Benefits of LIC New Jeevan Shanti Plan
Building a brand from scratch is no easy task.
It requires a clear vision, a unique identity, and a solid strategy.
But what about securing your financial future?
As a startup founder, you’re likely so engrossed in your business that retirement planning might be the last thing on your mind.
But here’s the thing.
Retirement planning is crucial, and the sooner you start, the better.
Enter the LIC New Jeevan Shanti Plan.
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This plan is a non-linked, non-participating, single premium annuity plan.
It’s designed to offer a combination of income and financial security post-retirement.
Whether you’re looking for an immediate or deferred annuity, this plan has got you covered.
In this article, we’ll delve into the benefits of the LIC New Jeevan Shanti Plan.
We’ll explore how it can contribute to your financial planning, especially in the context of retirement planning.
So, if you’re a startup founder looking to secure your financial future, keep reading.
This guide is for you.
Understanding the LIC New Jeevan Shanti Plan
Before we discuss the benefits, let’s first understand the LIC New Jeevan Shanti Plan.
This plan is a product of the Life Insurance Corporation of India (LIC), one of the most trusted brands in the insurance sector.
It’s a single premium plan, meaning you make a one-time investment.
The plan then provides a guaranteed income for life, ensuring financial security during your retirement years.
But that’s not all.
The plan also offers a host of other features designed to cater to your specific needs.
Let’s take a closer look.
What is the LIC New Jeevan Shanti Plan?
The LIC New Jeevan Shanti Plan is an annuity plan.
In simple terms, an annuity plan is a contract between you and an insurance company.
You make a lump-sum payment or a series of payments.
In return, the insurer promises to make periodic payments to you, either immediately or at some future date.
The LIC New Jeevan Shanti Plan offers both immediate and deferred annuity options.
This means you can choose to start receiving payments right away or at a later date, depending on your financial goals.
Key Features of the Plan
The LIC New Jeevan Shanti Plan comes packed with features.
Here are some key ones:
- Single Premium: You pay a one-time premium, and the plan takes care of the rest.
- Annuity Options: You can choose between immediate and deferred annuity based on your needs.
- Joint Life Option: The plan offers a joint life option, which provides financial security for your spouse as well.
- Annuity Payout Frequency: You can choose the frequency of your annuity payouts—monthly, quarterly, half-yearly, or yearly.
- Loan Facility: The plan offers a loan facility after the completion of one policy year.
- Death Benefits: In case of your untimely death, the plan provides benefits for the nominee.
- Tax Benefits: The plan offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.
These features make the LIC New Jeevan Shanti Plan a comprehensive retirement solution.
But the benefits don’t stop here.
Let’s delve deeper into how this plan can benefit you.
Immediate vs. Deferred Annuity: Which One Suits You?
One key decision you’ll need to make when purchasing the LIC New Jeevan Shanti Plan is choosing between immediate and deferred annuities.
But what does this mean?
And how do you decide which one is right for you?
Let’s break it down.
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Immediate Annuity Explained
With an immediate annuity, you start receiving payments right after you make your premium payment.
This can be a good option if you’re already retired or close to retirement.
Here’s how it works:
- You make a one-time premium payment to LIC.
- LIC starts making regular payments to you immediately.
- These payments continue for the rest of your life.
The advantage of an immediate annuity is that you start receiving income right away.
This can provide a sense of financial security, especially if you don’t have other sources of income in retirement.
However, the annuity rates for immediate annuity are generally lower than those for deferred annuity.
Deferred Annuity Explained
With a deferred annuity, you make your premium payment now, but the payouts start at a later date.
You can choose when you want to start receiving payments.
This can be a good option if you’re still some years away from retirement.
Here’s how it works:
- You make a one-time premium payment to LIC.
- LIC invests this money, and it grows over time.
- You start receiving regular payments from a specified future date.
The advantage of a deferred annuity is that it allows your investment to grow over time.
This can result in higher annuity rates and a more significant income in retirement.
However, you’ll need to have other sources of income until the payouts start.
So, which one should you choose?
It depends on your circumstances and financial goals.
Consider factors like your current age, retirement plans, and financial needs.
