LIC’s New Pension Plan NEW JEEVAN NIDHI is expected to launch on 24th December 2012. It is a deferred pension plan from LIC.
Age at Entry : 20 to 60 Years
Vesting age: 55 to 65
Minimum Sum Assured: 1,50,000 INR in Single and 1,00,000 INR for Non Single
Life Cover in New Jeevan Nidhi : There will be life insurance cover in this plan up to the vesting date of the policy.
Guaranteed Addition for New Jeevan Nidhi : Bonus is guaranteed Rs 50 per 1000 of basic sum assured for first five years and then reversionary bonus every year after fifth year.
Mode allowed in New Jeevan Nidhi: Single premium, Yearly, Half yearly, Quarterly and Monthly (ECS/SSS)
Death Benefits of New Jeevan Nidhi:
1) If Death occurs with in first 5 years of starting LIC JEEVAN NIDHI, Sum assured along with guaranteed accrued bonus will be paid
2) If Death occurs after 5 years, Sum assured, Guaranteed bonus and vested reversionary bonus*1 and final additional bonus*2.
Maturity Benefit of New Jeevan Nidhi:
1) Pension: Option to purchase pension on maturity
2) Reinvest: Maturity proceed can be reinvested into single premium deferred pension plan.
Back dating – Allowed within same Financial year.
Revival of New Jeevan Nidhi – A policy may be revived within a period of 5 years from the date of First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.
Surrender-The policy can be surrendered at any time on payment of at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable shall be the higher of Guaranteed Surrendered Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.
*1: Reversionary Bonus shall be added from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation.
*2:Final Additional Bonus shall be payable either on vesting or on earlier death at the rates declared by the Corporation.