LIC Jeevan Shanti (Plan 850) – All Details With Calculators

Jeevan Shanti (Plan No: 850) is a newly introduced pension plan from LIC of India with certain innovative features which makes it one of the most attractive pension plan available in the Indian Market. Jeevan Shanti can be defined as a non-linked, non-participating, ‘Single-Premium’ annuity plan, wherein the policyholder has the option to choose an immediate or deferred annuity according to his wish.

The greatest advantage of Jeevan Shanti (plan 850) is that the annuity rates are guaranteed for both immediate as well as the deferred annuity at the inception of the policy itself. In other words, your annuity rates are protected from interest rate fluctuations and market risks throughout the period of the policy.

What is an Annuity?

An annuity is a series of equal payments at regular intervals. The interval can vary depending on the scheme namely Yearly, Half Yearly, Monthly etc. So Annuity, in simple terms, means ‘pension‘.

Types of Annuities

Generally, we come across two types of annuities.
a) Immediate Annuity – Annuity starts immediately after the premium payment.
b) Deferred annuity – Annuity will start only after a deferment period

Immediate vs deferred annuity Jeevan Shanti plan 850
Immediate Vs Deferred Annuity – Insurance Funda
LIC’s Jeevan Akshay VI vs LIC’s Jeevan Shanti

You may be knowing that Jeevan Akshay VI is a popular immediate annuity plan from LIC. As it is an immediate annuity plan the annuity is started immediately after completion of (first one interval) of the chosen annuity mode. For example, if the chosen pension mode is yearly, then pension starts immediately after the completion of one year.

On the other hand, Jeevan Shanti offers immediate as well as deferred annuity as per the wish of the policyholder.

The pension rates are guaranteed for the entire benefit period in both these plans. One major difference of Jeevan Shanti is that it allows surrender as well as the loan facility, whereas Jeevan Akshay can be surrendered only on critical health issues only. Further, no loan is allowed under Jeevan Akshay plan.

Jeevan Shanti plan 850 i illustration of benefits

Jeevan Shanti (Plan 850) Immediate Annuity options available.

Several Annuity options are available in Jeevan Akshay VI and the suitable option has to be selected at the time of purchase. Change in pension option later is not allowed.

  1. Annuity payable for life at a uniform rate. (Option A)
  2. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive. (Option B, C, D & E)
  3. Annuity for life with return of purchase price on death of the annuitant. (Option F)
  4. Annuity payable for life increasing at a simple rate of 3% p.a. (Option G)
  5. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant. (Option H)
  6. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant. (Option I)
  7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her lifetime on death of the annuitant. The purchase price will be returned on the death of the last survivor. (Option J)
Jeevan Shanti (Plan 850) – Deferred Annuity options available.
  1. Option 1 – Deferred Annuity for Single life
  2. Option 2 – Deferred Annuity for Joint Life
Jeevan Shanti (Plan 850) – Premium and Annuity Calculator

Jeevan Shanti – Premium and Annuity/Pension Calculator is a powerful online calculator which can help you to understand and compare various pension options available under the plan. Please click the button provided below to open the calculator. You can provide your own requirements such as age, annuity options and deferment options to get the pension and premium details.

Jeevan Shanti - Plan 850 Premium and Annuity Pension Calculator

Jeevan Shanti (Plan 850) – Eligibility conditions and restrictions.
Jeevan Shanti – Eligibility Conditions and Restrictions
Condition Minimum Maximum
Purchase Price Rs. 1,50,000 (Subject to Min Annuity) No Limit
Age at entry 30 Year (lbd) 85 Years (lbd) except option F (Immediate Annuity)
100 years (lbd) for option F (Immediate Annuity)
79 Years (lbd) (Deferred Annuity)
Deferment Period 1 Year 20 Years (Subject to Maximum Vesting Age)
Vesting Age 31 Years (lbd) 80 Years (lbd)
Annuity Mode Monthly Quarterly Half-Yearly Yearly
Minimum Annuity Rs. 1000 per month Rs. 3000 Per quarter Rs. 6000 Per half year Rs.12000 per annum
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Jeevan Shanti (Plan 850) – Death Benefit

Death benefits are payable under Jeevan Shanti plan under the following annuity options only.

