LIC New Jeevan Shanti Plan Details: Benefits, Features & Premium
Discover comprehensive details of the LIC New Jeevan Shanti Plan (Plan 758). Explore benefits, interest rates, eligibility, and use our calculator to secure your retirement.
INSURANCE
Sundhari S Mahila Career Adviser – LIC Tindivanam
9/1/20268 min read
LIC New Jeevan Shanti – Plan 758
Introduction
Retirement should bring peace of mind, free from financial stress. For many Indian middle-class families, salaried professionals, and self-employed individuals, securing steady post-retirement income is a top priority. The LIC New Jeevan Shanti (Plan 758) is designed for exactly that.
Understanding the LIC New Jeevan Shanti Plan is the first step toward building a robust retirement corpus. It provides a guaranteed, regular income for life, helping you maintain your lifestyle after your active working years. Whether you are a young professional planning ahead, a parent seeking long-term security, or someone approaching your golden years, this policy provides the financial safety net you and your loved ones need.
What is LIC New Jeevan Shanti?
The LIC New Jeevan Shanti is a single-premium, deferred annuity plan. In simple terms, you invest a lump sum amount once, and after a chosen waiting period (known as the deferment period), LIC guarantees to pay you a fixed pension (annuity) for the rest of your life.
Purpose of the policy: To provide a guaranteed, lifelong pension to the policyholder, combating the risk of outliving one’s savings.
Type of plan: Non-Linked, Non-Participating, Individual, Single Premium, Deferred Annuity Plan.
Main features: Offers single-life and joint-life annuities, guaranteed additions during the deferment period, and a death benefit to protect the family.
Who it is designed for: Individuals looking for a guaranteed income stream, first-time insurance buyers preferring a one-time investment, and people seeking long-term savings and protection with zero market risk.
Key Features
When exploring the LIC New Jeevan Shanti features, you will find elements designed to maximise security and flexibility.
Single Premium Investment: You pay the premium once, freeing you from the hassle of regular premium payments.
Deferred Annuity Options: You can choose a deferment period from 1 to 12 years. The longer you wait, the higher your pension payouts will be.
Guaranteed Additions: During the deferment period, your investment earns Guaranteed Additions at the end of each policy month, increasing your death benefit.
Life Cover (Death Benefit): It ensures that your family receives a substantial death benefit if something unfortunate happens to you during or after the deferment period.
Annuity Options: You can choose between an annuity for a Single Life or a Joint Life (typically with a spouse, child, or parent).
Loan Facility: To help with emergency financial needs, a loan facility is available after completing one policy year.
Surrender Value: The policy can be surrendered at any time during the policy term in the event of a critical financial emergency.
Free Look Period: If you are not satisfied with the terms and conditions, you have a 30-day free look period to return the policy.
Benefits of the Policy
Guaranteed Lifelong Income
The most significant benefit of LIC New Jeevan Shanti is the assurance of a fixed income. Once the deferment period ends, your pension is locked in for life, entirely shielding you from fluctuating market interest rates.
Flexibility in Receiving Payouts
You have the power to decide how you want to receive your pension. You can choose to get your annuity payouts on a yearly, half-yearly, quarterly, or monthly basis, depending on your household expenses.
Protection for Loved Ones
The death benefit ensures that your hard-earned money does not go to waste if you pass away. The purchase price, along with guaranteed additions, is returned to your nominee, providing them with financial stability.
Joint Life Security
If you choose the joint-life option, the pension continues to be paid to your secondary annuitant (like your spouse) after your demise, ensuring they never have to depend on anyone else for money.
Eligibility Criteria
Before investing, it is crucial to understand the LIC New Jeevan Shanti eligibility conditions to ensure it fits your financial profile.
Note: The maximum entry age and maximum vesting age may vary slightly based on the specific annuity option chosen. Please check the applicable limits before investing.
Premium Details
Understanding the LIC New Jeevan Shanti premium structure is straightforward since it is a single-premium plan, where you pay a one-time lump-sum amount as the purchase price.
