LIC’s new Jeevan Shanti plan offers a predictable retirement income through a single-premium, non-linked annuity, catering to savers prioritising security over market-linked returns.
LIC New Jeevan Shanti is designed for savers who want certainty rather than market-linked growth. According to LIC’s product information, it is a single-premium, non-linked, non-participating deferred annuity plan that turns a lump sum into a fixed pension for life after a chosen waiting period. LiveMint has also described it as a straightforward retirement product: one payment upfront, then a guaranteed income stream that does not depend on stock markets or bonus declarations.
The plan offers two broad structures. Under single life, the annuity is paid only while the policyholder is alive. Under joint life, payments continue as long as either of two covered annuitants survives. The second annuitant must be a spouse or another eligible family member, and the payout is lower than in single-life cover because the insurer is supporting two lives instead of one. LIC allows pension payments monthly, quarterly, half-yearly or annually, giving buyers some control over cash-flow timing.
Eligibility is relatively broad. The minimum purchase price is ₹1.5 lakh, with no upper cap, while entry age runs from 30 to 79 years. The deferment period, the gap between purchase and the start of pension, can be set at 1 to 5 years. That timing matters: LIC’s own rates improve with a longer deferment and with larger purchase amounts, so buyers who can wait longer tend to receive a better guaranteed income. LICNews24 said the updated version of the plan came into effect on October 1, 2024, while third-party guides note that the product remains a core retirement option for people seeking predictable income.
The trade-off is that certainty comes at the expense of flexibility and growth. The pension is fixed when the policy is bought and does not rise with inflation. That means the real value of the income can erode over time. It also means the plan usually appeals more to retirees or near-retirees who already have emergency savings and simply want a portion of their corpus converted into lifetime cash flow. For younger investors, the opportunity cost is significant because the money is locked away instead of being deployed in higher-growth assets.
The death benefit offers some protection during the waiting period. If the policyholder, or the last surviving annuitant under joint life, dies, LIC pays the higher of 105% of the purchase price or the purchase price plus accrued additional benefit after deducting annuity already paid. The plan also allows surrender and a loan facility, although both come with limits and can reduce returns. As with most annuity products, the main attraction is not upside but security: a known payout, fixed from the start, for as long as the annuitant lives.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
