If you’re searching for a stress-free, guaranteed pension option, the LIC New Jeevan Shanti Policy might just be the answer. With a one-time premium payment, this non-linked, non-participating, individual annuity plan ensures lifetime income—a perfect retirement solution for both salaried professionals and self-employed individuals.
Whether you’re nearing retirement or planning early, this policy offers both flexibility and security. Let’s break down what this policy is, how it works, and why it may be the right fit for your financial goals.
LIC New Jeevan Shanti Policy
| Feature | Details |
|---|---|
| Policy Type | Deferred Annuity (Single Premium) |
| Entry Age | 30 to 79 years |
| Minimum Purchase Price | ₹1,50,000 |
| Pension Options | Single Life & Joint Life |
| Deferment Period | 1 to 12 years |
| Payout Frequency | Monthly, Quarterly, Half-Yearly, or Annually |
| Loan Available? | Yes, after 3 months or expiry of free-look period |
| Surrender Allowed? | Yes, after 3 months or under specific conditions |
The LIC New Jeevan Shanti Policy is one of the most reliable, hassle-free pension solutions available today. It offers guaranteed lifelong income, flexibility in how and when you receive your pension, and peace of mind through predictable returns.
Whether you’re planning retirement early or looking to safeguard your post-retirement income, this policy ensures your future is financially stress-free. With the power of LIC’s trust and guaranteed income, it’s a smart choice in a world of financial uncertainties.
What Is LIC New Jeevan Shanti?
LIC’s New Jeevan Shanti is a single premium pension plan where you invest once and enjoy a guaranteed income for life after a chosen deferment period. It’s like planting a money tree now and harvesting regular income fruits later.
You can choose between:
- Single Life Annuity: Pension for your lifetime.
- Joint Life Annuity: Pension continues for your spouse or nominee after your demise.
This plan is ideal for:
- Individuals who want peace of mind post-retirement.
- Families seeking joint pension solutions.
- Professionals looking for risk-free income options.
see also: Post Office FD Scheme: How Much You Earn on a ₹2 Lakh Investment in 5 Years
How Does It Work? (Step-by-Step Guide)
Let’s break this down with a simple example:
Step 1: Choose the Purchase Price
Suppose you’re 50 years old and invest ₹10,00,000.
Step 2: Select the Deferment Period
You pick a deferment period of 10 years (you’ll start receiving pension at age 60).
Step 3: Select Annuity Option
You opt for a Joint Life Annuity, ensuring income continues for your spouse if you pass away.
Step 4: Start Receiving Lifetime Income
Once the deferment ends, LIC pays you a fixed pension for the rest of your life (and then your spouse’s life, if applicable).
Key Benefits of LIC New Jeevan Shanti
Guaranteed Pension for Life
Once locked, the annuity rate does not change, no matter what happens in the market.
Flexibility in Annuity Modes
Choose how you receive your income: Monthly, Quarterly, Half-Yearly, or Annually.
Loan Facility
Need emergency funds? You can avail of a loan after 3 months of policy commencement or expiry of the free-look period.
Surrender Option
Under specific cases like critical illness or need for money, you can surrender the policy after 3 months.
Return of Purchase Price
In select options, your nominee will receive the entire amount you invested (purchase price) in case of your demise.
Who Should Consider This Policy?
This plan is best for:
- Retired government or private sector employees
- Freelancers or business owners who don’t have a pension system
- Senior citizens with lump sum retirement funds looking for safe investment
Even if you’re in your 30s or 40s, this policy allows you to lock in higher annuity rates at an early age, which can significantly increase your income post-retirement.
What Are the Annuity Rates?
Annuity rates depend on:
- Your age
- Amount invested
- Deferment period
- Selected option (single or joint life)
Let’s take an approximate example for a 50-year-old investing ₹10 lakhs with a 10-year deferment:
| Payout Mode | Approx Annual Pension |
|---|---|
| Monthly | ₹81,600 (₹6,800/month) |
| Quarterly | ₹82,800 |
| Half-Yearly | ₹84,000 |
| Annually | ₹85,200 |
Note: These rates are indicative. You can use the LIC Pension Calculator to get exact amounts based on your inputs.
Tax Benefits
Under Section 80C:
You can claim tax deductions on the premium paid, subject to limits.
Annuity Income:
Pension received is taxable as income and taxed according to your income slab.
How to Apply for LIC’s New Jeevan Shanti Policy?
Apply Online (in minutes!)
- Visit LIC’s Buy Online Portal
- Click on “New Jeevan Shanti”
- Fill in details and complete KYC
- Use the calculator to plan your investment
- Pay securely and get your digital policy instantly
Apply Offline
- Visit your nearest LIC branch
- Contact a certified LIC agent
- Carry your PAN, Aadhar, address proof, and one passport-size photo
see also: Post Office PPF Scheme: By Depositing Only ₹3,000 Monthly, You Can Get Over ₹15 Lakh
Important Conditions to Know
| Condition | Details |
|---|---|
| Minimum Age | 30 years |
| Maximum Age | 79 years |
| Minimum Investment | ₹1,50,000 |
| Policy Revival | Not allowed once surrendered |
| Loan & Surrender | Available after 3 months |
LIC New Jeevan Shanti Policy FAQs
Q. Is the pension amount guaranteed for life?
Yes, once fixed, it does not change. Your income is guaranteed till your last breath.
Q. Can I get my money back?
In Return of Purchase Price options, the nominee will receive the original investment amount after the annuitant’s death.
Q. Can I apply if I am an NRI?
Yes, NRIs can apply, but they must check if they meet the guidelines under the FEMA regulations. Contact an LIC branch for NRI-specific documentation.
Q. Can I change the annuity mode later?
No. Once the annuity mode (monthly, quarterly, etc.) is selected, it cannot be changed.
Q. Is there a free-look period?
Yes, 15 days (30 days for online) during which you can cancel the policy and receive a refund (minus stamp duty and applicable charges).
