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LIC New Jeevan Nidhi Plan

LIC New Jeevan Nidhi Plan is a deferred annuity plan with bonus. This is a non unit-linked insurance pension plan. This plan is purchased to cover the risk of living too long and hence has multiple pension options to cover that risk. The corpus that is created to provide pension for old age is the Sum Assured + Accrued Guaranteed Additions + Simple Reversionary Bonus + Terminal Bonus. The age where pension is payable is called Vesting Age and the date when pension starts is called Vesting Date.

Key Features of LIC New Jeevan Nidhi Plan

  • Deferred annuity plan with bonus facility
  • Guaranteed Additions available for the first 5 years
  • Offers Bonus from the 6th year onwards
  • Optional cover of Accidental Death and Disability Benefit rider available
  • Large sum assured rebate

Benefits you get from LIC New Jeevan Nidhi Plan

Death Benefit - In case of death of the Life Insured before the vesting date, but Within the first 5 years of the policy: provided all premiums have been paid, the nominee will be provided the Basic Sum Assured + accrued Guaranteed Additions which can be paid in a lumpsum or as annuity or a combination of the two.
After the first 5 years of the policy: provided all premiums have been paid, the nominee will be provided the Basic Sum Assured + accrued Guaranteed Additions + Simple Reversionary + Final Additional Bonus, if any, which can be paid in a lumpsum or as annuity or a combination of the two.
In case of death of the Life Insured after the vesting date, it entirely depends upon pension option chosen.

Vesting Benefit - At the time of vesting, there are 3 choices
Withdraw 1/3rd of the entire corpus tax free and then purchase an Immediate Annuity Plan from the remaining amount at the prevailing annuity rates
Buy an Immediate Annuity Plan from the entire amount at the prevailing annuity rates
Buy a Single Premium Deferred Annuity Plan
Immediate Annuity Plan can be purchased only from LIC of India and the vesting option can be chosen from the available options at that time and it cannot be ascertained now.

Income Tax Benefit - Premiums paid under life insurance policy are exempted from tax under Section 80 C and 1/3rd of the maturity proceeds are exempted from tax under Section 10(10A). Pension amount will be taxable.

Eligibility conditions and other restrictions in LIC New Jeevan Nidhi Plan

  • Basic Sum Assured Rs. 1,00,000 for Regular Premium and 1,50,000 for Single Premium & Maximum Unlimited
  • Deferment Period Minimum 7 Years for Regular Premium, 5 Years for Single Premium & Maximum 35 Years
  • Premium Payment Term are Minumam Single & Maximum Regular
  • Entry Age Minimum 20 Years & Maximum 58 Years for Regular Premium, 60 Years for Single Premium
  • Age at Vesting Maximum 55 Years & Maximum 65 Years
  • Premium Rs. 10,000 for Single and 3000 for Regular & Maximum Unlimited
  • Payment modes are Single, Yearly, Half-yearly, Quarterly, Monthly and SSS