Pension Plans
LIC's New Jeevan Shanti (758)
Pay once now and lock in a lifelong pension that starts after a chosen deferment period
- Entry age
- 30 years to 79 years (age last birthday); vesting age 31 to 80 years
- Policy term
- Deferment period of 1 to 5 years (subject to maximum vesting age 80); annuity then payable for life
- Premium paying term
- Single premium (one-time Purchase Price)
- Min. sum assured
- Minimum Purchase Price: ₹1,50,000 (₹50,000 if bought for a dependent Divyangjan), subject to minimum annuity of ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half-year or ₹12,000 per year
Plan overview
LIC's New Jeevan Shanti is a single premium deferred annuity (pension) plan for people aged 30 to 79. You pay a one-time purchase price of at least ₹1,50,000, choose a deferment period of 1 to 5 years, and a guaranteed pension is then paid for life, for a single life or jointly with a family member. If the annuitant dies, the nominee gets the purchase price plus accrued additional benefit (less annuity paid) or 105% of the purchase price, whichever is higher.
New to pension plans? Read our simple guide: Pension and Annuity Plans Explained Simply →Key benefits
- Entry age 30-79; deferment period 1 to 5 years; pension starts by age 80 at the latest
- One-time purchase price from ₹1,50,000 with no upper limit; annuity rates guaranteed at the start
- Choose Single Life or Joint Life deferred annuity
- Death benefit is at least 105% of the Purchase Price
- Higher annuity rates for purchase price of ₹5 lakh and above, existing policyholders and online buyers
- Annuity payable yearly, half-yearly, quarterly or monthly (minimum ₹1,000 a month)
- Loan and surrender available; nominee can get death benefit as lump sum, annuity or instalments
- Can be bought for a dependent Divyangjan (from ₹50,000) or as a QROPS
Eligibility at a glance
- Plan number
- 758
- UIN
- 512N338V08
- Plan type
- Non-Par, Non-Linked, Individual, Savings, Deferred Annuity Plan
- Entry age
- 30 years to 79 years (age last birthday); vesting age 31 to 80 years
- Maximum maturity age
- Maximum vesting age 80 years (last birthday); annuity then paid for life
- Policy term
- Deferment period of 1 to 5 years (subject to maximum vesting age 80); annuity then payable for life
- Premium paying term
- Single premium (one-time Purchase Price)
- Minimum sum assured
- Minimum Purchase Price: ₹1,50,000 (₹50,000 if bought for a dependent Divyangjan), subject to minimum annuity of ₹1,000 per month, ₹3,000 per quarter, ₹6,000 per half-year or ₹12,000 per year
- Maximum sum assured
- No limit on Purchase Price (maximum annuity subject to underwriting)
- Premium payment modes
- Single premium; annuity paid Yearly, Half-yearly, Quarterly or Monthly (in arrears)
How the plan works
LIC's New Jeevan Shanti is a non-participating deferred annuity plan. You pay a one-time Purchase Price, choose a deferment period and an annuity option, and LIC pays you an annuity (pension) for life once the deferment period ends (the Date of Vesting). Annuity rates are guaranteed at the start of the policy. The annuity option, once chosen, cannot be changed.
The plan can be bought offline through agents and other intermediaries, or online at www.licindia.in. It is not sold through POSP-LI or Common Public Service Centres.
Eligibility
| Condition | Limit |
|---|---|
| Age at entry (last birthday) | 30 to 79 years |
| Vesting age (last birthday) | 31 to 80 years |
| Deferment period | 1 to 5 years (within the maximum vesting age) |
| Minimum Purchase Price | ₹1,50,000, raised if needed to meet the minimum annuity |
| Maximum Purchase Price | No limit (maximum annuity per person subject to underwriting) |
| Minimum annuity | ₹1,000 monthly, ₹3,000 quarterly, ₹6,000 half-yearly or ₹12,000 yearly |
| Maximum annuity | No limit |
If the plan is bought for the benefit of a dependent person with disability (Divyangjan), the minimum Purchase Price is ₹50,000 and there is no minimum annuity requirement.