You may also want to consult with a financial advisor to help you make the best decision.
Financial Security with LIC New Jeevan Shanti Plan
Financial security in retirement is a common concern for many, especially for startup founders.
You’ve worked hard to build your business.
Now, it’s time to ensure that you can enjoy the fruits of your labor in your golden years.
That’s where the LIC New Jeevan Shanti Plan comes in.
How the Plan Provides Peace of Mind
The LIC New Jeevan Shanti Plan is designed to provide a steady income stream post-retirement.
This means that you can look forward to a guaranteed income for life.
No more worrying about outliving your savings or relying solely on volatile market investments.
With this plan, you can have peace of mind knowing that you’ll have a regular income in your retirement years.
This can make a huge difference in your quality of life.
You can focus on enjoying your retirement rather than worrying about finances.
You’ve earned it!
The Role of Annuity in Retirement Planning
An annuity is a critical component of retirement planning.
It’s a financial product that provides regular income payments in return for an initial investment.
Think of it as a sort of insurance against outliving your savings.
With the LIC New Jeevan Shanti Plan, you can choose between immediate and deferred annuity, depending on your needs and retirement goals.
This flexibility allows you to tailor your retirement income to your specific circumstances.
And with LIC’s reputation for reliability and customer service, you can be confident in your choice.
So, as you plan for your retirement, consider the role an annuity can play in securing your financial future.
The Benefits of Choosing LIC New Jeevan Shanti Plan
Choosing the LIC New Jeevan Shanti Plan comes with a host of benefits.
These benefits are designed to provide you with financial security and peace of mind in your retirement years.
Let’s take a closer look at some of these benefits.
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Guaranteed Income for Life
One of the key benefits of the LIC New Jeevan Shanti Plan is the guaranteed income for life.
This means that once you invest in the plan, you can expect a steady income stream for the rest of your life.
No more worrying about market volatility or outliving your savings.
With this plan, you have a reliable source of income that you can count on.
This can make a huge difference in your retirement planning and overall financial security.
Flexibility in Payouts
Another significant benefit of the LIC New Jeevan Shanti Plan is the flexibility it offers in terms of payouts.
You can choose the frequency of your annuity payouts—monthly, quarterly, half-yearly, or yearly.
This allows you to tailor your income stream to your specific needs and lifestyle.
Whether you need a regular monthly income or prefer larger, less frequent payouts, this plan has you covered.
This flexibility is a crucial advantage of the LIC New Jeevan Shanti Plan.
Joint Life Option and Family Security
The LIC New Jeevan Shanti Plan also offers a joint-life option.
This means that you can include your spouse in the plan.
In the event of your death, your spouse will continue to receive the annuity payments.
This can provide significant peace of mind, knowing that your loved ones will be financially secure even after you’re gone.
This is just another way that the LIC New Jeevan Shanti Plan provides comprehensive financial security.
Tax Benefits and Other Financial Advantages
The LIC New Jeevan Shanti Plan doesn’t just provide a steady income stream.
It also comes with several tax benefits and other financial advantages.
Let’s delve into these benefits and see how they can enhance your financial planning.
Understanding Tax Benefits Under Section 80C and 10(10D)
One of the key tax benefits of the LIC New Jeevan Shanti Plan is under Section 80C of the Income Tax Act.
The premium you pay towards the plan is eligible for a deduction under this section.
This can significantly reduce your taxable income and, hence, your tax liability.
In addition, the annuity income you receive from the plan is also tax-free under Section 10(10D).
This means that the income you receive in your retirement years will not be subject to tax.
This can make a significant difference to your net income and overall financial health.
Additional Financial Perks of the Plan
Apart from the tax benefits, the LIC New Jeevan Shanti Plan also offers several other financial perks.
For instance, the plan provides a loan facility after the completion of one policy year.
This can come in handy in case of a financial emergency or an unexpected expense.
The plan also has a provision for surrender value.
This means that if you choose to terminate the policy after a certain period, you can receive a certain amount back.
This can provide additional financial flexibility and security.
In conclusion, the LIC New Jeevan Shanti Plan offers a comprehensive package of financial benefits.
