Last Updated: 13 Oct 2025 | By Keyur Tirgar, LIC Agent Code: 04699-102
Planning for retirement? Looking for guaranteed pension income that lasts a lifetime? LIC Jeevan Shanti (Plan No. 858) is one of India's most popular pension and annuity plans, offering financial security during your golden years.
In this comprehensive guide, I'll explain everything about LIC Jeevan Shanti - from its features and benefits to premium calculation, tax benefits, and whether it's the right choice for your retirement planning.
What is LIC Jeevan Shanti?
LIC Jeevan Shanti is a non-linked, non-participating, single premium deferred or immediate annuity plan launched by Life Insurance Corporation of India. This plan provides guaranteed regular pension income to policyholders, making it an ideal solution for retirement planning.
Plan Number: 858
Type: Deferred/Immediate Annuity Plan
Premium Payment: Single Premium (One-time payment)
Pension Options: 10 different annuity modes
The plan was introduced in September 2019 and has quickly become one of LIC's flagship retirement products, offering peace of mind through guaranteed, predictable pension income.
Key Features of LIC Jeevan Shanti
1. Single Premium Payment
Pay once and secure your pension for life. No recurring premium hassles or payment deadlines to worry about.
Minimum Purchase Price: ₹1,50,000
Maximum Purchase Price: No upper limit
2. Flexible Pension Start Options
Immediate Annuity: Pension starts immediately after purchasing the policy (within 1 year)
Deferred Annuity: Pension starts after a deferment period of your choice:
- Minimum deferment: 1 year
- Maximum deferment: 12 years
This flexibility allows you to plan according to your retirement timeline.
3. 10 Different Annuity Options
LIC Jeevan Shanti offers 10 distinct annuity modes to suit different needs:
Option A: Annuity for life
Option B: Annuity guaranteed for 5, 10, 15, or 20 years and thereafter for life
Option C: Annuity for life with return of purchase price on death
Option D: Annuity for life increasing at a simple rate of 3% p.a.
Option E: Joint life annuity for life (last survivor)
Option F: Joint life annuity with return of purchase price on death of last survivor
Option G: Annuity for a specified period (5 to 20 years)
Option H: Annuity for life with return of purchase price on death during the first 10 policy years
Option I: Joint life annuity with 100% annuity to primary annuitant on death of secondary annuitant and 50% to secondary annuitant on death of primary annuitant. On death of last survivor, return of purchase price
Option J: Annuity for life with return of purchase price after 10 policy years
4. Guaranteed Pension
Unlike market-linked products, LIC Jeevan Shanti offers guaranteed pension rates that don't fluctuate with market conditions. Your pension amount is fixed and predictable.
5. Loan Facility
After 3 policy years (6 months for immediate annuity), you can avail a loan of up to 75% of the purchase price. Interest rates are subject to LIC's prevailing rates.
6. Surrender Option
In case of financial emergency, the policy can be surrendered after:
- 3 years for deferred annuity
- 6 months for immediate annuity
Surrender value is approximately 95% of the purchase price (varies by option chosen).
7. Free Look Period
Not satisfied with the policy? Return it within:
- 30 days for policies purchased offline
- 15 days for policies purchased online
You'll receive a refund of the purchase price after deducting proportionate risk premium, stamp duty, and medical examination charges (if any).
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How LIC Jeevan Shanti Works
Let's understand with a practical example:
Mr. Sharma's Case:
- Age: 60 years
- Purchase Price: ₹10,00,000 (₹10 lakhs)
- Option Chosen: Option C (Annuity for life with return of purchase price on death)
- Pension Mode: Yearly
What He Gets:
- Annual Pension: ₹75,000 (7.5% of purchase price approx.)
- Lifetime Pension: Continues till his lifetime
- On Death: His nominee receives ₹10,00,000 (full purchase price returned)
This means Mr. Sharma gets regular income for life, and his family doesn't lose the capital invested!
