Explore the LIC New Jeevan Shanti Plan (Table No. 858) – a guaranteed annuity plan with single premium, lifetime income options, eligibility, benefits, surrender value, and example calculation.
The LIC New Jeevan Shanti Plan (Table No. 858) is one of LIC’s most popular single premium guaranteed annuity plans. It’s designed for individuals who want a steady income for life after making a one-time investment. Whether you’re planning your retirement, looking for financial stability for your family, or simply want a fixed income source, this plan offers guaranteed returns and multiple annuity options.
In this comprehensive guide, we’ll cover every detail you need to know — from plan features, eligibility, and annuity options to tax benefits, surrender rules, and real-life examples.
1. What is LIC New Jeevan Shanti Plan?
The LIC New Jeevan Shanti Plan is a single premium, non-linked, non-participating, personal annuity plan.
It means:
- Single Premium: You pay only once, no yearly or monthly premiums.
- Non-Linked: Not linked to the stock market; returns are fixed.
- Non-Participating: Does not share profits from LIC’s surplus.
- Personal Annuity: Provides regular income (monthly, quarterly, half-yearly, or yearly) as long as you live.
The main goal of this plan is to provide financial security and stable income either immediately or after a chosen deferment period.
2. Types of Annuity Options
LIC offers two main annuity options under New Jeevan Shanti:
A. Deferred Annuity for Single Life
- You receive the annuity after a deferment period (1 to 12 years).
- Annuity payments are made as long as the annuitant is alive.
- If the annuitant passes away during the deferment period or after starting annuity, purchase price + accrued benefits are returned to nominee.
B. Deferred Annuity for Joint Life
- Two annuitants (e.g., husband and wife) are covered.
- Annuity is paid until either of them is alive.
- After both pass away, purchase price + accrued benefits are returned to the nominee.
3. Key Features of LIC New Jeevan Shanti Plan
| Feature | Details |
|---|---|
| Plan Type | Single Premium, Guaranteed Annuity |
| Policy Term | Lifetime |
| Minimum Entry Age | 30 years |
| Maximum Entry Age | 79 years |
| Deferment Period | 1 to 12 years |
| Minimum Purchase Price | ₹1,50,000 |
| Maximum Purchase Price | No limit |
| Pension Modes | Monthly, Quarterly, Half-Yearly, Yearly |
| Loan Facility | Available after 3 months |
| Surrender Option | Available after 3 months |
| Tax Benefits | Under Section 80C & 10(10D) |
4. Benefits of LIC New Jeevan Shanti Plan
a. Guaranteed Income for Life
You get a fixed pension amount for your entire life, ensuring financial stability.
b. Flexible Deferment Period
Choose when to start your pension — from 1 to 12 years.
c. Single Payment, Lifetime Returns
Invest once, and enjoy lifelong income without worrying about future premiums.
d. Return of Purchase Price
After your death (and in joint life, after both deaths), the invested amount (purchase price) is returned to your nominee.
e. Loan Facility
Need urgent funds? You can take a loan against your policy after 3 months.
f. Surrender Option
If you face an emergency, you can surrender the plan after 3 months and get back a surrender value.
5. Who Should Invest in LIC New Jeevan Shanti Plan?
This plan is ideal for:
- Retirees seeking fixed monthly income.
- Individuals with lump-sum funds (like from PF, gratuity, or property sale).
- People who want guaranteed returns without market risk.
- Joint family earners looking for income security for spouse.
6. Example: How LIC New Jeevan Shanti Works
Let’s understand with an example.
Case:
Mr. Arun, 50 years old, invests ₹10,00,000 in LIC New Jeevan Shanti Plan with a 5-year deferment period under Deferred Annuity for Single Life option.
| Parameter | Value |
|---|---|
| Age at Entry | 50 years |
| Purchase Price | ₹10,00,000 |
| Deferment Period | 5 years |
| Annuity Mode | Yearly |
| Annual Pension (After Deferment) | ₹92,000 (approx.) |
| Death Benefit | Purchase Price ₹10,00,000 returned to nominee |
In this case:
- Arun will start receiving ₹92,000 every year after age 55.
- This will continue for his lifetime.
- After his death, the nominee will get back ₹10,00,000.
7. Tax Benefits
- Under Section 80C: The premium paid (purchase price) is eligible for deduction up to ₹1.5 lakh.
- Under Section 10(10D): Death benefits are tax-free for the nominee.
- Note: Pension income is taxable as per your income tax slab.
8. Loan & Surrender Rules
Loan:
- Available after 3 months.
- Maximum loan: 80% of surrender value.
- Interest rate decided by LIC.
Surrender:
- Allowed after 3 months.
- Surrender Value = Guaranteed Surrender Value + Accrued Benefits.
9. Pros & Cons
✅ Pros
- Guaranteed lifetime income.
- Multiple deferment options.
- Single payment, no future premiums.
- Return of purchase price to nominee.
- Loan and surrender flexibility.
❌ Cons
- Pension income is taxable.
- No high market-linked growth (fixed returns).
- Not ideal for those seeking short-term gains.
10. How to Buy LIC New Jeevan Shanti Plan
- Visit LIC Branch or authorized LIC agent.
- Fill the proposal form and submit documents:
- Age proof
- Address proof
- ID proof
- PAN Card
- Pay the single premium.
- Receive the policy bond.
11. Required Documents
- PAN Card
- Aadhaar Card
- Address proof
- Age proof (Birth Certificate, Passport, Voter ID)
- Passport-size photographs
- Bank account details (for pension credit)
12. Frequently Asked Questions (FAQs)
Q1: What is the minimum age to buy LIC New Jeevan Shanti?
Minimum age is 30 years.
Q2: Can I buy this plan for my parents?
Yes, you can buy for them as long as they meet eligibility criteria.
Q3: Is the pension amount fixed?
Yes, it is guaranteed for life.
Q4: Is there any risk?
No market risk — returns are fixed.
Conclusion
The LIC New Jeevan Shanti Plan is a reliable pension product for those seeking guaranteed, fixed, and lifelong income. With flexible deferment, joint life options, loan facilities, and return of purchase price, it ensures both income security and family protection.
If you have a lump-sum amount and want to lock in safe and stable returns for life, this plan is worth serious consideration.
