- About Coverfox
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.
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.
|Entry Age||20 years||58 years - Regular Pay, 60 years - Single Pay|
|Vesting Age||55 years||65 years|
|Policy Term/Deferment||5 years to 35 years under single premium, 7 to 35 years|
|Period||Under Regular Premium|
|Premium Payment Term||Single pay or equal to the policy term|
|Premium Payment Frequency||Monthly|Quarterly|Semi-Annually|Annually|
|Sum Assured||Regular Pay - ₹1,00,000 , Single Pay - ₹1,50,000||No Limit|
|Annual Premium||On the basis of age, sum assured and premium payment term.|
Mentioned below are sample premium rates exclusive of service tax per ₹1,000/- S.A.
Let us take an example of a male for a Sum Assured of ₹2,00,000
The policy can be surrendered at any time during the deferment period. The Guaranteed Surrender Value shall be as under:
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.
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.
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.
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:
|Yearly||2% of tabular premium|
|Half-Yearly||1% of tabular premium|
B. Sum Assured Rebate:
For Regular Premium policies the Basic Sum Assured Rebate:
|₹1,00,000 - ₹2,95,000||Nil|
|₹3,00,000 and above||2% to Sum Assured|
For Single Premium Policies the Basic Sum Assured Rebate
|₹50,000 - ₹2,95,000||Nil|
|₹3,00,000 and above||5% to Sum Assured|
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.