LIC Jeevan Shanti Calculator: Plan 858 Deferred Annuity Guide
Securing a stress-free retirement demands guaranteed, inflation-protected, lifelong passive income that never decreases. LIC New Jeevan Shanti (Plan No. 858) is a flagship single premium, non-linked, non-participating deferred annuity pension scheme introduced by the Life Insurance Corporation of India (LIC). It allows working professionals, business owners, and pre-retirees to invest a one-time lump sum corpus today and lock in high, contractually guaranteed lifelong pension rates starting after a chosen deferment period of 1 to 12 years.
Our free online LIC Jeevan Shanti Calculator enables investors and retirement planners to project exact monthly and annual pension amounts, evaluate deferment period rate growth, compare Single Life vs Joint Life annuity options, and compute death benefit cover.
What is LIC New Jeevan Shanti (Plan 858)?
LIC New Jeevan Shanti is a deferred annuity plan designed to build high pension yields by allowing your lump sum purchase price to compound during the deferment window:
- Single Premium Lump Sum: Pay a one-time investment amount (minimum ₹1,50,000 with no maximum limit).
- Flexible Deferment Window (1 to 12 Years): Defer your pension payouts for 1 to 12 years. LIC credits Guaranteed Additions monthly to your purchase price throughout the deferment period.
- Contractual Lifelong Pension Guarantee: Once pension starts after the deferment period, annuity payout rates remain 100% fixed for life, unaffected by future interest rate drops.
- Full Purchase Price Return to Nominee: Upon the death of the annuitant, LIC pays 100% of the Purchase Price plus all accrued deferment additions to your nominee as a death benefit.
Key Parameters & Eligibility Criteria
| Policy Parameter | Official LIC Guidelines (Plan 858) |
|---|---|
| Minimum Entry Age | 30 Years (Completed) |
| Maximum Entry Age | 79 Years (Near Birthday) |
| Maximum Vesting Age | 80 Years (Age at pension start) |
| Deferment Period Range | 1 to 12 Years |
| Minimum Purchase Price | ₹1,50,000 (1.5 Lakhs) |
| Maximum Purchase Price | No Upper Limit |
| Concessional GST Rate | 1.8% GST on single premium annuity purchase |
Annuity Options: Option 1 vs Option 2
Investors must select one of two annuity payout options at policy inception:
Option 1: Deferred Annuity for Single Life
Under Option 1, LIC pays guaranteed annuity installments to the primary annuitant for life post-deferment. If the annuitant passes away during or after the deferment period, the total Death Benefit (Purchase Price + Accrued Deferment Additions) is paid to the designated nominee.
Option 2: Deferred Annuity for Joint Life
Option 2 covers both husband and wife under a single policy bond:
- Primary Annuitant Lifetime Payout: Pension is paid to the primary annuitant for life post-deferment.
- 100% Continuation to Spouse: After the primary's demise, 100% of the annual pension continues uninterrupted to the surviving joint annuitant for life.
- Death Benefit Payout: Upon the demise of the last surviving joint annuitant, the Death Benefit corpus is paid to the family nominee.
| Feature / Parameter | Option 1: Single Life Deferred Annuity | Option 2: Joint Life Deferred Annuity |
|---|---|---|
| Annuitants Covered | Single Individual | Joint Annuitants (Husband & Wife / Family) |
| Pension Payout Duration | Lifetime of primary annuitant | Lifetime of primary annuitant + lifetime of spouse |
| Relative Annuity Yield | Slightly higher annual payout % | ~5% to 8% lower payout % (Dual life cover) |
| Death Benefit Return | Paid to nominee upon annuitant's death | Paid to nominee upon last survivor's death |
Impact of Deferment Period on Pension Payout Rates
Choosing a longer deferment period allows your capital to accumulate substantial Guaranteed Additions. The table below illustrates sample guaranteed annual pension payouts for a ₹10,00,000 (10 Lakhs) investment at Age 50 under Option 1:
| Deferment Period | Pension Start Age | Guaranteed Annual Pension | Equivalent Monthly Pension | Effective Annual Yield % |
|---|---|---|---|---|
| 1 Year Deferment | Age 51 | ₹66,00,0 / yr | ₹5,280 / mo | 6.60% p.a. |
| 3 Years Deferment | Age 53 | ₹75,000 / yr | ₹6,000 / mo | 7.50% p.a. |
| 5 Years Deferment | Age 55 | ₹86,000 / yr | ₹6,880 / mo | 8.60% p.a. |
| 7 Years Deferment | Age 57 | ₹99,000 / yr | ₹7,920 / mo | 9.90% p.a. |
| 10 Years Deferment | Age 60 | ₹1,22,000 / yr | ₹9,760 / mo | 12.20% p.a. |
| 12 Years Deferment | Age 62 | ₹1,41,000 / yr | ₹11,280 / mo | 14.10% p.a. |
How the LIC Jeevan Shanti Calculator Works
The LIC Jeevan Shanti Calculator computes pension installments using LIC's official tabular parameters:
- Base Tabular Annuity Rate: Evaluates base pension rate per ₹1,000 purchase price based on entry age, option, and deferment period.
