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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.

Key Features of LIC Jeevan Nidhi

  • Entitled to bonuses.
  • This pension plan comes with the option of Regular and Single Premium Payment.
  • You will receive Guaranteed Additions every policy year for the first five years.
  • Option to select additional riders of Accidental Death and Disability Rider.
  • Post 6th policy year, you will receive Simple Reversionary Bonus and Final Additional Bonus

Benefits of LIC Jeevan Nidhi

  • 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.

How does the LIC New Jeevan Nidhi Plan Work?

  • LIC New Jeevan Nidhi Plan is a deferred pension plan. Under this plan, policyholders have the option of paying regular or single premiums for the desired policy term.

  • On maturity of the plan i.e. on the vesting date, an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any are paid. The amount received can be commuted to the extent allowed. The balance amount after commutation or the entire amount available, as the case may be, shall be utilized to purchase immediate annuity at the prevailing annuity rates. The entire proceeds can also be utilized to purchase a single premium deferred pension product provided the policyholder satisfies the eligibility criteria for purchasing single premium deferred pension product.

  • In case of death during the first five policy years, Basic Sum Assured along with accrued Guaranteed Addition shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.

  • In case of death after first five policy years, Basic Sum Assured along with accrued Guaranteed Addition, Simple Reversionary and Final Additional Bonus, if any, shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.

Eligibility Criteria for LIC New Jeevan Nidhi

CriteriaMinimumMaximum
Entry Age20 years58 years - Regular Pay, 60 years - Single Pay
Vesting Age55 years65 years
Policy Term/Deferment 5 years to 35 years under single premium, 7 to 35 years
PeriodUnder Regular Premium
Premium Payment TermSingle pay or equal to the policy term
Premium Payment FrequencyMonthly|Quarterly|Semi-Annually|Annually
Sum AssuredRegular Pay - ₹1,00,000 , Single Pay - ₹1,50,000 No Limit
Annual PremiumOn the basis of age, sum assured and premium payment term.

Sample Premium Rates

Mentioned below are sample premium rates exclusive of service tax per ₹1,000/- S.A.

Single Premiums
Age at entry
Deferment period
-102030
25--435.80
35-612.00456.15
45852.55632.80-

Annual Premiums
Age at entry
Deferment period
-102030
25--32.75
35-53.6034.80
45115.2557.15-

Let us take an example of a male for a Sum Assured of ₹2,00,000

Age at Entry/Term
Single Pay
-102030
25--₹87,160
35-₹1,22,400₹91, 230
45₹1,70,510₹1,26,560-

Age at Entry/Term
Regular Pay
-102030
25--₹6,550
35-₹10,720₹6,960
45₹23,050₹11,430-

LIC’s New Jeevan Nidhi Specifications

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.

Exclusions under LIC New Jeevan Nidhi

Suicide Under Single Premium Policy Plan

Under single premium options, the policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and LIC will not entertain any claim under this policy except to the extent of 90% of the single premium paid excluding taxes, extra premium and rider premium, if any.

Suicide Under Regular Premium Policy Plan

If the Life Assured (whether sane or insane) commits suicide within 12 months from date of commencement of risk or revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums, if any) or the surrender value, provided the policy is in force, shall be payable.

Rebates

The policyholder is entitled to rebate in case the premium paid is for a high sum assured - ₹3,00,000 or above.

A: Mode Rebate:

Yearly2% of tabular premium
Half-Yearly1% of tabular premium
QuarterlyNil

B. Sum Assured Rebate:

For Regular Premium policies the Basic Sum Assured Rebate:

₹1,00,000 - ₹2,95,000Nil
₹3,00,000 and above2% to Sum Assured

For Single Premium Policies the Basic Sum Assured Rebate

₹50,000 - ₹2,95,000Nil
₹3,00,000 and above5% to Sum Assured

FAQ on LIC New Jeevan Nidhi

What is Free look Period in LIC New Jeevan Nidhi?

If you are not satisfied with the Terms and Conditions of LIC New Jeevan Nidhi, you may return the policy to LIC within 15 days from the date of receipt of the policy stating the reason of objections. The LIC will also return the amount of premium deposited after deducting the proportionate risk premium for the period on cover (for basic plan and LIC’s Accidental Death and Disability Benefit rider, if any), expenses incurred on medical examination, special reports, if any, and stamp duty.

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