The Jeevan Nidhi Plan from Life Insurance Corporation of India (LIC) is a ‘with profits’, deferred annuity payment pension plan. The key benefit of this policy is that the policyholder can start availing the pension at any time, starting from the age of 40 years. The policy also provides a risk cover against death to the policyholder during the deferment period, and post the deferment period the policyholder will start to receive the guaranteed annuity/pension payments.
The minimum annual premium payable under this policy is Rs.3,000, whereas the minimum single premium amount payable is Rs.10,000. Policyholders can also choose to purchase additional riders to enhance the coverage of this policy. The premiums paid towards this policy are eligible for tax deductions under the prevailing laws of the Income Tax Act, 1961.
Insurance providers have a set eligibility criteria that policy buyers will need to meet in order to be eligible to purchase the policy.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years|
|Maximum age at entry||65 years|
|Minimum age at vesting||40 years|
|Maximum age at vesting||75 years|
The sum assured is the minimum amount of money that is guaranteed to the nominee/policyholder by the insurer. In addition to the sum assured, one may also be eligible to receive bonuses, as per the terms and conditions of one’s policy. As a policy buyer, you will have to choose the sum assured at the time of purchasing the policy.
|Minimum Sum Assured||Rs.50,000|
|Maximum Sum Assured||No upper limit|
The premium is a certain sum of money that one pays to buy an insurance policy. Thus, the premium can be considered a fee that you pay to enjoy the benefits accorded by the insurance policy.
|Minimum term of the policy||
|Maximum term of the policy||
|Premium Payment Mode||
|Minimum Annual Premium Amount||Rs.3,000|
|Minimum Single Premium Amount||Rs.10,000|
* Premiums vary based on age, location, plan term, and other factors.
|Death Benefit||If the life assured passes away during the deferment period, the insurer will pay the sum assured, simple Reversionary Bonus, Terminal Bonus, and the accrued Guaranteed Additions as the death benefit to the nominee.|
|Annuity Payout Options||Upon attaining the date of vesting, the insurer will make the annuity amount available to the policyholder. The policyholder can choose the mode and type of annuity payment.
The policyholder can choose from the following options:
Policyholders who wish to receive a higher degree of coverage can purchase the Accidental Death and Benefit add-on, Term Assurance Rider Option, Critical Illness Rider Option, and/or the Premium Waiver Benefit option, by paying an additional premium. Thus, upon the occurrence of an eventuality that falls under the rider’s coverage limits, the rider sum assured will be paid.
If the policyholder commits suicide within a year of the commencement of the risk cover, the insurance provider will not be held liable to pay the death benefit. Any beneficial interest that the policy may have acquired during the policy term may be paid to the nominee.
|Free-Look Period||If the policy buyer finds the policy terms and conditions unsatisfactory, he/she can return the policy within the 15-day free-look period.|
|Loan||There is no provision to take a loan against this policy.|
|Revival||If the policyholder wishes to revive a lapsed policy, he/she can pay the due premiums with interest within 5 years of the first due unpaid premium.|
|Surrender Value||The policy can be surrendered after the completion of at least 3 years. The applicable surrender value will be paid to the policyholder by the insurer.|
|Guaranteed Additions||Policyholders are eligible to receive guaranteed additions up to Rs.50 for every thousand of the sum assured amount, during the first 5 policy years.|
|Participation in Profits||From the 6th policy year onwards, the policy shall be eligible to receive profits.|
Policyholders can claim tax benefits for premiums paid under the prevailing laws of the Income Tax Act, 1961. Likewise, if the nominee receives a death benefit, this sum too will be tax-free under Section 80D of the Income Tax Act, 1961.
In order to enjoy the golden years of your life in a hassle-free manner, it is necessary to have sufficient funds. To this end, the Jeevan Nidhi Plan from LIC can help you by providing you guaranteed annuity payments during your post-retirement years. In addition, the life cover provided by the policy during the deferment period will offer financial security to your loved ones.
With regards to the insurance provider, the Life Insurance Corporation of India (LIC) is one of the top insurance firms in the country. The insurer has a grievance resolved ratio of 100% and a claim settlement ratio of 98.33% for FY15-16, thus guaranteeing the insurer’s credibility.
Note: This plan has been withdrawn by LIC.