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Investment Plans 1334 views April 8, 2021
LIC Jeevan Nidhi Plan is one of the popular plans among customers who want to secure their retirement financially. With this plan, individuals, who survive beyond the policy term, get a pension in the form of an annuity. This annuity will accumulate during the policy years with the sum assured, guaranteed addition and bonuses. One of the best things about this plan from LIC is that the pension can begin at 40 years. Before knowing more about it, let’s look at its salient features.
- Risk cover during the deferment period
- Guaranteed additions at INR 50 per INR 1,000 of sum assured for each completed policy year for the first five years
- Multiple annuity options such as for life, for certain periods, increasing options, etc.
- Tax Benefits under Section 80C of the Income Tax Act, 1961
- Death benefit before annuity vests
- Large sum assured rebate
- Multiple rider options
- A 15-day free look period
Want to know these features of the LIC Jeevan Nidhi Plan in detail? This page can certainly help you in the same where we will discuss its different aspects. Let’s read on!
Table of Contents
Let’s Check LIC Jeevan Nidhi Plan Features in Detail!
We are showing some key features of the LIC Jeevan Nidhi Plan in detail below so that you can understand them better. Have a look!
Multiple Annuity Options
LIC Jeevan Nidhi Plan provides a wide range of annuity options from which you can choose according to your convenience. Check them below.
Annuity for Life – Annuity is paid to the policyholder until his or her date of death.
Guaranteed annuity for certain periods – Annuity for 5 or 10 or 15 or 20 years as chosen irrespective of whether a policyholder survives or not. After the chosen period, the life assured gets annuity until the date of death.
Annuity with Return of Purchase Price on Death – The policyholder gets annuity until his or her date of death. On death, the purchase price of the annuity is paid as a death benefit to the nominee. Do remember the purchase price includes the sum assured under the plan, the accumulated guaranteed additions, bonuses (if any).
Increasing Annuity – With this option, the amount of annuity increases every year at a simple rate of 3% per annum.
Joint Life Last Survivor Annuity – In this annuity option, policyholders receive an annuity as long as they are alive. On the death of the life assured, the nominated spouse will get 50% of the annuity as long as the spouse is alive.
Guaranteed Additions
During the first five years of the LIC Jeevan Nidhi Plan, you will get guaranteed additions at the rate of INR 50 per INR 1,000 of sum assured for each completed year.
Vesting Benefits
With this pension plan from LIC, individuals get two options when it comes to vesting benefits. The first one is the ‘Option to commute’ where up to 1/3rd of the amount will be available on vesting while the second option will be annuity as per the option chosen by policyholders.
Death Benefit on Death Before the Annuity Vests
In case the policyholder dies during the deferment period (before the annuity vests), LIC Jeevan Nidhi Plan will provide a death benefit to the nominee. This amount will be equal to the sum assured amount under the basic plan along with the accumulated guaranteed additions, simple reversionary bonus and terminal bonus (if any).
Note: The nominee will also get an option to purchase an annuity with the received death benefit.
Large Sum Assured Discount
With the LIC Jeevan Nidhi Plan, you can also get a discount on choosing a high sum insured amount. To know more, check the below table.
| Sum Assured (In INR) | Rebate For Regular Premium Policies | Rebate For Single Premium Policies |
|---|---|---|
| 50,000 to 1,00,000 | Nil | Nil |
| 1,05,000 to 3,00,000 | 1% of sum assured | 5% of the sum assured |
| 3,05,000 and above | 2% of sum assured | 10% of the sum assured |
Rider Options
If you want to enhance your overall coverage, you can choose the rider options available with LIC Jeevan Nidhi Plan. These options are the term assurance rider option and critical illness rider option. The sum assured for these rider options will be different from the basic sum assured.
What is the Policy Term of LIC Jeevan Nidhi Plan?
For LIC Jeevan Nidhi, the policy term depends on the premium payment method. For single premium plans, the policy term ranges from 6 to 35 years, while for regular premium plans, it ranges from 5 to 35 years.
What is the Minimum Sum Assured Amount?
Please check the below table to understand the sum assured of LIC Jeevan Nidhi and its rider options.
| Plan & Rider | Sum Assured amount |
|---|---|
| LIC Jeevan Nidhi Plan | INR 50,000 with no maximum limit (in the multiples of INR 5,000) |
| Term Assurance Rider Option | INR 1,00,000 to a maximum amount equaling the sum assured under the basic plan ( up to INR 25 lakh) |
| Critical Illness Rider Option | INR 50,000 to a maximum amount equaling the sum assured under the basic plan (up to INR 5 lakh) |
Important Conditions Related to LIC Jeevan Nidhi Plan
In the below table, you can have all the necessary information related to the LIC Jeevan Nidhi eligibility criteria.
| Plan & Rider | Sum Assured amount |
|---|---|
| LIC Jeevan Nidhi Plan | INR 50,000 with no maximum limit (in the multiples of INR 5,000) |
| Term Assurance Rider Option | INR 1,00,000 to a maximum amount equaling the sum assured under the basic plan ( up to INR 25 lakh) |
| Critical Illness Rider Option | INR 50,000 to a maximum amount equaling the sum assured under the basic plan (up to INR 5 lakh) |