LIC Jeevan Shanti: The Life Insurance Corporation of India recently launched a new pension plan - Jeevan Shanti. LIC says on its official website: "This is a single premium plan wherein the Policyholder has an option to choose an Immediate or Deferred annuity." "The annuity rates are guaranteed at the inception of the policy for both Immediate and Deferred Annuity and annuities are payable throughout the life time of Annuitant(s)," it adds.  Annuity is the annual income the subscriber gets in return for a lump sum, or money s/he has saved with an insurer.

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Under Jeevan Shanti, one can make a one-time investment for a guaranteed life-long income. 

The scheme comes with several annuity options. For immediate annuity, available options are:
- Option A: Immediate Annuity for life.
- Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter.
- Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter.
- Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.
- Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.
- Option F: Immediate Annuity for life with return of Purchase Price.
- Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a.
- Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant.
-Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives. 
- Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

Under Deferred Annuity, available options are:

- Option 1: Deferred annuity for Single life
- Option 2: Deferred annuity for Joint life

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Eligibility: Minimum Purchase Price is Rs.1,50,000 subject to minimum Annuity as specified below. There is no limit on the maximum purchase price. 

Minimum Age at Entry: 30 years (completed)

Minimum Annuity: Rs 1000/month. 

Calculation: Under Jeevan Shanti, if you make a one-time investment of Rs 10 lakh at the age of 45, the annuity you will receive after 20 years is Rs 206,600 (over Rs 17,000 per month). (See official illustration chart below):

Annuity Option Annuity Amount (Rs.)
Immediate Annuity:  
Option A: Immediate Annuity for life 74,300
Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter 74,200
Option C: Immediate Annuity with guaranteed period of 10 years and life thereafter 73,900
Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter 73,500
Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter 72,900
Option F: Immediate Annuity for life with return of Purchase Price 65,400
Option G: Immediate Annuity for life increasing at a simple rate of 3% p.a 56,200
Option H: Joint Life Immediate Annuity for life with a provision for 50% of the annuity to the Secondary Annuitant on death of the Primary Annuitant 71,100
Option I: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives 68,300
Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor 64,900
Deferred Annuity:  
Option 1: Deferred annuity for Single life 2,06,600
Option 2: Deferred annuity for Joint life 2,27,200

*Source: Licindia.in

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Death Benefit: In case of Deferred Annuity, it will be:

- Purchase Price plus Accrued Guaranteed Additions (as specified below) minus Total annuity payments made till date of death, if any

- Or 110% of Purchase Price. 

(*Disclaimer: Read the offer document carefully before making an investment in the Jeevan Shanti scheme. This article is for information purpose only)