From guaranteed income and tax benefits to loan facilities and surrender value, this plan has it all.
It’s a great tool to secure your financial future and enjoy a worry-free retirement.
Loan Facility and Surrender Value: Financial Flexibility When You Need It
The LIC New Jeevan Shanti Plan is not just about providing a steady income during your retirement years.
It also offers features that provide financial flexibility when you need it the most.
Two such features are the loan facility and the surrender value.
Let’s take a closer look at these features and how they can benefit you.
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How the Loan Facility Works
One of the critical features of the LIC New Jeevan Shanti Plan is the loan facility.
This feature becomes available after the completion of one policy year.
The loan can be taken against the policy, providing you with immediate financial assistance when you need it.
The amount of loan you can avail of depends on the terms and conditions of the policy.
It’s important to note that the loan will attract interest, which will be deducted from the annuity payments.
This feature can be a lifesaver in times of financial emergencies or unexpected expenses.
Understanding the Surrender Value
Another essential feature of the LIC New Jeevan Shanti Plan is the surrender value.
This is the amount you get if you decide to terminate the policy before the end of the policy term.
The surrender value is calculated based on the terms and conditions of the policy.
It’s important to note that surrendering the policy will result in the termination of all benefits.
However, it can provide you with a lump sum amount, which can be helpful in certain situations.
In conclusion, the loan facility and surrender value features of the LIC New Jeevan Shanti Plan provide you with financial flexibility.
They ensure that you have financial support when you need it, even in unexpected situations.
These features make the plan a comprehensive financial tool for your retirement years.
How to Purchase the LIC New Jeevan Shanti Plan
Purchasing the LIC New Jeevan Shanti Plan is a straightforward process.
You have two options: you can either purchase it online or offline.
Let’s take a look at both options.
Online vs. Offline Purchase Options
If you prefer the convenience of online shopping, you’re in luck.
The LIC New Jeevan Shanti Plan can be purchased online through LIC’s official website.
This option allows you to purchase the plan from the comfort of your home at any time.
On the other hand, if you prefer a more traditional approach, you can purchase the plan offline.
This involves visiting an LIC branch, meeting with an agent, and filling out the necessary paperwork.
This option allows you to ask questions and get personalized advice.
Steps to Purchase the Plan
Whether you choose to purchase the plan online or offline, the process is simple.
Here are the general steps:
- Choose the annuity option that suits your needs.
- Decide on the purchase price (minimum requirements apply).
- Fill out the application form with your personal and medical details.
- Make the payment for the single premium.
- Receive your policy document.
Remember, it’s important to read and understand the policy’s terms and conditions before making a purchase.
If you have any doubts or questions, don’t hesitate to ask for clarification.
After all, this is a decision that will impact your financial future.
Real-Life Scenarios: How the LIC New Jeevan Shanti Plan Benefits You
Understanding the benefits of the LIC New Jeevan Shanti Plan is one thing.
Seeing how it works in real-life scenarios is another.
Let’s take a look at some case studies and testimonials.
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Case Studies of Successful Retirement Planning
Case Study 1: Mr. Sharma, a startup founder, purchased the LIC New Jeevan Shanti Plan at the age of 45.
He chose the deferred annuity option with a deferment period of 15 years.
This allowed him to secure a steady income stream for his retirement years.
Case Study 2: Mrs. Gupta, a successful entrepreneur, opted for the immediate annuity option at the age of 60.
She appreciated the guaranteed income right from the start of the policy.
This helped her manage her post-retirement expenses with ease.
Case Study 3: Mr. and Mrs. Verma, both startup founders, purchased the plan with the joint-life option.
This ensured that the surviving spouse would continue to receive the annuity payments.
This provided them with peace of mind regarding their financial security.
Testimonials from Satisfied Policyholders
Testimonial 1: “The LIC New Jeevan Shanti Plan has been a game-changer for my retirement planning.
The guaranteed income gives me peace of mind, and the plan’s flexibility suits my needs perfectly.”—Mr. Singh, Startup Founder.
Testimonial 2: “I appreciate the simplicity and transparency of the LIC New Jeevan Shanti Plan.
