LIC Jeevan Nidhi

LIC Jeevan Nidhi Plan

This plan has been withdrawan. Refer to the New Annuity Plan launched by LIC – LIC New Jeevan Nidhi.

LIC Jeevan Nidhi is with bonus deferred annuity plan. This is a non unit-linked insurance pension plan. This plan is purchased to cover the risk of living too long and hence has multiple pension options to cover that risk. The corpus that is created to provide pension for old age is the Sum Assured + accrued Guaranteed Additions + simple Reversionary Bonus + Terminal Bonus. The age where pension is payable is called Vesting Age and the date when pension starts is called Vesting Date.

Thus, if the Life Insured survives the entire term, then he would get the option to withdraw 1/3rd of the entire corpus that has been accumulated tax free and start receiving pension from the remaining 2/3rd of it. He would also get multiple pension options to choose from.

However, if the Life Insured dies within the policy tenure, i.e. before the pension starts then his nominee would receive the Sum Assured + accrued Guaranteed Additions + simple Reversionary Bonus + Terminal Bonus, if any.

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Pension Plan

Death Benefit

Pension Options

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Key Features

This plan is a deferred pension plan with bonus facility

Pension amount

The corpus for pension is (Sum Assured + accrued Guaranteed Additions + simple Reversionary Bonus + Terminal Bonus)

Death Benefit

Death Benefit before Vesting Date is also (Sum Assured + accrued Guaranteed Additions + simple Reversionary Bonus + Terminal Bonus).

Death Benefit after the Vesting Date depends on the annuity option chosen.

Pension details

There are 5 options for Pension:

Annuity for Life - where pension is paid till the life assured is alive and nothing is payable on death
Annuity Guaranteed for Certain Periods - where pension is paid for 5/10/15 or 20 years as chosen whether the life assured is alive or not
Annuity with Return of Purchase Price on Death - pension is paid till the life assured is alive and the remaining amount of the corpus is paid to the nominee as death benefit
Increasing Annuity - pension is paid till the life assured is alive at an increasing rate of 3% p.a.
Joint Life Last Survivor Annuity - pension is paid till the life assured is alive. On the death of the life insured, 50% of the pension is payable to spouse as long as the spouse if alive.

Other Benefits

Optional higher cover through Term Rider, Accidental Death and Disability Benefit rider and Critical Illness Rider and Premium Waiver Rider for Critical Illnesses.

This plan has Guaranteed Additions for the first 5 years

There is large sum assured rebate.

Riders

There are 4 additional riders available:

Accidental Death and Disability Benefit rider
Term Assurance Rider
Critical Illness Rider
Premium Waiver Benefit Option can be opted for if Critical
Illness Rider has been taken.

Benefits

Death Benefit

In case of death of the Life Insured before the vesting date, the nominee receives the following:

Sum Assured plus + Accrued Guaranteed Additions + Simple Reversionary Bonus + Terminal Bonus

In case of death of the Life Insured after the vesting date, it entirely depends upon pension option chosen.

Maturity Benefit

At the maturity of the policy, the insured will get some choices

To choose whether to withdraw 1/3rd of the fund tax free and avail pension from the remaining or take pension from the entire corpus
To choose the type of pension
- Annuity for Life - where pension is paid till the life assured is alive and nothing is payable on death
- Annuity Guaranteed for Certain Periods - where pension is paid for 5/10/15 or 20 years as chosen whether the life assured is alive or not
- Annuity with Return of Purchase Price on Death - pension is paid till the life assured is alive and the remaining amount of the corpus is paid to the nominee as death benefit
- Increasing Annuity - pension is paid till the life assured is alive at an increasing rate of 3% p.a.
- Joint Life Last Survivor Annuity - pension is paid till the life assured is alive. On the death of the life insured, 50% of the pension is payable to spouse as long as the spouse if alive

Income Tax Benefit

Premiums paid under life insurance policy are exempted from tax under Section 80 C and 1/3rd of the maturity proceeds are exempted from tax under Section 10 (10A). Pension that is received is taxable.

Bonus rates

Check the Bonus rates of LIC Jeevan Nidhi Plan

Eligibility

	Minimum	Maximum
Sum Assured (in Rs.)	50,000	No Limit
Policy Term (in years)	5 for Regular Premium 6 for Single Premium	35
Premium Payment Term (in years)
Entry Age of Policyholder (in years)	18	65
Age at Vesting (in years)	40	75
Premium (in Rs.)	10,000 for Single 3000 for Regular	No Limit
Payment modes	Single, Yearly, Half-yearly, Quarterly, Monthly and SSS