LIC New Jeevan Nidhi Plan has been withdrawn by LIC and is not available for sale and purchase.
LIC New Jeevan Nidhi Plan is one of the most efficient deferred annuity plans with a bonus. The plan falls under non-unit-linked insurance pension plan category. The plan offers an option to an individual to have a regular income source post retirement. The plan offers multiple pension options that cover different types of risk time to time. A life cover is also included in this plan.
The plan basically works on a corpus basis. The corpus thus made is a combination of Sum Assured + Accrued Guaranteed Additions + Simple Reversionary Bonus + Terminal Bonus. The date when the pension system starts is known as ‘Vesting date’ and the age at which pension starts is known as ‘Vesting age’.
In terms of benefits, it is one of the best plans to consider for your post retirement needs. The plan offers a death benefit, Vesting benefit and Tax benefit to an individual. Here are all the details about the many benefits LIC New Jeevan Nidhi Plan offer:
Death Benefit:
The plan has some prescribed conditions to offer the death benefit plan. In the case of the death of any person covered under Life Insurance plan, the benefit is given depending upon the age of the policy. There are two different slabs:
Within the first year of the policy:
If an insured person dies within the first five years of the policy and provided all the premiums are paid, the nominee will be provided with the Basic Sum Assured + accrued Guaranteed Additions. This can be paid as a lump-sum amount or as an annuity or the combination of the two options.
After the first 5 years of the policy:
If the death happens after the first five years of the policy the nominee is provided with Basic Sum Assured + accrued Guaranteed Additions + Simple Reversionary + Final Additional Bonus. This can be paid as a lump-sum amount or as an annuity or the combination of the two options. The only pre-requisite is that all the premiums must be paid.
In case the insured person dies after the Vesting Date, the payment depends purely on the pension option chosen by the individual and is paid to the nominee.
Vesting Benefits:
Vesting benefits are offered as a choice of three options. The person can choose to:
The vesting options might depend on the prevailing conditions at the set time and thus cannot be ascertained now. However, they are limited to the purchase of immediate annuity plan from LIC only.
All the premiums paid under the LIC New Jeevan Nidhi Plan are subject to tax exemption under the Section 80 (C) of the Income-tax Act. Also, the 1/3 amount of the maturity proceeds is tax-free under the Section 10(10A) of Income tax act. However, the entire pension amount would be subject to income tax deduction as per the slabs defined under the Act.
Some Other Benefits:
The pension starts immediately once you pay the premium. The payment mode for pension depends on you. What you select. You can select Yearly pension, half-yearly pension, quarterly pension or a monthly pension. The minimum amount of pension or annuity will be 6000 INR approximately and the maximum will go till 60,000 INR approx. The amount will vary depending on the taxes applicable.
Maximum | Minimum | Particulars |
Regular Pay:58 years Single Pay: 60 years | 20 yrs | Entry Age |
65 yrs | 55 yrs | Vesting Age |
Single pay or equivalent to the policy term | Premium Payment Term (PPT) | |
35 | 7 for Regular Premium 5 for Single Premium | Policy Term |
Monthly/ quarterly/half-yearly / annually | Premium Paying Frequency | |
As per the age, PPT & SA | Yearly premium | |
No set limit | Regular Pay:1 lakh Single Pay: 1.5 lakh | Basic Sum Assured |
Monthly/ quarterly/half-yearly / annually | Premium Paying Frequency |
Here is a sample illustration of the premium depending upon following criteria:
Regular Pay | Single Pay | Age/ term | ||||
---|---|---|---|---|---|---|
30 | 20 | 10 | 30 | 20 | 10 | |
6550 | - | - | 87610 | - | - | 25 |
6960 | 10,720 | - | 91,230 | 122,400 | - | 35 |
- | 11,430 | 23,050 | - | 126,560 | 170, 510 | 45 |
The policy has some more terms related to it that an individual must understand clearly before buying the plan. Here are the key terms used:
Grace Period:
The policy offers a grace period to the insured person to deposit the premium for comfort. It is 15 days if the policy is purchased on monthly terms and 30 days for quarterly, half-yearly and annual terms. In case you fail to pay the premium within the grace period the policy lapses. However, such lapsed policy can be revived within 2 years from the date of first unpaid premium.
Policy Surrender & Termination:
The insured person is offered surrender policy. This, however, depends upon the payment plan availed. Here are the surrender terms:
In the case of suicide of the insured person:
Last updated on 06-11-2020