This is a deferred annuity plan that provides regular income after a chosen deferment period. It is designed for retirement planning.
Benefits of LIC Jeevan Shanti
- Guaranteed Income: Jeevan Shanti offers policyholders a choice between immediate annuity and deferred annuity options. With the deferred annuity option, policyholders receive guaranteed periodic payouts, either annually, semi-annually, quarterly, or monthly, starting at a later date chosen by the policyholder.
- Multiple Annuity Options: The plan offers various annuity options to suit different needs and preferences. Policyholders can choose between immediate annuity, deferred annuity, and single premium deferred annuity options, each with its own set of benefits and payout structures.
- Flexible Payout Frequency: Policyholders have the flexibility to choose the frequency at which they receive annuity payments, allowing them to align their income with their specific financial requirements during retirement.
- Lifetime Income: Depending on the annuity option chosen, policyholders can receive annuity payments for their entire lifetime, ensuring financial security in retirement. There are also options available that provide a guaranteed income for a specified term, after which the annuity payments continue for life.
- Death Benefit: In the event of the policyholder’s demise, a death benefit is paid to the nominee or legal heirs. The death benefit amount depends on the annuity option chosen.
- Loan Facility: Policyholders have the option to avail of a loan against the policy after a certain period, providing liquidity when needed.
- Surrender Value: While the plan is primarily designed for income generation during retirement, it allows policyholders to surrender the policy under certain conditions and receive a surrender value.
- Income Tax Benefits: Annuity payouts from the LIC Jeevan Shanti plan may have income tax implications. Additionally, premiums paid for the single premium deferred annuity option are eligible for tax deductions under Section 80C of the Income Tax Act, subject to certain limits.
- Riders: Depending on the annuity option chosen, policyholders can add riders such as accidental death benefit riders or disability benefit riders to enhance their coverage.
- Retirement Planning: Jeevan Shanti is designed to help policyholders plan for their retirement and ensure a regular income stream during their post-retirement years.
- Financial Security: The plan offers financial security during retirement, helping policyholders maintain their standard of living and meet their financial needs without depending solely on pension or other sources of income.