LIC's New Jeevan Shanti

How it works

LIC's New Jeevan Shanti is a lic & life insurance product from Life Insurance Corporation of India, in the guaranteed category: fixed by contract. A deferred annuity: pay a single premium now, and a guaranteed pension starts after a waiting period you choose.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

• Turning a lump sum into a pension that starts later
• A joint-life pension for a couple

Key facts

What can go wrong

• Once bought, the money is committed — you cannot change your mind cheaply.
• A fixed rupee pension loses value to inflation over a long retirement.
• The rate is locked at purchase; if annuity rates rise later, you cannot benefit.

Before you decide anything

• The deferment period and what happens if you die during it
• The annuity rate for the option you choose

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

• LIC — plan details↗
• IRDAI — policyholder rights↗

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.