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Knowledge Base Life Insurance Investment / Pension LIC Jeevan Nidhi Plan Review
Friday, 18 March 2011 16:46

LIC Jeevan Nidhi Plan Review

Written by  Yashish Dahiya
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LIC Jeevan Nidhi Review


Plan Name: Jeevan Nidhi
Insurer: Life Insurance Corporation of India

Category: With Profit Deferred Annuity Plan
Objective: Provides regular income post retirement

Major USP of LIC Jeevan Nidhi:

  • Guaranteed Additions 
  • Participation Plan 
  • Riders available

Eligibility of LIC Jeevan Nidhi


Minimum Entry Age – 18 Years
Maximum Entry Age - 65 Years
Minimum Age at Vesting- 40 Years
Maximum Age at Vesting-   75 Years
Policy Term – 5 to 35 Years

Premium Options in LIC Jeevan Nidhi:


Minimum Regular Premium: Rs 3,000 per annum
Minimum Single Premium: Rs 10,000 per annum

What benefits does LIC Jeevan Nidhi offer?


Death benefit: In case the Life Assured passes away during the policy term, the beneficiary will receive Sum Assured along with Additions and bonuses in lump sum.

Maturity Benefit: One third of the maturity amount can be received as lump sum and the rest of amount through annuity. Maturity amount will be equivalent to sum of Sum Assured, guaranteed additions and bonuses.

Flexibility in Premium Payment: Both single and regular premium options are available. The payment mode available is yearly, semi-annual, quarterly and monthly.

Guaranteed Additions: These are equal to Rs 50 per thousand Sum Assured which will be added during first five policy years.

With Profits Plan: Bonus both reversionary which is based on performance of the company and terminal bonus which is loyalty bonus will be given by LIC.

What are the Riders available with Jeevan Nidhi?


Riders are additional add-ons that can be opted for by paying extra nominal amount. Riders available with Jeevan Nidhi are:

Accidental Death and Disability Rider: If the life assured dies due to accident or is disabled, additional cover opted for will be payable.

Term Assurance Rider: With this rider you can opt for additional Sum Assured apart from basic cover. Both will be payable if life assured passes away during policy term.

Critical Illness Rider: If the life assured is diagnosed with any of the critical illness, Sum Assured of the rider will be payable.

The maximum Sum Assured for first two is Rs 25 lacs and for critical illness is Rs 5 lacs.

What will be my returns from LIC Jeevan Nidhi?


 

The important question that customer wants answered is “What will be my returns in Jeevan Nidhi?” Let us take an example:

Bhupinder aged 35 invests Rs 4,121 for policy term of 25 years and gets Sum Assured of Rs 100,000.

Death Benefit: If Bhupinder passes away after four years, his wife will get Sum Asssured i.e. Rs 1 lacs and also guaranteed additions and bonuses.

Maturity Benefit: The returns that Bhupinder will make by investing Rs 4,121 in Jeevan Nidhi can be seen graphically:

LIC_Jeevan_Nidhi

He gives in total amount of Rs 103,025 to LIC. At maturity, assuming growth of 10% the amount he will receive is approximately Rs 331,000.
The returns are not guaranteed and can be more or less depending upon market scenario.

Are there any tax benefits?


Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.
Under Section 10(10D) death claim is completely tax free.

What else should I know about?


Grace period: Jeevan Nidhi can be renewed within 30 days from the premium due date and 15 days for monthly modes. Additional 30 days are given after notice has been sent to revive or discontinue the policy.

Free Look Period: Jeevan Nidhi plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

What’s Policybazaar opinion on LIC Jeevan Nidhi?


Jeevan Nidhi is very cheap pension plan which is loaded with benefits- insurance cover, guaranteed additions, reversionary and terminal bonus. Also you can opt for riders and extensively cover yourself.

 

Note: LIC Jeevan Nidhi has been withdrawn and is not available for purchase. Recently, LIC launched new pension plan called LIC New Jeevan Nidhi.

