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LIC Jeevan Shanti (Table No. 850) policy is a one-time premium payment plan with return options available in two different variants i.e., immediate or deferred annuity. It is a type of pension policy in which the policyholder can be benefited in many ways. This plan is a non-linked, non-participating plan.

Both the immediate and deferred plans is a collection of multiple features and benefits and are available both online and offline. This plan offers a variety of options to the policyholder. Out of 10 options in immediate annuity plan, life cover option is available for 2 of them whereas in a deferred annuity plan only 2 options are available and both of them provides cover against risks of life. Returns can be availed immediately in an immediate annuity plan whereas the time of returns can be chosen in a deferred annuity plan.

This policy is introduced to provide insurance seekers with numerous options. One can choose to withdraw their pension immediately or to delay it with returns.

The policy is further divided into many options. All the options are personalized to take care of the requirements of the policyholder. This policy pays a fixed sum assured in the time of retirement. One can select the type of plan according to the specific needs.

It is a single premium plan and comprises of two types of Annuities:Immediate Annuity and Deferred Annuity.

Immediate Annuity: Returns can be available immediately after the payment of all the premiums.

Deferred Annuity: Returns can be available after a specific period of time. It also covers the life risk too in some of the options available.

It starts with a minimum investment of Rs. 1.5 lakhs there is no limit on the maximum amount. Policy term can be decided by the policyholder in a deferred annuity plan. The minimum term of the policy is 1 year and the maximum term is 20 years only in deferred annuity plan. The plan offers guaranteed annuity rates from the initiation of the policy. The plan can be purchased for self-life or as a joint life with spouse, children, parents, siblings, grandchildren, or grandparents. After successful completion of 1 year, loan facility is available under the plan. An extra benefit for handicapped dependent (Divyangjan) life is also available. The policyholder can surrender the policy anytime after completing 3 months of the policy, where annuity is along with return of purchase price. Within 15 days of purchase, insured can return the policy if not satisfied with the clauses of the policy. Tax exemption for the amount paid to LIC under Section 80C of the Income Tax Act, 1961.

All the different types of options are elaborated below for immediate annuity and deferred annuity plans.

Immediate Annuity

Option A

This is an immediate annuity plan in which the annuitant gets the returns immediately. He/she can enjoy this return for the lifetime. Payments can be received in convenient monthly, quarterly, bi-annual, or annual returns. After the demise of the policyholder, annuity stops.

Option B

According to this option, there's a guaranteed payment 5 years. Since it's an immediate annuity plan, payments start immediately. If during these 5 years annuitant expires than also the beneficiary can get the assured amount. In the case of his survival, the amount can be availed till his lifetime.

Option C

This option assures returns for a period of 10 years. If something happens to the policyholder during this period than his nominee gets the amount of pension.

Option D

It's an immediate annuity with a guaranteed period of 15 years. After that period if the policyholder survives than he can still avail the annuity amount till his lifetime.

Option E

This option assured annuity for a period of 20 years. During this time if annuitant expires than his beneficiary can still get the amount as the decided amount for 20 years.

Option F

This is one of the immediate annuity plans in which the beneficiary can get the death benefits. In the case of demise of the policyholder, the nominee is entitled to get the entire sum insured with the returns as applicable.

Option G

In this type of immediate annuity plan, there is an increase of 3% every year.

Option H

It is a joint annuity plan. At the time of the death of one policyholder, the other person gets 50% of pension amount till his/her survival.

Option I

It is also a joint annuity plan. As per this option, if something happens to one of the annuitants, another person can enjoy 100% benefits.

Option J

In this joint life annuity plan If something happens to the annuitant, another person can get 100% annuity. They even get the cover at the time of the death of the policyholder. The amount that they are entitled to get is equivalent to the sum insured along with remaining returns if any.

