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:
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.