It’s easy to understand, and I know exactly what to expect in terms of payouts.” – Mrs. Kapoor, Entrepreneur.
Testimonial 3: “The joint-life option was a central selling point for my wife and me.
We wanted to ensure that both of us would be financially secure, no matter what.
The LIC New Jeevan Shanti Plan made that possible.” – Mr. and Mrs. Patel, Startup Founders.
These real-life scenarios and testimonials highlight the practical benefits of the LIC New Jeevan Shanti Plan.
They show how the plan can provide financial security and peace of mind for startup founders and entrepreneurs.
Navigating the Fine Print: Terms and Conditions of the Plan
Like any financial product, the LIC New Jeevan Shanti Plan comes with its own set of terms and conditions.
It’s important to understand these before purchasing the plan.
Let’s take a closer look.
Free-Look Period and Policy Cancellation
The LIC New Jeevan Shanti Plan offers a free-look period.
This is a period during which you can review the policy terms and conditions.
If you’re not satisfied, you can return the policy.
The premium paid will be refunded, subject to certain deductions.
Exclusions and Limitations
The LIC New Jeevan Shanti Plan has specific exclusions and limitations.
For instance, if the policyholder commits suicide within one year of purchasing the policy, no death benefit is payable.
Also, the loan facility is available only after the completion of one policy year.
And the surrender value is payable only under certain conditions.
Understanding these terms and conditions can help you make an informed decision.
It ensures that the LIC New Jeevan Shanti Plan aligns with your financial goals and expectations.
Remember, a well-informed decision is always an intelligent decision.
Frequently Asked Questions (FAQs) About LIC New Jeevan Shanti Plan
When it comes to financial planning, questions are bound to arise.
Especially when considering a product like the LIC New Jeevan Shanti Plan.
Let’s address some of the most common queries.
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Common Queries Answered
- What is the minimum and maximum age to purchase the LIC New Jeevan Shanti Plan?
The minimum entry age is 30 years, and the maximum is 85 years.
This makes the plan accessible to a broad age group.
- Can I change the annuity option after purchasing the plan?
No, the annuity option, once chosen, cannot be changed.
So, it’s crucial to choose wisely at the outset.
- What happens if the policyholder dies during the policy term?
In case of the policyholder’s death, the annuity ceases.
The purchase price, along with accrued benefits, if any, is paid to the nominee.
- Can I purchase the LIC New Jeevan Shanti Plan for my spouse or child?
Yes, you can purchase the plan for a third party.
The benefits, however, will be paid to the annuitant.
- Is there a medical examination required to purchase the plan?
o no medical examination is required.
This makes the purchase process simpler and quicker.
- Can I surrender the policy?
Yes, the policy can be surrendered after completing one policy year.
However, surrender values are subject to certain conditions.
- Are the annuity payouts taxable?
Yes, the annuity payouts are subject to tax as per prevailing tax laws.
However, the purchase price is exempt from tax under Section 80C.
- Can I take a loan against the LIC New Jeevan Shanti Plan?
Yes, a loan facility is available after the completion of one policy year.
This provides financial flexibility in case of emergencies.
Remember, it’s always a good idea to clarify all your doubts before purchasing a financial product.
This ensures that the product aligns with your financial goals and expectations.
Conclusion: Is LIC New Jeevan Shanti Plan Right for Your Retirement?
As we wrap up this comprehensive guide, it’s time to reflect.
Is the LIC New Jeevan Shanti Plan the right choice for your retirement?
Summarizing the Plan’s Strengths
The plan offers a host of benefits.
From guaranteed income for life to flexibility in payouts, it’s designed to cater to diverse needs.
The joint-life option ensures financial security for your loved ones, too.
Making the Decision for Your Future
But remember, the best financial decision is always the one that aligns with your goals.
Consider your financial situation, retirement plans, and risk tolerance.
And most importantly, consult with a financial advisor if needed.
The LIC New Jeevan Shanti Plan could be a cornerstone in your retirement planning.
But the final call should be based on your unique needs and aspirations.
After all, your retirement should be a time of comfort and peace, and proper financial planning can ensure just that.
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