All You Need to Know About LIC’s New Jeevan Nidhi Plan

All You Need to Know About LIC’s New Jeevan Nidhi Plan

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For the convenience of the customers, the Life insurance Corporation of India has launched LIC New Jeevan Nidhi, a deferred annuity plan with an additional feature of bonus. Being a non-unit-linked pension plan, it facilitates savings that become the source of a regular income after retirement. LIC New Jeevan Nidhi efficiently covers the risks of living too long by providing multiple pension options.

The principal sum amount created to provide pension to the old age is the sum assured + simple reversionary bonus + accrued guaranteed additions + terminal bonus. This pension plan is customized according to the needs of the customer and has various salient features like:

Key Features of LIC New Jeevan Nidhi 

  1. As a participating deferred annuity plan, it provides an option of single and regular premium payment. 
  2. Guaranteed additions are available for the first 5 years.
  3. From the 6th year onwards, the plan provides bonuses.
  4. Optional cover as an accidental death benefit and disability benefit rider is provided under the coverage of the plan.
  5. The plan provides large sum assured rebate.

The Benefits Offered by LIC New Jeevan Nidhi Policy

As a deferred annuity plan, the LIC New Jeevan Nidhi offers a continuous flow of income after the retirement of the insured. Along with this, there are numerous other benefits offered by the policy, such as

Death Benefit - In case of the demise of the insured  within the initial 5 years of the policy issued date (i.e. before the vesting date), a basic sum assured plus accrued guaranteed addition in paid to the policy beneficiary either in a lump-sum or as the annuity or as a combination of two.

In case the insured dies after the completion of first 5 years of the policy, the nominee of the policy receives the basic sum assured + accrued guarantee addition + simple reversionary bonus + final reversionary bonus (if any), which can be paid as a lump-sum or as an annuity, or as a combination of two.

If the life insured expires after the vesting date, the death benefit entirely depends upon the pension option chosen.

Vesting Benefit - At the time of vesting, the insured is provided with 3 options:

  • The policyholder can withdraw 1/3rd of the entire corpus free of tax liability and can purchase an immediate annuity plan at prevailing annuity rates from the remaining amount.
  • From the entire vesting amount, the insured can buy immediate annuity plan at prevailing annuity rates.
  • The policyholder can buy a deferred annuity plan with single premium payment option.

Income Tax Benefit - Although the pension amount is taxable, the premium paid and the 1/3rd of the maturity proceeds are exempt from tax deduction under section 80C and 10(10A) of Income Tax Act.

For the convenience of our customers, we have shown the eligibility criteria of the policy in a tabular form. Refer to the below table:

LIC New Jeevan Nidhi

Age of Entry

Maturity Age

Premium Paying Mode

Sum Assured

Premium Paying Term

Minimum Entry Age- 20 years

Minimum Maturity Age-  55 years

Single, yearly, quarterly, monthly

Minimum Sum assured- 1,00,000 for regular premium and 1,50,000 for single premium

Minimum – Single

Maximum Entry Age- 58 years for regular premium and 60 years for single premium

Maximum Maturity Age- 65 years

 

-

Maximum Sum Assured- No Upper Limit

Maximum- Regular

 

Additional Benefit Offered by LIC New Jeevan Nidhi Policy

Add-on benefit as an accidental death benefit and disability rider is provided by the policy. This is an optional cover that can be availed along with the basic coverage while purchasing the policy.

Along with all these benefits the plan also has some exclusion:

  1. For a single pay plan, 90% of the premium paid is refunded, in case the insured commits suicide within 12 months of the policy inception.
  2. For a regular pay plan, if the insured commits suicide within a year of commencement, then 80% of the premiums paid are refunded. In case he/she commits suicide within a year of policy renewal, higher of 80% of the premium paid or the acquired surrender value is refundable.

Now that you know the details about LIC New Jeevan Nidhi Plan, you can check the quotes online and choose the most suitable plan with affordable premium option. Moreover, while filling the application form, you can submit a proof of accurate medical history along with the address proof and other KYC documents.

You may also like to read : 10 Best Pension Plans in 2017

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