Mumbai: Life Insurance Corporation ( LIC) has said it has hiked the return under its annuity scheme New Jeevan Shanti. The corporation has said that the increase in return is more for higher values and increases with the deferment. The scheme is a single-premium deferred pension plan where the buyer can choose to receive regular payments after one to 10 years from the date of buying the policy. According to distributors, the returns are higher than what is offered by private insurance companies. The new annuity payout will be 12-14% higher than the older payout.
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A 60-year-old who buys Rs 10 lakh of annuity with one-year deferment will get Rs 70,800 annually. In the case of a 70-year-old the annuity increases to Rs 72,000. There is a minimum guaranteed death benefit of 105% of the purchase price, which will not be taxed. “The plan is tailor-made for working and self-employed professionals who wish to plan for future regular income after a deferment period. The plan is also suitable for people having surplus money with them for investment. Being a deferred annuity plan, young professionals can plan for their retirement from an early stage,” said LIC.
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