LIC of IndiaPensionSingle Premium

LIC Jeevan Shanti – 850 (Revised) Unique Pension Plan

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Jeevan Shanti (Plan No 850) is LIC’s most popular Single premium, Deferred Annuity plan. Annuity means fixed annual payments or pension. In a deferred annuity, payments start after the deferment period chosen by the investor.

In Jeevan Shanti deferment period can be chosen from one year to 20 years according to the wish of the policyholder. The greatest advantage of Jeevan Shanti is that the annuity rates fixed at the start of the policy are guaranteed throughout the life of the policyholder. In other words, your annuity rates are protected from interest rate fluctuations and market risks throughout the period of the policy.

Both Jeevan Akshay and Jeevan Shanti are pension plans from LIC of India. If so, what is the difference between these two? Let us have a quick comparison.

FeaturesJeevan ShantiJeevan Akshay
AnnuityDeferred Annuity
(Pension starts after the deferment period)
Immediate Annuity
(pension starts immediately after the premium payment)
Pension optionsTwo Options (Single life and Joint life)Ten pension options(Option A to J)
Insurance Cover[110% of purchase price] or [Purchase price + (Guaranteed additions -total annuity paid)] whichever is higherCoverage equal to purchase price for return of purchase price options(F & J),
no coverage for other options

So the key difference is that Jeevan Shanti is a deferred annuity plan whereas Jeevan Akshay is an immediate annuity plan.

Jeevan Shanti -Deferred annuity options available

LIC's Jeevan Shanti - plan 850-benefit pattern

Option 1 – Deferred annuity for Single life: Annuity starts after the completion of the deferment term and continues for the life of the policyholder. On death, higher of the 110% of purchase price or purchase price + Guaranteed additions – total annuity payouts will become payable.

Option 2 – Deferred annuity for Joint Life: Annuity starts after the deferment period and continues as long as either of the annuitants is alive. On the death of the last survivor, higher of the 110% of purchase price or purchase price + Guaranteed additions – total annuity payouts will become payable.

Note: Annuities are always paid in arrears (after the end of the chosen mode of the annuity)

LIC's Jeevan Shanti (Plan 850) -Premium and benefits calculator

Jeevan Shanti premium and benefits online calculator can be used to get more details of the plan. You can give your own details such as age, purchase price, pension option, etc. to get all details of the plan. If you want to have a more extensive calculation of the plan, it is recommended to install the Android app from InsuranceFunda – Smart – All in one calculator from the play store.

Jeevan Shanti (Plan 850) - Guaranteed additions

Guaranteed additions are available during the deferment period of the policy and the calculation is as given below. 

Guaranteed Additions per month=[Purchase Price*Annuity rate (per annum payable monthly)]

In case of death during the deferment period, 110% of the purchase price+accrued guaranteed additions will become payable.

Jeevan Shanti -Eligibility conditions and restrictions

Jeevan Shanti - Eligibility conditions and restrictions
Purchase Price1,50,000No limit
Age at entry30 Years (lbd)79 Years (lbd)
Deferment Period1 Year20 Years
Vesting age31 Years80 Years
Annuity ModeMonthlyQuarterlyHalf-yearlyAnnual
Minimum AnnuityRs. 1,000 per monthRs. 3,000 per quarterRs. 6,000 per half year12,000 per annum
If the annuity is purchased for the benefit of handicapped dependant(Divyangjan) min purchase price shall be Rs.50,000.

Rebates and loadings

In the Jeevan Shanti plan, where the purchase price is high, incentive by way of increase in the tabular annuity rate will be given to the annuity.

Jeevan Shanti - Incentive for high purchase price
Mode of AnnuityFor Rs 1000/- Purchase
5,00,000 to 9,99,99910,00,000 to 24,99,99925,00,000 to 49,99,99950,00,000 to 99,99,9991,00,00,000 and above
Half Yearly1.402.002.352.502.60

Reduction by way of a decrease in annuity rate shall be applicable under deferred annuity for frequencies other than the yearly mode.

Reduction in annuity rates - Pension modes

Yearly Mode
0 %
Hly Mode
- 0 %
Quarterly Mode
- 0 %
Mly Mode
- 0 %

Loan and Surrender

The policy can be surrendered at any time after three months from the date of completion of the policy. Surrender value payable shall depend on the age of the annuitant at the time of surrender of the policy.

Loan facility shall be available after completion of 1 policy year. The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount, subject to a maximum of 80% of surrender value.

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.