LIC's New Jeevan Shanti (Plan 858) is a single-premium, deferred annuity plan. Unlike immediate pension plans where payouts start right away, this plan allows you to invest a lump sum now and lock in guaranteed lifetime pension rates that begin after a waiting period (known as the deferment period).
Because it is a non-linked, non-participating product, all your annuity rates and death benefits are locked in at inception and remain unaffected by market performance or discretionary bonuses.
Core Plan Options
The plan offers two straightforward options depending on how you want to secure your family's future:
Option 1: Deferred Annuity for Single Life
The pension is paid strictly to the primary policy holder for life after the deferment period. On death, the defined death benefit is paid to the nominee.
Option 2: Deferred Annuity for Joint Life
The pension continues as long as either the primary or secondary annuitant (spouse, child, sibling, parent, or grandparent) is alive. On the death of the last survivor, the death benefit goes to the nominee.
Key Eligibility and Features
Parameter | Criteria
Minimum Age at Entry 30 years (Last Birthday)
Maximum Age at Entry 79 years (Last Birthday)
Minimum Vesting Age (Pension Starts) 31 years
Maximum Vesting Age 80 years
Deferment Period (Waiting Time)
Minimum 1 year; Maximum 12 years (subject to max vesting age)
Minimum Purchase Price ₹1,50,000 (subject to minimum pension criteria)
Maximum Purchase Price No Upper Limit
Payout Frequencies Monthly, Quarterly, Half-Yearly, or Yearly
Minimum Pension Rule:
The chosen premium and deferment period must generate a minimum pension of ₹1,000/month, ₹3,000/quarter, ₹6,000/half-year, or ₹12,000/year.
The Death Benefit Structure
During the deferment period, a unique Accrued Additional Benefit builds up at the end of each policy month. This ensures that the risk cover increases steadily until the pension begins.
The death benefit payable to the nominee will always be the higher of:
1. Purchase Price + Accrued Additional Benefits minus any annuity payments already made.
2. 105% of the Purchase Price.
Nominee Payout Flexibility
The policyholder can specify how the nominee receives this payout at the proposal stage:
As a complete tax-free Lump-sum.
Converted into an Immediate Annuity (pension stream) for the nominee.
Spread out in Installments over 5, 10, or 15 years.
Key Incentives & Policy Liquidity
Higher Purchase Price Incentive:
LIC provides stepped increases in the annuity rates for larger investments, broken into three slabs: ₹5 Lakhs to ₹9.99 Lakhs, ₹10 Lakhs to ₹24.99 Lakhs, and ₹25 Lakhs & above.
Rebate for Direct Sales:
Purchasing online or directly through LIC's digital channels provides a rebate via enhanced annuity rates.
Surrender & Loan Facilities:
Unlike many rigid pension structures, Jeevan Shanti allows you to surrender the policy or take a loan against it at any time after 3 months from policy issuance (or the expiry of the free-look period).
