LIC Jeevan Shanti – Retirement planning in India has taken a major turn with the introduction of LIC’s Jeevan Shanti plan. This single premium annuity scheme from Life Insurance Corporation of India offers guaranteed lifelong income, making it a preferred choice for individuals looking for secure, fixed post-retirement earnings. With just one-time investment, you can receive a steady monthly pension of ₹1 lakh – for life. In this article, we explore the LIC Jeevan Shanti Plan, its benefits, eligibility, investment options, and how much you need to invest to get ₹1 lakh monthly.
What is LIC Jeevan Shanti Plan?
LIC Jeevan Shanti is a non-linked, non-participating, single premium annuity plan. It allows investors to choose between immediate and deferred annuity options and guarantees a fixed pension payout throughout life. It’s ideal for retirees, senior citizens, or anyone seeking a predictable income stream post-retirement.
Key Features:
- Single premium, one-time investment
- Guaranteed pension for life
- Option to receive pension monthly, quarterly, half-yearly, or yearly
- Two annuity options: Immediate or Deferred
- Option to add Joint Life (spouse or dependent)
- Loan facility available after one year
Investment Needed for ₹1 Lakh Monthly Pension
To get ₹1 lakh monthly pension for 20 years after retirement, you’ll need a corpus of ₹1.5 to ₹1.7 crore. This can be achieved by investing ₹25,000–₹30,000 monthly for 20–25 years in options like NPS, mutual funds, and PPF. Starting early and increasing investments over time is key to meeting this goal. To receive a monthly pension of ₹1 lakh under the LIC Jeevan Shanti plan, the amount of investment depends on factors like the age of the annuitant and the annuity option selected.
Below is an estimated table of investment required for ₹1 lakh monthly annuity for different age groups (Immediate Annuity – Single Life):
| Age at Entry | Monthly Pension | Investment Required |
|---|---|---|
| 45 Years | ₹1,00,000 | ₹2.42 Crore |
| 50 Years | ₹1,00,000 | ₹2.30 Crore |
| 55 Years | ₹1,00,000 | ₹2.15 Crore |
| 60 Years | ₹1,00,000 | ₹2.00 Crore |
| 65 Years | ₹1,00,000 | ₹1.85 Crore |
| 70 Years | ₹1,00,000 | ₹1.68 Crore |
| 75 Years | ₹1,00,000 | ₹1.53 Crore |
Annuity Options under LIC Jeevan Shanti
LIC offers the following annuity options:
Immediate Annuity:
- Pension starts right after purchase
- Suitable for those retiring immediately
Deferred Annuity:
- Pension starts after a chosen deferment period (1–20 years)
- Ideal for those planning retirement in future
Modes of Pension Payment:
- Monthly
- Quarterly
- Half-Yearly
- Yearly
Who Should Consider LIC Jeevan Shanti?
This plan is most suitable for:
- Retirees seeking secure monthly income
- Individuals with a lump sum amount (like PF, gratuity, inheritance)
- Risk-averse investors
- Couples looking for joint life pension
- People without regular post-retirement support
Benefits of LIC Jeevan Shanti Plan
- Guaranteed Income : Lifetime pension with zero risk of market fluctuations
- Flexible Annuity Options : Choice between immediate and deferred payout
- Loan Facility : Available after completion of 1 year (for certain options)
- Joint Life Option : Spouse continues to get pension after policyholder’s death
- Return of Purchase Price : Available in select options on death of annuitant
Documents Required to Purchase LIC Jeevan Shanti
- Identity proof (Aadhaar card, PAN card)
- Address proof
- Age proof (Birth certificate or Aadhaar)
- Income proof (for high investment amount)
- Bank account details for pension credit
- Passport-size photograph
How to Buy LIC Jeevan Shanti?
You can buy the Jeevan Shanti plan:
- Online via LIC’s official portal (https://licindia.in)
- By visiting your nearest LIC branch
- Through authorized LIC agents or financial advisors
Before buying, it is recommended to use the LIC Jeevan Shanti calculator or consult with LIC to estimate exact returns based on your age and preferred annuity option.
Pros and Cons of LIC Jeevan Shanti
Pros:
- Lifetime pension
- Safe and secure
- Tax benefits under 80C (up to ₹1.5 lakh)
Cons:
- Low liquidity – once invested, funds are locked
- Pension amount is fixed – not inflation-adjusted
- Higher investment required for big returns
LIC’s Jeevan Shanti plan offers peace of mind for those planning their retirement with a guaranteed income model. While the investment required for ₹1 lakh monthly pension is substantial, the returns are safe, stable, and lifelong. For individuals nearing retirement or with a significant corpus to invest, Jeevan Shanti is a practical solution for financial security in the golden years.
FAQs about LIC Jeevan Shanti
Q1. Can I get ₹1 lakh pension monthly with LIC Jeevan Shanti?
Yes, by making a one-time investment (approx. ₹2 crore depending on age), you can receive ₹1 lakh monthly pension for life.
Q2. What is the minimum age to buy LIC Jeevan Shanti?
The minimum age is 30 years, and the maximum is 85 years (for immediate annuity).
Q3. Is the pension amount taxable?
Yes, the pension received is taxable under ‘Income from Other Sources’ as per the applicable income tax slab.
Q4. Can I take a loan on LIC Jeevan Shanti plan?
Yes, loans are allowed after 1 year under certain annuity options.
Q5. Can I purchase LIC Jeevan Shanti online?
Yes, you can purchase the plan directly from LIC’s official website or through authorized LIC agents.