Are you looking for a guaranteed source of income in the future? Do you want to plan for your retirement without having to worry about financial insecurity? If yes, then Jeevan Shanti might be the right investment option for you. Jeevan Shanti is a pension plan offered by the Life Insurance Corporation of India (LIC), which provides a guaranteed income for life.
The plan is suitable for individuals who want to secure their financial future and generate a regular income post-retirement. In fact, anyone who is above 30 years of age can invest in Jeevan Shanti and avail the benefits it offers. This means both self-employed individuals and people working in the private or government sector can opt for the plan.
Furthermore, the plan offers different modes of pension payouts, such as monthly, quarterly, half-yearly, and annual, which makes it convenient for individuals to choose the payout option that suits their requirement. So, if you want to secure your financial future and enjoy a regular stream of income post-retirement, then investing in Jeevan Shanti could be a wise decision.
Eligibility criteria for Jeevan Shanti investment
Jeevan Shanti is a popular investment option in India that provides financial security to individuals after retirement. To invest in Jeevan Shanti, one must meet the following eligibility criteria:
- The applicant must be an Indian citizen or a Non-Resident Indian (NRI).
- The minimum age of the applicant should be 30 years, and the maximum age should be 100 years.
- The applicant should have a minimum investment amount of INR 1,50,000.
- The investment amount should not exceed INR 1.5 crores for a single policy.
It must be noted that Jeevan Shanti is primarily designed for senior citizens or retirees who seek regular income after retirement. The plan provides a guaranteed income stream at a fixed rate for the rest of the policyholder’s life.
Benefits of investing in Jeevan Shanti
Some of the benefits of investing in Jeevan Shanti include:
- Guaranteed income stream for life
- No market risks involved
- Flexible annuity payout options
- Tax benefits under Section 80C of the Income Tax Act, 1961
Jeevan Shanti investment options
Jeevan Shanti offers two investment options to suit the diverse needs of investors:
- Immediate Annuity Plan: In this option, the policyholder makes a lump-sum payment to the insurance provider in exchange for regular income payments for life.
- Deferred Annuity Plan: In this option, the policyholder makes a lump-sum payment to the insurance provider, which is deferred for a specific period. After the deferment period, the policyholder will start receiving regular income payments for life.
Conclusion
Jeevan Shanti is an excellent investment option for retirees and senior citizens who seek financial security and a regular income stream. The plan provides a guaranteed income for life, and there are no market risks involved. To invest in Jeevan Shanti, one must meet certain eligibility criteria, and the plan offers various investment options to suit the diverse needs of investors.
| Eligibility | Criteria |
|---|---|
| Nationality | Indian Citizen or Non-Resident Indian |
| Age | 30 years to 100 years |
| Investment Amount | minimum INR 1,50,000 and maximum INR 1.5 crores |
Investing in Jeevan Shanti is an excellent way to secure your financial future and enjoy a regular income stream for life.
Benefits of Jeevan Shanti for retirees
Jeevan Shanti is a life insurance policy offered by the Life Insurance Corporation (LIC) of India. It is an annuity plan that offers a guaranteed fixed income for life. This means you pay a lump sum premium to the insurance company and, in return, you receive a fixed amount of money at regular intervals for the rest of your life or a fixed period.
- Jeevan Shanti offers a secure and reliable source of income for retirees. It provides peace of mind by removing the uncertainty of market fluctuations and the risk of outliving your savings.
- The plan offers a high rate of return that is not dependent on market performance. The rate of return is fixed and guaranteed for the entire term of the policy. This makes it an attractive option for retirees who are looking for a safe and steady stream of income.
- It offers a range of annuity options that cater to the individual needs of retirees. The plan allows you to choose between immediate annuity and deferred annuity depending on your situation. The deferred annuity option allows you to save for the future and build a corpus for retirement while the immediate annuity option provides an income stream immediately after the lump sum payment.
