LIC New Jeevan Shanti annuity plan: All you need to know before investing
Life Insurance Corporation has recently launched the LIC New Jeevan Shanti plan, a new non-linked, nonparticipating, individual, singlepremium deferred annuity scheme. The insurer said in a statement that "The annuity rates are guaranteed at the inception of the policy and annuities are payable post deferment period throughout the lifetime of annuitants".
Deferred annuity for single life and deferred annuity for joint life are the two annuity options available. The annuity payments shall be made in arrears for as long as the annuitant is alive after the deferment period under the deferred annuity for a single-life plan. Mode of payments can be chosen by the customer. The death benefit will be payable to the nominee of the annuitant, in case of unfortunate death, during or after the deferment period.
The annuity payments will be made in arrears for as long as the primary annuitant and/or the secondary annuitant is alive depending on the mode chosen and after the deferment period under the deferred annuity for joint life. LIC said the death benefit will be payable to the nominee on the death of the last survivor, during or after the deferment period. Between any two lineal descendants/ascendant of a family (grandparent, parent, children, grandchildren) or spouse or sibling, the joint-life annuity can be taken up.
Cost of New Jeevan Shanti plan: At minimum payment of Rs 1.5 lakh the plan can be bought. The modes of annuity available are yearly, halfyearly, quarterly, and monthly. There is no ceiling on the maximum purchase price, the minimum annuity is Rs 12,000 per annum. By way of increase in the annuity rate, an incentive for a purchase price of Rs 5,00,000 and above is available. The plan is available for persons aged between 30 and 79. The minimum deferment period is one year and the maximum deferment period 12 years, subject to the maximum vesting age of 80.
Loan: After three months from the completion of policy (3 months from the date of issuance of policy) or after the expiry of the free-look period, whichever is later, loan facility shall be available.
Under the policy, the maximum amount of loan that can be granted shall be such that the effective annual interest amount payable on loan does not exceed 50 percent of the annual annuity amount payable under the policy subject to a maximum of 80% of surrender value.
The primary annuitant can avail the loan under joint life and the same can be availed by the secondary annuitant in case of absence of primary annuitant.With a minimum purchase price of Rs 50,000, the plan can also be purchased for the benefit of a disabled dependant. Exposure to stressed firms won’t have an impact on the valuation of its planned initial public offering of Life Insurance Corporation of India, according to its Chairman MR Kumar. Hardly 1 percent of India’s largest life insurer’s loans are stressed, Kumar said at a press briefing in Mumbai. Finance Minister Nirmala Sitharaman in her budget speech announced that India planned to planned to launch an IPO of the insurer fully owned by the government. That could contribute about a third of the record divestment target of Rs 2.1 lakh crore for 202021. Kumar had told reporters in October that “it is too early for LIC to come out with an IPO and go public”. Asked what changed since then, he said, “Let me just put it this way that I did say that… I admit that I said but, perhaps, I have been overruled… What more can I say?” He declined to give any timeline for the share sale. “We have not done our math for the IPO. Unless we do that, we won’t be able to give any specifics. The chronology of the IPO will be the same as any other IPOs.”
He said LIC’s perception very positive. “We have 29 crore policy holders and 12 lakh agents. I can’t think of any other organisation which has gone for an IPO with this kind of a base. So, this is the kind of trust people have on us,”.
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The President of the country, Carlos Alvarado congratulated the couple saying, “you have begun in law what has existed in love.”
Costa Rica is the sixth country in Latin America to do so. The legalization of same- sex marriage is one step further in realizing full and equal rights for all of the LGBTQ community.