Why LIC Jeevan Shanti plan

Due to COVIV-19, there has been a contraction of the economy. Businessmen are apprehensive about the future and hence are not investing more monies in business. They are also worried about future income. Hence many are investing in Shanti to secure their future and get a steady guaranteed income. Big investments in Tiruppur and Salem are testimony to this fact.

Non-resident Indians are worried about the continuation of their employment abroad, hence they are investing in Shanti, so that when they come back to India they have a steady source of income. Big investments in Trivandrum and Ernakulam are examples. Many retirees are apprehensive about falling interest rates and are investing in Shanti to get a steady guaranteed income.

Many young professionals want to retire early. They are using the deferred option in Shanti to create a steady income flow after early retirement. Natural calamities like floods and earthquakes combined with the sluggishness in the real estate market are forcing people to invest in financial assets, and they are investing in Shanti to generate steady returns

Debt fund investors in mutual funds suffered huge value erosion recently due to defaults and they are moving their monies to Shanti for safety and steady income. Share market valuations are unreasonably high and people are booking profits and moving the monies to Shanti

The demand for gold has gone down due to high prices and changes in the psyche of the younger generation. They prefer less ostentatious and inexpensive fancy ornaments. These monies are moving to Shanti. Ostentatious weddings have stopped. Savings moving to Shanti plan

Middle and upper-middle-class people are choosing various deferment periods to get their desired returns and are investing small amounts of ₹10-₹15 lac. Many in Kerala by default chose 20 20-year deferment period to avail 18% annuity.

Employers are investing in Shanti under the Employer-Employee scheme to earn the loyalty of employees as well as provide for their pension. Parents with special children are using Shanti to create a steady income for their children using the concessions given in the Shanti Joint life option used by elders to provide for their spouses and their children, and the investment benefits three generations.

Jeevan Shanti can be assigned and hence many are using it to provide collateral for availing loans. Trusts are investing big monies in the names of principal trustees and getting it assigned to the Trust to receive a steady income. Rich people are using the Marriage Women Property Act so that the capital and annuity belong to the Trust and the creditors can not attach it.