LIC Jeevan Shanti Plan
Posted on by Thomas Bloggs
LIC Jeevan Shanti is a Single Premium Annuity Plan. This plan can be used to secure fixed payouts at regular intervals for the rest of your life.
How it works: You pay a Single Premium (also called the 'Purchase Price') to purchase an Annuity. LIC will then pay you regular amounts for the rest of your life. You could receive this regular payouts monthly, quarterly, half-yearly or annually. This regular payout amount is called an Annuity. You have 2 options in this plan - Immediate Annuity & Deferred Annuity. Collectively there are 12 options to receive you regular annuity payments.
Key Features of LIC Jeevan Shanti
Plan Name LIC Jeevan Shanti Launch Date 12th September, 2018 Plan Details Table No. 850 Policy Type Annuity UIN 512N328V01
Annuities help you fix up a regular flow of income for the rest of your life. You can invest today and ensure that you will get the same income all throughout your life, no matter what. If interest rates (of let us say Fixed Deposits) drop in future, you stand to gain as your annuity rates are locked. But if interest rates (of let us say Fixed Deposits) increase in future, you will feel you are locked-in to plan with low returns. So it is best to use this as one part of your retirement solution and not put all your savings into it.
Also, in case you have a pension plan from LIC, you can only withdraw ⅓ of it when it matures. You will have to buy an Annuity from LIC with the other ⅔ amount. So it is best to know the different options which you have.