Immediate Annuity
  1. Annuity for life with return of purchase price on death of the annuitant. (Option F)
  2. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her lifetime on death of the annuitant. The purchase price will be returned on the death of the last survivor. (Option J)
Deferred Annuity
  1. Option 1 – Deferred Annuity for Single life
  2. Option 2 – Deferred Annuity for Joint Life

Jeevan Shanti Death benefit calculator

Jeevan Shanti (Plan 850) – Options available while receiving the death benefit
1. Lumpsum Death Benefit

Entire Purchase Price/Death Benefit shall be paid to the nominee in a lump sum.

2. Annuitisation of Death Benefit

Benefit amount payable can be utilized to purchase an immediate annuity from the corporation for nominees. Terms and conditions prevailing at the time of purchase of immediate annuity shall become applicable.

3. In Installment

The benefit amount payable on death can be received in installments over a chosen period of 5 or 10 or 15 years instead of lumpsum amount. Interest rates applicable for arriving at the installment payments shall be fixed by the corporation from time to time.

Jeevan Shanti (Plan 850) – Option to take Immediate Annuity by NPS subscriber

All the annuity options under immediate annuity shall be available to NPS Subscriber but if a government sector subscriber purchases this plan as the default option, option J shall be applicable if the spouse is available and option F in the absence of a spouse.

Jeevan Shanti (Plan 850) – Option to take the plan for the benefit of a handicapped dependent (Divyangjan) life.

If the proposer has a handicapped dependent, the plan can be purchased for the benefit of Divyangjan. The proposer can purchase a Single life deferred annuity (option 1) or Single life Immediate Annuity with return of purchase price (Option F) on own life. In case of death of the annuitant, the death benefit shall compulsorily be utilized to purchase Immediate Annuity on the life of the Divyangjan who would be the nominee.

The annuity payment to Diyangjan shall be subject to a minimum purchase price of Rs 50,000 and irrespective of any limit on minimum annuity payment.

Jeevan Shanti (Plan 850) – Surrender Value and Loan

The policy can be surrendered at any time after three months from the completion of the policy or the expiry of the free look period, under the following annuity options only.

Immediate Annuity
  1. Annuity for life with return of purchase price on death of the annuitant. (Option F)
  2. Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her lifetime on death of the annuitant. The purchase price will be returned on the death of the last survivor. (Option J)
Deferred Annuity
  1. Option 1 – Deferred Annuity for Single life
  2. Option 2 – Deferred Annuity for Joint Life

LIC Jeevan Shanti 850 Surrender Value claculator

 

 

Click on the button provided above to open Jeevan Shanti Surrender Value and benefits calculator.

Loan facility shall be available on the aforementioned annuity options after the completion of one policy year.

Maximum loan that can be granted under the policy shall be such that, the effective annual interest amount payable on loan does not exceed 50 % of the annual annuity amount that shall be payable after the deferment period under the policy and shall be subject to a maximum of 80% of Surrender Value.

If you require any more clarifications you can use the comment section given below to ask your queries.

Anish L J
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Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London. He is also a finance, insurance and software consultant with more than 20 years of experience in these fields. He thoroughly follows developments in insurance and finance. 'INSURANCE FUNDA' (www.insurancefunda.in) is his endeavor to provide simple and solid solutions in the Insurance and Finance sectors.
Anish L J
Follow me

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London. He is also a finance, insurance and software consultant with more than 20 years of experience in these fields. He thoroughly follows developments in insurance and finance. 'INSURANCE FUNDA' (www.insurancefunda.in) is his endeavor to provide simple and solid solutions in the Insurance and Finance sectors.

26 thoughts on “LIC Jeevan Shanti (Plan 850) – All Details With Calculators

  • September 15, 2018 at 3:23 am
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    If any one age 45 would like to purchase deffered annuity for 20 years and would like to surrender policy after completion of 19 years.
    1. What will be corpose (purchase price + GA)
    2. What is the surrender value available.
    Is it beneficial to exit?

    Reply
  • September 15, 2018 at 7:04 am
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    Need some clarification regarding surrender of the policy. Suppose I take this policy wef October 2018. And want to surrender in the year 2020. How much I will be paid?

    Kamal Kumar Visa

    Reply
  • September 15, 2018 at 10:19 am
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    Sir, let me know the effective surrender value factor year after year of purchase for jeevan shanti plan. This is still hidden and is not disclosed by anybody.

    Reply
  • September 16, 2018 at 6:33 pm
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    I want take JEEVAN SHANTHI plan deferred for 10 years,, after 10th year I will receive annuity ,but after my death what will happen my purchase price.

    Reply
    • September 17, 2018 at 12:49 pm
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      In deferred annuity option of Jeevan Shanti, two annuity options shall be available. Annuity for single life and annuity for Joint life. In both these cases, the purchase price is paid back to the nominee on the death of the pensioner.

