LIC New Jeevan Shanti Review– Is it a Good Plan?

The current workforce especially in the private sector does not have any social security benefits.

Employees in the Organised sector have access to the Employee Provident Fund (EPF) but Gig workers and freelancers have no other option other than the National Pension Scheme (NPS).

So, you need to plan for retirement well in advance.

Accumulating adequate retirement corpus is one of the primary goals of any individual.

LIC New Jeevan Shanti guarantees you with lifelong pension. Is LIC New Jeevan Shanti a Good or Bad option for your post-retirement needs?

In this article, let us find the Advantages(pros) and Disadvantages(cons) of LIC New Jeevan Shanti and review the plan to find out whether this plan suits your retirement basket.

Let’s get started!

Table of Contents

1.)An overview of LIC New Jeevan Shanti
2.)Features of LIC New Jeevan Shanti – Analysis
3.)Eligibility Criteria of LIC New Jeevan Shanti
4.)Plan options in LIC New Jeevan Shanti – Review
5.)Review of Benefits in detail – LIC New Jeevan Shanti
6.)Free Look Period of LIC New Jeevan Shanti
7.)Surrendering LIC New Jeevan Shanti
8.)Advantages of LIC New Jeevan Shanti – Analysis
9.)Disadvantages of LIC New Jeevan Shanti – Analysis
10.)Research Methodology Of LIC New Jeevan Shanti

• Benefit illustration – IRR (Internal Rate of Return) analysis of LIC New Jeevan Shanti

11.)LIC New Jeevan Shanti vs. Other Investment Options

• LIC New Jeevan Shanti Vs. ELSS
• LIC New Jeevan Shanti vs. LIC New Pension Plus
• LIC New Jeevan Shanti vs. LIC Jeevan Akshay – VII

12.)LIC New Jeevan Shanti vs. Other Investment Options – Review Conclusion
13.)Who Should Avoid LIC New Jeevan Shanti Plan?
14.)Final Verdict on LIC New Jeevan Shanti – Good or Bad?

1. An overview of LIC New Jeevan Shanti

It is a Non-Linked, Non-Participating, Individual, Single Premium, Deferred Annuity Plan.

The policy’s inception guarantees the annuity rates, and payments begin after the deferment period and continue for the duration of the annuitant(s)’s life.

For investors exploring what is LIC Jeevan Shanti plan or LIC New Jeevan Shanti plan details, it is essentially a deferred annuity product designed for predictable retirement income rather than aggressive wealth creation.

2. Features of LIC New Jeevan Shanti – Analysis

• Single premium payment and annuity start after the end of the deferment period.
• Fixed annuity rates from the inception of the policy.
• Multiple annuity options are available.
• Option to take death benefit as Lump-sum, in the form of Annuitization or in Instalment.
• Option to choose between Single life and Joint Life Deferred annuity.

Key LIC Jeevan Shanti benefits include guaranteed income, predictable cash flows, and flexibility across annuity modes, making it suitable for conservative retirement planning.

3. Eligibility Criteria of LIC New Jeevan Shanti

	Minimum	Maximum
Age at entry	30 years	79 years
Age at Maturity	31 years	80 years
Deferment period	1 year	5 years
Purchase Price	1,50,000	No Limit
Annuity Mode	Monthly, Quarterly, Half-yearly and Annual

Understanding LIC Jeevan Shanti eligibility and deferment period meaning is important, as the timing of annuity pay-outs directly impacts long-term income planning.

4. Plan options in LIC New Jeevan Shanti – Review

Option 1: Deferred annuity for Single life

During the deferment period:

On survival of annuitant – Nothing is payable

On death of annuitant – Death Benefit is payable.

After the deferment period:

On survival of annuitant – Annuity is payable in arrears as per chosen mode

On the death of the annuitant – Annuity, payment shall cease and Death Benefit is payable.

Option 2: Deferred annuity for Joint life

During the deferment period:

On survival of primary and/or secondary annuitant – Nothing is payable

On the death of the last survivor – Death Benefit is payable.

