LIC’s Jeevan Nidhi (TABLE NO.169)
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
Guaranteed Additions: Guaranteed Additions @ Rs.50/- per thousand
Sum assured for each completed year, for the first five years.
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.
Benefit On Vesting : 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. 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
(Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity
plan of the Life Insurance Corporation of India and its terms and conditions.
Currently
the following options are 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: The annuity 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 under the
Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding
the commuted value, if any.
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, i.e. before the annuity
vests, an amount equal to the Sum Assured under the Basic plan along with the
accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus,
if any, will be paid in a lump sum to the appointed nominee, provided the
policy is in force for full Sum Assured. Nominee will also have the option to
purchase an annuity with this amount.
Benefit Illustration
ELIGIBILITY CONDITIONS AND OTHER
RESTRICTIONS UNDER THIS PLAN:
For
Basic Benefit
a) Minimum age at entry: 18 years (completed)
b) Maximum age at entry: 65 years
c) Minimum age at vesting: 40 years
d) Maximum age at vesting: 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/-
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
3,05,000 and
above 2%o
For Single Premium Policies:
Sum
Assured
Rebate
50,000
to1,00,000 Nil
1,05,000 to 3,00,000 5%o
3,05,000 and
above 10%o
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: If
policyholder is not satisfied with the “Terms and Conditions” of the policy,
he/she may return the policy to us within 15 days.
Paid-up Value: The policy will acquire 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 available after completion of 3 policy years is
90% of the Single Premium. 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 arrears 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. The present rate of interest is 9% pa.
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.
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. Following disabilities due to accident are also covered –
a) irrevocable loss of the entire sight of both eyes or
b) amputation of both hands at or above the wrists or
c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at
or above the ankle.
No benefit will be paid in case of accidental
death or disability due to accident in case of
a) intentional
self-injury, attempted suicide, insanity or immorality or the Life Assured is
under the influence of intoxicating liquor, drug or narcotic,
b) engagement in aviation or aeronautics other than that of a
passenger in any air craft.
c) injuries resulting from riots, civil commotion, rebellion,
war, invasion, hunting, mountaineering, steeple chasing or racing of any kind
d) accident resulted from committing any breach of law.
e) accident arising from
employment in armed forces or military services or police organisation.
LOAN / ASSIGNMENT
No Loan/Assignment will be available by the Corporation to the policyholders under this plan.
************************************************************************
This is not meant to be a prospectus.
This is only a gist of the salient features. For further details and conditions
please contact your nearest LIC office or Agent.