LIC Jeevan Shanti Premium Calculator
Pension amount depends on:
- Age at entry
- Purchase price (premium amount)
- Annuity option chosen
- Pension mode (yearly, half-yearly, quarterly, monthly)
Sample Pension Rates (Approximate)*
For ₹10 Lakh Purchase Price:
| Age | Option A (Life Annuity) Yearly | Option C (Life + Return) Yearly |
|---|---|---|
| 45 years | ₹67,000 | ₹64,000 |
| 50 years | ₹70,000 | ₹67,000 |
| 55 years | ₹73,000 | ₹70,000 |
| 60 years | ₹77,000 | ₹73,000 |
| 65 years | ₹82,000 | ₹77,000 |
| 70 years | ₹88,000 | ₹82,000 |
*These are indicative rates. Actual rates vary and are subject to LIC's prevailing annuity rates at the time of purchase.
Key Insight: Higher the age, higher the pension rate. Monthly pension option gives slightly lower total annual pension compared to yearly mode.
Eligibility Criteria
Age Limits:
For Deferred Annuity:
- Minimum entry age: 30 years
- Maximum entry age: 79 years
- Minimum pension vesting age: 31 years
- Maximum pension vesting age: 85 years
For Immediate Annuity:
- Minimum entry age: 30 years
- Maximum entry age: 85 years
Joint Life Options:
- Age of secondary annuitant should be at least 30 years
- Maximum age gap: 15 years between primary and secondary annuitant
Financial Criteria:
- Minimum purchase price: ₹1,50,000
- No maximum limit
- Must be paid as a single premium
Tax Benefits Under LIC Jeevan Shanti
1. Tax Benefits on Purchase (Premium Payment)
Section 80CCC: Purchase price qualifies for tax deduction up to ₹1.5 lakh under the overall limit of Section 80C (which includes EPF, PPF, life insurance premiums, etc.)
Important: This deduction is available only for deferred annuity purchased from provident fund or superannuation fund proceeds. Immediate annuity may not qualify.
2. Taxation on Pension Received
Pension received is taxable as income under "Income from Other Sources" and added to your total income for the financial year.
Tax Treatment:
- Pension amount is fully taxable
- TDS may be deducted if annual pension exceeds ₹50,000 and you haven't submitted Form 15G/15H
- You can claim deductions under Chapter VI-A from total income
3. Return of Purchase Price
For options where purchase price is returned on death:
- Amount received by nominee is tax-free under Section 10(10D)
- No tax on the capital returned
Tax Planning Tip:
If you're in a high tax bracket during working years and expect to be in a lower bracket post-retirement, the taxable pension may still result in overall tax savings.
Advantages of LIC Jeevan Shanti
✅ 1. Guaranteed Lifetime Income
No market risk. Your pension is guaranteed regardless of economic conditions, stock market fluctuations, or interest rate changes.
✅ 2. Government Backing
Being an LIC product, you have the security of India's largest and most trusted insurance company with government backing.
✅ 3. Multiple Options
10 different annuity options ensure there's a plan suitable for everyone - singles, couples, those wanting capital protection, or those wanting higher pension.
✅ 4. Flexibility in Pension Start
Choose immediate or deferred annuity based on your retirement timeline. Deferment period can be up to 12 years.
✅ 5. Capital Protection Options
Options C, F, H, I, and J ensure your capital is returned to your nominee, so your family doesn't lose the investment.
✅ 6. Simple and Transparent
No hidden charges, no complicated terms. What you see is what you get - simple, predictable pension.
✅ 7. Liquidity Through Loan
Need emergency funds? Take a loan against your policy instead of breaking your retirement plan.
✅ 8. Inflation Protection Option
Option D provides annually increasing pension at 3% simple interest, providing some hedge against inflation.
Disadvantages of LIC Jeevan Shanti
❌ 1. Lower Returns Compared to Market-Linked Products
Annuity rates typically offer 6-8% returns, which is lower than equity mutual funds or ULIPs that can potentially give 10-12% over the long term.