After the deferment period:

On survival of annuitant – Annuity is payable in arrears as per chosen mode as long as the Primary annuitant and/or Secondary Annuitant is alive.

On the death of the last survivor – Annuity payment shall cease and Death Benefit is payable.

5. Review of Benefits in detail – LIC New Jeevan Shanti

Death Benefit

Death Benefits under both of the Options shall be: Higher of

• Purchase Price Plus Accrued Additional Benefit on Death minus Total annuity amount payable till date of death, if any OR
• 105% of Purchase Price

Accrued Additional Benefit on Death: Additional Benefit on Death shall accrue at the end of each policy month, till the end of the Deferment Period.

For those using a LIC Jeevan Shanti calculator or LIC Jeevan Shanti maturity calculator, understanding death benefit structure is key to evaluating real returns.

6. Free Look Period of LIC New Jeevan Shanti

If the LIC New Jeevan Shanti Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 30 days from the date of receipt of the electronic or physical mode of the LIC New Jeevan Shanti policy bond, whichever is earlier.

7. Surrendering LIC New Jeevan Shanti

The LIC New Jeevan Shanti policy can be surrendered at any time during the policy term.

The surrender value payable shall be higher than the Guaranteed Surrender Value or Special Surrender Value.

Before exiting, evaluating LIC Jeevan Shanti surrender value or using a surrender value calculator helps in making informed decisions without disrupting retirement income plans.

8. Advantages of LIC New Jeevan Shanti – Analysis

• Hassle-free investment.
• An annuity could act as a second source of income throughout your lifetime.
• Guaranteed annuity and Guaranteed Death Benefit.
• The policy loan option is available at any time after three months of issuance of the policy.
• Death Benefit can be utilized to purchase an immediate annuity plan from the corporation.
• This plan can be purchased as QROPS (Qualifying Recognized Overseas Pension Scheme), through the transfer of UK tax-relieved assets.

9. Disadvantages of LIC New Jeevan Shanti – Analysis

• The annuity amount is not adjusted to inflation. Throughout your lifetime you receive the same amount.
• This annuity amount can’t be solely relied upon for all your post-retirement needs.
• An annuity is fully taxable.
• The maximum deferment period is limited to 5 years, restricting the potential for long-term compounding and wealth accumulation.

These LIC Jeevan Shanti disadvantages highlight why combining annuity plans with equity mutual funds or diversified portfolios can create a more balanced retirement strategy.

10. Research Methodology of LIC New Jeevan Shanti

One-time premium payments and lifelong annuity an attractive features of LIC New Jeevan Shanti.

But we need to analyze the product in terms of return.

Guaranteed annuity may look lucrative but we need to figure out the returns.

For this, let us analyze the illustration given in the sales brochure

Using a LIC Jeevan Shanti calculator or LIC New Jeevan Shanti plan calculator can help you better understand the annuity pay-outs and realistic returns before making a decision.

Benefit illustration – IRR (Internal Rate of Return) analysis of LIC New Jeevan Shanti

A 45-year-old male buys LIC New Jeevan Shanti for ₹10 Lakhs.

The deferment period is 5 years. The annual annuity amount is ₹86,100.

Age	45 years
Purchase price	10 Lakhs
Deferment period	5 years
Annuity Mode	Annual
Annuity Amount	86,100

The annuitant is eligible for a lifelong annuity under LIC New Jeevan Shanti.

Here, we assumed a life expectancy of 85 years. On the death of the annuitant, a Death Benefit is payable.

A detailed LIC Jeevan Shanti review should always include IRR analysis rather than just focusing on guaranteed pay-outs or marketing benefits.

