LIC Jeevan Shanti Plan 850 Calculator
What is LIC Jeevan Shanti Pension Plan 850?
The LIC Jeevan Shanti Pension Plan 850 is a well-known single premium pension policy offered by the Life Insurance Corporation of India (LIC). It is specially designed to provide guaranteed lifelong income and financial stability during retirement years.
Introduction to LIC Jeevan Shanti Plan 850
LIC Jeevan Shanti Plan 850 is a non-linked and non-participating annuity plan that offers a secure pension income through a one-time premium payment. Since the policy is non-linked, its returns are not affected by stock market fluctuations, making it a stable retirement planning option for conservative investors.
The plan allows policyholders to receive guaranteed annuity income either:
- Immediately after purchasing the policy, or
- After a deferred period selected by the policyholder
This flexibility makes the plan suitable for both individuals nearing retirement and younger investors planning their future pension income in advance.
Key Highlights of LIC Jeevan Shanti Plan 850
- Single premium pension policy
- Guaranteed lifelong annuity income
- Non-linked and non-participating structure
- Flexible deferred annuity options
- Suitable for retirement planning
- Multiple annuity payout choices
- Joint life annuity options available
Purpose of LIC Jeevan Shanti Plan 850
The primary objective of LIC Jeevan Shanti Plan 850 is to help individuals build a reliable pension income stream that continues throughout life. The plan aims to provide:
- Financial independence after retirement
- Stable and predictable pension income
- Protection against longevity risk
- Flexible pension planning for individuals and couples
The plan became popular because of its guaranteed annuity payouts and flexibility in choosing the pension commencement period according to individual retirement goals.
Key Features of LIC Jeevan Shanti Plan 850
Single Premium Pension Plan
LIC Jeevan Shanti Plan 850 is a single premium annuity policy where the policyholder pays a one-time lump sum amount known as the purchase price to receive lifelong pension benefits.
Immediate and Deferred Annuity Options
The plan offers flexibility to start pension payments immediately or after a selected deferment period according to retirement planning needs.
Guaranteed Lifetime Pension
Once the annuity starts, the pension amount remains guaranteed and continues throughout the lifetime of the annuitant.
Multiple Annuity Choices
Policyholders can choose from different annuity options, including:
- Single life annuity
- Joint life annuity
- Return of purchase price options
- Increasing annuity options
This flexibility helps individuals select a pension structure suitable for their financial goals.
Flexible Pension Payment Frequency
Annuity payouts can be received in different modes:
- Monthly
- Quarterly
- Half-yearly
- Yearly
Return of Purchase Price Facility
Under selected annuity options, the purchase price or a guaranteed amount is paid back to the nominee after the death of the annuitant.
Loan Facility
Loan benefits are available under certain annuity options after completion of one policy year, subject to LIC rules.
Tax Benefits
The plan qualifies for tax benefits according to prevailing provisions of the Income Tax Act.
Understanding Annuity Options in LIC Jeevan Shanti Plan 850
LIC Jeevan Shanti provides multiple annuity choices to suit different retirement requirements.
Immediate Annuity Options
Under immediate annuity, pension payments begin immediately after purchasing the policy.
Features include:
- Lifetime pension income
- Guaranteed annuity for specific periods under selected options
- Pension continuation benefits for nominees
- Joint life pension for spouses
- Increasing annuity options with yearly increment benefits
Some annuity options also provide a 3% annual increase in pension to help manage inflation.
Deferred Annuity Options
In deferred annuity plans, pension payments start after a selected deferment period ranging from 1 to 20 years.
Main benefits include:
- Guaranteed pension after deferment
- Death benefit during deferment period
- Return of purchase price with guaranteed additions under selected options
- Long-term retirement planning flexibility
Eligibility and Policy Details
| Parameter | Details |
|---|---|
| Entry Age | Generally 30 years to 80 years |
| Minimum Purchase Price | ₹1,50,000 |
| Maximum Purchase Price | No Limit |
| Policy Duration | Lifelong annuity |
| Loan Facility | Available under selected options |
| Surrender Facility | Available in selected annuity options |
| Nomination Facility | Available |
Eligibility Criteria for LIC Jeevan Shanti Plan 850
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age (Immediate Annuity) | 30 Years | 100 Years (Option F) 85 Years for other options |
| Entry Age (Deferred Annuity) | 30 Years | 79 Years |
| Purchase Price | ₹1,50,000 | No Upper Limit |
| Purchase Price (Divyangjan) | ₹50,000 | No Upper Limit |
| Vesting Age | 31 Years | 80 Years |
| Deferment Period | 1 Year | 20 Years |
| Minimum Monthly Annuity | ₹1,000 | No Upper Limit |
| Minimum Quarterly Annuity | ₹3,000 | No Upper Limit |
| Minimum Half-Yearly Annuity | ₹6,000 | No Upper Limit |
| Minimum Yearly Annuity | ₹12,000 | No Upper Limit |
How to Use LIC Jeevan Shanti Plan 850 Calculator?
The LIC Jeevan Shanti Pension Calculator helps users estimate their pension amount based on selected annuity options and investment details.