      Reply
  • September 18, 2018 at 9:10 am
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    Hi Anish
    I am 50 years old and will retired at the age of 60. Today if I have invested Rs.10 lakh what will be the pension amount after retirement.

    Reply
  • September 29, 2018 at 3:40 am
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    How much my nominee will get for Rs.5L after my death in option F?
    .

    Reply
    • October 1, 2018 at 6:36 am
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      Option F is the ‘Annuity for life with return of purchase price’ and hence the purchase price used to provide you pension shall be given back to your nominee on death.

      Reply
  • October 3, 2018 at 1:48 am
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    Suppose if I take a joint deferred policy of 10 years and during deferral period if first holder dies then first holder will get death benefit and second holder will receive annuity after 10 years till his life time. Please confirm

    Reply
    • October 3, 2018 at 3:49 pm
      Permalink

      During the deferment period on the first death (of either of the covered lives) nothing is payable. And the survivor will receive annuity after the deferment period.
      During the deferment period, on the death of the last survivor, the Death benefit shall be payable to the nominee(s).
      I think it is clear.

      Reply
  • October 5, 2018 at 3:50 pm
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    HI SIR, I AM AGED 52 YEARS,IF I INVEST 1000000 IN 13 YRS DEFFEREMENT PERIOD IN JEEVAN SHANTI PLAN. HOW MUCH LOAN I WILL GET AFTER 5 YEARS TO 10 YEARS. PLEASE SND THE LOAN DETAILS.

    Reply
    • October 8, 2018 at 2:03 pm
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      Loan available is 90 % of surrender value. Please find surrender value from this calculator.

      Reply
  • October 8, 2018 at 4:17 am
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    This policy have very low rate of intrest if someone deposit 10 lac he gets only 5283 per month for his life that is rate of intrest is only 6.6 percent..my god bahut bada chutiya banate ho tum log.

    Reply
    • October 8, 2018 at 1:52 pm
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      Mr. Vinay,
      Are you aware of the interest rate of fixed deposits available in banks? Well, how many years guarantee is available for a fixed deposit. Here LIC provides a lifelong guarantee for the initial interest rate which is great. Well, I don’t say this is the most profitable product available in the market. If you have better options you can go for it.

      Reply
  • October 9, 2018 at 5:29 am
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    I am 56 and want to invest 20 lacs and start the pension after 5 years —

    If I die at the age of 70 ,what amount my nominee will get.

    Reply
    • October 9, 2018 at 2:03 pm
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      Death benefit shall be higher of
      (1) Purchase price plus Accrued guaranteed additions minus Total annuity payments paid till date of death or
      (2) 110% of purchase price.
      As the calculations are a little complicated, I shall provide a calculator to calculate guaranteed additions and death benefits for any age soon.. please wait few days.

      Reply
  • October 25, 2018 at 3:11 pm
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    My father (58 years) wants to invest 2 lacs for 5 year as option j with my sister. What amount of value will nominee get after both the applicant. .. If ur answer is purchase value. Please explain what is purchase value. Is it 5 lac or something else? ?

    Reply
    • October 25, 2018 at 3:39 pm
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      Death benefit shall be higher of (i) Purchase price + Guaranteed additions – total annuity payouts till death or
      (ii) 110% of the purchase price
      Well, this is not a simple calculation and I shall release a calculator to find this value easily. I could not do it due to some time constraints. Expect it in a week or two.

      Reply
  • November 2, 2018 at 5:26 am
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    Hello, Appreciate your initiative, it is heard that on nearing interest payment(immediate Annuity), LIC will ask to choose from three options, and they won’t pay the said interest/annuity or they will deduct on the basic amount(purchase price) we have invested.

    Reply
    • November 2, 2018 at 4:26 pm
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      Hi Joice,
      From where you got this nonsense information. Are you aware of any such instance in the past 62 years where LIC has done like that?

      Reply
  • November 7, 2018 at 9:38 am
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    Will i be able to get back my purchase price at any time ???

    Reply
    • November 7, 2018 at 4:24 pm
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      The purchase price shall be returned in the event of the death of the policyholder in “immediate annuity” option with the return of purchase price option. Return of purchase price shall be available in case of deferred annuity also on the event of the death of the last survivor (as per the annuity option). If you want to close the plan in between you will get only surrender value of the plan and the surrender value can be calculated using this calculator.

      Reply

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