Annuity options
| Option | During deferment period | After deferment period | On death |
|---|---|---|---|
| 1. Deferred annuity for Single Life | Nothing payable on survival | Annuity paid for as long as the annuitant lives | Death Benefit paid to nominee; annuity stops |
| 2. Deferred annuity for Joint Life | Nothing payable on survival; nothing on first death | Annuity paid while either annuitant is alive; 100% continues to the survivor | Death Benefit paid to nominee on death of the last survivor |
Joint life can be taken between two persons who are spouses, siblings, or lineal family members (grandparent, parent, children, grandchildren).
How the annuity is paid
Annuity can be paid yearly, half-yearly, quarterly or monthly, in arrears: the first payment comes 1 year, 6 months, 3 months or 1 month after the Date of Vesting respectively. The yearly annuity rate is reduced by 2% for half-yearly, 3% for quarterly and 4% for monthly payment.
Illustration: Purchase Price ₹10 lakh (excluding taxes), annuitant aged 45, deferment period 5 years (secondary annuitant aged 35 for Option 2):
| Option | Yearly | Half-yearly | Quarterly | Monthly |
|---|---|---|---|---|
| Option 1: Single life | ₹86,100 | ₹42,189 | ₹20,879 | ₹6,888 |
| Option 2: Joint life | ₹82,800 | ₹40,572 | ₹20,079 | ₹6,624 |
Incentives (higher annuity rates)
Higher purchase price: an addition to the annuity rate per ₹1,000 Purchase Price per year:
| Deferment period | ₹5,00,000 to ₹9,99,999 | ₹10,00,000 to ₹24,99,999 | ₹25,00,000 and above |
|---|---|---|---|
| 1 year | 2.90 | 3.90 | 4.15 |
| 2 years | 3.30 | 4.30 | 4.55 |
| 3 years | 3.70 | 4.70 | 4.95 |
| 4 years | 4.10 | 5.10 | 5.35 |
| 5 years | 4.50 | 5.50 | 5.75 |
Existing policyholders and nominees: the tabular annuity rate is increased by 0.15% when bought through an agent or other intermediary by an existing LIC policyholder with an in-force policy, by a policyholder whose LIC policy matured within one year before the proposal (for self and/or family members), or by the nominee/beneficiary of an LIC policyholder who died within one year before the proposal.
Online (direct) purchase: the tabular annuity rate is increased by 2.00% (Purchase Price under ₹10 lakh) or 2.50% (₹10 lakh and above) for new customers, and by 2.15% or 2.50% respectively for existing policyholders and nominees/beneficiaries of deceased policyholders. Only one of these online incentives can be taken.
Death benefit
The Death Benefit is the higher of:
- Purchase Price plus accrued Additional Benefit on Death, minus total annuity payable till death; or
- 105% of the Purchase Price.
Additional Benefit on Death accrues at the end of each policy month during the deferment period only. The monthly amount equals Purchase Price multiplied by the monthly-mode annuity rate (without incentives), divided by 12. It depends on the option, entry age and deferment period. If death occurs during deferment, it accrues up to the completed policy month.
How the nominee receives the death benefit
The annuitant chooses at proposal stage (and may change it later while alive):
- Lump sum: full amount paid at once.
- Annuitisation: all or part used to buy an immediate annuity for the nominee at then-prevailing rates (paid as lump sum if minimum annuity conditions are not met).
- Instalments: all or part paid over 5, 10 or 15 years. Minimum instalment: ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly. The instalment interest rate for 1 May 2025 to 30 April 2026 is 4.62% p.a. effective.
Maturity benefit
There is no maturity benefit under this plan; benefits are the annuity payments and the death benefit.
Loan, surrender & revival
- Surrender: Allowed at any time. You receive the higher of the Guaranteed Surrender Value or the Special Surrender Value. Surrendering can mean a significant loss, so continuing the policy is advisable.
