Pension Plans
New Jeevan Dhara- I New Jeevan Suraksha- I
Jeevan Nidhi
LIC's JEEVAN NIDHI 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. The premiums paid are exempt under Section 80CCC of Income Tax Act.
Salient Features:
a .
Guaranteed Additions:
Guaranteed Additions @ Rs.50/- per thousand Sum assured for each
completed year, for the first five years.
b.
Participation in profits:
The policy
shall participate in profits of the Corporation from the 6th year
onwards and shall be entitled to receive bonuses declared as per the
experience of the Corporation.
c.
Benefit On Vesting:
1.
Option to commute
up to 1/3rd of the amount available on vesting, which shall include
the Sum Assured under the Basic Plan together with accrued Guaranteed
Additions, simple Reversionary Bonuses and Terminal Bonus, if any.
2 .
Annuity as per the option selected:
Annuity on the balance amount if commutation is exercised, otherwise
annuity on the full amount.
d.
Annuity Options:
On vesting, the annuity instalment, mode of annuity payment and type
of annuity which shall be made available to the Life Assured
(Annuitant) / Nominee will depend upon the then prevailing Immediate
Annuity plan of the Life Insurance Corporation of India and its terms
and conditions.
k.
Options:
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 instalments. 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:
Term Assurance as optional rider will be available under this plan.
Premiums for this option 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 under all policies of the Life Assured with the Corporation
taken together.
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 under all policies of the Life Assured with the Corporation taken together.
Jeevan Akshay VI
It is an Immediate Annuity
plan, which can be purchased by paying a lump sum amount. The plan
provides for annuity payments of a stated amount throughout the life
time of the annuitant. Various options are available for the type and
mode of payment of annuities.
Options Available:
The following options are available under the plan
Type of Annuity:
- Annuity payable for life at a uniform rate.
- Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive.
- Annuity for life with return of purchase price on death of the annuitant.
- Annuity payable for life increasing at a simple rate of 3% p.a.
- Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
- Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
You
may choose any one. Once chosen, the option cannot be altered.
Mode:
- Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity.
Salient features:
- Premium is to be paid in a lump sum.
- Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under:
|
Mode |
Minimum Annuity |
|
Monthly |
Rs. 500 per month |
|
Quarterly |
Rs. 1000 per quarter |
|
Half-yearly |
Rs. 2000 per half year |
|
Yearly |
Rs. 3000 per year |
- No medical examination is required under the plan.
- No maximum limits for purchase price, annuity etc.
- Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last birthday.
- Age proof necessary.
Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased
for Rs. 1 lakh under different options is as under:
|
Age last birthday |
Yearly annuity amount under option |
|||||
|
|
( i ) |
( ii ) (15 years certain) |
( iii ) |
( iv ) |
( v ) |
( vi ) |
|
40 |
7510 |
7440 |
6930 |
5610 |
7310 |
7120 |
|
45 |
7770 |
7660 |
6960 |
5890 |
7500 |
7240 |
|
50 |
8140 |
7950 |
7000 |
6280 |
7760 |
7420 |
|
55 |
8650 |
8330 |
7050 |
6810 |
8130 |
7670 |
|
60 |
9350 |
8790 |
7110 |
7530 |
8640 |
8030 |
|
65 |
10410 |
9330 |
7180 |
8590 |
9400 |
8570 |
|
70 |
12080 |
9830 |
7260 |
10220 |
10560 |
9370 |
|
75 |
14510 |
10220 |
7360 |
12590 |
12240 |
10590 |
Incentives for high purchase price: If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity due to available incentives.
New Jeevan Dhara I
These
are Deferred Annuity plans that allow the policyholder to make
provision for regular income after the selected term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or
through Salary deduction, as opted by you, throughout the term of the
policy or till earlier death. Alternatively, the premium may be paid
in one lump sum (single premium).
Tax
Benefits:
Tax relief under Section 80c is available on premiums paid under New
Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan
Dhara I (Table No.148) qualify for tax relief under Section 88.
Bonuses:
These are with-profit plans and participate in the profits of the
Corporation’s annuity / pension business. Policies get a share of the
profits in the form of bonuses. Simple Reversionary Bonuses are
declared per thousand Sum Assured annually at the end of each
financial year. Once declared, they form part of the guaranteed
benefits of the plan. Final (Additional) Bonuses may also be payable
provided policy has run for a certain minimum period.
Death
Benefit:
On death of the Life Assured during the term of the policy the basic
premiums paid, excluding any rider premiums or extra premiums, up to
the date of death accumulated with interest at such rates as decided
by the Corporation will be payable to the nominee. Currently, the
interest rate is 3%, 4% or 5 % if the death occurs within the first 10
years, 20 years or thereafter respectively.
Maturity Benefit:
At maturity the policyholder can encash up to a maximum 25% of the
maturity proceeds as a tax-free lump sum. The balance should be
compulsorily converted to an annuity at the rates applicable at the
time of maturity of the policy. The policyholder has the choice of
opting for any one of 5 annuity options. The annuity options available
are
(i)
annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or
20 years
(iii) Joint life and last survivor annuity to the annuitant and his/
her spouse under which annuity payable to the spouse on death of the
purchaser will be 50% of that payable to the annuitant
(iv) Life annuity with a return of purchase price on death of the
annuitant
(v) Life annuity increasing at a simple rate of 3% per annum
New Jeevan Suraksha I
These
are Deferred Annuity plans that allow the policyholder to make
provision for regular income after the selected term.
Bonuses:
These are with-profit plans and participate in the profits of the
Corporation’s annuity / pension business. Policies get a share of the
profits in the form of bonuses. Simple Reversionary Bonuses are
declared per thousand Sum Assured annually at the end of each
financial year. Once declared, they form part of the guaranteed
benefits of the plan. Final (Additional) Bonuses may also be payable
provided policy has run for a certain minimum period.
Death
Benefit:
On death of the Life Assured during the term of the policy the basic
premiums paid, excluding any rider premiums or extra premiums, up to
the date of death accumulated with interest at such rates as decided
by the Corporation will be payable to the nominee. Currently, the
interest rate is 3%, 4% or 5 % if the death occurs within the first 10
years, 20 years or thereafter respectively.
Maturity Benefit:
At maturity the policyholder can en cash up to a maximum 25% of the
maturity proceeds as a tax-free lump sum. The balance should be
compulsorily converted to an annuity at the rates applicable at the
time of maturity of the policy. The policyholder has the choice of
opting for any one of 5 annuity options. The annuity options available
are
(i)
annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or
20 years
(iii) Joint life and last survivor annuity to the annuitant and his/
her spouse under which annuity payable to the spouse on death of the
purchaser will be 50% of that payable to the annuitant
(iv) Life annuity with a return of purchase price on death of the
annuitant
(v) Life annuity increasing at a simple rate of 3% per annum
