LIC New Jeevan Suraksha-1 Plan
LIC New Jeevan Suraksha-1 Plan is with bonus deferred annuity plan. This is a non unit-linked pension plan. The corpus is created to provide pension for old age after Vesting Date.
In this plan, the premium is paid till the end of the policy term, i.e. till the pension starts from the Vesting Date. At the start of the plan, the policyholder gets to select a Notional Cash Option. The Notional Cash Option along with accrued Bonuses forms the maturity proceeds. The policyholder can withdraw 25% of the entire maturity proceeds including bonus and receive a lumpsum amount on vesting and the remaining 75% amount will surely be converted into annuity. There are 5 annuity choices at present to choose from. An additional 3% rebate would be given on the purchase price of the annuity at the vesting date. At the time of vesting, the annuity rates for Immediate Pension Plan LIC Jeevan Akshay VI Plan would be considered.
However, if the life insured dies before pension starts, all premiums paid + interest on the same is returned. If death occurs after vesting date, it depends entirely upon the pension option whether any Death Benefit would be payable or not.
Key Features of LIC New Jeevan Suraksha-1 Plan
§ This plan is a deferred pension plan with bonus facility
§ 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 25% of the corpus tax free and avail pension from the remaining 75% of the corpus
o He may choose to avail pension from the entire corpus
§ An additional 3% rebate would be given on the purchase price of the annuity at the vesting date.
§ At the time of vesting, the annuity rates for Immediate Pension Plan LIC Jeevan Akshay VI Plan would be considered.
§ 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 is available for annual premiums only.
§ There is large cash option rebate.
Benefits you get from LIC New Jeevan Suraksha-1 Plan
Death Benefit – In case of death of the Life Insured before the vesting date, the nominee receives all premiums paid till death + Term Rider Sum Assured(if chosen) together with 5% compounding interest.
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 25%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) but only 25% can be withdrawn on maturity. Pension that is received is taxable.
Eligibility conditions and other restrictions in LIC New Jeevan Suraksha-1 Plan
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Minimum
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Maximum
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Notional Cash Option (in Rs.)
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50,000 (for Regular Premium)
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No Limit
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Deferment Period (in years)
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2
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35
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Premium Payment Term (in years)
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2
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35
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Entry Age of Policyholder (in years)
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18
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70
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Age at Vesting (in years)
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50
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79
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Premium (in Rs.)
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10,000 for Single
2500 for Regular
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No Limit
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Payment modes
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Single, Yearly, Half-yearly, Quarterly, Monthly and SSS
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Sample illustration of premium for LIC New Jeevan Suraksha-1 Plan
The below illustration is for a healthy Male of Age 30 years (non-tobacco user) opting for a
Notional Cash Option = Rs. 5,00,000.
Additional Features and Benefits of LIC New Jeevan Suraksha-1 Plan
Riders- There is 1 additional rider available:
· Term Assurance Rider
You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy lapses and all benefits cease. The amount of Notional Cash Option shall be reduced by the payment ratio. However, the policy can be revived if all due premiums and interest is paid up.
You want to surrender the policy – There is a Guaranteed Surrender Value after 2 policy years
Guaranteed Surrender Value = 90% of all premiums regular paid– 1st year’s premium or 90% for Single 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 Nidhi
3. LIC New Jeevan Dhara 1
4. LIC Jeevan Akshay 6
