LIC’s New Jeevan Shanti Plan no. 858 is a deferred annuity plan for guaranteed income for life by paying a single premium. It is an annuity plan (Pension Plan) which has option of purchasing deferred annuity (Pension) and can be purchased by paying a lump sum amount (single premium). The plan provides for annuity payments at a pre-stated (guaranteed) rate throughout the lifetime of the annuitant.
Deferred Annuity Plan
LIC’s New Jeevan Shanti Plan is a deferred annuity plan. A deferred annuity plan allows policyholders to accumulate funds over a specified period, known as the accumulation phase, and then receive regular payouts, known as annuity payments, during the distribution phase (usually retirement).
Buying a deferred annuity plan can be a prudent financial decision, as a retirement product, for individuals who seek to secure their future and ensure a steady income stream during retirement.
Benefits of a deferred annuity plan
Why you might consider purchasing a deferred annuity plan:
Maintain post-retirement lifestyle.
Buy a deferred annuity plan to secure guaranteed retirement income. Contributions during working years build a fund, later converted into regular annuity payments, ensuring a reliable income to support your post-retirement lifestyle.
Get guaranteed income for lifetime
Deferred annuity plans offer lifetime income, ensuring policyholders won’t outlive their retirement savings. This protection against longevity risk provides peace of mind during retirement.
Payout to beneficiary
Many deferred annuity plans include a death benefit, ensuring a payout to beneficiaries if the policyholder passes away during the accumulation phase. This feature offers financial protection for loved ones.
No contribution limit
Deferred annuity plans often have no contribution limits, enabling individuals to invest more for retirement as needed.
Why you should buy LIC’s New Jeevan Shanti annuity plan?
- Deferred annuity is available for single life as well as for joint life.
- Deferment period to choose from 1 year to 12 years.
- Single premium – pay once, get benefits for lifetime.
- Higher annuity rates for higher deferment periods.
- Annuity rates are guaranteed at the inception of the policy.
- Annuities are payable post deferment period throughout the lifetime of annuitant(s).
- Multiple annuity options – monthly, quarterly, half-yearly, annual.
- Incentives for higher annuity purchase. Annuity rates increase with higher purchase price.
- No medical examination needed to buy this plan.
- Increasing death benefit during deferment period.
- Death benefit can be availed as lumpsum, as annuity or in installments.
- Loan available on policy at any time after 3 months from commencement. Allows to cater to emergency money needs.
- Sovereign Guarantee of LIC
Consider buying this deferred annuity plan to ensure a reliable guaranteed income to support your post-retirement lifestyle by paying a single premium. Guaranteed annuity rates are fixed today. No effect of interest rates going down in future for lifetime.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute professional advice. While full efforts have been made to ensure the accuracy of data and numbers, no responsibility is taken for any errors or omissions. Tax implications on insurance, investments and returns from related products may change due to updates in tax laws. Always consult with your financial advisor or insurance expert before making any investment or insurance decisions. The author is not responsible for any financial losses or damages incurred as a result of relying on the information in this blog.
