LIC Jeevan Shanti Plan No. 758

Planning for a Secure Retirement: Guarantee Your Future Income Today

Welcome to Ashuram Insurance Expert. As your trusted local advisor serving since 1990, we understand that true financial peace of mind comes from certainty. Today, we are bringing you an in-depth, educational guide on one of the most secure and reliable retirement solutions available in India: LIC’s New Jeevan Shanti Plan No. 758.

This comprehensive guide will explain exactly how you can lock in a lifelong, guaranteed pension with a single investment, ensuring you and your spouse never have to worry about outliving your savings. Benefits are guaranteed as per policy terms.

What is LIC Jeevan Shanti Plan 758?

LIC's New Jeevan Shanti (UIN: 512N338V08) is a Non-Participating, Non-Linked, Individual, Savings, Deferred Annuity Plan.

To put this in simple English for our clients in Bhadra:

• This plan is not market-linked and provides guaranteed annuity as per policy terms.
• "Non-Par" means the benefits payable on death or survival are guaranteed and fixed irrespective of the actual experience of the corporation. The policy is not entitled to any discretionary benefits like bonuses or a share in surplus.
• "Deferred Annuity" means you invest a lump sum today, wait for a chosen period (the deferment period), and then start receiving your regular pension.

The most critical feature of this plan is that the annuity rates are guaranteed at the inception of the policy. Once you lock in your rate, annuities are payable post the deferment period throughout the lifetime of the Annuitant(s).

How the Plan Works: Purchase Price and Deferment

The LIC Jeevan Shanti Plan operates on a straightforward mechanism. It is a Single Premium Deferred Annuity plan. You pay a one-time lump sum, known as the Purchase Price.

You then choose a "Deferment Period," which is the waiting period before your pension starts. The Minimum Deferment Period is 1 year, and the Maximum Deferment Period is 5 years, subject to the Maximum Vesting Age. During this waiting period, your investment builds value through an "Additional Benefit on Death," and once the period ends, your guaranteed pension payouts begin.

Understanding the Annuity Options

Every family has different needs, which is why this plan offers two distinct annuity options. Please note that the annuity option once chosen cannot be altered later.

Option 1: Deferred Annuity for Single Life

Under this option, the pension is tied to a single individual (the Annuitant).

• During Deferment Period: On survival of the Annuitant, nothing is payable. On death of the Annuitant, the Death Benefit is payable to the nominee(s).
• After Deferment Period: The annuity payments shall be made in arrears for as long as the Annuitant is alive. On the death of the Annuitant, the annuity payments cease immediately, and the Death Benefit is paid to the nominee(s).

Option 2: Deferred Annuity for Joint Life

This option covers two individuals. The Joint Life Annuity can be taken between any two lineal descendants or ascendants of a family (i.e., Grandparent, Parent, children, Grandchildren), or spouse, or siblings.

• During Deferment Period: On the survival of the Primary Annuitant and/or Secondary Annuitant, nothing is payable. On the death of the last survivor, the Death Benefit is payable to the nominee(s).
• After Deferment Period: The annuity payments shall be made in arrears for as long as the Primary Annuitant and/or Secondary Annuitant is alive. On the death of the last survivor, the payments cease, and the Death Benefit is paid to the nominee(s).

The Death Benefit and Additional Benefit Explanation

The financial security of your nominees is well-protected under both options. The Death Benefit under both Option 1 and Option 2 shall be the higher of the following two calculations:

1. Purchase Price plus Accrued Additional Benefit on Death, minus the Total annuity amount payable till the date of death, if any.
2. 105% of the Purchase Price.

What is the Additional Benefit on Death?
The Additional Benefit on Death accrues at the end of each policy month, but only till the end of the Deferment Period. The formula for the Additional Benefit on Death per month is: (Purchase Price * Annuity rate p.a. payable monthly) / 12. In case of death during the deferment period, this benefit accrues till the completed policy month as on the date of death.

Modes of Annuity Payment

You have the flexibility to receive your pension according to your household expenses. The modes of annuity available are yearly, half-yearly, quarterly, and monthly. The annuity is payable in arrears, meaning the first payment starts after 1 year, 6 months, 3 months, or 1 month from the date of vesting, depending on your chosen mode.

