LIC’s New Jeevan Shanti
This is a single premium plan wherein the Policyholder has an option to choose between Single life and
Joint life Deferred annuity.
The annuity rates are guaranteed at the inception of the policy and annuities are payable post deferment
period throughout the life time of Annuitant(s).
Annuity Options:
The options available are:
Option 1: Deferred annuity for Single life
Option 2: Deferred annuity for Joint life
Annuity option once chosen cannot be altered.
The primary intent of a LIC Jeevan Shanti plan is to offer prospective customers who are looking forward to buying the various insurance options.
Death Benefit:
Death Benefit under both of the Options shall be:
Higher of
o Purchase Price plus Accrued Additional Benefit on Death (as specified below) minus Total annuity
amount payable till date of death, if any
OR
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.
Additional Benefit on Death per month= (Purchase Price * Annuity rate p.a. payable monthly) / 12
Minimum Purchase Price :Rs.1,50,000
Maximum Purchase Price :No Limit
Minimum Age at Entry : 30 years (Last Birthday)
Maximum Age at Entry : 79 years (Last Birthday)
Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax
Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.
The amount of any applicable taxes, as per the prevailing rates, shall be payable by the policyholder on Premium
payable under the policy, which shall be collected separately in addition to the Premium payable by the
policyholder. The amount of Tax paid shall not be considered for the calculation of benefits payable under the
plan.
What its about ?
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Annuity Options Available
The following are the options available within the immediate annuity plan:
Option A: An immediate annuity for life-long.
Within this, the annuitant would get the returns instantly, wherein one will enjoy the return for life-long. In case the insured passes away, the annuity will cease with immediate effect.
Option B: An immediate annuity with the guaranteed period of 5 years and after that life.
Option C: An immediate annuity with the guaranteed period of 10 years and thereafter life.
Option D: An immediate annuity with the guaranteed period of 15 years and thereafter life.
Option E: An immediate annuity with the guaranteed period of 20 years and thereafter life.
(for options B,C,D,E) : Until the annuitant is alive, the payments for the annuity will be made as per the mode opted for the payment. In case the annuitant passes away within the guaranteed period, the nominee will receive the annuity until the guarantee period ends. However, if the annuitant passes away after the guaranteed period, the annuity payment will be ceased, and nothing will be paid.
Option F: An immediate annuity for life along with the return of the purchase price.
Until the annuitant is alive, the annuity payments will be made through the opted mode of payment. If the annuitant is no more, the annuity payment will likewise cease. The nominee will be paid the purchase price for the same.
Option G: An immediate annuity for life increasing at a rate of 3% perannum.
As long as the annuitant is alive, the payment will be made per the chosen payment mode. The time the annuitant is no more, nothing will be payable, and the annuity payment will be ceased with an immediate effect.
Option H: Joint life immediate annuity for a lifetime with a provision for 50% of the annuity to the secondary annuitant on the demise of the primary annuitant.
Until the primary annuitant is alive, the annuity payments will be duly made with the chosen mode of payment. In case the primary annuitant passes away, then from the annuity amount, 50% will be paid to the secondary surviving annuitant till he is alive. However, if the secondary annuitant passes away, the annuity payment will likewise be caused. Moreover, if the secondary annuitant predeceases the primary annuitant, then under such a situation, the annuity payments will be paid and only be ceased when the primary annuitant passes away.
Option I: Joint life immediate annuity for a lifetime with a provision for 100% of the payable annuity as long the annuitant lives.
Until the primary and the secondary annuitant is alive, then 100% of the annuity amount will be paid with the opted mode of the annuity payment. When the last survivor passes away, the annuity payments likewise will be ceased, which means nothing will be payable.
Option J: A joint life immediate annuity for a lifetime with a provision for 100% of the payable annuity as long the annuitant lives and return the purchase price upon the demise of the survivor.
Until the primary and the secondary annuitant is alive, then 100% of the annuity amount will be paid with the opted mode of the annuity payment. On the demise of the last survivor, the purchase price will be paid to the nominees, and then the annuity payments will be ceased.
The following are the options available within the deferred annuity plan:
Option 1: At the time of the deferment period, if the annuitant is survived, nothing will be paid. In case the annuitant passes away, the death benefit will be payable to the nominee as defined. After the deferment period, as long the annuitant is alive, the annuity payments will be paid as per the chosen mode of payment. On the demise of the annuitant, the annuity payments will likewise be ceased instantly, and the death benefit will be paid to the nominees.
Option 2: At the deferment period, when the primary or the secondary annuitant survives, nothing will be paid. Upon the demise of the last survivor, the defined death benefit will be paid to the nominees. After the deferment period, as long as the primary and secondary annuitant is alive, the annuity payments will be made as per the chosen mode of payment. On the demise of the last survivor, the annuity payment will be ceased with immediate effect, and the defined death benefit will be paid to the nominee.
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Options available for payment of Death Benefit:
Options available for payment of Death Benefit
The Annuitant(s) will have to choose one of the following options for the payment of the death benefit to the
nominee(s).
Lumpsum Death Benefit: Under this option the entire Death benefit shall be payable to the nominee(s) in
lumpsum.
Annuitisation of Death Benefit: Under this option the benefit amount payable on death shall be utilized for
purchasing an Immediate Annuity from the Corporation for nominee(s) effective from the date of death of the
annuitant/last survivor.
In Installment: Under this option the benefit amount payable on death can be received in installments over
the chosen period of 5 or 10 or 15 years instead of lumpsum amount. This option can be exercised for full or
part of the Death Benefit payable under the policy
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LOAN & SURRENDER VALUE
Surrender Value
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.
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 IRDA
Loan:
The Policy loan shall be allowed at any time after three months from the completion of policy (i.e. 3 months from
the date of issuance of policy) or after expiry of the free-look period, whichever is later. Policy loan shall be
available during as well as after deferment period subject to terms and conditions of the Corporation in this regard.
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Plan purchased as Q.R.O.P.S.
Plan purchased as QROPS (Qualifying Recognized Overseas Pension Scheme):
This plan can be purchased as QROPS, through transfer of UK tax relieved assets subject to listing and terms
and conditions prescribed by HMRC (Her Majesty Revenue & Customs) such as:
i. Minimum Vesting Age shall be 55 years.
ii. If the policy is cancelled during the Free Look Period,the proceeds from cancellation shall only be transferred
back to the fund house from where the money was received.
iii. Subject to specific Plan features including Minimum Annuity as specified in Para 4, all other terms and
conditions of HMRC shall also apply as applicable from time to time.