LIC Jeevan Nidhi

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Policy discontinued 

LIC Jeevan Nidhi Plan

 

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

 

 

Key Features of LIC Jeevan Nidhi Plan

 

§  This plan is a deferred pension plan with bonus facility

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

§  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.

§  Upon Vesting, there are 2 Vesting Options available to the life insured

o    He may choose to withdraw 1/3rd of the corpus tax free and avail pension from the remaining 2/3rd of the corpus

o    He may choose to avail pension from the entire corpus

§  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. and 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.

§  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.

 

 

Benefits you get from LIC Jeevan Nidhi Plan

 

Death Benefit – In case of death of the Life Insured before the vesting date, the nominee receives

·         Sum Assured plus

·         accrued Guaranteed Additions plus

·         simple Reversionary Bonus plus

·         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

o    Annuity for Life- where pension is paid till the life assured is alive and nothing is payable on death

o    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

o    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

o    Increasing Annuity- pension is paid till the life assured is alive at an increasing rate of 3% p.a.

o    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.

 

 

Eligibility conditions and other restrictions in LIC Jeevan Nidhi Plan

 

 

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

 

 

Sample illustration of LIC Jeevan Nidhi Plan

 

The below illustration is for a healthy Male of 35 years (non-tobacco user) opting for a Annual Premium = Rs. 4121 and Policy Term = 25 years respectively.

Guaranteed Maturity Benefit = Rs 1,00,000 (Sum Assured) + Rs 5000 guaranteed addition in the first 5 years

LIC Jeevan Nidhi Sample Premium Values 

 

 

Additional Features and Benefits of LIC Jeevan Nidhi Plan

 

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.

 

 

What happens if?

 

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy lapses and all benefits cease.

 

You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
Guaranteed Surrender Value = 30% of all premiums paid (90% for Single Premium) – 1st year’s premium

There is Special Surrender Value under this plan as well.

 

You want a loan against your policy – Loan facility is not available under this policy

 

 

Alternate pension plans from different insurance companies

 

1.     Aegon Religare Pension Plan

2.     Tata AIG Life Nirvana

3.     ICICI Pru Forever Life

 

 

Other pension plans from Life Insurance Corporation of India

 

1.     LIC Pension Plus - ULIP

2.     LIC New Jeevan Suraksha 1

3.     LIC New Jeevan Dhara 1

4.     LIC Jeevan Akshay 6

 

 

~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the LIC Jeevan Nidhi brochure and insurance company's website. It should not be construed as a Critical or Favourable LIC Jeevan Nidhi Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

Hi,

My age is 27 years, if i want this plan which pays me when i am 40 years or 45 years how much I have to pay?

By Prateek Shukla on Sep 22, 2013 Reply

Dear Prateek, that would depend on the amount of cove which you opt for. Your premium will depend on your age, the term which you select and the amount of cover (sum assured) which you opt for. You will have to go in for the New Jeevan Nidhi Plan as the plan described in this page has been discontinued.

Replied By Deepak Yohannan (MIC Staff) on Sep 23, 2013 Reply

my age 23yrs. if i take premium of Rs.1000/month. maturity 10yrs.then tell me total amount after maturity of this policy

By Om Chaturvedi on Jun 08, 2013 Reply

Dear Om, this plan has been withdrawan by LIC and has been replace with a new Annuity Plan which can be purcahsed online also - LIC New Jeevan Nidhi Plan.

There are multiple options in Annuity plans but the idea is to get a regular income post retirement. The cirteria is not to look at the Maturity Amount in such plans. 

Replied By Admin (MIC Staff) on Jun 14, 2013 Reply

Sir my age -48 I want take premium 1,00,000 per year for 10 yrs duration, pls tell me how much pension (per month) i'll get after maturity ?

thanks and regards – PRASANTA KUMAR GHOSH

By Prasanta Ghosh on Apr 21, 2013 Reply

Dear Prasanta Ghosh, so you pay Rs. 1,00,000 each for the next 10 years which is the accumulation phase of your pension plan. So let us "assume" you built a corpus of Rs. 15,00,000 at the end of 10 years.

So now this 15 lakhs rupees will be available with you at the age of 58. You can withdraw 1/3rd of it and the remaining will have to be used to purchase an annuity. Assuming you do not withdraw anything and use the entire 15 lakhs to purchase an annuity - you will get Rs. 11,844 and a monthly income which is taxable. This amount is received if you go in for the "annuity for life" option.

Replied By Admin (MIC Staff) on Apr 22, 2013 Reply

My age is 35 yrs. if I take premium of 5000/ month, for 20 yrs duration ( joint life last survivor annuity ) ,tell me how much pension (per month) i'll get after maturity ?

By Kinjalkumar Shah on Feb 22, 2013 Reply

I am retired person, my date of birth is 12-06-1950

pl.inform me how much premium will require for complete this policy, and how much

amout I will get yearly.

By Mahendra G.Mehta on Feb 22, 2013 Reply

my age is 26 yrs. if i take premium of Rs.1000/month .then tell me total amount after complete policy .

By Chetan Patil on Dec 05, 2012 Reply

LIC"s "Jeevan Nidhi" is one of the best Pension Policies, everybody should have this policy, but under IRDA's obligations it has been withdrawn which is very unfortunate.

By Manas Bhaumik on Jul 11, 2012 Reply

My age is 41 yrs. I want a LIC pension plus policy and get pension after 58yrs 25k per month. So, how much premium required per annum.

A.Hosain

Replied By Sk Ajfar Hosain on Dec 17, 2013 Reply

Dear Mr Hoasin, the plan mentioned by you is not availble currently - it has been withdrawn. 

However, to give you an idea, you will have to buy an annuity by paying around Rs. 40 lakhs to get a pension of Rs. 25,000 monthly. This is a broad estimate and it will depend on the type of annuity which you choose.

Hope this helps you.

Replied By Deepak Yohannan (MIC Staff) on Dec 20, 2013

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