❌ 2. Pension is Fully Taxable
Unlike some other retirement products where maturity is tax-free, pension received is added to your income and taxed at applicable rates.
❌ 3. Inflation Risk
Fixed pension loses purchasing power over time. What seems adequate today may not be sufficient 20 years later due to inflation (except Option D with 3% increase).
❌ 4. Lock-in of Large Capital
Your entire purchase price is locked. While there's loan and surrender facility, it's not as liquid as other investment options.
❌ 5. Surrender Charges
Early surrender results in loss of approximately 5% of purchase price plus any accrued interest.
❌ 6. No Wealth Creation
This is purely an income product, not a wealth creation tool. Your capital doesn't grow; it provides income.
Who Should Buy LIC Jeevan Shanti?
✅ Ideal For:
1. Retirees Seeking Guaranteed Income
- Just retired with lump sum (PF, gratuity, VRS money)
- Want predictable monthly income
- Low risk appetite
- Value safety over higher returns
2. Senior Citizens
- Age 60+ with retirement corpus
- Don't want to manage investments actively
- Need regular income for daily expenses
- Want peace of mind over potential growth
3. Conservative Investors
- Risk-averse individuals
- Uncomfortable with stock market volatility
- Prefer fixed, guaranteed returns
- Value capital safety highly
4. Those Without Pension
- Self-employed professionals
- Business owners without employer pension
- Private sector employees without defined pension plan
- Want to create own pension system
5. Diversification Strategy
- Already have equity investments
- Want to balance portfolio with guaranteed income
- Part of overall retirement planning
- Not entire retirement corpus
❌ Not Ideal For:
1. Young Investors (below 40)
- Long investment horizon
- Can take higher risk for potentially better returns
- Better off with ULIP, mutual funds, or NPS for retirement
2. Those Seeking High Returns
- Expecting 10-12% returns
- Comfortable with market-linked products
- Long-term wealth creation goal
3. Those Needing Liquidity
- May need capital in near term
- Frequent access to invested money
- Emergency fund not separate
4. Entire Retirement Corpus
- Don't put all your money in annuity
- Maintain some in liquid assets
- Keep emergency fund separate
LIC Jeevan Shanti vs Other Pension Plans
Comparison Table
| Feature | LIC Jeevan Shanti | NPS | Senior Citizen Savings Scheme | Fixed Deposits |
|---|---|---|---|---|
| Returns | 6-8% (Guaranteed) | 9-10% (Market-linked) | 8-8.2% (Govt. scheme) | 6-7.5% (Varies) |
| Risk | Zero | Moderate to High | Very Low | Very Low |
| Liquidity | Low (Loan available) | Low (Lock-in till 60) | Moderate (5-year tenure) | High |
| Tax on Returns | Fully taxable | Partially taxable | Fully taxable | Fully taxable |
| Capital Safety | Guaranteed (most options) | Market-linked | Guaranteed | Guaranteed |
| Income Type | Pension for life | Lump sum + pension | Interest payable | Interest payable |
| Max Investment | No limit | No limit | ₹30 lakhs | Varies by bank |
Verdict: Each product serves different needs. LIC Jeevan Shanti is best for those wanting guaranteed lifetime income with capital protection, while others may suit different goals.
How to Buy LIC Jeevan Shanti
Method 1: Through Insurance Adviser (Recommended)
Contact: Keyur Tirgar
LIC Agent Code: 04699-102
Phone/WhatsApp: +91 9784309640
Email: tirgarkuriya@gmail.com
Benefits of Buying Through Adviser:
- Free consultation and needs analysis
- Help in choosing right annuity option
- Assistance with documentation
- Comparison with other pension products
- Post-purchase servicing support
- Claims assistance for your family
Method 2: LIC Branch Office
- Visit nearest LIC branch
- Meet with development officer
- Fill proposal form
- Submit documents and premium
Method 3: LIC Website
- Visit www.licindia.in
- Click on "Buy Online"
- Select Jeevan Shanti
- Fill online proposal
- Make payment online
Documents Required:
- Proposal form (duly filled)
- Age proof (Aadhaar, PAN, passport, birth certificate)
- Identity proof (Aadhaar, PAN, passport, voter ID)
- Address proof
- Passport-size photographs
- Medical reports (if required based on age and amount)
- Cancelled cheque or bank statement (for pension credit)
