LIC · Retirement · Deferred Annuity
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A deferred annuity plan where you pay once, let it grow through a 1-5 year deferment period, then receive a fixed, guaranteed pension for life.
Product data last fetched 26 August 2026. Features, premiums and availability may change — verify against the official brochure/policy wording before deciding.
The truth card
PurposeRetirement / Pension
CategoryDeferred Annuity
InsurerLIC
Life CoverNot available in the current product data
PremiumNot available in the current product data
Policy TermNot available in the current product data
Premium-Paying TermNot available in the current product data
GuaranteeNot available in the current product data
Market ExposureNot available in the current product data
LiquidityNot available in the current product data
Lock-inNot available in the current product data
ChargesNot available in the current product data
Maturity BenefitNot available in the current product data
Death BenefitNot available in the current product data
SurrenderNot available in the current product data
Paid-upNot available in the current product data
Tax NotesDepends on policy structure, premium amount, issue date and applicable tax law — see our tax notes
XIRRNot available in the current product data
What this product is
A deferred annuity plan where you pay once, let it grow through a 1-5 year deferment period, then receive a fixed, guaranteed pension for life.
You might need this if…
- You might need this if you're a few years from retirement and want to lock in today's annuity rate before rates potentially fall.
- You might need this if you want a delayed pension start (1 to 5 years) so your eventual payout is larger than if it started immediately.
- You might need this if you want to secure income for a family member with a disability, since a lower minimum purchase price applies in that case.
- You might need this if you want the option to cover a second family member beyond just a spouse under the joint-life option.
How it actually works
- Entry age 30-79, deferment period 1-5 years; standard minimum purchase price is ₹1.5 lakh (₹50,000 for dependents with disabilities).
- Choose Single Life (annuity stops on your death) or Joint Life (continues to a named family member - spouse, parent, child, grandchild, or sibling - until the last survivor).
- Minimum annuity amounts are ₹1,000/month, ₹3,000/quarter, ₹6,000/half-year, or ₹12,000/year.
- Death during deferment or after vesting pays the higher of (purchase price + accrued additions - annuity already paid) or 105% of the purchase price.
- A loan can be taken after 3 months, up to 80% of surrender value, at a current interest rate of 9.50% p.a. (compounding half-yearly, subject to change).
- Surrender value uses a guaranteed factor of 75% (years 1-3) or 90% (year 4+) of purchase price, minus annuity already paid.
Worked example
For a ₹10 lakh purchase price with the primary annuitant aged 45 and a 5-year deferment, the yearly annuity is about ₹86,100 under Single Life or ₹82,800 under Joint Life (with a 35-year-old secondary annuitant).
The tiers
| Annuity option | Yearly | Half-yearly | Quarterly | Monthly |
|---|
| Single Life | ₹86,100 | ₹42,189 | ₹20,879 | ₹6,888 |
| Joint Life | ₹82,800 | ₹40,572 | ₹20,079 | ₹6,624 |
Worth knowing before you decide
- The annuity rate is locked in at purchase - if interest rates rise later, you can't switch to a better rate.
- This is an irrevocable income stream once it starts - there's no ongoing liquidity beyond the loan or surrender options.
- Surrendering before the deferment period ends means giving up future annuity growth for a discounted lump sum.
Official source
⌟ Official product brochure
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