Everyone wants to secure their future financially. For this, they invest in assets so that they have enough funds at the time of retirement to live comfortably.
If someone doesn’t want to take risks in the stock market or mutual funds, they can also invest in LIC. LIC has one such excellent scheme, called LIC New Jeevan Shanti. With this scheme, anyone can get a guaranteed pension of one lakh rupees per year after retirement. Let’s tell you more about this LIC plan, its benefits, and how anyone can get an annual pension of up to one lakh rupees by investing in it.
LIC’s Excellent New Jeevan Shanti Plan
The Life Insurance Corporation of India offers several pension plans. One of them is LIC’s New Jeevan Shanti plan. This is a very popular scheme because it guarantees a lifelong pension after retirement. The New Jeevan Shanti plan is an annuity plan where you can determine your pension amount at the time of taking the plan. After that, you will continue to receive the same monthly pension for life. This means that with just one investment, your pension worries will be over.
5-Year Lock-in Period, Two Options Available
The lock-in period for the LIC New Jeevan Shanti plan is five years. This means that after a lump-sum investment, the amount will be locked in for five years. After that, you will receive a monthly pension based on your investment. The minimum investment in this LIC scheme is Rs. 1.5 lakh. However, you can invest as much as you want, and the more you invest, the higher your pension will be.
This LIC plan is available in two options: Deferred Annuity for Individual and Deferred Annuity for Joint Life. This means you can invest in a single plan or choose the joint option.
How do Annuity Plans Work?
The policyholder will continue to receive a pension for life. However, if the policyholder dies for any reason and the annuity amount is separately determined for a single-life plan, the amount deposited in their account will be given to the nominee mentioned in the documents. Meanwhile, if one of the policyholders who opted for the deferred annuity option under the joint scheme passes away, the pension benefits will be given to the other person. However, if both individuals die, the entire amount will be given to the nominee.
Benefits of the Policy
The age limit for this LIC policy is 30 to 79 years. Although this plan does not include any risk cover, it still offers several benefits, which contribute to its popularity. For example, after taking this LIC pension plan, you can surrender it at any time. Furthermore, once you invest, you will receive a pension for the desired period. That is, you can choose to receive your pension monthly, or you can opt for a lump sum every three months, every six months, or annually.
How to get a ₹1 lakh annual pension?
Considering LIC’s new Jeevan Shanti plan, if a 55-year-old individual invests ₹11 lakh in this plan and holds it for five years, they will receive a pension of ₹1 lakh per year. This one-time investment will yield a pension of over ₹1,01,880 per year. The six-monthly pension will be ₹49,911, and the monthly pension will be ₹8,149. Even with a minimum investment amount of ₹1.5 lakh, you can receive a guaranteed pension of ₹1,000. Overall, choosing this policy as a retirement scheme can prove beneficial.