Jeevan Nidhi
Jeevan Nidhi
LIC's JEEVAN NIDHI is a with profits Deferred Annuity (Pension) plan. On survival of teh policyholder beyond term of teh policy teh accumulated amt (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) 4 teh policyholder. teh plan also provides a risk cover during teh deferment period. teh USP of teh plan being teh pension can commence at 40 years. teh premiums paid are exempt under Section 80CCC of Income Tax Act.
Salient Features:
a . Guaranteed Additions: Guaranteed Additions @ Rs.50/- per thousand Sum assured 4 each completed year, 4 teh first five years.
b. Participation in profits: teh policy shall participate in profits of teh Corporation frrom teh 6th year onwards and shall be entitled to receive bonuses declared as per teh experience of teh Corporation.
c. Benefit On Vesting:
1. Option to commute up to 1/3rd of teh amt available on vesting, which shall include teh Sum Assured under teh Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any.
2 . Annuity as per teh option selected: Annuity on teh balance amt if commutation is exercised, otherwise annuity on teh full amt.
d. Annuity Options:
On vesting, teh annuity instalment, mode of annuity payment and type of annuity which shall be made available to teh Life Assured (Annuitant) / Nominee will depend upon teh then prevailing Immediate Annuity plan of teh Life Insurance Corporation of India and its terms and conditions.
Currently teh following options are available under LIC’s immediate annuities:
1. Annuity 4 life: teh annuity is paid to teh life assured as long as he/she is alive.
2. Annuity Guaranteed 4 certain periods: teh annuity is paid to teh life assured 4 periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives taht period. After teh chosen period, teh annuity is paid to teh life assured as long as he/she is alive.
3. Annuity with return of purchase price on death: teh annuity is paid to teh life assured as long as he/she is alive. On teh death of teh life assured, teh purchase price of teh annuity is paid as death benefit. teh purchase price includes teh Sum Assured under teh Basic Plan, teh accrued Guaranteed Additions and any accrued bonuses, excluding teh commuted value, if any.
4. Increasing annuity: teh annuity is paid to teh life assured as long as he/she is alive. teh amt of annuity increases every year at a simple rate of 3% per annum.
5. Joint Life Last Survivor Annuity: teh annuity is paid to teh life assured as long as he/she is alive. On death of teh life assured, 50% of teh annuity is payable to teh nominated spouse as long as teh spouse is alive.
e. Death Benefit on death before annuity vests: On teh death of teh Life Assured during teh deferment period of teh policy, i.e. before teh annuity vests, an amt equal to teh Sum Assured under teh Basic plan along with teh accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to teh appointed nominee, provided teh policy is in force 4 full Sum Assured. Nominee will also have teh option to purchase an annuity with this amt.