sum, annuity purchase, or instalments – subject to regulatory norms.
Surrender and loan
- Surrender: Policies can be surrendered; surrender value calculation and conditions (e.g., allowed any time with specified surrender factors) are defined in the brochure.
- Loan: Loan facility is available after 3 months from policy start, up to about 80% of surrender value, with interest as per LIC’s policy.
Suitability and positioning
- For clients wanting guaranteed lifelong pension starting after a chosen deferment (for example, buying at 45 with pension from 55/60).
- Good as a destination for shift from volatile assets closer to retirement when the client wants fixed, predictable annuity rates.
- Particularly useful where clients want joint pension for spouse and are okay locking in a lump sum in exchange for guaranteed deferred income.
Example: A 45‑year‑old invests a purchase price with 10‑year deferment under joint‑life option; no payout from 45–55, then from 55 onward a fixed annuity is paid for as long as either spouse is alive, and on last death a death benefit per policy terms goes to their nominee.