Jeevan Shanti is an attractive option for retirees as it offers a range of benefits that cater to their individual needs. The plan provides a secure and reliable source of income, a high rate of return, and a range of annuity options. With Jeevan Shanti, retirees can enjoy their golden years with peace of mind and financial security.
| Annuity Option | Features |
|---|---|
| Immediate Annuity | Income starts immediately |
| Deferred Annuity | Income starts after a fixed period |
| Life Annuity | Income for life |
| Joint Life Annuity | Income for life of the annuitant and spouse |
The table above shows the different annuity options available under Jeevan Shanti. Each option has its own features and benefits that cater to the different needs of retirees. By choosing the right option, retirees can ensure that they have a secure and reliable source of income for the rest of their life or a fixed period.
Minimum and Maximum Investment Amount in Jeevan Shanti
If you’re considering investing in Jeevan Shanti, it’s important to understand the minimum and maximum investment amount. Here’s what you need to know:
- The minimum investment amount for Jeevan Shanti is ₹1,00,000 (one lakh rupees).
- There is no maximum investment limit for Jeevan Shanti.
- However, the maximum pension limit will depend on the amount of annuity purchased by the policyholder.
It’s important to note that the minimum and maximum investment amounts for Jeevan Shanti may vary depending on the policy terms and conditions. It’s always a good idea to speak with a financial advisor to determine the best investment strategy for your individual needs.
Factors that Affect the Investment Amount
There are several factors that will impact the investment amount required for Jeevan Shanti:
- Age of the policyholder
- Gender of the policyholder
- Amount of pension required
- Type of annuity purchased
- Single or joint annuity
- Term of the annuity
It’s important to carefully consider each of these factors before investing in Jeevan Shanti, as they will impact the amount of pension you receive.
Pension Amounts based on Investment Amount
The following table shows the pension amounts that a policyholder can expect based on their investment amount:
| Investment Amount | Annual Pension |
|---|---|
| ₹1,00,000 – ₹1,49,999 | ₹6,500 – ₹10,000 |
| ₹1,50,000 – ₹4,99,999 | ₹10,000 – ₹54,000 |
| ₹5,00,000+ | ₹54,000+ |
It’s important to note that the pension amounts listed in the table are approximate and may vary depending on the policyholder’s individual circumstances. It’s always best to consult with a financial advisor to determine the expected pension amount based on your individual investment amount and policy terms.
Tax implications of investing in Jeevan Shanti
Investing in Jeevan Shanti offers a wide variety of benefits, one of them being the tax implications. Here is everything you need to know:
- Exemption under Section 10(10D): The maturity proceeds of Jeevan Shanti are exempted from tax under Section 10(10D) of the Income Tax Act, 1961. This means that the policyholder does not have to pay any tax on the amount they receive upon maturity or surrender of the policy.
- Tax implications of annuity payments: The annuity payments received by the policyholder are subject to tax as per their income tax slab. The insurance company deducts TDS (Tax Deducted at Source) on the annuity payments made to the policyholder.
- Surrendering the policy before maturity: If the policyholder surrenders the policy before maturity, the surrender value is taxable as income.
It is important to note that the tax implications of investing in Jeevan Shanti are subject to change based on the latest amendments made to the Income Tax Act, 1961. It is advisable to consult a tax expert before investing in any insurance policy.
Here is a table summarizing the tax implications of investing in Jeevan Shanti:
| Type of payment | Tax implications |
|---|---|
| Maturity/surrender value | Exempt under Section 10(10D) |
| Annuity payments | Taxable as per income tax slab |
| Surrender before maturity | Taxable as income |
Investing in Jeevan Shanti can provide various tax benefits that can be optimized as per your financial plans. So, if you’re looking for an insurance plan that offers stable returns, tax benefits, and long-term security, Jeevan Shanti is the perfect investment decision for you.
Jeevan Shanti vs other pension plans
Jeevan Shanti is a popular pension plan offered by Life Insurance Corporation (LIC) of India. It is a non-linked, non-participating plan that guarantees regular payouts for the entire lifetime of the policyholder. Here, we compare Jeevan Shanti with other pension plans to help you make an informed decision.
