LIC Jeevan Nidhi

About LIC Jeevan Nidhi

• A deferred pension plan wherein one receives annuity after a specific period of time
• Offers death cover during the deferment period
• Guaranteed addition bonus paid at 5% for first five years
• On maturity an individual has to re-invest into any other annuity / pension plan

How does this plan work?

Under this plan, an individual can choose to pay premiums for a period (deferment period of 10 or 20 or 30). During the deferment period he gets a life cover.  After the deferment period is over the individual gets a lumpsum (Basic sum assured + guaranteed additions + accrued bonus), but he has to re-invest it in one of the following different options:

• Take pension from the entire lumpsum
• Collect 1/3 of the lumpsum as tax free and the remaining 2/3 to avail as annuity/pension

Different annuity options are:

• Life Annuity: Insured receives fixed pension regularly till he survives.
• Guaranteed Period annuity: Insured can choose guaranteed fixed pension for specific period (5, 10, 15 or 20) and pension continues till he survives or not
• Return of Purchase Price: Pension received till insured lives and on death his nominee gets the death benefit
• Increasing Annuity: The annuity amount received increases by 3% yearly till he survives.
• Joint Annuity with a certain percentage for Spouse involvement: The insured can include his spouse to receive 50% of the pension after he dies

He will start receiving a fixed portion decided upon his purchase price as pension amount for his life. Since it’s a lifelong annuity plan, maturity doesn’t exist, but one can choose an option to nominate family members to receive death benefit amount on his death. If the insured dies within the deferred term, his nominee receives death benefit which is a lump sum of Sum assured+ guaranteed additions + accrued bonus. If in-case he dies after the deferred term, the death benefit depends upon the pension /annuity plan chosen.

Eligibility Criteria

Add-ons for LIC's Jeevan Nidhi Plan

• 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. 
• Term Assurance Rider Option:
  Payable during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy term. The maximum cover for this rider will be Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.
• Critical Illness Rider Option:
  The maximum cover for this rider will be Rs.5 lakh under all policies of the Life Assured with the Corporation taken together. The total future premiums in respect of the policy will be waived. Sum Assured under all such policies with the Corporation taken together will not exceed Rs.5 lakh.

Claim Process

Know Claim Process of LIC Jeevan Nidhi

Claim Process