As per the deferred annuity plans, the policyholder can get the benefit after a certain time period only. In this type of plan, there are 2 options to choose from. Both of them has been explained below:

Option 1

Before the Deferred Term: In this option, only a single life is covered. At the time of the death of the policyholder before the deferred annuity period beneficiary gets the death benefits.

After the Deferred Period: The annuity is given with returns as per the guarantee. In the case of the death of the policyholder, the beneficiary gets the death benefits, theannuity ceases immediately.

Option 2 (It's a joint life deferred plan.)

Before the Deferred Term: During the period of deferred annuity plan, if one of the annuitant dies, then other gets the death benefits.

After the Deferred Term: If one of the annuitants dies after the deferred period than annuity ceases, other survivor gets the death benefits.

Premium just need to be paid once as a lump sum amount. It can be started with a minimum payment of Rs. 1.5 lakhs. There is no limit for the investment on the maximum amount.

Maturity can be taken either as an immediate annuity or deferred payment.

Immediate Annuity

If you choose this type of annuity then returns starts immediately after the payment of all the premiums. There are lots of options available to choose within this plan as explained above.

Deferred Annuity

The deferred annuity starts after a certain time period as decided by the policyholder. The minimum time period of deferred annuity starts from 1 year, the maximum period is 20 years.

Loan Facility

The loan can be taken after the 1 year of the policy. In the case of immediate annuity this facility is available only in Options F and J. For deferred annuity plan, it can be availed in both the available options.

Surrender Value

Policy can be surrendered after 3 months of purchase. In an immediate annuity, surrender option is available only in Options F and J. In a deferred annuity plan, it can be availed in both the available options.

Free Lookup Period

Free lookup period of 15 days is granted. Within this time, the policy can be canceled by the policyholder if not satisfied with the ‘Terms & Conditions’ of the policy.

Special Coverage

In the case of handicapped dependent life, there is a special provision for reducing the minimum amount of investment.

Death Benefit

The nominee can get the death benefit in Options F and J of the immediate annuity. In the deferred annuity, death benefits are available in both the plans.

Annuity Payment Flexibility

In any type of plan, an annuity can be paid at different intervals as per the convenience of the policyholder. It can be paid monthly, quarterly, bi-annually or annually.

Case – Immediate & Deferred Annuity

If someone who is 42 years old buys an annuity of Rs. 10 lakhs then his returns will differ based on the option he/she has chosen. It will further vary based on the selected option by the policyholder.

You can purchase this plan through any channel online or offline. The online channel is the most preferred one because of its ease and convenience. Easy and secure options for payments are also available online. After making the transaction online, you can get the LIC policy details in your registered email ID. It can be directly taken from the website of LIC as well. It's also prudent to check all their features on any of the comparison sites such as PolicyX before choosing the plan.

Contact at helpdesk@policyx.com or dial 1800-4200-269 for instant guidance to your queries.

Dual Types of Annuity

The two of types of annuity i.e., immediate and deferred enable flexibility to the policyholder.The annuitant can choose the plan according to their suitability.

Assured Returns

In the case of deferred plan there is a surety of getting returns. These returns are added every month to the policy. After the deferred period, benefits can be availed.

Tax Benefits

As per the Section 80CCC, tax benefits can be availed from this plan. One-time premium that is paid can be completely recovered during the payment of tax.

Multiple Options

Within immediate and deferred annuity plans, the policyholder can select multiple options. It has added further flexibility to the customers.To choose, an immediate annuity has got 9 options, deferred got 2 options.

Guaranteed Income

Investing in this plan is a surety of monthly income. Lifetime income will be available for the policyholder. In some options, there is a guarantee of income even if the annuitant dies at an early stage of life depending upon the chosen option.

Easy of Purchase

The best part of this plan is it can be purchased through online or offline mode. One can easily apply for this plan sitting at home and track the application online instead of rushing towards the corporation office.

C Jeevan Shanti plan has 2 types of annuity plans that consists of many options. It is a daunting task to select a suitable one from so many options. With the small analogy, it may be easier to decide what to choose according to your convenience and requirements.