LIC New Jeevan Dhara-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, which is not paid out completely. 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.
Death Benefit – In case of death of the Life Insured before the vesting date, the nominee receives all premiums paid till death together with 3%, 4% or 5% interest rate depending if the death occurs within the first 10 years, 20 years or thereafter respectively.
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
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 88 and 1/3rd of the maturity proceeds are exempted from tax under Section 10 (10A) but only 25% can be withdrawn on maturity.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.
|
Minimum |
Maximum |
Notional Cash Option (in Rs.) |
50,000 (for Regular Premium) |
No Limit |
Deferment Period (in years) |
2 |
35 |
Premium Payment Term (in years) |
2 |
35 |
Entry Age of Policyholder (in years) |
18 |
70 |
Age at Vesting (in years) |
50 |
79 |
Premium (in Rs.) |
10,000 for Single 2500 for Regular |
No Limit |
Payment modes |
Single, Yearly, Half-yearly, Quarterly, Monthly and SSS |
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
Riders- There is 1 additional rider available - Term Assurance Rider
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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.
You want a loan against your policy – Loan facility is not available under this policy