LIC Jeevan Dhara II-872

LIC Jeevan Dhara II- An Overview

LIC Jeevan Dhara II (plan no. 872) is a deferred annuity policy offered by the LIC of India. This retirement plan was designed to ensure that you have a reliable source of income even after retirement. The plan guarantees annuity rates from the policy inception. These rates depend on the entry age which ranges from 20 to 80/70/65 years and also on the chosen annuity option.

In addition to this, the plan has flexibility of options like regular and single premiums, single life and joint life annuities. There are 11 annuity choices and options like a top-up annuity and to receive death claim proceeds in a lump sum or installments. The policy also includes incentives for high premiums and loan facilities.

This plan has now been discontinued and in place of it LIC has launched the LIC New Jeevan Dhara - II Plan 892. This new version has updated features and benefits. Therefore, people who were not able to purchase the earlier version can now enjoy the benefits with this newly launched plan.

What are the Key Features of LIC Jeevan Dhara-II?

The key features of LIC Jeevan Dhara II- 872 are mentioned below.

• LIC Jeevan Dhara-II 872 offers 11 annuity options giving policyholders flexibility and the option to choose from a wide range of options.

• The annuity rates are fixed and guaranteed at the start of the policy.

• This LIC Pension Plan can be easily purchased online and offline.

• Policyholders can increase their annuity through a top-up option involving a single premium payment during the deferment period while the policy is in force.

• Jeevan Dhara-II offers a loan facility during or after the deferment period, particularly under annuity options with the return of premium or on purchase price.

What is the Eligibility Criteria of LIC Jeevan Dhara-II?

What are the Benefits of LIC Jeevan Dhara 2?

LIC Jeevan Dhara 2 offers flexibility with 11 annuity options. Depending on the selected annuity option, policyholders can enjoy various benefits from life annuities to premium returns.

Option 1: Life Annuity for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive.

• If the policyholder dies, annuity payments will stop, and no death benefit will occur.

Option 2: Life Annuity with Return of Premium for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive.

• If the policyholder dies, the nominee will receive 100% of the total premiums as the death benefit, and the policy ends.

Option 3: Life Annuity with 50% Return of Premium after attaining age 75 years for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive. 

• Additionally, once the policyholder reaches 75 years, an Early Return of Premium of 50% of Total Premiums will be paid.

• If the policyholder passes away, the nominee will receive 100% of the total premiums paid, minus any early return of the premium already paid.

Option 4: Life Annuity with 100% Return of Premium after attaining age 75 years for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive. 

• In addition, at age 75, the policyholder will get an early return of 100% of total premiums.

• If the policyholder passes away, the nominee will receive 100% of the total premiums paid, minus any early return of the premium already paid.

Option 5: Life Annuity with 50% Return of Premium after attaining age 80 years for Single Life 

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive. 

• Additionally, once the policyholder reaches 80 years, an Early Return of Premium of 50% of Total Premiums will be paid.

• In case of death, the nominee will receive 100% of the total premiums paid, minus any early return of the premium already paid.

Option 6: Life Annuity with 100% Return of Premium after attaining age 80 years for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive. 

• In addition, at age 80, the policyholder will get an early return of 100% of total premiums.

• In case of death, the nominee will receive 100% of the total premiums paid, minus any early return of the premium already paid.

Option 7: Life Annuity with 5% Return of Premium after attaining age 76 years to 95 years for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular annuity payments are made.

• Between ages 76 and 95, the policyholder will receive an early return of 5% of total premiums on each policy anniversary.

• If the policyholder passes away, the nominee will receive 100% of the total premiums paid, minus any early return of the premium already paid.

Option 8: Life Annuity for Joint Life

During Deferment Period:

• If either annuitant survives, nothing is paid.

• No death benefit is paid on the first death, and the policy continues with due premium payments.

• The nominee will receive 105% of the total premiums paid on the last survivor's death, and the policy ends.

After Deferment Period:

• Regular annuity payments are made as long as either annuitant is alive.

