(LIC) has recently launched a new non-linked, non-participating, individual, single-premium deferred annuity scheme — New Jeevan Shanti plan. The annuity rates are guaranteed at the inception of the policy and annuities are payable post deferment period throughout the life time of annuitants, the insurer said in a statement.
There are two annuity options available — deferred annuity for single life, and deferred annuity for joint life.
Under the deferred annuity for single life plan, the annuity payments shall be made in arrears for as long as the annuitant is alive after the deferment period. Customer can chosose the mode of payments. In case of unfortunate death, during or after the deferment period, death benefit will be payable to nominee of the annuitant.
Under the deferred annuity for joint life, the annuity payments will be made in arrears for as long as the primary annuitant and/or the secondary annuitant is alive depending on the mode chosen and after the deferment period. On the death of the last survivor, during or after the deferment period, the death benefit will be payable to the nominee, LIC said. The joint life annuity can be taken between any two lineal descendant/ascendant of a family (grandparent, parent, children, grandchildren) or spouse or siblings.
Cost: The plan can be bought at a minimum payment of ₹1.5 lakh. The modes of annuity available are yearly, half-yearly, quarterly, and monthly. The minimum annuity is ₹12,000 per annum while there is no ceiling on maximum purchase price. An incentive for purchase price of ₹5,00,000 and above is available by way of increase in the annuity rate .
The plan is available for persons aged between 30 and 79. The minimum deferment period is one year and the maximum deferment period 12 years, subject to maximum vesting age of 80.