Life protection Corporation (LIC) has recently launched another non-linked, non-participating, individual, single-premium deferred annuity scheme plot, the New Jeevan Shanti plan. The insurer said in an announcement that the annuity rates are ensured at the inception of the policy and annuities are payable post deferment period for the duration of the lifetime of annuitants. There are two annuity choices accessible, one is the deferred annuity for single life and deferred annuity for joint life.
Under the deferred annuity for a single life plan, the payments will be made financial arrears due until the annuitant is alive after the deferred time frame. The client can choose the method of payment. In case of an occurrence of unfortunate death, during or after the deferment time frame, death advantage will be payable to the chosen nominee of the annuitant. LIC mentioned that under the deferred annuity for joint life, the payments will be made financial arrears as long the essential primary annuitant and/or the secondary annuitant is alive relying upon the mode picked and after the deferment time frame. On the occasion of death of the last survivor, during or after the deferment time frame, the death advantage will be payable to the chosen nominee. The joint-life annuity can be taken up between any two lineal descendant or ascendant of a family (grandparent, parent, children, grandkids) or spouse or siblings.
The plan arrangement can be purchased at a minimum payment of ₹1.5 lakh. The methods of annuity accessible are yearly, half-yearly, quarterly, and month to month. The minimum annuity is ₹12,000 per annum while there is no limit on the maximum purchase price. An incentive motivator for the purchase price of ₹5,00,000 or more is accessible by the method of increase in the annuity rate. The plan is accessible for people aged in the range of 30 and 79. The minimum deferment period is one year and the greatest deferment time frame of 12 years, subject to a maximum vesting age of 80.
The loan facility will be accessible at any time after three months from the completion of policy strategy (3 months from the date of issuance of policy strategy) or after the end of the free-look period, whichever is later. The maximum amount of loan advance that can be allowed under the policy such that the effective annual interest sum payable on advance doesn’t surpass 50% of the yearly annuity sum payable under the policy arrangement subject to a maximum limit of 80% of surrender value.
Under joint-life, the loan can be benefited by the primary annuitant and without a primary annuitant, the equivalent can be profited by the Secondary Annuitant. The plan arrangement can likewise be bought to benefit the disabled dependent with a minimum purchase price of ₹50,000.