• No death benefit is paid on the first death, and 100% of the annuity continues until the last survivor's death.

• Annuity payments cease on the last survivor's death, and no death benefit is paid.

Option 9: Life Annuity with Return of Premium for Joint Life

During Deferment Period:

• If either annuitant survives, nothing is paid.

• No death benefit is paid on the first death, and the policy continues with due premium payments.

• The nominee will receive 105% of the total premiums paid on the last survivor's death, and the policy ends.

After Deferment Period:

• Regular annuity payments are made as long as either annuitant is alive.

• No death benefit is paid on the first death, and 100% of the annuity continues until the last survivor's death.

• Annuity payments cease on the last survivor's death, and beneficiaries receive 100% of the total premiums paid.

Option 10: Life Annuity with Return of Purchase Price for Single Life

During Deferment Period:

• If the policyholder survives, nothing is paid.

• If the policyholder dies, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular pension is paid to the policyholder as per the chosen mode till the policyholder is alive.

• If the policyholder dies, the nominee will receive 100% of the total premiums as the death benefit, and the policy ends.

Option 11: Life Annuity with Return of Purchase Price for Joint Life

During Deferment Period:

• If any of the annuitants survive, nothing is paid.

• The policy continues; no death benefit is paid on the first death.

• On the death of the second annuitant, the nominee will receive 105% of the total premiums as the death benefit, and the policy ends.

After Deferment Period:

• Regular annuity payments are made as long as either annuitant is alive.

• No death benefit is paid on the first death, and 100% of the annuity continues until the last survivor's death.

• Annuity payments will stop on the last survivor's death, and the nominee will receive 100% of the total premiums paid.

LIC Jeevan Dhara-II Calculator

The LIC Jeevan Dhara-II calculator is a free online tool that estimates the annuity (pension) you shall receive from LIC Jeevan Dhara 2 policy. The calculator lets you try different choices of annuity options and see how your pension changes.

Details you'll need:

• Age at entry and gender of the life assured

• Annuity type (single or regular premium)

• Annuity option (one of the 11 options)

• Deferment period

• Premium paying term

• Premium amount

How to use it:

• Go to LIC's official website and look for the Premium Calculator.

• Enter your gender and date of birth.

• Select the Jeevan Dhara - II plan under the pension plan tabs.

• Fill in the annuity type, annuity option, deferment period and premium amount.

• The calculator then shows your estimated annuity and benefits.

What you get: An estimate of your annual annuity plus a year-by-year illustration with the premiums paid, the death benefit and the surrender value (both guaranteed and special). You can download the result as a PDF, change the inputs and compare the versions.

Why it helps:

• It shows whether your chosen premium is enough for your retirement needs.

• You can compare options such as single life against joint life without any paperwork.

• The results come instantly and it needs no technical knowledge.

The LIC Jeevan Dhara 2 policy 872 has been withdrawn, the new policy is LIC New Jeevan Dhara - II plan 892. People who are planning to buy this retirement plan should use the LIC New Jeevan Dhara-II Calculator as the plan has updated features and benefits.

Sample Premium Illustration for LIC Jeevan Dhara II Plan 872

Given below is a sample premium illustration for better understanding of the policy, based on the following scenario:

For Regular Premium

Annual premium: ₹50,000 (excluding taxes)

Age of annuitant at entry: 45 years (last birthday)

Age of secondary annuitant at entry: 40 years (last birthday)

For Single Premium

Purchase Price: ₹5,00,000 (excluding taxes)

Age of annuitant at entry: 45 years (last birthday)

Age of secondary annuitant at entry: 40 years (last birthday) [applicable for Option 11]

LIC Jeevan Dhara 2 Plan Details

Given below are some other important LIC 872 plan details. 

Top-up Annuity

Policyholders can enhance their annuity by opting for a Top-up Annuity during the deferment period. Based on prevailing rates, additional premiums for the Top-up annuity will determine the increased annuity amount. The total annuity, combining the base and Top-up, will be paid in the chosen mode.

