LIC New Jeevan Nidhi

LIC New Jeevan Nidhi is a traditional participating deferred annuity plan offered by the Life Insurance Corporation of India. It provides the dual benefits of savings and protection along with pension. Under this plan, the pensioner can avail multiple pension options for different phases of life.

Under the LIC New Jeevan Nidhi Plan, you have the benefit of receiving a corpus amount. The corpus amount comprises of Sum Assured + Accrued Guaranteed Additions + Simple Reversionary Bonus + Terminal Bonus.

Note: All information regarding LIC New Jeevan Nidhi has been sourced from the official website of Life Insurance Corporation of India.

• The policyholder is entitled to Guaranteed Additions at 5% of Sum Assured for the first five policy years.
• The vested sum payable is a combination of Sum Assured + Accrued Guaranteed Additions + Simple Reversionary Bonus + Final Additional Bonus.
• The vested benefits are offered in three options, where the policyholder can choose to:
  • Option 1 - Withdraw ⅓ of the corpus tax-free amount and use the remainder to purchase immediate annuity,
  • Option 2 - Purchase an immediate annuity plan with the entire tax-free corpus amount.
  • Option 3 - Purchase a single premium deferred annuity plan with the entire tax-free amount.
• In case of death during the first five years of the policy, the sum assured + accrued guaranteed additions are payable in a lump sum or annuity or partial lump sums or partial annuity.
• In case of death post five years, the 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.
• The death benefit is a minimum of 105% of all premiums paid.
• You are entitled to tax benefits for premiums paid as per Sec 80CCC and Sec 10(10D) of the Income Tax 1961.
• You are entitled to a rebate in case the premium paid is for a high sum assured - ₹3,00,000 or above.
• The policy comes with grace period of 15 days for the monthly mode of premium payment and 30 days for other modes of premium payment.

Surrender Value

The policy can be surrendered at any time during the deferment period. The Guaranteed Surrender Value shall be as under:

Single Premium

• If it is within three policy years from date of commencement of policy then it will be 70% of the single premium excluding taxes and extra premium, if any.

• Thereafter it will be 90% of the single premium excluding taxes and extra premium, if any.

Regular Premium

• If the deferment period is less than 10 years, then the policy can be surrendered provided the premiums have been paid for at least 2 consecutive years.

• If the deferment period is more than 10 years, then the policy can be surrendered provided the premiums have been paid for at least 3 consecutive years.

• The Guaranteed Surrender Value shall be a percentage of total premiums paid excluding taxes, extra premiums, if any and rider premium, if opted for. This percentage will depend on the deferment period and the policy year in which the policy is surrendered

• In addition, the surrender value of any accrued Guaranteed Additions and vested simple reversionary bonuses, if any, shall also be payable. This is equal to the sum of accrued Guaranteed Additions and vested simple reversionary bonuses, if any, multiplied by the Surrender Value factor applicable to accrued Guaranteed Additions and vested bonuses.

• You are not entitled to take a loan against this policy.