LIC Jeevan Shanti (Plan 850) was a single-premium annuity plan with both immediate options (A to J) and a deferred annuity. It is withdrawn and now replaced by New Jeevan Shanti 758. On ₹10 lakh at age 60, immediate option A gives about ₹7,443 a month in our estimate. A 45-year-old deferring 10 years gets about ₹8,443 a month from age 55.
Jeevan Shanti 850 Pension Calculator
Your estimate
per instalment
- Annuity rate (yearly)
- 8.93%
- Death benefitpension stops; nothing is paid to the nominee
- ₹0
- Purchase priceno GST from 22 Sep 2025
- ₹10,00,000
- Purchase price₹10,00,00036%
- Pension in first 20 years₹17,86,36064%
Cumulative pension received (if the annuitant is alive)
| Years of pension | Age at entry | Total pension |
|---|---|---|
| 1 | 61 | ₹89,318 |
| 5 | 65 | ₹4,46,590 |
| 10 | 70 | ₹8,93,180 |
| 15 | 75 | ₹13,39,770 |
| 20 | 80 | ₹17,86,360 |
| 25 | 85 | ₹22,32,950 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC Jeevan Shanti Plan 850?
LIC Jeevan Shanti (Plan 850) was a non-linked, non-participating, single premium annuity plan. You paid one lump sum, the purchase price, and LIC locked in a pension rate for life. Its special feature was the choice between:
- Immediate annuity, with ten options from A to J, including guaranteed periods, return of purchase price, a 3% rising pension and joint life; and
- Deferred annuity, where the pension starts after a waiting period of 1 to 20 years, at a higher rate.
Plan 850 is withdrawn. Its successors, New Jeevan Shanti 858 and the current New Jeevan Shanti 758, offer only the deferred route. If you hold an 850 policy, your rate is guaranteed for life. This calculator helps you check your instalment or compare what the options would have paid.
Jeevan Shanti 850 at a glance
| Feature | Details |
|---|---|
| Plan number | 850 |
| Plan type | Single premium immediate and deferred annuity |
| Entry age, immediate | 30 to 85 years (up to 100 for option F) |
| Entry age, deferred | 30 to 79 years |
| Deferment | 1 to 20 years; vesting age 31 to 80 |
| Minimum purchase price | ₹1,50,000 (₹50,000 for a Divyangjan dependant) |
| Minimum annuity | ₹1,000 monthly, ₹3,000 quarterly, ₹6,000 half-yearly, ₹12,000 yearly |
| Payout modes | Monthly, quarterly, half-yearly, yearly |
| Status | Withdrawn |
Immediate annuity options
| Option | What you get |
|---|---|
| A | Pension for life, nothing after death |
| B, C, D, E | Pension for life, guaranteed for 5, 10, 15 or 20 years |
| F | Pension for life, purchase price returned on death |
| G | Pension rising 3% a year |
| H | Joint life; 50% continues to the survivor |
| I | Joint life; 100% continues to the survivor |
| J | Joint life 100%, purchase price returned after both deaths |
How the pension is estimated
The pension is a rate per ₹1,000 of purchase price, which depends on age, option and, for deferred annuity, the waiting period. Larger purchases earn an incentive of ₹1.50 to ₹2.70 per ₹1,000 a year, from ₹5 lakh upward, and online purchases got about 2% more. Monthly payouts are about 4% lower in total than one yearly payment.
The rate chart we started from gave figures that could not be right: over 60% a year for some deferred cases, and higher pensions for joint life than for single life. We re-anchored it on the source’s own worked example (age 60, ₹10 lakh, about ₹90,942 a year under option A), kept vesting at 80 or below and made joint life pay less. Treat every figure as an estimate. Your policy schedule shows the exact rate.
Example 1 (immediate): a 60-year-old investing ₹10,00,000 under option A receives about ₹7,443 a month (₹89,318 a year). Under option F, which returns the ₹10 lakh to the nominee, the pension is about ₹5,728 a month.
Example 2 (deferred): a 45-year-old investing ₹10,00,000 with 10 years’ deferment receives about ₹8,443 a month from age 55 (₹1,01,316 a year). If death happens during the deferment period, the nominee gets at least ₹11,00,000.
Tip: the cost of protecting your capital is real. At age 60, choosing option F instead of A lowers the monthly pension by about ₹1,700, in exchange for returning the ₹10 lakh to your family.
Death benefit, loan and surrender
- Immediate options: as per the table above. Options F and J return the purchase price.
- Deferred annuity: during deferment, the higher of 110% of the purchase price or the price plus guaranteed additions.
- Loan and surrender: available only under selected options, mainly those that return the purchase price, and subject to conditions in your policy document.
Tax on Jeevan Shanti pension
The pension is taxable as income at your slab rate. The purchase price does not qualify for Section 123 of the Income-tax Act, 2025 (earlier Section 80C) here. From 22 September 2025, individual annuity policies are GST-exempt. Before that date, GST was charged on the purchase price.
Jeevan Shanti 850 vs 858 vs 758
- 850: immediate and deferred annuity, options A to J.
- 858: deferred annuity only, single or joint life. See the Jeevan Shanti 858 calculator.
- 758: the current deferred annuity. See the New Jeevan Shanti calculator for today’s options.
If you want an immediate pension now, compare Jeevan Akshay VII 857.
How to use this calculator
- Select immediate or deferred annuity and the option.
- Enter the purchase price and age, plus the spouse’s age for joint life.
- For deferred annuity, set the deferment period.
- Pick the payout mode and read the instalment, yearly pension and death benefit. The table shows the total pension received over time.
Frequently asked questions
Is LIC Jeevan Shanti 850 still available?
No. Plan 850 is withdrawn. LIC replaced it first with New Jeevan Shanti 858, a deferred-only annuity, and then with New Jeevan Shanti 758. Existing 850 policies keep their annuity rate for life.
How much pension does Jeevan Shanti 850 pay on ₹10 lakh?
It depends on age and option. In our estimate, a 60-year-old choosing immediate option A gets about ₹93,040 a year in yearly mode, or ₹7,443 a month in monthly mode. Return of purchase price option F pays about ₹5,728 a month.
What is the difference between immediate and deferred annuity in plan 850?
Immediate annuity starts paying from the next instalment date. Deferred annuity starts after 1 to 20 years, and the longer wait earns a higher rate. A 45-year-old deferring 10 years gets about ₹8,443 a month on ₹10 lakh from age 55.
What happens to the money if the annuitant dies?
It depends on the option. Options F and J return the purchase price to the nominee. Options B to E pay for the rest of the guaranteed period. Option A and the increasing option G stop. The deferred annuity pays at least 110% of the purchase price.
Can the pension amount change later?
No. Jeevan Shanti is a non-participating plan, so the annuity rate is fixed on the purchase date and stays the same for life. Option G is the only one that rises, by 3% a year.
Is there GST on Jeevan Shanti 850?
Not any more. Individual annuity policies are GST-exempt from 22 September 2025. Earlier purchases carried GST on the purchase price, which is why old receipts show a higher amount paid.
Is the pension from Jeevan Shanti taxable?
Yes. Annuity income is added to your total income and taxed at your slab rate in the year you receive it. The purchase price does not get a Section 123 (earlier 80C) deduction under this plan.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.