Details Required in the Calculator
The calculator generally asks for:
- Age at entry
- Purchase price amount
- Deferred period (if applicable)
- Selected annuity option
- Pension payment frequency
What the Calculator Shows
After entering the details, the calculator estimates:
- Monthly or yearly pension amount
- Guaranteed annuity payouts
- Deferred pension projections
- Death benefit values under selected options
This helps policyholders compare different annuity choices and plan retirement income effectively.
Pension Calculation Formula
The annuity amount is calculated by applying LIC’s annuity rate to the purchase price invested under the plan.
The pension amount mainly depends on:
- Age of the annuitant
- Selected annuity option
- Purchase price invested
- Deferred period chosen
- Pension payment frequency
The annuity rates are fixed at the beginning of the policy and remain guaranteed throughout the annuity period, ensuring stable retirement income.
Benefits of LIC Jeevan Shanti Pension Plan 850
Lifetime Financial Security
The plan provides guaranteed pension income throughout the lifetime of the annuitant, ensuring stable retirement income regardless of market fluctuations.
Peace of Mind After Retirement
Since the annuity continues for life, policyholders can enjoy retirement without worrying about exhausting their savings.
Flexible Pension Payout Options
Policyholders can select the annuity payout frequency according to their financial needs and lifestyle preferences:
- Monthly
- Quarterly
- Half-yearly
- Yearly
Death Benefit Protection
Under selected annuity options, the nominee receives the purchase price or guaranteed benefits after the death of the annuitant, helping provide financial protection to family members.
Loan Facility
Certain annuity options allow policyholders to avail loan facilities after policy issuance, offering liquidity support during emergencies.
Tax Benefits
The plan qualifies for tax advantages according to prevailing government tax regulations, adding additional value to retirement planning.
Example of Pension Calculation Using LIC Jeevan Shanti Calculator
Suppose a 60-year-old individual invests ₹10,00,000 as a single premium under LIC Jeevan Shanti Plan 850.
| Annuity Option | Pension Mode | Approximate Annual Pension |
|---|---|---|
| Immediate Annuity – Single Life | Yearly | ₹90,942 approx. |
| Deferred Annuity – 5 Years Deferment | Yearly | ₹1,00,000 approx. |
The pension amount varies depending on:
- Age of the annuitant
- Deferred period selected
- Purchase price invested
- Annuity option chosen
- Pension payout frequency
Important Points to Remember
Annuity Option Cannot Be Changed
Once the policy is issued, the selected annuity option cannot be modified later.
Protection of Purchase Price
In case of death under eligible options, the nominee receives the applicable death benefit, which may include:
- Purchase price refund
- Guaranteed additions
- Higher guaranteed value according to policy terms
Surrender Facility Availability
Surrender benefits are available only under selected annuity options and specific conditions prescribed by LIC.
Protection From Market Volatility
Since LIC Jeevan Shanti Plan 850 is a non-linked and non-participating policy, annuity rates remain fixed and unaffected by market performance.
How to Buy LIC Jeevan Shanti Plan 850?
The policy can be purchased through:
- LIC branch offices
- LIC official website
- Authorised LIC agents and platforms
Basic Buying Process
- Choose the desired annuity option.
- Select the pension payout mode.
- Submit personal and medical details if required.
- Pay the single premium purchase price.
- Receive the policy document and annuity schedule.
Before purchasing, policyholders can use the LIC Jeevan Shanti Plan 850 Calculator to estimate pension income, compare annuity options, and plan retirement finances more effectively.
Frequently Asked Questions (FAQ)
What is LIC Jeevan Shanti Pension Plan 850?
LIC Jeevan Shanti Plan 850 is a single premium annuity policy offered by LIC that provides guaranteed lifelong pension income through immediate or deferred annuity options.
Who can purchase LIC Jeevan Shanti Plan 850?
Individuals between 30 years and 80 years of age can purchase the policy by paying a one-time lump sum amount as the purchase price, subject to LIC eligibility conditions.
Can I choose the frequency of pension payments?
Yes, the plan allows policyholders to receive pension payments through different payout modes:
- Monthly
- Quarterly
- Half-yearly
- Yearly
What annuity options are available under the plan?
LIC Jeevan Shanti Plan 850 offers several annuity choices, including:
- Single life annuity
- Joint life annuity
- Return of purchase price options
- Increasing annuity options
These options allow policyholders to customise retirement income according to their financial needs.
Is the pension amount guaranteed?
Yes, the annuity rate is fixed at the time of policy purchase, and the pension amount remains guaranteed throughout the lifetime of the annuitant.
Conclusion
LIC Jeevan Shanti Pension Plan 850 is considered one of LIC’s reliable retirement solutions for individuals looking for stable and guaranteed lifelong pension income. The plan combines flexibility, financial security, and multiple annuity choices, making it suitable for various retirement planning goals.
The LIC Jeevan Shanti Plan 850 Calculator further helps users estimate pension payouts based on important factors such as:
- Age
- Purchase price
- Deferred period
- Annuity option selected
- Pension payment frequency
By using the calculator, prospective policyholders can compare pension options, understand expected annuity income, and make informed retirement planning decisions with greater confidence.
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