Read on to know what the LIC New Jeevan Shanti annuity plan is all about, what are the costs and the benefits, and other details
Life Insurance Corporation has recently launched the LIC New Jeevan Shanti plan, a new non-linked, non-participating, individual, single-premium deferred annuity scheme.
The insurer said in a statement that "The annuity rates are guaranteed at the inception of the policy and annuities are payable post deferment period throughout the lifetime of annuitants".
Deferred annuity for single life and deferred annuity for joint life are the two annuity options available.
The annuity payments shall be made in arrears for as long as the annuitant is alive after the deferment period under the deferred annuity for a single-life plan. Mode of payments can be chosen by the customer. The death benefit will be payable to the nominee of the annuitant, in case of unfortunate death, during or after the deferment period.
The annuity payments will be made in arrears for as long as the primary annuitant and/or the secondary annuitant is alive depending on the mode chosen and after the deferment period under the deferred annuity for joint life. LIC said the death benefit will be payable to the nominee on the death of the last survivor, during or after the deferment period. Between any two lineal descendants/ascendant of a family (grandparent, parent, children, grandchildren) or spouse or sibling, the joint-life annuity can be taken up.
Cost of New Jeevan Shanti plan: At minimum payment of Rs 1.5 lakh the plan can be bought. The modes of annuity available are yearly, half-yearly, quarterly, and monthly. There is no ceiling on the maximum purchase price, the minimum annuity is Rs 12,000 per annum. By way of increase in the annuity rate, an incentive for a purchase price of Rs 5,00,000 and above is available.
The plan is available for persons aged between 30 and 79. The minimum deferment period is one year and the maximum deferment period 12 years, subject to the maximum vesting age of 80.
Loan: After three months from the completion of policy (3 months from the date of issuance of policy) or after the expiry of the free-look period, whichever is later, loan facility shall be available.
Under the policy, the maximum amount of loan that can be granted shall be such that the effective annual interest amount payable on loan does not exceed 50 percent of the annual annuity amount payable under the policy subject to a maximum of 80% of surrender value.
The primary annuitant can avail the loan under joint life and the same can be availed by the secondary annuitant in case of absence of primary annuitant. With a minimum purchase price of Rs 50,000, the plan can also be purchased for the benefit of a disabled dependant.