Eligibility Conditions

To secure this guaranteed pension, applicants must meet the following criteria:

• Minimum Age at Entry: 30 years (Last Birthday).
• Maximum Age at Entry: 79 years (Last Birthday).
• Minimum Vesting Age (when pension starts): 31 years (Last Birthday).
• Maximum Vesting Age: 80 years (Last Birthday).
• Minimum Purchase Price: ₹1,50,000, subject to the minimum annuity limits.
• Maximum Purchase Price: No Limit, subject to underwriting decisions.

The plan strictly requires the purchase price to meet the Minimum Annuity limits: ₹1000 per month, ₹3000 per quarter, ₹6000 per half-year, or ₹12000 per annum.

Incentives for Higher Purchase Price and Existing Clients

LIC rewards policyholders who invest larger amounts or who are already part of the LIC family.

• Incentive for higher purchase price: An increase in the Tabular Annuity Rate is given based on the purchase price slab and deferment period.
• Incentive for existing Policyholders: An incentive of 0.15% increase in the Tabular Annuity Rate is provided for existing policyholders having an in-force policy, or those whose policy matured within one year, or for the nominee/beneficiary of a deceased policyholder.

Options for Payment of Death Benefit

Your nominees do not have to take the Death Benefit as a single lump sum. The Annuitant can choose one of the following options at the proposal stage:

1. Lumpsum Death Benefit: The entire amount is paid at once.
2. Annuitisation of Death Benefit: The benefit amount is utilized to purchase an Immediate Annuity from the Corporation for the nominee(s).
3. In Installment: The benefit amount can be received in installments over a chosen period of 5, 10, or 15 years. Minimum installment amounts apply (e.g., ₹50,000 for yearly installments).

Important Rules: Surrender and Loan Facilities

• Surrender Value: The policy can be surrendered at any time during the policy term. The surrender value payable shall be the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). The GSV Factor is 75% for the first three years and 90% for the fourth year and above, minus the total annuity amount payable up to the date of surrender.
• Policy Loan: A highly useful feature is the Policy loan, which shall be allowed at any time after three months from the completion of the policy or after the expiry of the 30-day free-look period, whichever is later. The loan is available during as well as after the deferment period. The maximum loan granted is such that the effective annual interest amount does not exceed 50% of the annual annuity amount, and is subject to a maximum of 80% of the Surrender Value.

Tax benefits are subject to laws. Statutory Taxes, if any, shall be collected separately in addition to the Premium.

Who Should Buy and Who Should Avoid This Plan?

The LIC Jeevan Shanti Plan 758 is perfectly suited for individuals aged 45 to 70 who have received retirement funds, provident fund payouts, or sold a property, and wish to convert that lump sum into a 100% safe, guaranteed, lifelong monthly income.

You should avoid this plan if you are a young investor looking for aggressive, market-linked wealth creation, or if you require a policy that provides a large lump-sum maturity return at the end of a specific term.

Local Service Section: Serving Our Regional Communities

While our primary office is centrally located near the Main Bus Stand Road in Bhadra (335501), Ashuram Insurance Expert is deeply committed to serving the vast agricultural and business communities across our wider region. We understand that preparing for retirement in rural areas requires careful, face-to-face financial planning.

Our comprehensive advisory services extend seamlessly to areas like Jhansal and Ninal. We know that traveling into Bhadra city for complex insurance paperwork can be time-consuming for farmers and local business owners. That is why we provide dedicated, localized support to ensure that families in these vital agricultural belts can easily secure their retirement incomes. Whether you need a fresh consultation on guaranteed annuities in Biran, or require assistance with nomination updates in Chhanibari, our trusted services reach you right where you are.

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Do not leave your golden years to chance. Secure a lifelong, guaranteed pension with the most trusted life insurance corporation in India. You may contact Ashuram Modi for personalized LIC guidance in Bhadra. You can explore our complete range of LIC services in Bhadra to find the perfect retirement or protection solution for your needs.

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