LIC's New Jeevan Shanti Scheme (Plan 858): Make a single investment for a lifetime of pension

If you're looking for a suitable annuity pension scheme, the LIC New Jeevan Shanti Plan offers lifetime pension with a minimum investment of Rs. 1.5 lakhs.

LIC's New Jeevan Shanti

For those planning for a steady stream of income in their retirement days, opting for an annuity plan can be a good idea. LIC's New Jeevan Shanti plan is one such single premium, deferred annuity scheme you can enter with a minimum investment of Rs. 1.5 lakhs. There is no bar on the maximum amount you can invest.

The plan offers an annuity after a minimal deferment period of one year. The maximum deferment period, on the other hand, is 12 years. Annuitants also have the option to surrender the policy during any time of the policy term with a Guaranteed Surrender Value (GSV).


  • This LIC pension plan provides a guaranteed minimum annuity of Rs. 12,000 per annum.

  • The deferment period ranges from a minimum of 1 year to a maximum of 12 years.

  • The minimum entry age is 30 years, while the maximum entry age is 79 years.

  • Policyholders are eligible for a loan on the policy sum three months after purchase.

  • The vesting age varies from 31 years (minimum) to 80 years (maximum), with a free look period of 30 days.

What are the benefits of the LIC New JSP?

You can opt for either a Single Life or Joint Life (policy benefits transferred to the joint holder after the death of the primary holder) plan, depending on your needs. No amount is paid during the deferment period. After this period is over, an annuity will be paid monthly, quarterly, half-yearly, or annually, as chosen by the policyholder.

In case of death, the death benefit will be payable to the chosen nominees.

Also Read: The 4 phases of retirement

LIC New Jeevan Shanti Plan calculations

According to information provided on LIC's website, if you invest Rs. 10 lakhs at the age of 45 with a deferment period of 12 years, you will be eligible to receive an annual annuity of Rs. 1,39,900 upon reaching 57 years of age. For a joint annuity, the expected amount is approximately Rs. 1,32,200.

Similarly, an investment of Rs. 5 lakhs for a period of five years at the age of 35 can give an approximate annual pension of Rs. 38,000.

Also Read: Types of pension plans and their tax benefits

Who can buy this plan?

Individuals aged between 30 and 79 can buy this plan with a minimum investment of Rs. 1,50,000. 

Is the New Jeevan Shanti plan's pension taxable?

Pension income is taxable according to prevailing tax slab rates. LIC New Jeevan Shanti (Plan 858) holders are entitled to tax benefits under Section 80CCC of the Income Tax Act 1961, which allows for a deduction of up to Rs. 1.5 lakhs on the premium.

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