Jeevan Shanti Plan No.858 (earlier Table No. 850) is a guaranteed pension policy from LIC of India which offers a regular flow of income against a one-time payment of premium. While investing in other options viz. equity, mutual fund, property or gold may or may not render desired returns, LIC's pension plan guarantees a fixed return on investment with provision to provide regular monthly income either immediate or deferred period. Therefore, making a one-time investment in LIC's pension plan NRIs can secure their future with the provision of a fixed income periodically whenever they want. An additional benefit that comes with the deferred option is 105% insurance cover given to the policy holder.
LIC offers two variants under this scheme – one is an immediate annuity and the second is a deferred annuity. Immediate annuity option gives you immediate income depending upon the mode of payment you choose eg. Monthly, Quarterly, Half Yearly or Yearly. In the deferred annuity option, you may choose a deferment period from 1 year to 12 years which means you will start receiving your income after the completion of the deferred period you choose, under the deferred period you receive a higher rate of return.
It is a guaranteed annuity plan which means the return (monthly/quarterly/half-yearly/annual) does not change during the term of the plan, whatever the Repo Rate may be. For example, if someone invests Rs. One Crore and goes for immediate annuity he will start receiving Rs.47,308/- monthly or Rs.5,87,500/- annually and this remains the same for policy life. While, deferred means you don't want the immediate annuity, rather want to wait for some period to start annuity. In 3 years deferred annuity option, return becomes higher i.e. Rs.55,123/- monthly or 6,90,000/- annual.