Frequently Asked Questions
1. Can I buy LIC Jeevan Shanti online?
Yes, LIC Jeevan Shanti can be purchased online through the LIC website. However, buying through an adviser ensures you get proper guidance.
2. What happens if I die during the deferment period?
For deferred annuity, if death occurs during deferment, the purchase price is returned to the nominee (100% of amount paid).
3. Can I change the annuity option after buying?
No, once chosen, the annuity option cannot be changed. Choose carefully based on your needs.
4. Is medical examination required?
Generally not required up to certain age and purchase price limits. LIC may ask for medical examination based on individual assessment.
5. How is pension paid?
Pension is directly credited to your bank account via ECS/NEFT on the due date. You need to provide bank details with a cancelled cheque.
6. Can NRIs buy this plan?
Yes, NRIs can purchase LIC Jeevan Shanti. However, they need to comply with FEMA regulations and pension will be payable in Indian Rupees only.
7. What is the claim settlement ratio for LIC?
LIC has consistently maintained a claim settlement ratio of 98%+ over the years, one of the highest in the industry.
Expert Opinion: Is LIC Jeevan Shanti Worth It?
As an insurance adviser with 5+ years of experience, here's my honest assessment:
✅ Buy LIC Jeevan Shanti If:
- You're 55+ years old with retirement corpus
- You prioritize guaranteed income over potential growth
- You have low risk tolerance
- You want government-backed security
- You're looking for predictable cash flows
- You value peace of mind highly
⚠️ Consider Alternatives If:
- You're below 45 years (too early for annuity)
- You're comfortable with moderate risk
- You seek inflation-beating returns
- You have long investment horizon
- You need higher liquidity
💡 My Recommendation:
Don't put your entire retirement corpus in annuity. Follow the 60-20-20 rule for retirement planning:
- 60% in guaranteed income products (Annuity, SCSS, FD)
- 20% in moderate-risk products (Balanced funds, Monthly Income Plans)
- 20% in liquid assets (Savings, short-term FD for emergencies)
LIC Jeevan Shanti is excellent for the guaranteed income portion of your retirement portfolio.
Conclusion
LIC Jeevan Shanti is a solid pension plan offering guaranteed lifetime income with the security of LIC's backing. While returns are moderate, the certainty, safety, and peace of mind it provides make it an attractive option for retirees and conservative investors.
However, like any financial product, it's not one-size-fits-all. Your decision should be based on:
- Your age and retirement timeline
- Risk appetite
- Income needs
- Overall financial portfolio
- Tax situation
- Family responsibilities
Need personalized advice on whether LIC Jeevan Shanti is right for you?
Contact Keyur Tirgar
📞 Phone/WhatsApp: +91 9784309640
📧 Email: tirgarkuriya@gmail.com
LIC Agent Code: 04699-102
I offer free consultation to help you:
- Assess your retirement income needs
- Compare LIC Jeevan Shanti with other pension options
- Calculate ideal purchase price and pension amount
- Choose the right annuity option
- Complete all documentation and purchase formalities
Serving all over Rajasthan with face-to-face consultations, home visits, and video call options.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Insurance products are subject to terms and conditions of the respective insurance company. Premium rates, features, and benefits mentioned are indicative and subject to change. Please read the policy brochure and prospectus carefully before making any decision. For personalized advice, consult a certified insurance adviser.
Published: Oct 2025
Last Updated: Oct 2025
Reading Time: 12 minutes
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Have questions about LIC Jeevan Shanti or retirement planning? Drop a comment below or contact me directly!