Advantages of Jeevan Shanti
- Jeevan Shanti offers guaranteed returns, which means the policyholder knows exactly how much they will receive as pension.
- The policyholder can choose the frequency of payouts – monthly, quarterly, half-yearly, or yearly.
- The payouts are not affected by market fluctuations, making it a safe investment option.
- Jeevan Shanti offers tax benefits on premiums paid and payouts received.
- In the event of the policyholder’s death, the nominee will receive the entire invested amount along with accumulated interest.
Jeevan Shanti vs National Pension Scheme (NPS)
NPS is a government-sponsored pension scheme that offers market-linked returns. Here are the key differences between Jeevan Shanti and NPS:
- Jeevan Shanti offers guaranteed returns, while NPS returns are market-linked and subject to market fluctuations.
- Jeevan Shanti’s payouts are not affected by market volatility, while NPS returns may be negatively impacted by market conditions.
- Jeevan Shanti can be purchased by anyone, while NPS is restricted to Indian citizens and NRIs.
Jeevan Shanti vs Atal Pension Yojana (APY)
APY is a government-backed pension scheme aimed at unorganised sector workers. Here is how Jeevan Shanti compares with APY:
- Jeevan Shanti offers guaranteed returns, while APY returns are market-linked and subject to market fluctuations.
- Jeevan Shanti offers greater flexibility in terms of payout frequency and is not restricted to a fixed amount per month, unlike APY.
- Jeevan Shanti can be purchased by anyone, while APY is only open to unorganised sector workers.
Jeevan Shanti vs Employee Provident Fund (EPF)
EPF is a government-backed retirement savings scheme for salaried employees. Here are the differences between Jeevan Shanti and EPF:
| Jeevan Shanti | EPF |
|---|---|
| Offers guaranteed returns | Returns are subject to market conditions |
| Can be purchased by anyone | Only available to salaried employees |
| Payout frequency can be chosen by the policyholder | Payout frequency is fixed |
While EPF offers tax benefits, Jeevan Shanti offers greater flexibility and is not limited to salaried employees. Additionally, Jeevan Shanti guarantees returns, which provides greater security for those nearing retirement.
Surrender value and premature exit rules of Jeevan Shanti
Jeevan Shanti is a popular investment option among people looking for regular income after retirement. But what happens if you want to exit the policy before its maturity? In this section, we will discuss the surrender value and premature exit rules of Jeevan Shanti.
- What is Surrender Value?
Surrender value is the amount that the policyholder receives if they decide to exit the policy before its maturity. The surrender value depends on the amount invested, the policy term, and the time of exit. - Surrender Value Calculation
The surrender value of Jeevan Shanti is calculated as the present value of the remaining annuity instalments. The present value is calculated using a discount rate specified by the company. - Premature Exit Rules
Premature exit from Jeevan Shanti is allowed under certain circumstances. The exit rules vary depending on the type of policy. Here are the rules: - Single Premium Policies – The policyholder can exit the policy any time after 1 year. The surrender value will be paid after deducting the applicable charges.
- Regular Premium Policies – The policyholder can exit the policy any time after the first 5 years. The surrender value will be paid after deducting the applicable charges.
- Joint Life Policies – Premature exit is allowed only if both the policyholder and the nominee die during the policy term. In such cases, the surrender value will be paid to the nominee.
In case of premature exit, the surrender value is calculated as described above. The surrender value is subject to applicable charges, which may vary depending on the policy terms and conditions. It is important to understand the surrender value rules before investing in Jeevan Shanti to make an informed decision.
| Policy Term | Surrender Value | Applicable Charges |
|---|---|---|
| 1 year – 3 years | 70% of the premium paid | Different charges apply based on the policy term and the company |
| 3 years – 5 years | 90% of the premium paid | Different charges apply based on the policy term and the company |
| Above 5 years | 98% of the premium paid | Different charges apply based on the policy term and the company |
As seen in the table above, the surrender value varies depending on the policy term and the time of exit. It is advisable to check the surrender value rules before investing in Jeevan Shanti and make an informed decision.
