LIC's New Jeevan Shanti Plan 858 Calculator

The Life Insurance Corporation of India (LIC) has been a trusted name in the insurance and pension sector for decades. Among its many offerings, the LIC New Jeevan Shanti Plan (Plan No. 858) stands out as a popular choice for individuals seeking a secure and guaranteed lifetime income through a single premium deferred annuity plan.

What is LIC New Jeevan Shanti Plan 858?

The LIC New Jeevan Shanti Plan 858 is a single premium, non-linked, non-participating, deferred annuity plan designed to offer individuals a guaranteed lifetime income after a deferment period. It is a pension plan that requires the payment of a lump sum premium upfront, following which LIC starts paying a regular pension after a chosen deferment period.

This plan caters mainly to those who want to secure a regular income stream for their post-retirement years or seek stable long-term returns on their investment.

The income received from this plan is guaranteed for the annuitant’s lifetime, which provides peace of mind and financial security. The policyholder can also select from different annuity payout options, such as monthly, quarterly, half-yearly, or yearly payments.

Launch and Withdrawal Dates

• Launch Date: The LIC New Jeevan Shanti Plan 858 was officially launched on June 2024.
• Withdrawn Date: This plan has a specific withdrawal date. The original version of Plan 858 was withdrawn effective 1st October 2024. A modified version of the plan, with improvements and changes, became available from this date onwards under Plan No. 758.

These dates are important for consumers to note as they affect policy availability and the applicable terms. While Plan 858 is withdrawn for new business, existing policyholders continue to enjoy their benefits without disruption.

Key Features of LIC New Jeevan Shanti Plan 858

Understanding the notable features of this plan can help potential investors make informed decisions:

• Single Premium: A one-time lump sum payment is required to activate the policy.
• Guaranteed Lifetime Annuity: The plan offers guaranteed income payments for the annuitant’s life after the deferment period.
• Deferred Annuity Option: Customers can choose how long the deferment period should be (minimum 1 year up to a maximum of 12 years subject to the vesting age).
• Multiple Annuity Options: The policyholder can select Single Life or Joint Life annuity options.
• Flexible Annuity Payment Modes: Payment frequencies like monthly, quarterly, half-yearly, or yearly are permitted.
• Death Benefits: In case of the policyholder’s death during the deferment period, death benefits are payable, either the purchase price or a guaranteed amount, whichever is higher.
• Eligibility Age: Entry age ranges from 30 to 79 years, and the vesting age ranges from 31 to 80 years.
• Minimum Purchase Price: The least lump sum amount required is Rs. 1,50,000.
• Tax Benefits: Premiums paid qualify for deductions under Section 80C of the Income Tax Act, and annuity income is taxable under the head ‘Income from Other Sources.’
• Free Look Period: Buyers can return the policy within 15 days for a full refund.
• Surrender: Policy can be surrendered after three months, with surrender value as per policy terms.

How Does LIC New Jeevan Shanti Plan 858 Work?

This is a deferred annuity plan, which means the annuity payments do not start immediately after the lump sum premium payment. Instead, payments start only after a deferment period chosen by the policyholder. The deferment period allows the premium amount to earn guaranteed interest, enhancing the pension amount.

Once the deferment period completes and the annuity starts, LIC guarantees to pay the annuity for the lifetime of the annuitant(s). If the annuity option selected is joint life, the annuity continues till the demise of the last survivor.

Benefits of LIC New Jeevan Shanti Plan 858

• Lifetime Income Security: The most attractive benefit is that the annuity payments continue to be paid throughout the annuitant’s life, irrespective of how long they live.
• Flexible Annuity Options: The plan offers various annuity options to suit individual needs, whether immediate or deferred, single or joint lives.
• Death Benefits: Provides assured payout to legal heirs if the annuitant dies during the deferment period.
• Tax Advantages: Premium payments qualify for tax benefits, contributing to tax-saving investment portfolios.
• Stable Returns: Annuity rates are guaranteed at the time of policy issuance, thus shielding against market fluctuations.
• Peace of Mind: Offers a safe and reliable source of income for retired life or for those planning long-term financial security.

Eligibility Criteria and Policy Details

Using LIC New Jeevan Shanti Plan 858 Calculator

The LIC New Jeevan Shanti Plan 858 Calculator is an online tool offered by LIC and other financial websites that helps individuals estimate the annuity amounts they can receive based on inputs such as:

• Purchase Price (Lump Sum Premium)
• Age at entry
• Deferment period (years)
• Annuity payout frequency (monthly, quarterly, half-yearly, yearly)
• Choice between single or joint life annuity

How to Use the Calculator

1. Enter the lump sum amount you wish to invest (minimum ₹1,50,000).
2. Fill in the entry age.
3. Choose the number of years for the deferment period.
4. Select the annuity frequency (monthly, quarterly, etc.).
5. Opt for single life annuity or joint life annuity as per requirement.
6. The calculator will generate the estimated annuity payment amount corresponding to your inputs.

This helps prospective buyers plan their investment and get an idea about the expected regular income from the policy.

Annuity Options Available

The LIC New Jeevan Shanti Plan 858 offers multiple annuity options to suit different needs:

• Single Life Annuity: Income is paid for the lifetime of the policyholder.
• Joint Life Annuity: Income is paid until the last survivor of two lives (e.g., policyholder and spouse).
• Annuity with Return of Purchase Price: On death, the purchase price is returned to the nominee.
• Annuity Certain for 5, 10 or 15 Years with Life Annuity: Guarantees payments for a minimum fixed period and then for life.

Tax Implications of LIC New Jeevan Shanti Plan 858

• The lump sum premium paid under this plan is eligible for tax deduction under Section 80C of the Income Tax Act, subject to the overall limit.
• The annuity income received is taxable as income under the head “Income from Other Sources”.
• Tax benefits make it a preferred choice for retirement planning and stable income post-retirement.

Why Choose LIC New Jeevan Shanti Plan 858?

• LIC is a government-owned, reliable insurance provider with a wide network.
• This plan suits individuals who want stability and guaranteed returns for their retirement years.
• The plan’s flexibility allows customization of payout modes and deferment periods.
• It is suitable for both salaried and self-employed individuals looking for long-term pension solutions.

Important Notes for Policyholders

• The plan’s annuity rates are guaranteed at inception; thus, the policyholder is assured of fixed returns.
• Policyholders can surrender the policy after three months, but surrender values are subject to terms.
• The plan allows for both online and offline purchase.
• As per the 2024 modifications, the deferment period maximum has been reduced from 12 years to 5 years for new policies under the modified Plan No. 758 after withdrawal of Plan 858.

Frequently Asked Questions

Conclusion

The LIC New Jeevan Shanti Plan 858 is an excellent option for those looking for a secure, guaranteed lifelong income with a one-time investment. Although Plan 858 was withdrawn for new business in October 2024 and replaced with a modified Plan 758, its popularity and benefits have made it a cornerstone for retirement planning in India.

Using the LIC New Jeevan Shanti Plan 858 Calculator helps finetune your investment and pension expectations, making retirement planning simple and transparent. This plan offers peace of mind for the future with the strong backing of LIC, the trusted Indian insurance giant.