LIC New Jeevan Nidhi Plan

The New Jeevan Nidhi Plan from the Life Insurance Corporation of India (LIC) is a ‘with profit’ pension plan. This policy provides a risk cover against death during the policy’s deferment period and also offers the policyholder annuity after the date of vesting. Policyholders can also purchase LIC’s Accidental Death and Disability Benefit Rider to enhance the coverage offered by this policy. Policyholders can claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Eligibility - Who is the LIC’s New Jeevan Nidhi Plan for?

Insurers usually set an eligibility criteria that policy buyers will have to meet in order to be able to purchase the policy.

Parameters	Criteria for eligibility
Minimum age at entry	20 years
Maximum age at entry	60 years
Minimum age at vesting	55 years
Maximum age at vesting	65 years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured

The sum assured is a certain amount of money that is guaranteed to the policyholder/nominee by the insurer, before the addition of any bonuses.

Minimum Sum Assured	Rs.1 lakh
Maximum Sum Assured	No limit

Premiums*

The premium is a fixed sum of money that will have to be paid to the policyholder on a regular basis in order to avail the policy’s coverage.

Deferment Period	Single Premium Policy: 5 – 35 years Regular Premium Policy: 7 – 35 years
Premium Payment Mode	Yearly Half-yearly Quarterly Monthly

*Premiums will vary based on age, location, plan term, GST, and other factors.

Plan Coverage - What the New Jeevan Nidhi Plan covers?

Death Benefit	If the death occurs within the first five policy years, a death benefit which will be the sum of the sum assured and the Guaranteed Additions will be paid to the nominee. If the death occurs after the first five policy years, the sum assured, Guaranteed Additions, and the bonuses will be paid to the nominee. Nominee can choose to receive the death benefit as a lump sum amount, as annuity, or as part lump sum and part annuity.
Benefit on Vesting	Upon attaining the date of vesting, the sum assured, Guaranteed Additions, and bonuses will be made available to the policyholder. With this amount, the policyholder can choose to: Purchase annuity, or Purchase a Single Premium deferred pension plan from LIC
Participation in Profits	From the 6th year of the policy tenure, the policy will accumulate profits in the form of a Final Additional Bonus and Simple Reversionary Bonus.

Riders/Add-On Plans – Additional coverage under the New Jeevan Nidhi Plan

Policy buyers can also choose to customise their coverage by opting for LIC’s Accidental Death and Disability Benefit Rider by paying an extra premium. With this rider, if the policyholder meets with an accidental death, the rider benefit will be paid as a lump sum amount, in addition to the base policy’s death benefit. On the other hand, if the policyholder sustains severe injuries due to an accident, the rider benefit will be paid in equal instalments over a 10-year period.

Exclusions - What the New Jeevan Nidhi Plan doesn’t cover?

This policy comes with a suicide exclusion. For Single Premium policies, if the policyholder commits suicide within 1 year of purchasing the policy, 90% of the premium paid will be paid to the nominee. For Regular Premium policies, if the policyholder commits suicide within 1 year of buying the plan, 80% of the premiums paid will be given to the nominee. If the policyholder commits suicide within 1 year of reviving the policy, the insurer will pay either 80% of the total premiums paid or the policy’s surrender value.

Other Key Features – Free-Look Period, Surrender Value, Grace Period, etc.

Grace Period	Grace period of 30 days for yearly, half-yearly, and quarterly mode of payment is provided. Grace period of 15 days for monthly mode of payment is provided.
Guaranteed Additions	Guaranteed Additions will be paid for the first 5 years at the rate of Rs.50 for every thousand of the sum assured, for each policy year completed.
Rebates	Rebates can be claimed upon opting for a sum assured over Rs.3 lakh or choosing the annual or bi-annual mode of premium payment.
Policy Revival	Lapsed policies can be revived with 2 years from the date of the first due premium that was unpaid.
Paid-Up Value	Policies with a deferment period lesser than 10 years: If 2 years’ premiums were paid on time, and the subsequent premium was not paid, the policy will be converted into a paid-up policy. Policies with a deferment period equal to or more than 10 years: If 3 years’ premiums were paid on time, and the subsequent premium was not paid, the policy will be converted into a paid-up policy.
Surrender Value	The plan can be surrendered while the deferment period is running. Surrender value, as applicable, will be paid.
Loan	Policyholders can’t opt for a loan against this policy.
Free-Look Period	The insurer provides a free-look period of 15 days, during which the policy can be returned.

Tax Benefits – How you can save with the New Jeevan Nidhi Plan?

Policyholders can claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Tax laws can change from time to time, and hence policyholders will have to consult with a tax advisor for more information.

Other Benefits

• Online Policy Purchase: Certain insurance plans from LIC can be purchased directly from their website.
• Customer Service: Policyholders can contact the insurer through the contact numbers listed on their website, dedicated email ID, or the SMS-based helpline service.
• Online Premium Payment: Premiums can be paid online via a credit card, debit card, or net banking.

Why you should buy the New Jeevan Nidhi Plan from LIC?

The New Jeevan Nidhi Plan from LIC offers policyholders the dual benefit of a comprehensive risk cover and a savings option. In addition to the policy-related payouts, one is also entitled to receive bonuses that can further increase one’s corpus. With regards to the insurer, LIC is one of the most preferred insurance companies in the country. They have a claim settlement ratio of 98.33% for FY15-16 and have resolved 100% grievances during the same year. LIC has also won a range of awards over the past few years.