Everything You Must Know About LIC Jeevan Nidhi Plan
Updated On Mar 24, 2022
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The LIC Jeevan Nidhi plan offers a bonus deferred annuity. This is an insurance pension plan that is not connected to the stock market. This plan was acquired to protect against the possibility of living too long, and it includes a variety of pension alternatives to do so. The Sum Assured + accumulated Guaranteed Additions + simple Reversionary Bonus + Terminal Bonus is the corpus that is developed to give pension for old age. Vesting Age is the age at which a pension is due, while Vesting Day is the date on which the pension begins.
The Life Insurance Corporation of India (LIC) has released LIC New Jeevan Nidhi, a delayed annuity plan with such a bonus feature, for the convenience of its clients. It promotes savings that become a source of cash flow after retirement since it is a non-unit-linked pension plan. By offering numerous pension choices, LIC New Jeevan Nidhi effectively identifies the risks of living longer. To get to understand more about the LIC Jeevan Nidhi Plan, read on.
What Are The Key Features Under LIC Jeevan Nidhi Plan
Following are the key features of LIC Jeevan Nidhi Plan -
- It offers the option of a single or recurring premium payment as a subscribing deferred annuity plan.
- For the first five years, guaranteed additions are available.
- The plan offers incentives starting in the sixth year.
- The plan's coverage includes optional coverage including an accidental death benefit and a disability benefit rider.
- The idea guarantees a considerable quantity of money as a refund.
What Are The Benefits Under LIC Jeevan Nidhi Plan?
Following are the benefits of LIC Jeevan Nidhi Plan -
- Death Benefit - If the insured dies within the first 5 years of the policy's issue date (i.e. well before vesting date), the policy beneficiary is paid a minimum sum assured plus accumulated guaranteed addition in a lump sum, annuity, or a mix of both. If the insured dies before the policy's first five years are up, the nominee receives the primary sum promised + cumulative guaranteed addition + basic reversionary bonus + ultimate reversionary bonus (if there is any), that can be given as a lump sum, an annuity, or a combination of the two. The death payment is totally dependent on the pension plan chosen if the life insured dies after the vesting date.
- Vesting Benefit - The insured has three alternatives when it comes to vesting -
- The policyholder can take 1/3 of the whole corpus tax-free and use the remaining funds to purchase an instant annuity plan at current annuity rates.
- The insured can purchase an instant annuity plan with the whole vesting amount at current annuity rates.
- A delayed annuity plan with a single premium payment method is available to policyholders.
- Income Tax Benefit - The premium paid and 1/3rd of the retirement proceeds are tax free under sections 80C and 10(10A) of the Income Tax Act, notwithstanding the fact that the annuity amount is taxable.
- Additional Benefits - The policy includes an add-on benefit such as an accidental death benefit and a disability rider. This is an add-on coverage that may be purchased in addition to the standard coverage when purchasing an insurance. Along with all of these advantages, the plan does have certain limitations -
- If the policyholder commits suicide during the first 12 months of the policy's start, 90 percent of the money paid is reimbursed.
- If the policyholder commits suicide within the first year of starting a regular pay plan, 80 percent of the premiums paid were returned. If he or she actually dies within a year of renewing the insurance, the higher of the premium paid or the surrender value gained is refunded.
Now that you know more about the LIC New Jeevan Nidhi Plan, you may compare quotes online and select the best plan with the most reasonable premium choice. You can also present a proof of correct medical history, along with proof of address and other KYC papers, while filling out the application form.
The LIC Life insurance company's New Jeevan Nidhi is a standard participation deferred annuity plan that allows you to save for a monthly income once you retire. Both safety and savings are included in the package. New Jeevan Nidhi provides death insurance throughout the deferral period and annuity payments if you live until the vesting date.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.