Liquidity Option

After 5 years from the first annuity payment, policyholders can opt for the Liquidity Option, allowing them to receive a lump sum in exchange for reduced annuity payments. This can be done up to three times, not exceeding 60% of the total premiums paid. The annuity amount, death benefit and other benefits will be revised after each exercise of this option.

Advanced Annuity Option

Under Joint Life Annuity Options with Return of Premium, the surviving Annuitant can choose to receive a discounted lump sum during the 'Advance Annuity Period' on the first death of either covered life. This option is exercisable within 6 months from the date of the first death, allowing withdrawal of up to 5 years annuities as a lump sum, subject to specific calculations. Once the 'Advanced Annuity Period' ends, regular annuity payments resume.

Options for Death Benefit Payment

Policyholders can choose from three options for paying the death benefit to the nominee(s): lump sum death benefit, annuitisation of death benefit, or Installment. The annuity option enables the purchase of an Immediate Annuity for the nominee(s), and the In Installment option allows the death benefit to be received in installments over 5, 10, or 15 years. The chosen option at the proposal stage can be modified during the policy's term. The criteria of installment payment is as follows:

Option for Dependents with Disability

the policyholder has a dependent person with a disability (Divyangjan), they can opt for Option-10 (Life Annuity with Return of Purchase Price for Single Life) for the dependent's benefit. The death benefit, if less than the minimum purchase price, is compulsorily utilized to purchase an Immediate Annuity for the dependent. The eligible disability is determined based on applicable disability legislation.

Incentive

Policyholders receive incentives for high premiums or high purchase prices. This incentive amount is decided based on the annuity option you choose and the slab in which your amount falls. It shall also depend on your age at entry.

The table below shows the incentive by online sale by way of increase in the annuity rate.

Policy Revival (Only for Regular Premium Policies)

If a due premium isn't paid by the end of the grace period, the policy lapses. You can still bring it back (revive it) as long as the annuitant(s) are alive and within 5 years of the first missed premium's due date.

Paid-Up Policy (Only for Regular Premium Policies)

What happens when you stop paying depends on how long you've been paying. If you stop before completing two full years of premiums all benefits end once the grace period is over and nothing is paid. If you stop after at least two full years, the policy carries on as a paid-up policy. You continue to get benefits but they are lower than what you would have received had you kept paying.

Surrender Value

With regular premiums, you can surrender (close) the policy at any point during or after the deferment period once you've paid two full years of premiums. With a single premium, you can surrender at any time after paying the Purchase Price.

Loan Facility

You can borrow against the policy during or after the deferment period but only if your annuity option returns the premium or purchase price. With regular premiums, the loan opens up after two full years of premiums and is available under Options 2, 3, 4, 5, 6, 7 and 9. With a single premium, it is available under Options 10 and 11 starting 3 months after the policy is issued or when the free-look period ends whichever is later.

Free Look Period

If the terms and conditions of the policy don't suit you, you have 30 days to return it to LIC along with your reasons for objecting. The 30 days start from the day you receive the policy bond, counted from the electronic or the physical copy whichever reaches you first. LIC will cancel the policy and refund your premium minus stamp duty charges and any annuity already paid.

What is Not Covered Under LIC Jeevan Dhara II?

Suicide Exclusion

In the unfortunate event of the Annuitant or Last Survivor (for Joint life annuity) taking their own life within 12 months from the start of the policy or within 12 months from the date of revival, the Nominee will receive 80% of the total premiums paid till the date of death, provided the policy is active. The Nominee will receive the higher of 80% of the total premiums paid or the surrender value available as of the date of death. No other claims will be payable under the policy in such cases.

Note: LIC Jeevan Dhara is a non-participating- non-linked deferred annuity plan that was designed to look after the post-retirement needs of the policyholder. However, the plan is no longer available for sale, and those individuals who wish to secure their golden years can buy LIC New Jeevan Dhara II Plan 892 with updated features and benefits.

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