LIC New Jeevan Nidhi Policy review and features

5/5 - (2 votes)

LIC New Jeevan Nidhi policy Introduction

LIC New Jeevan Nidhi Plan is a regular premium pension plan. Premium needs to be paid till the end of the accumulation period. In LIC New Jeevan Nidhi Plan at the end of the accumulation period, the maturity comprising of the sum assured, increment bonus and the final additional bonus will be converted into pension.

After the end of the accumulation period, the vesting period starts in which pension will be paid out in regular intervals till the end of life for the life insured. After the expiry of the life insured, a lump sum will be paid to the nominee.

In LIC New Jeevan Nidhi policy there are two types of paying premium.

Single Premium: Buying Premium with lump sum amount at once.
Regular Premium: Paying Premium at different intervals such as Yearly, Half-Yearly, quarterly or monthly (through ECS only) or through SSS mode over the term of policy.

Benefits of LIC New Jeevan Nidhi Policy

Benefit of Vesting : On vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversion bonuses and Final Additional bonus, if any, shall be made available to the Life Assured.

Death Benefit: If in case policyholder dies before vesting period (before pension starting period) then

Within first 5 year policy: The nominee will be provided the Basic Sum Assured + accrued Guaranteed Additions which can be paid in a lump sum or as annuity or a combination of the two, provided all premiums have been paid.
After the first 5 years of the policy: The nominee will be provided the Basic Sum Assured + accrued Guaranteed Additions + Simple Reversionary + Final Additional Bonus, if any, which can be paid in a lump sum or as annuity or a combination of the two, provided all premiums have been paid.

Income Tax Benefit: Premiums paid under life insurance policy and 1/3rd of the maturity proceeds are exempted from tax. Pension amount will be taxable. For more information regarding Income Tax Benefits, visit www.taxqueries.in.

Guaranteed Additions: Only for first years at rate of 50 per thousand.

After completion of buying premium, the policyholder can take some amount of annuity and get pension from remaining amount.

Terms and Eligibility conditions of LIC New Jeevan Nidhi Policy

Entry age	Minimum age- 20 years Maximum age-60 years(under single premium) Maximum age-58 years(under regular premium)
Vesting age (Receiving Pension)	Minimum age- 55 years Maximum age- 65 years
Minimum Sum Assured	Rs.1,00,000(for regular premium) Rs.1,50,000(for single premium)
Maximum Sum assured	No limit
Premium Paying Modes	Single, Monthly(SSS, ECS), Quarterly, Half-Yearly, Yearly
Deferment Period	5 to 35 years (Under Single Premium) 7 to 35 years (Under Regular Premium)
Service Tax	3.09% service tax is applicable
Grace Period	If the Premium is not paid within the time then a delay of 30 days for Yearly, Half-Yearly and Quarterly modes and 15 days for monthly mode is extended to pay the premium amount which is grace period.

LIC New Jeevan Nidhi Policy Rebates

Sum Assured Rebate for Regular premium policies:

Sum Assured	Rebate
Rs. 1,00,000/- to Rs. 2,95,000/-	NIL
Rs. 3,00,000/- and above	2.00 % Basic Sum Assured

Sum Assured Rebate for Regular premium policies:

Sum Assured	Rebate
Rs. 1,00,000/- to Rs. 2,95,000/-	NIL
Rs. 3,00,000/- and above	5.00 % Basic Sum Assured

Mode Rebate:

Mode	Percentage
Yearly	Table premium 2%
Half yearly	Table Premium 1%

LIC New Jeevan Nidhi policy Buying Procedure

Documents Required to buy LIC New Jeevan Nidhi Policy are

Application form/Proposal form along with photo
Address proof
Age proof
Medical reports(if required)

Claim Procedure of LIC New Jeevan Nidhi policy

The documents required for claim procedure under LIC New Jeevan Nidhi Policy are given below

NEFT form
Discharge form
Cancel check or Bank Pass book xerox
Policy bond
Death certificate

LIC New Jeevan Nidhi policy Premium calculator

The required data for calculating either single or regular premium rates in LIC New Jeevan Nidhi Policy

NAME :
E-MAIL ID :
MOBILE NUMBER :
AGE :
TERM :
SUM ASSURED :

Additional Information of LIC New Jeevan Nidhi Policy

Vesting Period: At the time of retirement or starts receiving the pension.