Documents Required for Jeevan Shanti Investment
Investing in Jeevan Shanti requires you to submit certain documents to purchase the annuity plan. Here are the important documents you need to keep handy:
- Identity proof: One of the following – Aadhar card, PAN card, passport, driving license or voter ID card.
- Address proof: One of the following – Aadhar card, passport, electricity bill, landline telephone bill, or voter ID card.
- Age proof: One of the following – birth certificate, Aadhar card, PAN card, or passport.
Documents Required for Non-Resident Indians (NRIs)
If you are a Non-Resident Indian, you need to furnish additional documents along with the ones mentioned above. They are:
- Copy of Passport, visa, and work permit (if the NRI is working abroad) or any other valid document supporting the NRI status.
- Photographs of the annuitant.
- PAN card or Form 60/61.
- Permanent Account Number (PAN) Card/ Form 60/ 61 (if the annuity amount is above Rs.50, 000).
Payment Options for Jeevan Shanti Plan
Once you have submitted the necessary documents, you can choose from the available payment options for purchasing the Jeevan Shanti plan. The payment options are:
- Single Premium Payment: You can pay a lump sum amount for the Jeevan Shanti plan.
- Multiple Premium Payment: You can pay premiums for a specific term.
- Installment Payment: You can opt for monthly, quarterly, half-yearly, or yearly installment payments.
Jeevan Shanti Annuity Options and Rates
The annuity options and rates will vary depending on the payment option chosen, age, and gender of the annuitant. Here’s a table showcasing the annuity rates for a single premium payment and monthly payout option for different ages and genders:
| Age | Male Annuity Rate | Female Annuity Rate |
|---|---|---|
| 30 | 8589 | 8533 |
| 40 | 8824 | 8639 |
| 50 | 9447 | 9047 |
| 60 | 11259 | 10582 |
| 70 | 14680 | 12855 |
| 80 | 24737 | 20195 |
Note: Annuity rates are subject to change and are indicative only.
Who can invest in Jeevan Shanti? FAQs
1. Can NRIs invest in Jeevan Shanti?
Yes, Non-Resident Indians (NRIs) can invest in Jeevan Shanti. However, the payment must be made in Indian Rupees from their NRE/NRO/FCNR(B) account.
2. Is there any age limit for investing in Jeevan Shanti?
Yes, there is an age limit for investing in Jeevan Shanti. The minimum age requirement is 30 years, and there is no upper age limit.
3. Do I need to have a PAN card for investing in Jeevan Shanti?
Yes, you need to have a PAN card for investing in Jeevan Shanti. It is mandatory as per the Income Tax laws.
4. Can I invest in Jeevan Shanti through any insurance agent?
No, Jeevan Shanti is a single premium immediate annuity plan, and it can only be bought online or directly from LIC.
5. What is the minimum and maximum investment amount in Jeevan Shanti?
The minimum investment amount in Jeevan Shanti is Rs. 1,50,000, and there is no maximum investment limit.
6. Can I surrender or exit from Jeevan Shanti before the maturity period?
No, you cannot surrender or exit from Jeevan Shanti before the maturity period. This policy is non-reversible and non-commutable.
7. Are there any tax benefits of investing in Jeevan Shanti?
Yes, investing in Jeevan Shanti offers tax benefits under Section 80CCC of the Income Tax Act. However, the annuity income received from this policy is taxable as per the Income Tax laws.
8. Is medical examination required for investing in Jeevan Shanti?
No, medical examination is not required for investing in Jeevan Shanti as it is a non-linked, non-participating plan.
Closing: Who can invest in Jeevan Shanti
Thanks for taking the time to read about who can invest in Jeevan Shanti. If you are interested in buying this plan, please visit the official website of LIC or any authorized agent for further details. We hope this article has helped you understand the eligibility criteria and FAQs related to this policy. Please keep visiting our website for more informative articles related to insurance and finance.