- GSV = GSV factor x Purchase Price, minus total annuity payable up to surrender.
| Policy year | 1 | 2 | 3 | 4 | 5 and above |
|---|---|---|---|---|---|
| GSV factor | 75% | 75% | 75% | 90% | 90% |
- Loan: Available during and after the deferment period, from 3 months after issuance of the policy or after the free-look period, whichever is later. Under joint life, the primary annuitant (or, in their absence, the secondary annuitant) can take it. The loan is limited so that annual loan interest does not exceed 50% of the annual annuity, subject to a maximum of 80% of the Surrender Value. Interest for loans sanctioned from 1 May 2025 to 30 April 2026 is 9.50% p.a. compounding half-yearly. During deferment, interest is paid half-yearly; after deferment, interest is recovered from the annuity. Outstanding loan is recovered from claim proceeds.
- Revival: Not applicable, as this is a single premium plan.
Other key terms
- Free-look period: 30 days from receipt of the policy document. The premium is refunded after deducting stamp duty and any annuity paid. This applies only to new purchases, not purchases from an existing fund.
- Divyangjan option: A proposer can buy a Single Life option on their own life for a dependent person with disability as nominee, with a minimum Purchase Price of ₹50,000. If the Purchase Price is below ₹1,50,000, the death benefit must be used to buy an immediate annuity for the Divyangjan nominee.
- QROPS: The plan can be purchased as a Qualifying Recognised Overseas Pension Scheme with UK tax-relieved assets; minimum vesting age is then 55 years and HMRC rules apply.
- Existence certificate: Must be submitted when required for annuity payments to be released.
- Suicide: Within 12 months of risk commencement, the higher of 80% of premium paid or the Surrender Value is payable.
- Taxes: Applicable taxes are charged extra on the premium.
Who should buy LIC's New Jeevan Shanti?
- People planning retirement who want to lock in a lifelong pension today
- Those with a lump sum (e.g. savings or bonus) who want income to start after some years
- Couples or family members who want a joint life pension that continues to the survivor
- Parents wishing to provide for a dependent person with disability (Divyangjan)
- NRIs transferring UK pension savings who need a QROPS-eligible plan
Frequently asked questions
What is LIC New Jeevan Shanti (Plan 758)?
It is a single premium deferred annuity plan. You pay a lump-sum Purchase Price now and receive a lifelong annuity after the deferment period you choose.
Who can buy New Jeevan Shanti?
Anyone aged 30 to 79 years (last birthday). The deferment period can be 1 to 5 years, and the annuity must start (vest) between ages 31 and 80.
What is the minimum investment?
The minimum Purchase Price is ₹1,50,000, increased if needed to give at least ₹1,000 a month (or ₹12,000 a year) of annuity. There is no maximum. If bought for a dependent Divyangjan, the minimum is ₹50,000.
What annuity options are available?
Option 1 is a deferred annuity for a single life. Option 2 is a deferred annuity for joint life, where 100% of the annuity continues to the surviving annuitant.
Are there any incentives for a bigger investment or buying online?
Yes. A Purchase Price of ₹5 lakh or more gets a higher annuity rate, which rises with the amount and deferment period. Existing LIC policyholders and nominees get 0.15% extra through an agent, and online buyers get 2.00% to 2.50% extra.
What does the nominee get if the annuitant dies?
The higher of (Purchase Price plus accrued Additional Benefit on Death minus annuity paid) or 105% of the Purchase Price. Under joint life, this is paid on the death of the last survivor.
Can I surrender the policy or take a loan?
Yes. The policy can be surrendered at any time for the higher of the Guaranteed or Special Surrender Value. A loan is available after 3 months from issuance or after the free-look period, whichever is later, up to 80% of the Surrender Value subject to the interest limit.
How often is the annuity paid?
You can choose yearly, half-yearly, quarterly or monthly annuity. Payments are made in arrears after the Date of Vesting, and non-yearly modes have a slightly lower rate.
Can the death benefit be paid in instalments?
Yes. The annuitant can choose lump sum, annuitisation for the nominee, or instalments over 5, 10 or 15 years for all or part of the death benefit.