LIC New Jeevan Shanti Plan 858

LIC of India has introduced LIC New Jeevan Shanti Plan 858, a new individual, savings, deferred annuity (pension) plan. LIC New Jeevan Shanti Policy 858 is available for sale from 4th, June 2024.

The annuity is guaranteed from inception and 7 annuity options are available to prospective policyholders. There is higher annuity rates at higher ages and life cover will be available during the deferment period.

The minimum age at entry should be 30 years (last birthday) and maximum 79 years minus the deferment period depending upon the annuity option chosen. There is flexibility to choose single premium, single life and joint life annuity and available deferment period.

Other features of the non-linked, non-participating plan, subject to certain conditions, include incentive by way of increase in the annuity rate for high premium/purchase price/for online sale; top-up annuity and option to receive a lump-sum amount in return of reduction in annuity payments.

The Unique Identification Number (UIN) for LIC’s New Jeevan Shanti Plan 858 is UIN: 512N338V06

Key Features

• The annuity is guaranteed from inception and 7 annuity options are available to prospective policyholders.
• There is higher annuity rates at higher ages.
• Life cover is available during deferment period.

There is flexibility to choose from:

• Single Premium.
• Single Life Annuity and Joint Life Annuity.
• Available Deferment Period from 1 years to 12 years when to start annuity payments as per your requirements.
• Mode of Annuity payments (yearly, half-yearly, quarterly and monthly). Annuity Option once chosen cannot be altered.

• Option to take death claim proceeds as Lump-sum, in the form of Annuitisation or in instalments.
• Loan facility shall be available during or after the deferment period under annuity options with Return of Premium/ Purchase Price.

Annuity Options

LIC New Jeevan Shanti Plan 858 Parameter/Eligibility

Minimum Purchase Price* : Rs.1,50,000 subject to minimum Annuity as specified below

Maximum Purchase Price : No Limit

The above mentioned minimum purchase price would be increased appropriately to meet minimum annuity criterion as specified below.

Minimum Age at Entry : 30 years (Last Birthday)

Maximum Age at Entry : 79 years (Last Birthday)

Minimum Vesting Age : 31 years (Last Birthday)

Maximum Vesting Age : 80 years (Last Birthday)

Minimum Deferment Period : 1 year

Maximum Deferment Period : 12 years subject to Maximum Vesting Age

Death Benefit

Death Benefit under both of the Options shall be:Higher of:

1. Purchase Price plus Accrued Additional Benefit on Death (as specified below) minus Total annuity amount payable till date of death, if any OR
2. 105% of Purchase Price

Accrued Additional Benefit on Death: Additional Benefit on Death shall accrue at the end of each policy month, till the end of Deferment Period only. The rate of Additional Benefit on Death during the deferment Period shall be as under:

Additional Benefit on Death per month= (Purchase Price * Annuity rate p.a. payable monthly) / 12

Where, Annuity rate p.a. payable monthly shall be equal to annuity rate per unit Purchase Price applicable for monthly mode without applying any incentive and shall depend on the Option chosen, Age at entry of the annuitant(s) and the Deferment Period opted for.

In case of death of the annuitant or surrender of the policy during the deferment period, Additional Benefit on Death for the policy year in which the death/ surrender has occurred shall accrue till the completed policy month as on the date of death/surrender.

Surrender

The policy can be surrendered at any time during the policy term.

The surrender value payable shall be higher of Guaranteed Surrender Value or Special Surrender Value.

Guaranteed Surrender Value (GSV):

Guaranteed Surrender Value = (GSV Factor * Purchase Price) minus total annuity amount payable up to the date of surrender.

Where, applicable Guaranteed Surrender Value (GSV) Factors shall be:

Special Surrender Value:

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.

Any loan amount outstanding along with interest and/or any other amount recoverable from Annuitant shall be recovered from the surrender value payment.

In case of QROPS, the surrender provisions shall be further subject to any specific provisions regarding procedures as per Rules and Regulations of the HMRC.

Note: The insurance policy being a long term contract should be taken from the long term perspective of continuing the policy. While there is provision for surrender under various annuity options mentioned above, it may be noted that there can be significant loss on surrender of a policy and hence, it is advisable to continue the policy.

Under Single Premium Policies: Can be surrendered, any time on payment of Purchase Price.

Under Regular Premium Policies: Can be surrendered, any time during or after Deferment Period provided, premiums have been paid for at least two consecutive years.

Loan

Available under the options with Return of Premiums

• Within Surrender Value

• During or after the deferment period

• Maximum loan amount such that loan interest should not exceed 50% of the annual annuity payable, subject to max 80% of the Surrender Value

Minimum Purchase Price