LIC Jeevan Shanti Yojana is a pension plan that promises handsome returns for investors. This is a single premium plan wherein the policyholder has an option to choose between Single life and Joint life Deferred annuity. The annuity rates are guaranteed at the inception of the policy and annuities are payable post-deferment period throughout the lifetime of the annuitant(s). It's possible to get the desired pension per month under this policy as higher the investment amount, the higher will be the pension amount.


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An annuity is a regular payment amount like a pension paid by insurance companies to the policyholders. The minimum investment amount in the policy is Rs 1.5 lakh.


The minimum entry age for the LIC Jeevan Shanti policy is 30 years while the maximum age is 79 years. LIC offers two options under the LIC Jeevan Shanti plan. One is an immediate annuity plan and the second is a deferred annuity option. While the policyholders start receiving pension immediately when they invest in the immediate plan, they get pension after certain years when they invest in a deferred annuity. The deferred annuity plan is good for people who have not retired yet while the immediate annuity plan is good for retired as well as senior citizens.


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In the deferred annuity option, the investors receive a pension for their lifetime. The interest rates for the annuity are fixed at the inception of the policy.


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Since this is a one-time investment plan, investors get a range of options as per their investment appetite and the pension depends upon the investment amount.


In addition to a guaranteed lifetime pension, Jeevan Shanti has a unique benefit called Guaranteed Additions. Under the deferred pension option, the policyholders' accounts will be credited with Guaranteed Additions every month during the Deferment Period.


In case of the unfortunate death of the policyholder, before the start of the pension, the Purchase price plus accumulated guaranteed additions till the date of death, will be returned to the nominee and the compensation is subject to a minimum of 110 per cent of the investment.



For example, at an entry age of 50, where the deferment term will be 10 years, the policyholder will get a life long monthly pension of Rs 8,742 from the start of 11the year of the policy or 61 years of age. During the deferment period, an amount of Rs 8584 will be added to the policy account every month as a guaranteed addition.


Now, suppose the policyholder dies at the end of 5 years 4 months or at the age over 55.4 years, the total accumulation in his account would be Rs 5,49,376 (64 months x Rs 8584) and the total amount received by the nominee would be Rs 15,49,376.


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Now, suppose that a policyholder invests Rs 50 lakhs at the age of 50 years, he will get a pension of Rs 43,920 per month from the start of 61 years of age at the rate of 10.99 per cent per year.


If a policyholder invests Rs one crore at the age of 50 years, he will get a pension of Rs 87,923 per month after retirement at the rate of 11 per cent.


Suppose you invest Rs 25 lakhs at the age of 50 in the LIC Jeevan Shanti plan, you will receive a pension of Rs 21,929 per month at the rate of 10.98 per cent post-retirement age.