Deferment Period: Period between the subscription date of an insurance cum pension policy and the time at which the first installment of pension is received is called as deferment period.

Date of Commencement of Risk: In case of children whose age is less than 8 years risk commencement starts either from 2 years of taking the policy or from achieving 8 years old which is earlier.

Loan facility: Loan facilities are not available under LIC New Jeevan Nidhi policy.

Policy Revival: If the premium is not paid by you within the grace period then the policy will lapse. If you are interested to continue this policy then you can revive your policy on or before 2 years from date of first Unpaid premium.

House Loan Surety: House loan surety is available under this LIC New Jeevan Nidhi policy.

Suicide clause: If the policy holder commits suicide for any of the reasons within 12 months of date of commencement of risk or from date of revival, then 80% of premium for what he had paid will be returned to his assignees and nominees.

Proposal Forms: Proposal Form no. 300 or 340 will be used under this plan.

Riders: Riders are available under this LIC New Jeevan Nidhi policy. Availability of Accidental Death and Disability Benefit rider

Backdating interest: The policy cannot be backdated within the same financial year.

Locking Period: If you are not satisfied with this policy you may return the policy within 15 days from date of receipt of the policy. After 15 days you are not eligible for cancelling the policy upto 3 years.

Risk coverage: Risk coverage will be provided till the end of term policy.

Income Tax Reduction: Available for premiums paid and for Maturity returns.

Surrender Value: There is a Guaranteed Surrender Value in this plan

For Single Premium: The policy can be surrendered at any time during the deferment period and the Guaranteed Surrender Value would be:

Within 3 policy years would be 70% of the Single Premium Paid excluding taxes and extra premium, if any and
After 3 policy years would be 90% of the Single Premium Paid excluding taxes and extra premium, if any

For Regular Premium:

For deferment period less than 10 years: The policy can be surrendered provided the premiums have been paid for at least two consecutive years.
For deferment period 10 years or more: The policy can be surrendered provided the premiums have been paid for at least three consecutive years.
The Guaranteed Surrender Value is a percentage of total premiums paid excluding taxes, extra premiums, if any and rider premium and it depends on the deferment period and the policy year in which the policy is surrendered.

Assignments/Nominations: Assignees and nominees are applicable under this plan.

Cooling-off Period: If you are not satisfied with this policy term you may return the policy within 15 days from the date of receipt of the policy.

Example of LIC New Jeevan Nidhi policy

Case 1: If Vamsi Krishna is going to purchase LIC New Jeevan Nidhi policy at Regular Premiums then the following details are as follows

Age : 20 years

Term : 35 years

Sum Assured : Rs.25,00,000

Now, Vamsi krishna is paying premium with and without tax are given in below table

Premium	Without Tax	With tax
Yearly	60905	62787
Half-Yearly	30116	31740
Quarterly	15563	16043
Monthly	5188	5348

Case 2: If Vamsi Krishna had decided to purchase LIC New Jeevan Nidhi policy at Single Premium then the following details are as follows

Age : 20 years

Term : 35 years

Sum Assured : Rs.25,00,000

Now, Vamsi krishna is paying premium with and without tax are given in below table

Premium	Without Tax	With tax
Single Premium	909250	937346

FAQ’s Of LIC New Jeevan Nidhi policy

What happens if policyholder stops paying premium?

If the premiums are not paid within the grace period, the policy lapses and all benefits will cease. However, the policy can be revived within 2 years from the date of first unpaid premium.

Is additional accidental riders are available under LIC New Jeevan Nidhi Policy?

Additional benefit riders can be opted by paying extra nominal amount.