Age	Year	Single premium / Annuity	Death benefit
45	1	-10,00,000	10,50,000
46	2	0	10,50,000
47	3	0	10,50,000
48	4	0	10,50,000
49	5	0	10,50,000
50	6	0	10,50,000
51	7	86,100	10,50,000
52	8	86,100	10,50,000
53	9	86,100	10,50,000
54	10	86,100	10,50,000
55	11	86,100	10,50,000
56	12	86,100	10,50,000
57	13	86,100	10,50,000
58	14	86,100	10,50,000
59	15	86,100	10,50,000
60	16	86,100	10,50,000
61	17	86,100	10,50,000
62	18	86,100	10,50,000
63	19	86,100	10,50,000
64	20	86,100	10,50,000
65	21	86,100	10,50,000
66	22	86,100	10,50,000
67	23	86,100	10,50,000
68	24	86,100	10,50,000
69	25	86,100	10,50,000
70	26	86,100	10,50,000
71	27	86,100	10,50,000
72	28	86,100	10,50,000
73	29	86,100	10,50,000
74	30	86,100	10,50,000
75	31	86,100	10,50,000
76	32	86,100	10,50,000
77	33	86,100	10,50,000
78	34	86,100	10,50,000
79	35	86,100	10,50,000
80	36	86,100	10,50,000
81	37	86,100	10,50,000
82	38	86,100	10,50,000
83	39	86,100	10,50,000
84	40	86,100	10,50,000
85		10,50,000
	IRR	6.14%

In the above illustration, the IRR is calculated at 6.14% for LIC New Jeevan Shanti.

The IRR for the cash flow is 6.14%. In the initial years, the annuity may provide you steady stream of income.

The purchasing power of money will be reduced year after year.

This option is not viable down the lane.

This will leave you in trouble in the later period.

The returns are not convincing for a long-term investment.

11. LIC New Jeevan Shanti vs. Other Investment Options

This part of the analysis discusses the other investment opportunities where you can park your Lumpsum amount.

Over the years, this investment grows and becomes a part of your retirement kitty.

This retirement corpus could be invested in a safe place to withdraw regularly similar to an annuity.

LIC New Jeevan Shanti offers life cover. But a similar life cover is not assumed here.

Because anyway at the end of the term or on death your investment amount is returned to you or the nominee as the case may be.

Investors often compare LIC Jeevan Shanti vs mutual fund or LIC deferred annuity plan vs market-linked investments to balance income stability and long-term growth.

i) LIC New Jeevan Shanti Vs. Equity Mutual Fund

10 Lakhs could be invested in an Equity mutual fund scheme.

During the deferment period, the money is parked and allowed to grow.

At the time of exiting the fund, capital gains tax is payable. Tax calculation is given below.

The Pre-Tax Value under the equity mutual fund is ₹17.62 Lakhs. The post-tax value is ₹ 16.82 Lakhs.

The Post-Tax Value is invested in a 7% return instrument.

Similar to the annuity amount under LIC Jeevan, ₹86,100 is withdrawn annually.

At the end of 85 years, the balance is assumed to be withdrawn fully (Similar to the Death Benefit).

Age	Year	Equity Mutual Fund	Death benefit
45	1	-10,00,000	10,50,000
46	2	0	10,50,000
47	3	0	10,50,000
48	4	0	10,50,000
49	5	0	10,50,000
50	6	0	10,50,000
51	7	86,100	10,50,000
52	8	86,100	10,50,000
53	9	86,100	10,50,000
54	10	86,100	10,50,000
55	11	86,100	10,50,000
56	12	86,100	10,50,000
57	13	86,100	10,50,000
58	14	86,100	10,50,000
59	15	86,100	10,50,000
60	16	86,100	10,50,000
61	17	86,100	10,50,000
62	18	86,100	10,50,000
63	19	86,100	10,50,000
64	20	86,100	10,50,000
65	21	86,100	10,50,000
66	22	86,100	10,50,000
67	23	86,100	10,50,000
68	24	86,100	10,50,000
69	25	86,100	10,50,000
70	26	86,100	10,50,000
71	27	86,100	10,50,000
72	28	86,100	10,50,000
73	29	86,100	10,50,000
74	30	86,100	10,50,000
75	31	86,100	10,50,000
76	32	86,100	10,50,000
77	33	86,100	10,50,000
78	34	86,100	10,50,000
79	35	86,100	10,50,000
80	36	86,100	10,50,000
81	37	86,100	10,50,000
82	38	86,100	10,50,000
83	39	86,100	10,50,000
84	40	86,100	10,50,000
85		61,49,111
	IRR	7.82%

Equity Mutual Fund Tax Calculation
Maturity value after 5 years	17,62,342
Purchase price	10,00,000
Long-Term Capital Gains	7,62,342
Exemption limit	1,25,000
Taxable LTCG	6,37,342
Tax paid on LTCG	79,668
Maturity value after tax	16,82,674

In the above illustration, the IRR for the Equity Mutual Fund investment is calculated at 7.82%.