Premium Payment Options: You can make a one-time lump-sum payment (Purchase Price), and the amount you pay will depend on your age, deferment period, and annuity option.
Factors affecting premium/payout: Your age, the deferment period you select, and the annuity option (Single or Joint) will determine how much pension you receive for your premium, and the premium amount you choose will shape your pension value.
Incentives for High Purchase Price: LIC offers higher annuity rates (a form of rebate or bonus) if your purchase price is ₹5,00,000 or more, helping maximise your LIC New Jeevan Shanti returns.
LIC New Jeevan Shanti Calculator
To help you estimate your potential pension, we have provided a simple, mobile-friendly LIC New Jeevan Shanti calculator below. It is pre-configured to show the estimated returns for a ₹10,00,000 investment with a 5-year deferment period.
Policy Benefits Explained
Death Benefit
If the policyholder passes away during the deferment period, the nominee will receive the Death Benefit, which is the higher of: Purchase Price plus Accrued Guaranteed Additions minus Total Annuity paid (if any).
105% of the Purchase Price.
The nominee can choose to receive this amount as a lump sum, in instalments, or to purchase an annuity plan themselves.
Maturity Benefit
Because this is an annuity (pension) plan designed to last for your entire lifetime, there is no traditional “Maturity Benefit” like an endowment plan. Instead, it pays the survival benefit as a pension. Survival Benefit (Annuity)
Once the deferral period ends, the LIC New Jeevan Shanti annuity plan triggers the survival benefit. You will receive the fixed annuity amount at the frequency you selected (monthly, quarterly, half-yearly, or yearly) for as long as you live.
Guaranteed Additions
During the deferment period, a fixed amount (Guaranteed Addition) is added to your policy at the end of each month. This boosts the death benefit payable to your family, ensuring that the LIC New Jeevan Shanti interest rate equivalent provides steady growth to your underlying capital during the waiting phase.
Riders Available
Unlike standard term or endowment plans, the LIC New Jeevan Shanti does not offer traditional add-on riders such as Accidental Death or Critical Illness. The plan is constructed as a robust, standalone financial product with built-in death benefits and guaranteed returns, keeping the structure simple and highly secure for retirement planning.
Tax Benefits
Investing in life insurance always comes with tax implications that can help you save money:
Tax on Premium: The single premium paid towards buying this policy is eligible for tax deductions under Section 80CCC of the Income Tax Act, 1961 (up to ₹1,50,000, falling under the overall 80C limit).
Tax on Annuity: It is important to note that the pension (annuity) you receive is treated as regular income and is taxable as per your applicable income tax slab.
Tax on Death Benefit: The lump sum death benefit received by your nominee is entirely tax-free under Section 10(10D).
(Note: Tax laws are subject to change. Please consult with a tax expert for personalised advice.)
How to Buy the Policy
Purchasing this plan is simple and hassle-free. You can buy it through two primary channels:
Buying Online
You can visit the official LIC website, navigate to the pension plans section, fill in your details, complete the KYC digitally, and make the premium payment online.
Buying through an LIC Agent
For a personalised experience, please consult a certified LIC Agent. They can help you calculate the exact premium, choose the right deferment period, and handle the paperwork. You can easily purchase this through Sundhari S, Mahila Career Advisor at LIC Tindivanam.
Documents Required:
Age Proof (Aadhaar Card, Passport, Birth Certificate)
Address Proof
Identity Proof (PAN Card)
Recent Passport-sized photographs
Medical Examination:
Generally, no medical examination is required to purchase this annuity plan, making the onboarding process incredibly fast and straightforward.
Real-Life Example
Let us look at a practical example to understand how the plan works.
Customer Profile: Mr Ramesh, a 45-year-old self-employed businessman.
