Planning for retirement is essential so that you have a good corpus when your earning stops. That is why pension plans are offered by life insurance companies which help you accumulate a retirement corpus for your needs. LIC New Jeevan Nidhi Plan is one such retirement oriented pension plan which gives good returns on your premiums so that you can build up a substantial corpus.
LIC New Jeevan Nidhi Plan is a traditional deferred pension plan. You can choose a policy term, pay premiums over the term and build up a retirement corpus. You also get life insurance coverage over the policy tenure that you choose so that you can take care of your protection needs. When the plan matures you can use the corpus to receive annuities to fund your retirement.
The plan has the following salient features –
The different types of benefits which you can get under LIC New Jeevan Nidhi Plan are as follows –
When the term of the plan comes to an end, the sum assured, guaranteed additions added, vested reversionary bonuses and a final additional bonus is offered as the vesting benefit. You have three options of utilising the vesting benefit which is as follows –
If the insured dies during the term of the policy, the death benefit would be paid. This benefit would depend on the period of death. If the insured dies within the first five years of the policy, the sum assured and accrued guaranteed additions will be paid. If, on the other hand, the insured dies after the first five years of the policy, the sum assured, accrued guaranteed additions, vested reversionary bonuses and a final additional bonus is paid. The minimum death benefit would be at least 105% of the total premiums paid under the policy. The nominee can receive the death benefit in a lump sum or in annuity instalments, as desired.
The plan earns guaranteed additions during the first five policy years. This addition is added @ INR 50 per INR 1000 sum assured.
Since the plan is a participating pension plan, simple reversionary bonuses are added to the policy corpus every year starting from the 6th policy year. The bonuses are paid if LIC earns a profit in a financial year. Moreover, when the policy matures or if the insured dies during the policy tenure, a final additional bonus might also be added to the corpus.
LIC’s Accidental Death and Disability Benefit Rider is available under the plan which you can choose as an optional coverage benefit. Under this rider, an additional sum assured is paid if the insured dies in an accident. Moreover, if the insured becomes disabled in an accident, the rider sum assured is paid in monthly instalments for ten years. Moreover, the premium for the rider would also be waived for the remaining term of the plan.
There are premium discounts under the policy which helps to lower the premium. The discounts available under the policy are as follows –
There are discounts if you choose a high level of sum assured. If you pay regular premiums and the sum assured is INR 3 lakhs and above, the discount is 2% of the sum assured. If, however, you pay a single premium policy, the discount would be 5% of the sum assured if the sum assured is INR 3 lakhs and above.
Entry age | Minimum – 20 years
Maximum: Regular premium payment – 60 years Single premium payment – 58 years |
Vesting age | 55 years to 65 years |
Term of the plan | Regular premium – 7 years to 35 years
Single premium – 5 years to 35 years |
Sum assured | Minimum:
Regular premium payment – INR 1 lakh Single premium payment – INR 1.5 lakhs |
Premium payment term | Regular premium – equal to the term of the plan
Single premium – once |
This paid-up sum assured would be paid on death or vesting along with the accrued guaranteed additions and bonuses added to the policy before the premiums were discontinued.
Surrender value = {(surrender value factor * aggregate premiums paid) + [surrender value factor of guaranteed additions and bonuses * (guaranteed additions + vested bonuses accrued under the plan)]}
The surrender value can be used to avail annuity payments. You can also withdraw 1/3rd of the value in cash and use the remaining to receive annuities.
Under LIC’s New Jeevan Nidhi Policy, the following instances of suicides would be excluded from coverage –
Here are the premiums which would be payable when different plan parameters are combined together. The sum assured is taken to be INR 5 lakhs and the regular premiums are assumed to be paid annually –
Age of the insured | Regular premium payment | Single premium payment | ||||
Term 10 years | Term 20 years | Term 30 years | Term 10 years | Term 20 years | Term 30 years | |
35 years | NA | INR 16,264 | INR 7052 | NA | INR 281,000 | INR 203,075 |
45 years | INR 46,473 | INR 18,009 | NA | INR 401,275 | INR 291,400 | NA |
Let’s say you buy a single premium policy for a sum assured of INR 5 lakhs. The term is 30 years and you are aged 35 years. The premium that you would have to pay would be INR 203,075. Here’s how the policy would work –
Here are the different types of tax implications of LIC’s New Jeevan Nidhi Plan –
You can buy the policy from the branch office of LIC or from a licensed LIC agent. However, these modes of buying are offline which involve a lot of hassles. To buy conveniently, you can choose to buy online through the official website as well.
If the policy is maturing, you would have to choose the vesting benefit option that you want. This choice should then be communicated to LIC for at least 6 months before the vesting date.
In case of death of the insured, the nominee is required to inform LIC about the death of the insured. Then, proper documentation is to be filed so that the company processes and releases the death claim.
You can also make a claim under LIC’s New Jeevan Nidhi Plan through Turtlemint if you have bought the policy from the company. Just call Turtlemint at 1800 266 0101 or send a mail to claims@turtlemint.com. After being intimidated, the company’s claim team would take the necessary action and get your claims settled.
If you are commuting a part of the vesting benefit, the following documents would be required –
In case of death claims, however, the following documents would be required to be submitted –
Yes, you can pay premiums monthly if the policy has been issued under the Salary Saving Scheme.
The rider can be taken for a minimum sum assured of INR 1 lakh and a maximum sum assured of INR 50 lakhs.