You have full control over your funds here.

If you need a step-up income, you have room for that as well.

This will help to keep up with inflation.

And you have liquidity throughout the term.

Inflation-adjusted annuity and Liquidity are the missing features under LIC New Jeevan Shanti.

Alternatively, you can accumulate your retirement corpus through a diversified investment portfolio.

This comparison reinforces how equity mutual funds can complement annuity plans by offering inflation-beating returns and long-term capital growth.

ii) LIC New Jeevan Shanti vs. LIC New Pension Plus

Some of the features of LIC New Pension Plus are,

• The option to select the premium payment amount and policy duration is subject to minimum and maximum premium, policy term, and vesting age constraints.
• The method of premium payment for regular premiums can be monthly, quarterly, half-yearly, or annually. It must be determined at the start of the policy term.
• An option that offers the same terms and circumstances as the initial insurance to extend the accumulation or deferment time inside the same policy.

Read the complete review of LIC New Pension Plus here.

iii) LIC New Jeevan Shanti vs. LIC Jeevan Akshay – VII

Some of the features of LIC Jeevan Akshay – VII are

• premium payments made once.
• spouse may be covered under joint insurance.
• There are ten different Annuity choices available.

Read the complete review of LIC Jeevan Akshay – VII here.

12. LIC New Jeevan Shanti vs. Other Investment Options – Review Conclusion

After comparing and analyzing LIC New Jeevan Shanthi with all other alternate investment options, it is clear that taking a Term Insurance for your life cover needs and then investing some amount in an Equity mutual fund is a far better option for your retirement needs.

A structured retirement plan often includes term insurance, annuity income, and equity investments to create both stability and long-term growth.

Who Should Avoid LIC Jeevan Shanti Policy?

LIC New Jeevan Shanti may not be suitable for investors seeking high returns, liquidity, or inflation-beating growth.

With relatively moderate returns, it may fall short for those aiming at aggressive wealth creation.

Young investors, especially in their early earning years, may find it restrictive as it limits exposure to higher-growth opportunities like equity mutual funds.

It is also not ideal for individuals who need flexibility or access to funds, as the policy involves long-term commitment and fixed pay-outs.

Lastly, those concerned about rising inflation should be cautious, since annuity income remains constant and may lose purchasing power over time.

In short, it works better as a stability-focused tool, not a primary growth investment.

14. Final Verdict on LIC New Jeevan Shanti – Good or Bad?

LIC New Jeevan Shanti is a pension plan, which means it is designed to provide a regular income or pension to the policyholder after a specified period (deferment period).

For those wondering is LIC Jeevan Shanti a good investment or best annuity plan in India, the answer depends on whether your priority is guaranteed income or long-term wealth creation.

The deferment period ranges between 1 year and 5 years.

Policyholders can choose to start receiving pension payments depending on their financial needs.

Guaranteed annuity throughout the lifetime and one-time premium payment will be the sales pitch by agents to sell this plan to you for their agent commission.

A balanced approach—using LIC Jeevan Shanti for stable income and mutual funds for growth—can create a more resilient and inflation-ready retirement portfolio.

But one must look at other factors like return and liquidity.

While analyzing LIC New Jeevan Shanti, it is clear that in terms of return and liquidity, it is not beneficial to other investors.

Don’t fall prey to the word “Guaranteed Annuity”.

In order to accumulate your retirement corpus, instead of looking up social media sites like Quora, Facebook, Twitter, etc.

Consult a Certified financial planner. He will aid you in building your retirement corpus and planning your post-retirement period.

Combining guaranteed annuity plans with disciplined investing ensures both financial security and wealth creation over the long term.