Lic Jeevan Nidhi Plan
It is a with profits Deferred Annuity (Pension) plan. On survival of the policyholder beyond term of the policy the accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. The plan also provides a risk cover during the deferment period. The USP of the plan being the pension can commence at 40 years.
Eligibility
For Basic Benefit
a) Minimum entry age: 18 years (completed)
b) Maximum entry age: 65 years
c) Minimum vesting age: 40 years
d) Maximum vesting age: 75 years
e) Policy terms: 6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policies
f) Modes of premium payment: Yearly, Half-yearly, Quarterly, SSS & Single Premium
g) Sums Assured allowed: Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit.
h) Minimum Annual Premium: Rs.3,000/-
i) Minimum Single premium: Rs.10,000/-
For Term Assurance Rider Option:
a) Minimum age at entry: 18 years (completed)
b) Maximum age at entry: 50 years
c) Maximum age at vesting: 60 years
d) Policy terms: 6 to 35 years under Single Premium mode and 10 to 35 years under regular premium mode
e) Minimum Sum Assured: Rs.1,00,000/-
f) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.25,00,000/- taking all Term Assurance Rider Sum Assured under all policies of a life assured
g) Multiples of Sum Assured: Rs.25,000/-
For Critical Illness Rider Option
a) Minimum age at entry: 20 years (completed)
b) Maximum age at entry: 50 years
c) Maximum age at vesting: 60 years
d) Policy terms: 10 to 35 years
e) Minimum Sum Assured: Rs.50,000/-
f) Maximum Sum Assured: An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.5,00,000/- taking all Critical Illness Rider Sum Assured under all policies of a life assured
g) Multiples of Sum Assured: Rs.10,000/-
REBATES
Rebate for Mode of Premium Payment:
Yearly … 2% of tabular premium
Half-Yearly … 1% of tabular premium
Quarterly … Nil
Monthly … 5% extra of tabular premium
Large Sum Assured Rebates:
For Regular Premium policies:
Sum Assured Rebate
50,000 to 1,00,000 Nil
1,05,000 to 3,00,000 1%o S.A.
3,05,000 and above 2%o S.A.
For Single Premium Policies:
Sum Assured Rebate
50,000 to1,00,000 Nil
1,05,000 to 3,00,000 5%o S.A.
3,05,000 and above 10%o S.A.
Lic Jeevan Nidhi Benefits
Guaranteed Additions
Guaranteed Additions can be availed for the first five years @ Rs.50/- per thousand Sum assured for each completed year.
Participation In Profits
From the 6th year onwards the policy shall participate in profits of the Corporation and shall be entitled to receive bonuses declared as per the experience of the Corporation.
Lic Jeevan Nidhi Benefit On Vesting
1. Option to commute up to 1/3rd of the amount available on vesting, which includes the Sum Assured + accrued Guaranteed Additions+ simple Reversionary Bonuses + Terminal Bonus.
2. Annuity as per the option selected: Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount.
Annuity Options
On vesting, the annuity installment, mode of annuity payment and type of annuity which shall be made available to the Life Assured will depend upon the then prevailing Immediate Annuity plan of the LIC of India and its terms and conditions.
There are various options available under LIC’s immediate annuities:
1. Annuity for life: The annuity is paid to the life assured as long as he/she is alive.
2. Annuity Guaranteed for certain periods: It is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.
3. Annuity with return of purchase price on death: The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured + accrued Guaranteed Additions + any accrued bonuses, excluding the commuted value.
4. Increasing annuity: The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.
5. Joint Life Last Survivor Annuity: The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.
Death Benefit on death before annuity vests
On the death of the Life Assured during the deferment period of the policy, an amount equal to the Sum Assured under the Basic plan + accrued Guaranteed Additions + simple Reversionary Bonuses + Terminal Bonus, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. Nominee may also purchase an annuity with this amount.
Grace Period:
A grace period of 30 days will be available for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.
15 – days Cooling-off period:
The policy can be returned within 15 days if the Policyholder is not satisfied with the “Terms and Conditions” of the policy.
Paid-up Value
The policy will get paid-up value after at least 3 full year’s premiums have been paid.
Guaranteed Surrender Value
Before the annuity vests, the policy can be surrendered at any time after the completion of 3 policy years.
For a regular premium policy, the Guaranteed Surrender value is available provided 3 years premiums are paid, and it is 30% of the premiums paid excluding premiums paid in the first year.
For a Single Premium policy, the Guaranteed Surrender Value is 90% of the Single Premium after completion of 3 policy years. Any extra premiums and premiums for Term Assurance Rider Option, Critical Illness Rider option and Accident Benefit, if any will be excluded.
Revival
The policyholder can revive his lapsed policy by paying amount overdue of premium together with interest within a period of five years from the date of first unpaid premium subject to satisfactory evidence of health. The rate of interest for this purpose will be decided by the Corporation from time to time.
Accidental Death and Disability Benefit:
In case of death due to accident (within 180 days) an additional amount equal to the Accident Benefit Sum assured will be payable.
In case of Total and Permanent disability arising due to accident an amount equal to accident benefit sum assured will be payable over a period of 10 years in monthly installments. The disability due to accident should be total and such that the Life Assured is unable to carry out any work to earn a living.
However, the payment of accident benefit will be subject to an overall limit of Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.
Term Assurance Rider Option
It is an optional rider which will be available under this plan. Premiums are payable during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy term. The maximum cover for this rider will be Rs.25 lakh .
Critical Illness Rider Option
An amount equal to the Critical Illness Rider Sum Assured as optional rider will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions. The maximum cover for this rider will be Rs.5 lakh
If opted for Premium Waiver Benefit, then in case the Life Assured is diagnosed with any of the Critical Illnesses covered under the policy, the total future premiums in respect of the policy will be waived. Sum Assured under all such policies with the Corporation taken together will not exceed Rs.5 lakh.
LOAN / ASSIGNMENTNo Loan/Assignment will be available by the Corporation to the policyholders under this plan.