A Smart Step Toward Retirement Security

Retirement planning is not just about saving money — it’s about ensuring a regular income when you no longer earn. To help individuals build a worry-free retirement, Life Insurance Corporation of India (LIC) launched the New Jeevan Shanti Plan (Plan No. 858) on June 4th, 2024. This is a deferred annuity plan that gives you guaranteed income after a waiting period you choose — and ensures peace of mind for life.

Let’s understand this plan in detail.

What is LIC New Jeevan Shanti Plan?

LIC New Jeevan Shanti (Plan 858) is a Single Premium, Non-Linked, Non-Participating, Deferred Annuity plan.

In simple terms:

You pay once.
Wait for a chosen number of years (called the deferment period).
Then, you get a guaranteed lifelong pension (annuity).

It’s a plan that suits both individuals planning for themselves or for their spouse/parent through the Single Life or Joint Life options.

Highlights of LIC New Jeevan Shanti 858

Feature	Details
Plan Type	Deferred Annuity
Premium Type	Single Premium
Life Options	Single Life or Joint Life
Annuity Options	7 options
Deferment Period	1 to 12 years
Loan Facility	Yes (under return of premium options)
Surrender Option	Available
Top-up Annuity	Not available
Life Cover	During deferment period
UIN	512N338V06

Eligibility & Entry Conditions

Criteria	Details
Minimum Entry Age	30 years (Last Birthday)
Maximum Entry Age	79 years minus Deferment Period
Minimum Vesting Age	31 years
Maximum Vesting Age	80 years
Minimum Deferment	1 year
Maximum Deferment	12 years (subject to vesting age limits)
Minimum Purchase Price	₹1,50,000 (higher depending on mode & annuity requirement)
Maximum Purchase Price	No Limit

Annuity Options Under LIC New Jeevan Shanti

There are 7 annuity options, but only Options 1 & 2 are currently available for new purchase as of June 2024. These cover both single and joint life scenarios:

✅ Option 1: Single Life with Return of Purchase Price

Deferment Period: No benefit paid on survival.
After Deferment: Annuity starts and continues as long as the annuitant is alive.
On Death:
- Annuity stops.
- Death Benefit paid to nominee =
  Higher of:
  - Purchase Price + Accrued Death Benefit − Annuity Paid
  - 105% of Purchase Price

✅ Option 2: Joint Life with Return of Purchase Price

Deferment Period: No benefit paid on survival.
After Deferment:
Annuity is paid for life of either primary or secondary annuitant.
On Death of Last Survivor:
Same death benefit as Option 1 is paid to nominee.

Other options may be activated in future based on LIC’s policy updates.

Death Benefit Details

Upon death of annuitant(s), the nominee receives the higher of:

Purchase Price + Accrued Additional Benefit on Death – Total annuity paid, or
105% of Purchase Price

How is Additional Benefit on Death Calculated?

At the end of each policy month (during deferment period only):

Additional Benefit = Purchase Price×Monthly Annuity Rate12\frac{\text{Purchase Price} \times \text{Monthly Annuity Rate}}{12}12Purchase Price×Monthly Annuity Rate

The annuity rate is based on age, deferment period, and mode.

Surrender of Policy

You can surrender this policy anytime. The surrender value payable will be the higher of:

Guaranteed Surrender Value (GSV)
Special Surrender Value (SSV)

GSV Table:

Policy Year	GSV Factor
1 – 3 years	75% of Purchase Price
4th year	90% of Purchase Price
5th year onward	90% of Purchase Price

Note: Total annuity already paid will be deducted from the surrender value.

Loan Facility

Available under Return of Premium options only. Key points:

Loan is within the surrender value.
Can be availed during or after deferment.
Loan interest ≤ 50% of annual annuity.
Max loan = 80% of surrender value.

Mode of Annuity Payments

Choose what suits you best:

Mode	Minimum Annuity
Monthly	₹1,000/month
Quarterly	₹3,000/quarter
Half-Yearly	₹6,000/half-year
Yearly	₹12,000/year

More frequent payouts result in slightly lower annuity amounts due to administrative reasons.

Tax Benefits

Premium paid under this policy is eligible for tax deduction under Section 80CCC.
Annuity received is taxable as income under prevailing tax laws.

Sample Illustration: LIC New Jeevan Shanti Plan Example

Let’s look at a real-life-like example to understand how this plan works.

Assumptions:

Parameter	Value
Age at Entry	45 Years
Deferment Period	10 Years
Purchase Price	₹10,00,000
Annuity Option	Option 1 (Single Life with Return of Purchase Price)
Mode	Yearly
Approx Annuity Rate	7.4% (illustrative)

Policy Timeline

Year	Age	Event	Annual Annuity	Death Benefit
1–10	45–54	Deferment Period	₹0	Accrued Benefit + 105% of Purchase Price (whichever higher)
11–Death	55+	Annuity Starts	₹74,000 (approx.)	On death, ₹10L + Accrued Benefit − paid annuity

Note: Annuity rates vary based on actual LIC quotation, age, and deferment.

Benefits at a Glance

✅ Guaranteed Pension for Life
✅ Single Payment – No Future Premiums
✅ Return of Purchase Price to Family
✅ Flexibility in Start Date of Annuity
✅ Joint Life Option for spouse or family member
✅ Loan and Surrender Facility available
✅ Simple & Hassle-Free Application Process

Why Choose LIC New Jeevan Shanti?

Backed by India’s most trusted insurer – LIC
Zero market risk
High flexibility with guaranteed returns
Perfect for retirement planning, income security, and spouse protection

Final Thoughts

LIC New Jeevan Shanti Plan 858 is an ideal choice for individuals looking to create a guaranteed income stream after retirement without worrying about market volatility. With multiple options and full flexibility on when to start receiving annuity, this plan gives you freedom and control over your golden years.