- Are you looking for A Safe & 100% Guaranteed Pension through-out life-time along with passing on the guaranteed income to your spouse through-out her life too?
- Do you want to FIX your interest rate of your retirement corpus today itself?
- Do you want to just pay once for building your retirement corpus?
Then… you may consider L.I.C’s new guaranteed pension plan (Deferred Option) – JEEVAN SHANTI. As the policy name conveys, the plan provides “Shanti” against worrying on reducing interest rates & guarantees the pension today itself through out your life time. This plan would be an ideal one for those in the age group of 35-50 years to plan their pension by making just a one-time investment today.
You may choose the deferment period from 1-20 years & the guaranteed interest rate varies accordingly. The Interest rate also varies as per the age of the person. What more – Jeevan Shanti also provides for life insurance cover by way of Purchase Price + guaranteed additions during the deferment term (and) minimum 110% of Purchase price during the pension receiving period. You may opt for various modes of receiving pension – Monthly, Quarterly, Half-yearly or yearly.
Let us take a quick example of a 45 year old investing 20 lakhs in L.I.C’s Jeevan Shanti – the guaranteed pension pay-out for different deferment periods will be as below:
GST @ 1.8% is payable on the purchase price in addition.
Now presuming, I invest this 20 lakhs in any other instrument & decide to take up the pension from Banks, Post Office (or) L.I.C’s Immediate annuity plan at the end of the deferment period of say 10 years – the corpus we can build over this time period and the expected pension is given as below. Here I have assumed the annuity rate to be at 4% (which itself in my opinion may be a little higher after a period of 10-15 years).
As we can observe from the above table, JEEVAN SHANTI (without taking Risk) guarantees today a life-long pension of 2,45,400/- p.a.
To achieve this pension, one has to expect his money to grow at 12% CAGR for the next 10 years if he considers investing in Equity Mutual Funds & then utilize the corpus to take up as pension after 10 years.
Conclusion: If you have a surplus amount that you want to park exclusively for your retirement & guarantee the pension pay-out today itself, then you may consider L.I.C’s Jeevan Shanti – a plan whose importance will be truly felt during your golden years of retirement.