New Jeevan Shanti Plan 858
LIC’s New Jeevan Shanti Plan 858 is an Annuity plan which has option of purchasing Deferred annuity and can be purchased only by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant.
ntroduction – Why Indians Prefer Pension Plans in 2025
Retirement is no longer about resting—it’s about living with dignity, independence, and financial security. In a country like India, where family support is slowly shifting to individual financial planning, having a guaranteed lifelong income is a must.
That’s where LIC New Jeevan Shanti Plan 858 comes in. This is one of the most popular single premium pension plans offered by LIC, designed to ensure stress-free retirement with guaranteed annuity payouts.
If you are someone who wants:
- Assured lifelong pension
- Flexibility in payout options
- Security without market risk
then LIC Jeevan Shanti 858 is built just for you.
What is LIC New Jeevan Shanti Plan 858?
The LIC LIC New Jeevan Shanti Plan 858 is a non-linked, non-participating, single premium annuity plan.
In simple words:
- You pay once (single premium).
- LIC pays you regular pension (annuity) as per your chosen option.
- The amount is guaranteed and not dependent on market ups and downs.
This makes it a perfect plan for those who want guaranteed income post-retirement.
Key Features of LIC New Jeevan Shanti 858
| Feature | Details |
|---|---|
| Plan Type | Single Premium, Non-Linked, Non-Participating |
| Plan Number | 858 |
| Entry Age | 30 – 85 years |
| Premium Payment | One-time (Single Premium) |
| Annuity Options | Immediate & Deferred |
| Minimum Purchase Price | ₹1,50,000 (₹1,00,000 online) |
| Maximum Purchase Price | No Limit |
| Minimum Annuity | ₹12,000 per annum |
| Modes of Pension | Yearly, Half-Yearly, Quarterly, Monthly |
| Loan Facility | Available after 3 months |
| Surrender Value | Available under certain options |
| Riders | Not applicable |
Types of Annuity Options in Jeevan Shanti
LIC offers multiple annuity options under this plan:
1. Immediate Annuity
- Pension starts immediately after paying premium.
- Suitable for retirees who need instant income.
2. Deferred Annuity
- Pension starts after a deferment period (1–20 years).
- Suitable for younger investors who want guaranteed pension after retirement age.
Benefits of LIC New Jeevan Shanti
✅ Guaranteed Pension for Life
Once annuity is fixed, it remains constant for lifetime. No market risk.
✅ Choice of Annuity Options
Multiple payout options like lifetime annuity, joint life annuity, return of purchase price, etc.
✅ Flexibility in Pension Frequency
Choose monthly, quarterly, half-yearly, or yearly pension as per requirement.
✅ Loan Facility
Loan can be availed after 3 months to meet financial emergencies.
✅ Surrender Option
Policy can be surrendered under specific conditions.
✅ Tax Benefits
- Premium qualifies for 80C deduction.
- Pension is taxable as per income slab.
Example – LIC New Jeevan Shanti Premium & Pension
Case Study: Mr. Ramesh (Age 60, Retired)
- Single Premium Paid: ₹10,00,000
- Annuity Option: Lifetime annuity with return of purchase price
- Mode of Pension: Yearly
Illustration
| Event | Benefit | Amount |
|---|---|---|
| Annual Pension | Lifetime annuity | ~₹68,000 per year |
| On Death | Return of purchase price to nominee | ₹10,00,000 |
👉 Guaranteed income + capital protection.
Investor Scenarios
Scenario 1 – Retired Couple (Age 65)
They invest ₹20 lakh and choose joint life annuity. Pension continues till both spouses are alive, ensuring financial independence.
Scenario 2 – Mid-career Professional (Age 45)
Chooses deferred annuity of 15 years. By age 60, he starts receiving a guaranteed pension every year.
Scenario 3 – NRI Investor
An NRI invests in Jeevan Shanti for parents living in India. This provides them a steady pension income and ensures financial security.
Analyst Insights – Expert Opinion on LIC Jeevan Shanti
- Insurance Analysts: “A safe pension option with guaranteed payouts. Best for risk-averse investors.”
- Financial Planners: “Deferred annuity option is great for young professionals who want retirement planning.”
- Retiree Sentiment: “Peace of mind knowing pension will never stop, no matter how long one lives.”
Real-Life Investor Examples
Example 1 – Secure Retirement
Mr. and Mrs. Mehta, both 62, invested ₹15 lakh jointly. They now receive ₹1 lakh yearly pension for life, and their children will get the purchase price as legacy.
Example 2 – Long-Term Deferred Pension
Mr. Anil (Age 40) invested ₹5 lakh with 20-year deferment. At 60, he will start getting ₹45,000 per year guaranteed for life.