Sum Assured (Purchase Price): ₹10,00,000 (Excluding GST)
Policy Term (Deferment Period): 5 Years
Annuity Option: Option 1 (Single Life with Return of Purchase Price on Death)
Mr Ramesh pays ₹10,00,000 today. He chooses to wait for 5 years. During these 5 years, his money accumulates Guaranteed Additions.
When he turns 50, his deferment period ends, and he starts receiving a guaranteed annual pension of approximately ₹85,000 for the rest of his life.
If Mr Ramesh passes away at the age of 75, his nominee will receive the original ₹10,00,000 back, plus any accrued guaranteed additions from the deferment period, ensuring his family’s wealth is protected.
Advantages and Limitations
To help you make an informed decision, here is an honest comparison of the plan’s pros and cons.
Who Should Buy This Policy?
The LIC New Jeevan Shanti plan is highly versatile. Still, it is particularly beneficial for individuals who meet the applicable entry age and vesting age limits and for those seeking guaranteed retirement income.
Individuals nearing retirement: If you have accumulated a PF corpus or received retirement benefits and want to convert them into a safe, lifelong monthly income.
Middle-class families and Parents: To leave a legacy (return of purchase price) for children while enjoying the pension during your lifetime.
Self-employed individuals: Since business owners do not have an employer-funded pension, this plan acts as a self-created secure pension fund.
Women and Homemakers: Can be purchased jointly to ensure wives have a steady, independent source of income in their later years.
Young Professionals: Those who have received a sudden financial windfall (like a bonus or property sale) and want to secure an early retirement by opting for a 12-year deferment.
Important Points to Consider Before Buying
Assess Your Retirement Needs: Calculate your expected monthly expenses after retirement to decide the Purchase Price you need to invest today.
Factor in Inflation: Because the annuity is fixed, consider having other liquid investments alongside this plan to beat long-term inflation.
Choose the Right Option: Decide carefully between the Single Life and Joint Life options. If you have financial dependents, the Joint Life option is much safer.
Understand Taxation: Keep your post-retirement tax slab in mind, as annuity payouts will be added to your total income for tax purposes.
Frequently Asked Questions
1. Can I pay the premium monthly for LIC New Jeevan Shanti?
NoNo, this is strictly a single-premium plan. You must pay the entire purchase price as a one-time lump sum.
2. Can I take a loan against this policy? Yes, a loan facility is available under this plan after one policy year. 3. What happens if the policyholder dies during the deferment period?
If the policyholder dies during the deferment period, the death benefit (Purchase price + Accrued Guaranteed Additions) is paid to the nominee.
4. Can I surrender the policy if I need emergency funds?
Yes, the policy can be surrendered at any time. However, the surrender value depends on the policy's age and the prevailing market conditions as determined by LIC.5. Is the pension amount guaranteed??
Absolutely. The pension amount is calculated and guaranteed at the time of policy purchase, regardless of future changes in the country's interest rate.
Conclusion
The LIC New Jeevan Shanti (Plan 758) is one of the most reliable and secure deferred annuity plans available in India today. By offering guaranteed lifelong income, deferral flexibility, and financial protection for your nominees, it provides a strong shield against the uncertainties of old age. For anyone looking to invest a lump sum amount safely to secure their retirement years without worrying about stock market volatility, this policy is an exceptional choice.
Secure Your Family’s Financial Future
Planning your retirement is a critical step that shouldn’t be delayed. Every family’s financial situation is unique, and choosing the right purchase price and deferment period requires careful planning.
To get a personalised financial plan, detailed premium illustrations, and complete assistance with your insurance needs, reach out to the experts.
Contact Nila Safe Life Solutions today:
Sundhari S
Mahila Career Advisor – LIC Tindivanam
Phone / WhatsApp: 9865822106
Guiding you towards a safe, secure, and prosperous future.
Disclaimer: The information provided in this article is for educational and informational purposes only. Insurance is a subject matter of solicitation. Please consult a certified financial advisor or LIC expert before making any investment or purchasing an insurance policy to ensure it aligns with your specific financial goals.
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