Important Features of LIC New Jeevan Shanti

LIC Jeevan Shanti plan offers flexibility in the death benefit payout. You can choose either a lump sum amount or installments for 5, 10, or 15 years.

It can also be bought to benefit a disabled person who is directly dependent on you. If you die, the death benefit can be used to purchase an immediate annuity from LIC, creating an instant income source for the dependent to survive.

A higher purchase price (above Rs.5 Lakhs) will earn you extra annuity rates.

The plan does not offer any maturity benefit.

Listed below are some other benefits of the plan, other than the ones previously mentioned:

Option to take the plan for a dependent person

Suppose the person buying the plan has a dependent with a disability. In that case, they can choose the Deferred Annuity for a Single life option, with the dependant as the nominee, with a minimum purchase price of 50,000/-. If the policyholder passes away and the purchase price is less than 1,50,000, the death benefit will be used to buy an immediate annuity for the dependent. The annuity payments to the dependant will be based on prevailing Immediate Annuity rates without any restrictions.

Incentive on High Purchase Price

You get rewards for choosing a higher purchase price in three categories:

Rs 5,00,000 to Rs 9,99,999; 

Rs 10,00,000 to Rs 24,99,999; and 

Rs 25,00,000 and above. 

The incentive depends on the purchase price and how long you wait before starting annuity payments (deferment period). The reward increases as you move to a higher purchase price category and choose a more extended deferment period.

Policy Details about LIC New Jeevan Shanti

Surrender Value
Policyholders can surrender their LIC New Jeevan Shanti policy at any time. They will receive a higher Guaranteed Surrender Value (GSV) or Special Surrender Value upon surrender.
To calculate the GSV, use the following formula:
GSV = (GSV Factor × Purchase Price) - Total Annuity Paid Until Surrender
GSV Factors:

75% if surrendered in the 1st, 2nd, or 3rd policy year.

90% if surrendered in the 4th year or later.

Loan Facility
You can apply for a loan against your policy benefits if you need immediate money. This option becomes available after you have completed 3 months of the policy term. The maximum loan amount is capped at 80% of the surrender value.

Free Look Period
You have a 15 to 30-day free look period to review the policy documents. If you have any concerns, you can report them within this timeframe, and LIC will cancel the policy and refund your purchase price.