The Life Insurance Corporation (LIC) of India recently updated the New Jeevan Shanti (Plan No. 858) with a higher annuity rate and enhanced purchase-price-based incentives.
LIC New Jeevan Shanti is considered a good option for individuals who want to retire early with a fixed monthly quarterly, half-yearly or annual cash flow. All they need is to subscribe to the plan by paying a purchase price and wait for the end of the deferment period, which ranges from 1 to 12 years.
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As the plan has no maximum purchase price limit, a higher purchase price leads to a higher annuity. LIC also provides a calculator on its official website which you can use to estimate the annuity you will receive on buying the policy for a certain purchase price. We tried to use this calculator to find out how much you need to pay for a monthly pension of Rs 1 lakh and Rs 50,000. Here’s what it says.
Rs 1 lakh/month pension with New Jeevan Shanti Plan
In the case of a Deferred annuity for Single Life, the calculator shows that a purchase price of Rs 1 crore will give a monthly pension of Rs 1.06 lakh when the deferment period is 12 years.
In case the deferment period is 10 years, the monthly pension reduces to Rs 94,840.
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Rs 50,000/month pension with New Jeevan Shanti Plan
In the case of a Deferred annuity for Single Life, the calculator shows that a purchase price of Rs 50 lakh will give a monthly pension of Rs 53,460 when the deferment period is 12 years.
In case the deferment period is 10 years, the monthly pension reduces to Rs 47,420.
You can use the calculator on the LIC website for getting an estimate of how much pension you can get in different scenarios. More details about the updated New Jeevan Shanti (Plan No. 858) is available here.
