People looking for safe investment in India always want to choose such schemes where the money remains safe and they can also get the support of regular income if needed. Keeping this need in mind, Post Office Monthly Income Scheme (POMIS) and LIC’s Jeevan Shanti Yojana are quite popular. Both the schemes work differently and cater to different types of people. Let us understand in simple language what both these schemes are, how they work and which one can be better for you…
What is LIC Jeevan Shanti?
LIC’s Jeevan Shanti is a single premium pension plan. This means that you have to deposit the money only once and then after the period chosen in the policy, you start getting regular pension. There are two types of annuity options available in this, single life and joint life, that is, if you want, you can take pension only for yourself or you can choose the option for both husband and wife.
The special thing about this scheme is that the annuity rates (ie the pension you will get every year/month) are fixed at the time of inception of the policy. Whatever may be the market condition in future, your pension will continue to be received on time. This is the reason why this scheme is very popular among those planning for retirement.
What is Post Office MIS?
Post Office Monthly Income Scheme (POMIS) is an investment scheme in which you get fixed returns every month. Currently this scheme is offering guaranteed interest of 7.4% per annum, which is paid every month. It is better for those who need stable income to meet their expenses from month to month.
Only Rs 1,000 is required to start it. In this, single or joint account can be opened. Maximum three people can join a joint account. The tenure of the account is five years and the money is returned as soon as the tenure is completed.
What is the difference between the two plans?
LIC Jeevan Shanti is a pension based plan where the income starts over time, whereas POMIS starts paying monthly income immediately. The minimum investment in Jeevan Shanti is Rs 1.5 lakh and there is no maximum limit. Whereas in POMIS, the maximum limit is fixed which is Rs 9 lakh for single account and Rs 15 lakh for joint account.
Jeevan Shanti policy can be surrendered at any time, whereas in POMIS, there is a certain percentage deduction for early account closure. You also get tax benefits on Jeevan Shanti under Section 80C of the Income Tax Act, whereas there is no tax benefit on POMIS.
Which scheme is better for you?
If you are planning for retirement and want that you and your family continue to get regular pension for a long time, then LIC Jeevan Shanti is a strong option for you. It is also good for those who want stable and secure income for the future.
At the same time, if you want low risk and immediate monthly income, then POMIS is the right choice for you. This is considered an easy and reliable scheme for the elderly, housewives and small investors. Both the schemes are good, but the right choice depends on your need, investment capacity and source of income.
