LIC launches single-premium pension plan Jeevan Shanti
The minimum age at which the policy may be taken is 30 years. The maximum age of entry to get lifelong annuity starting immediately, with the option of return of purchase price to the nominee after demise of the annuitant is 100 years, while for other options under immediate annuity, the entry age is 85 years. The maximum entry age under deferred annuity option is 79 years.
There are 10 options of how to get the pension available under the immediate annuity, which are:
Option A: Immediate Annuity for life.
Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter.
Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter.
Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.
Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.
Option F: Immediate Annuity for life with return of purchase price.
Option G: Immediate Annuity for life increasing at a simple rate of 3% per annum.
Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives.
Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.
The options available under deferred annuity are:
Option 1: Deferred annuity for Single life
Option 2: Deferred annuity for Joint life
The joint life annuity option can be exercised with any lineal descendant/ascendant of a family (i.e. grandparent, parent, children, grandchildren) or spouse or siblings as secondary life.
The plan not only comes with the features for benefit of the individuals, but provides support for the family too, especially for handicapped dependents. If the Proposer has a handicapped dependent (Divyangjan), the plan can be purchased for the benefit of the dependent as a nominee or as a second annuitant under the immediate annuity option.
Death claim proceeds, wherever payable, can be claimed as one lump sum, installments or in annuity form.
The pensioner have options to get the annuity monthly, quarterly, half-yearly or yearly. The minimum pension one can opt for is Rs 1,000 monthly, Rs 3,000 quarterly, Rs 6,000 half-yearly or Rs 12,000 yearly. The minimum purchase price will be calculated accordingly, which normally should not be less than Rs 1,50,000. However, lower purchase price may be allowed in specific cases such as NPS and if the plan is purchased for the benefit of a handicapped dependent (Divyangjan), as per terms and conditions of this plan. In such a case, for NPS, the annuity rates shall be subject to a reduction factor.
Apart from the existing immediate annuity plan Jeevan Akshay, all the annuity options under immediate annuity of Jeevan Shanti are also be available to the NPS subscribers, including government employees, private companies and also those who have subscribed to NPS lite.
The policy also provides liquidity as there is provision for loan and surrender as well for annuity options with death benefit.
The policy is also available for NRIs.