-
Higher Purchase Price Incentive Slabs: Adds premium rate incentives for larger investments:
- ₹1,50,000 to ₹4,99,999: Base Tabular Rate
- ₹5,00,000 to ₹9,99,999: +₹1.50 per ₹1,000 Purchase Price
- ₹10,00,000 to ₹24,99,999: +₹2.50 per ₹1,000 Purchase Price
- ₹25,00,000 to ₹49,99,999: +₹3.50 per ₹1,000 Purchase Price
- ₹50,00,000 & above: +₹4.50 per ₹1,000 Purchase Price
- Payment Mode Factors: Adjusts pension payout based on chosen frequency (Yearly: 1.0, Half-Yearly: 0.49, Quarterly: 0.245, Monthly: 0.08).
- Concessional 1.8% GST: Adds 1.8% GST to compute total one-time purchase price outgo.
Strategic Comparison: LIC Jeevan Shanti (858) vs LIC Saral Pension (862)
| Parameter | LIC New Jeevan Shanti (Plan 858) | LIC Saral Pension (Plan 862) |
|---|---|---|
| Annuity Category | Deferred Annuity Plan (1–12 Yrs Deferment) | Immediate Annuity Plan (Pension starts instantly) |
| Minimum Entry Age | 30 Years | 40 Years |
| Pension Yield | Higher (Grows during deferment period) | Standard Immediate Annuity Rate |
| Ideal For | Pre-retirees (Age 40–55) planning future retirement | Immediate retirees (Age 60+) needing instant income |
Tax Implications of Annuity Payouts
- Taxability of Pension: Pension income received is treated as taxable income under the head "Income from Other Sources" and taxed at your applicable slab rates.
- Tax-Free Death Benefit Payout: The death benefit corpus returned to the nominee upon the annuitant's death is 100% tax-free under Section 10(10D).
How to Use the LIC Jeevan Shanti Calculator
- Choose Annuity Option: Select Option 1 (Single Life) or Option 2 (Joint Life).
- Select Deferment Period: Pick your deferment window (1 to 12 years).
- Set Annuitant Entry Age: Input age (30 to 75 years).
- Enter Purchase Price: Specify your one-time investment amount (min ₹1.5 Lakhs).
- Select Pension Frequency: Choose Yearly, Half-Yearly, Quarterly, or Monthly.
Frequently Asked Questions (FAQs)
What is LIC New Jeevan Shanti Plan 858?
LIC New Jeevan Shanti (Plan 858) is a single premium, non-linked, non-participating deferred annuity pension plan. It allows individuals to invest a one-time lump sum and lock in guaranteed lifelong pension payouts starting after a chosen deferment period of 1 to 12 years.
What is the difference between Option 1 (Single Life) and Option 2 (Joint Life)?
Under Option 1 (Single Life Deferred Annuity), pension is paid to the primary annuitant for life. Upon demise, the Death Benefit (Purchase Price + Accrued Deferment Benefit) is paid to the nominee. Under Option 2 (Joint Life Deferred Annuity), pension continues to the spouse for life after the primary annuitant's death, and Death Benefit is paid to the nominee upon the last survivor's demise.
What deferment periods and entry ages are allowed in Plan 858?
Entry age ranges from 30 to 79 years. Deferment periods range from 1 to 12 years, subject to a maximum vesting age of 80 years.
How does the Deferment Period affect pension payout rates?
Longer deferment periods yield significantly higher annuity rates because LIC adds Guaranteed Additions monthly to your purchase price during deferment. For example, a ₹10 Lakh investment at age 50 may yield ~6.6% p.a. for 1-year deferment, compared to ~12.2% p.a. for 10-year deferment.
What is the GST rate on buying LIC Jeevan Shanti?
A concessional Goods & Services Tax (GST) rate of 1.8% applies to single premium annuity purchases, significantly lower than the standard 4.5% or 18% GST on other life insurance plans.
Is pension received under Jeevan Shanti taxable in India?
Yes. Annual annuity pension payouts are treated as income and taxed as per your applicable income tax slab rates. However, the Death Benefit corpus paid to nominees is 100% tax-free under Section 10(10D).