LIC Jeevan Shanti To Offer Deferred Annuity Option Only As Jeevan Akshay Relaunched

After the insurance behemoth Life Insurance Corporation (LIC) of India launched Jeevan Shanti it withdrew its flagship immediate annuity plan Jeevan Akshay that was widely sought for pension needs. The plan was also popular amongst NPS subscribers. But now, the state-run insurer has relaunched the Jeevan Akshay plan.

And on the relaunch of the Jeevan Akshay plan that was indeed the main product of the insurer's pension portfolio, the contours of Jeevan Shanti have been modified to let it now offer only deferred annuity option such that any duplication with Jeevan Akshay is avoided.

So, henceforth Jeevan Akshay VII is an immediate annuity pension plan while Jeevan Shanti has become a solely deferred annuity scheme. "With the introduction of new immediate annuity plan Jeevan Akshay-VII, all the immediate annuity options (i.e. Option A to J) available under Jeevan Shanti shall be withdrawn with effect from August 25, 2020," said LIC of India in its Circular, adding, "However, the deferred annuity options (i.e. Option 1 & Option 2) available under Jeevan Shanti shall continue to be available for sale."

"All other terms and conditions in respect of deferred annuity options (i.e. Option 1 & Option 2) available under LIC's Jeevan Shanti as specified in introductory Circular Ref: CO/PD/109 dated 11.09.2018, Circular Ref: CO/PD/110 dated 26.09.2018 and modification Circular CO/PD/123 dated 23.08.2019 shall remain unaltered," the Circular further said.

Thereby Jeevan Akshay will have option A to option J. The options are as following:
• Option A: Immediate Annuity for life.

• Option B: Immediate Annuity with guaranteed period of 5 years and life thereafter.

• Option C: immediate Annuity with guaranteed period of 10 years and life thereafter.

• Option D: Immediate Annuity with guaranteed period of 15 years and life thereafter.

• Option E: Immediate Annuity with guaranteed period of 20 years and life thereafter.

• Option F: Immediate Annuity for life with return of Purchase Price.

• Option G: Immediate Annuity for life increasing at a simple rate of 3 per cent per annum.

• Option H: Joint Life Immediate Annuity for life with a provision for 50 per cent of the annuity to the Secondary Annuitant on death of the Primary Annuitant.

• Option I: Joint Life Immediate Annuity for life with a provision for 100 per cent of the annuity payable as long as one of the Annuitant survives.

• Option J: Joint Life immediate Annuity for life with a provision for 100 per cent of the annuity payable as long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

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