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  • LIC's New Jeevan Nidhi Plan

    LIC Life Insurance

    LIC's New Jeevan Nidhi Plan is a traditional with-profits pension plan which encompasses savings and protection features.The LIC's New Jeevan Nidhi offers death cover even during the deferment period.


    Eligibility Conditions for LIC's New Jeevan Nidhi Plan

    Minimum entry age 20 years (last birthday)
    Maximum entry age

    60 years (last birthday) (single premium)

    58 years( regular premium)

    Minimum vesting age 55 years
    Maximum vesting age 65 years

    Key Features of LIC's New Jeevan Nidhi Plan

    The salient features of the New Jeevan Nidhi plan are listed in the table below:

    Plan type Pension plan
    Type of premium

    Single premium (buying premium with a lump sum amount)

    Regular premium (premium payment at yearly, quarterly, half-yearly and monthly (ECS) or via SSS mode

    Deferment Period
    • Single Premium: 5 to 35 years
    • Regular Premium: 7 to 35 years
    Premium payment frequency Single, Half-Yearly, Quarterly and Yearly
    Sum Assured

    Minimum: Rs.1 lakh (regular premium)

    Maximum: No limit

    Grace Period

    30 days (Yearly, Half-yearly and Quarterly modes)

    15 days (Monthly mode)

    Service Tax 3.09%
    Freelook Period 15 days. A policy cannot be cancelled after 15 days till for three years
    Loan facility No loan facilities are available under this pension plan
    Surrender Value Guaranteed surrender value is available under this plan
    Renewal A policy will lapse upon non-payment of the premium. A policy can be renewed before two years from the due date of premium which has not been paid

    Benefits/Advantages of LIC's New Jeevan Nidhi plan

    The benefits of this LIC Pension plan are listed below:

    • Tax Benefits: 1/3rd of the maturity proceeds and the premiums paid are tax- exempt.
    • Profits: This plan will reap in profits from the sixth policy year for a simple reversionary bonus (at prevailing rates as decided by the Life Insurance Corporation).
    • Annuity: The amount on vesting can be commuted as permissible under the section 4 of Insurance Act, 1938. The amount post commutation can be used to buy annuity at the prevailing rates
    • Death Benefit: The death benefit during the first five policy years and in the subsequent years are listed in the table below:
    Death - Five policy years Death - After five policy years
    The nominee is paid basic sum assured in addition to guaranteed additions which is either paid as a lump sum amount or in an annuity or partly in annuity or lump sum, subject to payment of all premiums The nominee is paid basic sum assured in addition to guaranteed additions, Final Additional Bonus, simple reversionary bonus is paid either in a lump sum or in an annuity or partly in an annuity and a lump sum, subject to payment of all premiums

    The death benefit paid will not be less than 105% of premiums paid (not including rider premium, taxes and extra premium).

    • Benefit of Vesting: The life assured is paid an amount equivalent to the basic sum assured, vested simple reversionary bonuses, guaranteed additions and Final Additional bonus
    • Guaranteed Additions: Guaranteed additions are provided at the rate of Rs.50 per 1000 sum assured every year for the first five years of the policy
    • Rebates: The rebates offered under regular premium plans are listed below:
    Sum Assured Rebate
    Rs.1 lakh to Rs.2,95,000 No rebate
    Rs.3 lakh and above 2% of sum assured

    The rebates offered under single premium plans are listed below:

    Sum Assured Rebate
    Rs.1 lakh to Rs.2,95,000 No rebate
    Rs.3 lakh and above 5% of sum assured

    How the Plan Works*

    If a 35-year-old individual buys LIC New Jeevan Nidhi policy for a policy term of 25 years for a sum assured of Rs.1 lakh at single premium. He will have to pay a premium of Rs.4121 every year. His maturity proceeds will be Rs.2.06 lakhs and a guaranteed vesting benefit of around Rs.1.25 lakh. He would get sum assured with guaranteed additions, Final Additional bonus and vested simple reversionary bonuses on vesting. He can use the amount to purchase an annuity (from Life Insurance Company), and deferred single premium pension plan. If the benefit is not sufficient to buy an annuity the benefit will be paid as a lump sum. Upon his death under the first five years of the policy, his nominee will receive basic sum assured and guaranteed addition (lump sum or an annuity). In case he dies after five years of taking this policy, his nominee will receive basic sum assured, Simple Reversionary bonus, Guaranteed Addition and Final Additional Bonus (lump sum or in an annuity).

    *The above example is for illustrative purpose only. Customers should contact LIC representatives for details and accurate calculations

    Premium Payment

    The table below shows the premium payment for single premiums under this plan

    Single premiums      
    Entry Age Deferment Period    
           
      10 20 30
    25      
    35   612 456
    45 852    

    The table below shows the premium payment for annual premiums under this plan

    Annual premiums      
    Entry Age Deferment Period    
           
      10 20 30
    25 - - 32.7
    35 - 53.6 -
    45 115.2 - -

    Riders

    Disability benefit rider and accidental death riders are available under this LIC plan upon payment of additional premium. The accident benefit sum assured is paid as a lump sum in addition to the death benefit in case of accidental death. In case of disability due to an accident, an amount equivalent to the sum assured (accident benefit) is paid in EMIs over a period of 10 years while premiums due in the future for both accident benefit sum assured and basic sum assured are waived. The minimum and maximum accident benefit sum assured which can be availed are Rs.1 lakh and Rs.50 lakh respectively. The accident benefit sum assured is available till the vesting age.

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