LIC Jeevan Shanti Plan 850 Calculator
Non-Linked, Non-Participating Single Premium Annuity Plan
Calculation Results
Annuity Payment Details
| Payment Mode | Annuity Amount |
|---|---|
| Yearly | - |
| Half-Yearly | - |
| Quarterly | - |
| Monthly | - |
Death Benefit (Deferred Annuity)
The LIC Jeevan Shanti Pension Plan 850 is a popular single premium annuity plan from the Life Insurance Corporation of India, designed to offer financial security and assured income during retirement. This plan is notable for its unique feature of providing a lifetime guaranteed pension with multiple annuity options tailored to suit diverse needs.
What is LIC Jeevan Shanti Pension Plan 850?
LIC Jeevan Shanti Plan 850 is a non-linked, non-participating single premium annuity plan. It is designed to provide the policyholder with a steady pension amount either immediately after the lump sum payment or after a deferred period of the policyholder’s choice.
You can choose from various annuity options to receive your pension monthly, quarterly, half-yearly, or annually. The key highlight of this plan is the guaranteed lifetime annuity irrespective of market fluctuations, offering peace of mind in your retirement years.
Key Features of LIC Jeevan Shanti Plan 850
- Single Premium Plan: Pay a one-time lump sum (purchase price) and get annuity benefits.
- Immediate or Deferred Annuity Options: Choose to start pension payments immediately or defer them for a fixed period.
- Lifetime Guaranteed Pension: Pension payments continue throughout your lifetime.
- Multiple Annuity Options: Single life or joint life annuities with variations depending on the nominee’s benefits.
- Flexible Annuity Frequency: Receive pension monthly, quarterly, half-yearly, or annually.
- Return of Purchase Price: In some annuity options, the purchase price or a guaranteed sum is payable to the nominee in case of the policyholder’s death.
- Loan Facility: Loan can be availed after completion of the first policy year under selected options.
- Tax Benefits: Applicable as per prevailing government tax laws.
Understanding Annuity Options
LIC Jeevan Shanti offers a variety of annuity options to meet the different financial needs of retirees:
- Immediate Annuity Options (Payment starts immediately):
- Pension for life, guaranteed for a certain period.
- Pension continues for life, and after death, certain options provide benefits to the nominee.
- Some options increase the pension by 3% annually to counter inflation.
- Joint Life options where pension continues until the survivor among the two lives is alive.
- Deferred Annuity Options (Payment starts after a deferment period of 1 to 20 years):
- Pension starts after the chosen deferment term and continues for life.
- Offers protection of purchase price plus guaranteed additions to the nominee on death.
Eligibility and Policy Details
- Entry Age: Typically 30 years to 80 years.
- Minimum Purchase Price: Rs. 1,50,000 (less for Divyangjan cases).
- Maximum Purchase Price: No upper limit.
- Policy Term: Annuity pays for life.
- Surrender: Available in select options after 3 months.
- Nominee: Can be assigned for joint life and return of purchase price options.
How to Use the LIC Jeevan Shanti Pension Plan 850 Calculator?
The LIC Jeevan Shanti Pension Plan 850 Calculator is an online tool that helps estimate your pension based on:
- Age at entry
- Purchase price (the lump sum amount you invest)
- Deferment period (for deferred annuity plans)
- Annuity option chosen
- Mode of payment (monthly, quarterly, half-yearly, yearly)
By entering these details, the calculator uses official annuity rates and formulas to provide the estimated pension amount you will receive regularly.
Calculation Formula
The guaranteed monthly pension is calculated by applying the applicable annuity rate to the purchase price (single premium). For example, the monthly pension can be found as: Monthly Pension=12Purchase Price×Annuity Rate (yearly)
The annuity rates vary based on the age of the annuitant and the annuity option selected. These rates are fixed at policy inception and are guaranteed throughout the policy term.
Benefits of LIC Jeevan Shanti Pension Plan 850
- Financial Security for Life: Assured monthly pension irrespective of market conditions.
- Peace of Mind: Pension payments continue for life, reducing the worry of outliving your savings.
- Flexible Annuity Modes: Choose the payout frequency that suits your lifestyle.
- Death Benefit: Nominee security with return of purchase price or guaranteed amount.
- Loan Facility: Access to funds if an emergency arises post-policy issuance.
- Tax Efficiency: Taxation benefits as per government norms add extra value to your investment.
Examples of Pension Calculation Using the Calculator
Suppose, a 60-year-old invests Rs. 10,00,000 as a single premium:
| Annuity Option | Pension Frequency | Approximate Pension Amount (Annual) |
|---|---|---|
| Immediate Annuity, Single Life | Yearly | Rs. 90,942 |
| Deferred Annuity, 5 Years Deferment | Yearly | Rs. 1,00,000 approx. (higher due to deferment) |
The pension amounts vary depending on the age and annuity option chosen.
Important Considerations
- No Change in Annuity Option: After policy issuance, the chosen annuity option cannot be changed.
- Purchase Price Protection: In the event of death, the nominee gets the higher of 110% of the purchase price or purchase price plus guaranteed additions minus total annuity paid.
- Surrender Value: Available only under certain conditions and options.
- Market Risk Protection: Annuity rates are guaranteed and do not depend on market fluctuations.
How to Buy LIC Jeevan Shanti Plan 850?
- Visit the nearest LIC branch or buy online through the LIC website or authorized platforms.
- Select the annuity option and mode of pension payment.
- Submit your personal and health details.
- Pay the single premium (purchase price).
- Get your policy document and use the pension calculator for benefit estimation.
Frequently Asked Questions (FAQ)
What is LIC Jeevan Shanti Pension Plan 850?
It is a single premium annuity plan by LIC that provides a guaranteed lifetime pension to the policyholder, with options for immediate or deferred pension payouts.
Who is eligible to buy this plan?
Anyone between the age of 30 and 80 years can buy this plan by paying a lump-sum amount as the purchase price.
Can I choose how often my pension is paid?
Yes, you can select monthly, quarterly, half-yearly, or yearly pension payment modes.
What are the different annuity options available?
There are multiple options such as single life or joint life pensions, with or without return of purchase price to the nominee, and some options with increasing pensions.
Is my pension amount guaranteed?
Yes, the pension rate is fixed at the start and the pension amount is guaranteed to be paid for life.
Summary
The LIC Jeevan Shanti Pension Plan 850 is an excellent option for individuals seeking a secure, guaranteed, and lifelong income post-retirement. It provides flexibility in annuity options and payment modes, ensuring a pension plan tailored to personal preferences.
The LIC Jeevan Shanti Pension Plan 850 Calculator empowers prospective policyholders to make informed decisions by estimating their expected pension benefits based on real parameters like age, purchase price, deferment period, and annuity option.