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LIC Jeevan Shanti policy: Life Insurance Corporation of India (LIC) offers slew of insurance cum investment schemes ranging from endowment to ULIP (Unit Linked Plan). LIC Jeevan Shanti policy is one of them. In this life insurance policy, the state-backed insurer gives investors an option to create avenue for revenue in the form of lifelong pension. As per the policy details available on the official website of LIC — licindia.in — an investor can create lifelong income by investing a lump sum amount in this LIC plan.

Speaking on LIC Jeevan Shanti policy; Mumbai-based tax and investment expert Balwant Jain said, "This LIC of India plan offers two options to an investor — immediate plan and deferred annuity option. An investor can choose any one of the two options depending upon the age bracket in which the investor belongs. If the investor is a retired person or about to retire, in that case immediate plan is advisable as pension will become effective from the next month after buying the policy. However, in the case of deferred annuity option, the investor will get an option to buy annuity at 60 years of age. Till that period, an investors' money will grow like any other LIC endowment plan."

Asked about how much one's money will grown in this LIC Jeevan Shanti policy plan if deferred annuity option is chosen, Balwant Jain said, "In any LIC's insurance cum investment plan, one can expect 6 per cent annual growth in one's money unless it is a ULIP. In this LIC Jeevan Shanti policy too, one's money may grow at 6 per cent per annum if the investor chooses deferred annuity option."

On how this will enable an investor to maximise one's pension, Balwant Jain said, "Generally, you can expect 6 per cent annual return on annuity. So, if you choose immediate plan, your amount gets fixed and you start getting monthly pension from the next month. However, in the case of deferred annuity plan, your money grows around 6 per cent per annum with the passé of time. So, at the time of annuity buy, the investor will have more money to buy annuity leading to more pension. Apart from this, the phase of investment return rate may also change as annuity return can change from time of investment to time of annuity buy."

Balwant Jain said that the LIC Jeevan Shanti policy suits to those investors who have low risk appetite, especially those who are already retired or about to retire.

An investor willing to invest in LIC Jeevan Shanti policy can buy this LIC of India plan both online and offline. Those who are internet savvy can buy this plan directly from the official LIC website — licindia.in. Offline policy buyers can either buy the plan from a registered LIC agent or by visiting the nearest LIC branch.

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