LIC's New Jeevan Nidhi Plan is a conventional with profits pension plan which provides for death cover during the deferment period and offers annuity on survival to the date of vesting.

LIC Pension Plans Info : New Jeevan Nidhi Plan

1.    Benefits:
  1. Benefit on Vesting:  On vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be made available to the Life Assured.
 The following options shall be available to the Life Assured for utilization of the benefit amount.

1.    To purchase an immediate annuity
The Life Assured shall have a choice to commute the amount available on vesting to the extent allowed under Income Tax Act. The entire amount available on vesting or the balance amount after commutation, as the case may be, shall be utilized to purchase immediate annuity at the then prevailing annuity rates. Commutation shall only be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938.

In case the total benefit amount is insufficient to purchase the minimum amount of annuity, then the said amount shall be paid as a lump sum to the Life assured.

The annuity shall only be purchased from Life Insurance Corporation of India.

or

2.    To purchase a new Single Premium deferred pension product from Life Insurance Corporation of India
Under this option the entire proceeds available on vesting shall be utilized to purchase a single premium deferred pension productprovided the policyholder satisfies the eligibility criteria for purchasing single premium deferred pension product.

The Life Assured will have to intimate his / her intention to go for a particular option available on the date of vesting atleast six months prior to the date of vesting.

  1. Death Benefit:
Death during 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. 

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.

The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates.

  1. Guaranteed Additions:  The policy provides for Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.

  1. Participation in profits: The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive Simple Reversionary bonuses declared as per the experience of the Corporation, provided the policy is in full force.
 Final Additional Bonus may also be declared in addition.

2.    Optional Benefit:

Accident Benefit Rider:  Accident Benefit Rider is available as an optional rider by payment of additional premium under regular premium policies. In case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.  In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in monthly instalments spread over 10 years and future premiums shall be waived. If the policy becomes a claim either by way of death or the policy vests before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid in lump sum.

The Accident Benefit Sum Assured may be opted for an amount upto the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 65 yrs or till the vesting age, whichever is earlier.

3.    Paid-up Value:
Under regular premium policies, if after atleast three full year's premiums have been paid and any subsequent premium be not duly paid, this Policy shall not be wholly void but the Sum Assured under basic plan shall be reduced to such a sum, called the paid-up sum assured, as shall bear the same ratio to the full Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the Policy. The policy so reduced shall thereafter be free from all liability for payment of the within-mentioned premium but shall not be entitled to guaranteed additions and any bonuses in future. The accrued guaranteed additions and vested bonus additions, if any, will remain attached to the reduced paid-up policy.

This paid-up sum assured alongwith the accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, is payable on the date of vesting or on Life Assured's prior death.

On the death of the Life Assured, the nominee shall have an option to take the proceeds as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity.

On vesting the proceeds shall be payable as per one of the options as specified against para 1.a. above.

Accident Benefit rider do not acquire any paid-up value.

4.    Surrender Value:
The policy can be surrendered at any time after completion of at least 3 policy years but before the date on which annuity vests.

The Guaranteed Surrender Value will be as under:
        i)      Single Premium Policies: The Guaranteed Surrender value is equal to 90% of the premium paid excluding extras, if any.

       ii)      Regular Premium Policies: The Guaranteed Surrender Value will be available provided atleast three full years' premiums have been paid and is equal to 30% of the premiums paid excluding the premium paid for the first year and all premiums in respect of optional rider and extras, if any.

The surrender value shall be the guaranteed surrender value along with cash value of any accrued Guaranteed Additions and vested simple reversionary bonuses, if any.

Corporation may, however, pay Special Surrender value, as the discounted value of the paid-up sum assured (as specified in para 8), accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, as applicable on date of surrender, provided the same is higher than Guaranteed Surrender value.
 The following options shall be available to the Life Assured for utilization of the Surrender proceeds:
 1.    To purchase an immediate annuity
The Life Assured shall have a choice to commute the amount available on surrender to the extent allowed under Income Tax Act. The entire amount available on surrender or the balance amount after commutation, as the case may be, shall be utilized to purchase immediate annuity at the then prevailing annuity rates. Commutation shall only be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938.

In case the total benefit amount is insufficient to purchase the minimum amount of annuity, then the said amount shall be paid as a lump sum to the Life assured.

The annuity shall only be purchased from Life Insurance Corporation of India.

    Eligibility Conditions and Other Restrictions  (For Basic Plan):

a)            Minimum Basic Sum Assured           :  Rs.1,00,000 under Regular Premium policies
         Rs.1, 50,000 under Single Premium policies
b)            Maximum Basic Sum Assured    :  No Limit
      (The Sum Assured shall be in multiples of Rs.5000/-)
c)            Minimum Entry Age                           :  20 years (nearest Birthday)
d)            Maximum Entry Age                         :  60 years (nearest birthday)
e)            Policy Term                                       :  5 to 35 years
f)             Minimum Vesting Age                       :  55 years (nearest birthday)
g)            Maximum Vesting Age          :  65 years (nearest Birthday)

2.    Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (through ECS only) or through SSS mode over the term of policy. Alternatively, a single premium can be paid.
A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

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