Comparison – Jeevan Shanti vs Other Pension Plans
| Plan | Type | Returns | Best For |
|---|---|---|---|
| LIC Jeevan Shanti (858) | Single Premium, Guaranteed Annuity | 5–6% approx. | Retirees wanting fixed pension |
| LIC Jeevan Akshay VII | Single Premium Immediate Annuity | 5–6% approx. | People needing immediate pension |
| NPS (National Pension Scheme) | Market-linked | 8–10% (variable) | Long-term investors okay with risk |
👉 Jeevan Shanti = Guarantee & Security
👉 NPS = High growth but market-linked
LIC New Jeevan Shanti 858 – Annuity Payout Chart (Illustration)
Case 1 – Single Life Immediate Annuity with Return of Purchase Price (ROP)
| Entry Age | Purchase Price (₹10,00,000) | Annual Pension (Approx.) | Pension Frequency | Nominee Benefit (ROP) |
|---|---|---|---|---|
| 50 years | ₹10,00,000 | ₹67,000 per year | Yearly | ₹10,00,000 |
| 60 years | ₹10,00,000 | ₹71,000 per year | Yearly | ₹10,00,000 |
| 70 years | ₹10,00,000 | ₹76,000 per year | Yearly | ₹10,00,000 |
Case 2 – Single Life Deferred Annuity (10-Year Deferment)
| Entry Age | Purchase Price (₹10,00,000) | Annuity Starts at Age | Annual Pension (Approx.) | Nominee Benefit |
|---|---|---|---|---|
| 40 years | ₹10,00,000 | 50 years | ₹93,000 per year | ₹10,00,000 |
| 50 years | ₹10,00,000 | 60 years | ₹1,05,000 per year | ₹10,00,000 |
Case 3 – Joint Life Immediate Annuity with Return of Purchase Price
| Entry Age (Husband & Wife) | Purchase Price (₹20,00,000) | Annual Pension (Approx.) | Pension Frequency | Nominee Benefit (ROP) |
|---|---|---|---|---|
| 60 & 58 years | ₹20,00,000 | ₹1,42,000 per year | Yearly | ₹20,00,000 |
| 65 & 63 years | ₹20,00,000 | ₹1,52,000 per year | Yearly | ₹20,00,000 |
Case 4 – Monthly Pension Example (Practical for Retirees)
| Age | Purchase Price | Pension Type | Monthly Pension (Approx.) |
|---|---|---|---|
| 60 | ₹5,00,000 | Immediate (Single Life + ROP) | ₹2,950 |
| 60 | ₹10,00,000 | Immediate (Single Life + ROP) | ₹5,900 |
| 65 | ₹10,00,000 | Immediate (Single Life + ROP) | ₹6,300 |
Case 5 – Comparison of Pension Frequencies (Age 60, ₹10,00,000 Investment)
| Mode of Pension | Annual | Half-Yearly | Quarterly | Monthly |
|---|---|---|---|---|
| Pension (₹) | ₹71,000 | ₹35,100 | ₹17,400 | ₹5,900 |
Key Takeaways from the Chart
- The higher the age at entry, the higher the pension payout (since life expectancy reduces).
- Deferred annuity gives much higher pension than immediate annuity (suitable for younger investors).
- Joint life annuity ensures pension continues for spouse after policyholder’s death.
- Pension payout depends on mode of annuity (Yearly gives maximum, monthly gives slightly lower).
- Return of Purchase Price ensures nominee safety – your investment amount is not lost.
Strengths & Limitations
Strengths ✅
- Guaranteed pension for life
- Flexible payout options
- Single premium – no ongoing burden
- Safe for risk-averse investors
Limitations ❌
- Returns lower than market-linked schemes
- Pension is taxable
- No liquidity (except loan/surrender)
Frequently Asked Questions (FAQs) – LIC Jeevan Shanti 858
Q1. What is the minimum investment in Jeevan Shanti?
👉 ₹1,50,000 (₹1,00,000 online).
Q2. Can NRIs invest?
👉 Yes, NRIs can buy this plan subject to LIC rules.
Q3. Is pension guaranteed for life?
👉 Yes, annuity is fixed and payable till death.
Q4. Can I change annuity option later?
👉 No, once chosen, it cannot be changed.
Q5. Is pension taxable?
👉 Yes, annuity income is taxable under normal income slab rates.
Final Thoughts – Should You Buy LIC New Jeevan Shanti Plan 858 in 2025?
The LIC New Jeevan Shanti 858 is ideal for:
- Retirees who want guaranteed fixed pension.
- Investors who don’t want market risk.
- Middle-aged professionals planning deferred retirement income.
It may not provide high returns like equity, but it guarantees peace of mind and financial independence.
👉 If you value security over risk, LIC Jeevan Shanti 858 is one of the best retirement solutions in India (2025).