LIC has only 2 pension plans which are LIC New Jeevan Nidhi and Jeevan Akshay VI

11 comments
  • Comment Link samidha Tuesday, 19 July 2011 12:40 posted by samidha

    How much loyal bonus will get in Jeevan nidhi policy
    S.A. 1 lach for 22 years

  • Comment Link Bishwambar Datt Wednesday, 03 August 2011 12:21 posted by Bishwambar Datt

    I had purchased a Jeevan Nidhi Policy for sum assured Rs. 55000/- for six years with a yearly premium of Rs. 10,458. My Agent said that after maturity i.e. six years I can take full amount as sump sum.But after maturity LIC branch at Nehru House 31A, refused to pay lump sum amount and said that a negligible amount of pension will be given for which at every 5 years a certificate is also to be produced. But I want my hard earned money back instead of any pension. I felt cheated by LIC and their agent who sell policies by fake assurances. My policy No. is 114046787 and mobile no. is 9868856480.

  • Comment Link Administrator Wednesday, 03 August 2011 18:48 posted by Administrator

    Hi Bishwambar Datt
    In every pension plan, only one-third of final amount can be withdrawn as lump sum amount. The rest of amount is used to buy annuity which will pay you some monthly/yearly amount till the end of specific period.
    Unfortunately, you cannot withdraw the complete amount.

  • Comment Link samir mondal Thursday, 24 November 2011 16:01 posted by samir mondal

    jeeban nidi for 7 years half yearly premium 5333.00 .how much pension i get monthly after maturity

  • Comment Link Brij Mohan Monday, 16 January 2012 14:02 posted by Brij Mohan

    I have purchased Jeevan Nidhi policy (15) and date of commencement of policy was 14.01.2005 with a maturity date of 14.01.2012. The premium I had paid was Rs.10721 yearly. Now on maturity I have been asked by LIC to give my option. What option would be better. (1) to get 1/3 as lump sum and balance as annuity or (2) it would be better to go for annuity. The lump sum amount will not be very significant to me at this stage. Further what would be yearly/monthly pension if I dont go for 1/3rd lump sum amount.

  • Comment Link Administrator Monday, 16 January 2012 18:06 posted by Administrator

    Hi Brij
    1. 1/3 of lump sum amount is not needed by you now but the same can be used to invest in some other financial instrument like fixed, postal deposits so you can get returns from them as well.
    2. You can take the full amount in annuity. The pension will depend on the total corpus amount you have and for how long you want pension to continue (lifelong, limited years etc).

  • Comment Link sumanta chatterjee Tuesday, 14 February 2012 12:47 posted by sumanta chatterjee

    I have taken a policy ( Jeevan Nidhi) on 2005; annual premium of Rs. 9422/-. Sum assured 2,00,000/-. Tenure 26 years i,e I have to pay upto 2031.

    How much will be the total amount if I pay for 26 years.
    If I stop now, what will be the implecation.

  • Comment Link Administrator Tuesday, 14 February 2012 18:06 posted by Administrator

    Hi Sumanta
    On maturity, you will get Sum Assured (Rs 200,000) along with bonuses.
    The surrender amount is higher of special surrender value and guaranteed surrender value. You can find the special surrender value of your policy from LIC branch.

  • Comment Link yogeshwar Wednesday, 22 February 2012 21:26 posted by yogeshwar

    i want to know about jeevan nidhi in details as the notional cash option under the policy is 1,01,507 tell me how much will i get as my last payment will be on 14/03/12 tell me urgently

  • Comment Link Administrator Friday, 24 February 2012 11:29 posted by Administrator

    Hi Yogeshwar
    You need to contact LIC branch office with your policy number and they will you the maturity amount and annuity amount you will receive.

  • Comment Link kamal Tuesday, 08 January 2013 15:07 posted by kamal

    want about this plan this is ulip or something else , and how can provide the pension to me ... ?

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