LIC Jeevan Nidhi – Benefits, Features, Reviews & Comparison

LIC Jeevan Nidhi

LIC Jeevan Nidhi is a deferred annuity pension plan with the dual benefits of saving and protection. In this plan, you will have many pension options for the different phases of life.

You will have the benefits of receiving a corpus amount in the LIC Jeevan Nidhi plan. The amount you will get is inclusive of sum assured + accrued guaranteed additions + simple reversionary bonus + terminal bonus.

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LIC Jeevan Nidhi Features

  • Entitled to Bonuses.
  • New Jeevan Nidhi Plan comes with the option of regular and single premium payment.
  • For the first 5 years, every policy year you will get guaranteed additions.
  • Jeevan Nidhi Policy gives you the option to choose additional riders of accidental death and disability rider.
  • Post the 6th policy year, you will get the simple reversionary bonus and the final additional bonus.

Benefits of LIC Jeevan Nidhi

  1. The LIC Jeevan Nidhi will give you guaranteed additions at 5% of sum assured for the first 5 policy years.
  2. The amount you will get will be inclusive of sum assured + accrued guaranteed additions + simple reversionary bonus + final additional bonus.
  3. This plan offers vested benefits in 3 options, where you can choose to:
    • First Option: You can withdraw 1/3 of the corpus tax-free amount and use the remaining amount to purchase an immediate annuity.
    • Second Option: In this option, you can purchase an immediate annuity plan with the entire tax-free corpus amount.
    • Third Option: Here in this option you can buy a single premium deferred annuity plan with the entire tax-free amount.
  4. If the insured person dies during the first 5 years of the policy term then the sum assured + accrued guaranteed additions are payable in a lump sum or annuity or partial lump sums or partial annuity.
  5. If the insured person dies post five years, then Sum Assured + Accrued Guaranteed Additions + Simple Reversionary Bonus + Final Additional Bonus are payable in a lump sum or annuity or partial lump sums or partial annuity.
  6. The minimum death benefit is 105% of all paid premiums.
  7. You are eligible to tax benefits for premiums paid as per Sec 80CCC and Sec 10(10D) of the income tax 1961.
  8. You are eligible to a rebate in the case premium paid is for a sum assured Rs 3,00, 000 or above.
  9. LIC Jeevan Nidhi Policy comes with a grace period of 15 days for the monthly mode of premium payment and 30 days for other modes of premium payment.

How LIC Jeevan Nidhi Policy Works?

As above we cleared that LIC New Jeevan Nidhi is a deferred annuity pension plan. In this plan, there is an option available that you can select to pay a regular or single premium for the policy term.

When you are ready to buy this policy, you have to decide 2 things. First, is the sum assured and second is the policy term? Sum assured is the cover amount that you want and the policy term is the time period that you want to have a cover. So, choose wisely.

For the death benefit see the 4th and 5th points under the Benefits section.

Eligibility of LIC Jeevan Nidhi

Check out what is the eligibility criteria to buy LIC’s New Jeevan Nidhi.

Eligibility CriteriaMinimumMaximum
Entry Age20 Years58 years for regular pay & 60 years for single pay
Vesting Age55 Years65 Years
Plan Term5 Years35 Years
Sum AssuredRegular Premium – Rs.1 lakh
Single-Premium – Rs. 1.5 lakhs
No Limit
Payment TermSingle Or Equal to the Exact Policy Term
Paying FrequencySingle-Premium | Annually, Half-Yearly, Quarterly, and Monthly

Note: Every Indian resident can buy this plan but NRIs are not eligible to buy this plan.

Specification

Surrender Value

You can surrender your policy anytime during the deferment period. Guaranteed surrender value shall be as under:

Single-Premium

  • If you’re surrendering the policy within the first 3 policy years then the surrender value will be 70% of the single premium excluding taxes and extra premium.
  • If you surrender the policy after the first 3 years then the value will be 90% of the single premium excluding taxes and extra premium.

Regular Premium

  • If the deferment period is less than 10 years then the policy can be surrendered but the condition is that the premium has been paid for at least 2 consecutive years.
  • If the deferment period is more than 10 years, then the policy can be surrendered but here is the condition that the premium has been paid for at least 3 consecutive years.
  • Guaranteed surrender value shall be a percentage of total premiums paid excluding taxes and extra premiums if any. And the percentage will depend on the deferment period and the policy year in which you’re surrendering the policy.
  • You’re not eligible to take a loan against the policy.

Exclusions

Suicide – Single Premium Plan

The policy shall be zero if the insured person commits suicide within the 12 months and LIC will not pass any claim under this policy except to the extent of 90% of the single premium paid excluding taxes and extra premiums.

Suicide – Regular Premium Plan

If the insured person commits suicide within 12 months from date risk started, then the amount which is higher of 80% of the premiums paid till the date of death excluding taxes and extra premiums or the surrender value shall be payable.

Free Look Period

If you’re not happy with the plan, then you can cancel the policy within 15 days of policy issuance. When you cancel the policy premium would be returned that you paid.

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