LIC policy for DivyangJan: LIC Jeevan Shanti an overview!
LIC Jeevan Shanti is an excellent policy for the people who are worried about or want to make income provision for their Divyangjan dependant. If the Proposer has a handicapped dependant (Divyangjan), the plan can be purchased for the benefit of Divyangjan as nominee/annuitant, so that the annuity which is received can be utilized for the welfare of the Divyangjan dependent.
The main purpose of offering a LIC policy for DivyangJan or specifically an annuity policy to an individual who is having Divyangjan dependent is to provide a secured and definite income on the death of the proposer. During the lifetime the proposer would be paid the annuity which would be utilized for the welfare of the Divyangjan and in case of the death of the Proposer or Life assured the annuity will be paid to the dependant Divyangjan so that he does not have to depend on others for his sustenance.
If the LIC Jeevan Shanti plan has been purchased for the benefit of handicapped dependant (Divyangjan) life, the proposal shall be allowed without any restriction on minimum annuity and the minimum Purchase Price under such cases shall be Rs. 50,000/- as compared to Rs 1,50,000 which is applicable for others. In such cases the annuity rates given under this plan shall also be applied without any Reduction.
Since the policy has been taken for the dependent Divyangjan, it is necessary to mention that the LIC policy has been taken for the benefit of Divyangjan at the proposal stage itself and no change in option shall be allowed at the later stage or servicing stage.
At the same time no change of nomination shall be allowed under that policy until and unless there is a case of death of the Divyangjan nominee.
The Proposer can purchase LIC Jeevan Shanti policy with following options for the benefit of the Divyangjan:
- The Proposer can purchase Single Life Deferred Annuity (Option 1) or Single Life Immediate Annuity with Return of Purchase Price (Option F) on own life. In case of death of the Annuitant (Proposer), the Death Benefit shall compulsorily be utilized to purchase Immediate Annuity (as per option chosen by the Annuitant) on the life of the Divyangjan who would be the nominee.
- The Proposer can purchase Joint Life Immediate Annuity (Option I or J) with Divyangjan as Secondary Annuitant.
The annuity payment to Divyangjan shall be paid subject to a minimum Purchase Price of Rs. 50,000/- and irrespective of any limit on minimum annuity payment. The minimum age at entry restrictions as specified in the LIC’s Jeevan Shanti plan shall not be applicable for the Divyangjan life.
The details of various Options under LIC Jeevan Shanti plan, like Option 1, Option J, Option I, Option F, Single Life deffered Annuity etc is available on the LIC Jeevan Shanti Plan no 850 page.
Definition of Divyangjan:
The Handicapped Dependant is a Person with Disabilities (Divyangjan) as defined below, who is the beneficiary under the policy and a relative of the Annuitant.
For deciding eligible disability of Divyanjan as nominee/second annuitant as an applicable reference is to be made to the meaning of “Disability” as assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996) [and includes “autism”, “cerebral palsy”, and “multiple disabilities” referred to in clauses (a), (c), and (h) of section 2 of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities Act, 1999 (44 of 1999)] or any other applicable Act in this regard.
