LIC’s New Jeevan Nidhi

New Jeevan Nidhi  – UIN 512B209V01

New Jeevan Nidhi PlanNew Jeevan Nidhi plan is a conventional deferred pension plan where the insured gets protection against loss of life during the term and regular returns in form of pension on survival after maturity.

 

In case if the policyholder does not survive and dies before maturity of the plan then a death benefit amount is paid to the nominee.

 

Plan Features

Min Age at Entry  20 years
Max Age of Entry  60 years if the policyholder opts to pay single premium

 58 years if the policyholder opts to pay regular premium

Min/Max Deferment Period  5 to 35 years (under Single Premium)

 7 to 35 years (under Regular Premium)

Min/Max Vesting Age  55 to 65 years
Loan Facility  No loan facility available
Min Sum Assured  1 Lac to No Limit (Incremental Sum Assured in multiples of 5000, Regular Premium)
Max Sum Assured  1.5 Lac to No Limit (Incremental Sum Assured in multiples of 5000, Single Premium)
Tax Rebate  Yes, both premium payments & death/maturity under section 80(c) and 10(10d) of I.T Act, Pension is Taxable
Premium Payment  Single, Monthly ECS*, Quarterly*, Half-Yearly & Yearly
Riders  Accidental Death and Disability Riders available

*There are no rebates in these payment modes since a 1% & 2% rebate is provided in half-yearly & yearly modes respectively.

 

 

Benefits of New Jeevan Nidhi

  • Benefits of Vesting – If the policyholder survives till the end of the policy term, he/she will be eligible for a pension of the total amount.

 

Includes Basic Sum Assured + Accrued Guaranteed Additions + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)

 

 

  • Death Benefits – At the policyholder’s demise before the pension starting period.

i). Death within first 5 years of the policy

Includes Basic Sum Assured + Accrued Guaranteed Additions (Paid in lump sum, annuity or a mix of both to the nominee)

 

ii.) Death after first 5 years of the policy term

Includes Basic Sum Assured + Accrued Guaranteed Additions + Vested Simple Reversionary Bonus (Depends on Company’s Experience) + FAB (Final Additional Bonus, if any)

 

 

Guaranteed Additions – Rs 50/- per thousand of Basic Sum Assured for the first five years.

Vesting Period – the retirement time or when the policyholder starts receiving pension is known as the vesting period.

Deferment Period – the period between the date of commencement of the pension plan and the first date when the policyholder receives the first instalment as pension is known as the deferment period.

 

Accidental Death & Disability Riders

  • These are optional benefits which can be added to the policy by the payment of additional premium.
  • Accident Benefit is payable as lump sum along with the death benefit under the basic plan.
  • In case of accidental disability arising due to accident (within 180 days from the date of accident), the benefit will be paid in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.
  • Accidental death benefit Sum Assured can be taken for an amount up to the Basic Sum Assured – minimum Rs. 1,00,000 and maximum Rs. 50 lakh (under individual as well as group policies with LIC of India). Rider benefit is available only till the vesting age.

 

Grace period & Revival of Policy

Grace Period – For monthly mode of premium payment a grace period of 15 days is given to make the payment. For Yearly, Half-yearly and Quarterly mode of payment a grace period of 30 days is allowed in case the policyholder has been unable to pay the premium on the due date.

Revival – If the premium is not paid in time and the grace period is lapsed the policy is considered as expired. However, the policy can be revived at any time during the policy term within 2 years from the last premium paid.

 

Surrender & Suicide Cases

For Single Premium –the policyholder can surrender the policy at any given time during the term. There is a guaranteed surrender value plan.

  • If the policyholder surrenders the plan before the completion of 3 years of the policy term then, a guaranteed surrender value of 70% of the single premium excluding any extra premium and tax would be disbursed.
  • If the policyholder surrenders the plan after the completion of 3 years of the policy term then, a guaranteed surrender value of 90% of the single premium excluding any extra premium and tax would be disbursed.

 

For Regular Premium – the policyholder can surrender the policy at any given time. There is a guaranteed surrender value plan.

  • Term less than 10 years – the policy can be surrendered only after the completion of 2 years with all the premiums having been paid.
  • Term more than 10 years – the policy can be surrendered only after the completion of 3 years with all the premiums having been paid.

 

Suicide – If the policyholder happens to commit suicide before a year from the commencement of the policy, then 80% of the premiums would be returned with the exclusion of tax and extra premiums to their nominees.

 

Documents Required

  • Plan Application form along with a photograph
  • Residential proof
  • Identity proof along with age proof
  • Medical reports if necessary

 

 



Disclaimer – Though we try our best but we do not guarantee correctness of information hence you are advised to be cautious & do thorough research before reaching to a conclusion. If you find any discrepancies you’re welcome to contact us.