LIC Jeevan Shanti plan: Invest Rs 10 lakh today, get Rs 17,000/month pension for life after 20 years! Check features

LIC Jeevan Shanti: The Life Insurance Corporation of India recently launched a new pension plan - Jeevan Shanti. LIC says on its official website: "This is a single premium plan wherein the Policyholder has an option to choose an Immediate or Deferred annuity." "The annuity rates are guaranteed at the inception of the policy for both Immediate and Deferred Annuity and annuities are payable throughout the life time of Annuitant(s)," it adds.  Annuity is the annual income the subscriber gets in return for a lump sum, or money s/he has saved with an insurer.

Under Jeevan Shanti, one can make a one-time investment for a guaranteed life-long income. 

The scheme comes with several annuity options. For immediate annuity, available options are:
- Option A: Immediate Annuity for life.
- Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter.
- Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter.
- Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.
- Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.
- Option F: Immediate Annuity for life with return of Purchase Price.
- Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a.
- Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
-Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives. 
- Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

Under Deferred Annuity, available options are:

- Option 1: Deferred annuity for Single life
- Option 2: Deferred annuity for Joint life

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Eligibility: Minimum Purchase Price is Rs.1,50,000 subject to minimum Annuity as specified below. There is no limit on the maximum purchase price. 

Minimum Age at Entry: 30 years (completed)

Minimum Annuity: Rs 1000/month. 

Calculation: Under Jeevan Shanti, if you make a one-time investment of Rs 10 lakh at the age of 45, the annuity you will receive after 20 years is Rs 206,600 (over Rs 17,000 per month). (See official illustration chart below):

*Source: Licindia.in

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Death Benefit: In case of Deferred Annuity, it will be:

- Purchase Price plus Accrued Guaranteed Additions (as specified below) minus Total annuity payments made till date of death, if any

- Or 110% of Purchase Price. 

(*Disclaimer: Read the offer document carefully before making an investment in the Jeevan Shanti scheme. This article is for information purpose only)