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New Jeevan Nidhi



LIC NEW JEEVAN NIDHI (Table 818) is a with profits Deferred Annuity (Pension) plan. On survival of the policyholder beyond term of the policy the accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. The insurance plan also provides a risk cover during the deferment period.
There are 2 phases in this plan- the Accumulation Phase and the Vesting Phase. In this plan, premium needs to be paid till the end of the Accumulation Phase under Regular Premium Payment Option or in a lumpsum under Single Premium Payment Option. This plan offers Guaranteed Additions of Rs.50 per thousand Sum Assured for each completed year, for the first five years. Bonus starts to accrue only after completion of 5 policy years.

Key Features of LIC New Jeevan Nidhi :

• This plan offers Guaranteed Additions of Rs.50 per thousand Sum Assured for each completed year, for the first five years
• Upon Vesting, there are 2 Vesting Options available to the life insured :

He may choose to withdraw 1/3rd of the corpus tax free and avail annuity from the remaining 2/3rd of the corpus or take annuity from the entire corpus
He may choose to purchase a single premium Deferred Annuity Plan

• Maturity Benefit is Maturity Sum Assured + Guaranteed additions + Accured Bonus + Final Additions, if any.

LIC New Jeevan Nidhi Eligibility Conditions :




Sum Assured (in Rs.) 1,00,000 for Regular Premium
1,50,000 for Single Premium
No Limit
Policy Term (in years) 35
Premium Payment Term(in years) Single Till vesting Age
Entry Age of Policyholder 20 58
Age at Vesting 55 65
Payment modes Single, Yearly, Half-yearly, Quarterly, Monthly and SSS

Returns of LIC New Jeevan Nidhi :

Maturity Return - The corpus generated with the Sum Assured, Accured Bonus and Final Additional Bonus  will be used to generate a Pension at the end of the Accumulation Period (Policy Term). Pension will be paid to the Life Insured till the end of his life time. After their demise, a lumpsum would be provided to their nominee and the policy ceases.
Death Benefit – On the death of the life insured before policy maturity, Sum assured with Bonus will be paid.  On death after the accumulation period, a lumpsum (Sum Assured + Guaranteed Additions + Accured Bonus + Final Additional Bonus, if any) would be provided to their nominee.
Income Tax Benefit – Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns

1.    Benefits:

  1. Benefit on VestingOn vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be made available to the Life Assured.

 The following options shall be available to the Life Assured for utilization of the benefit amount.


1.    To purchase an immediate annuity

The Life Assured shall have a choice to commute the amount available on vesting to the extent allowed under Income Tax Act. The entire amount available on vesting or the balance amount after commutation, as the case may be, shall be utilized to purchase immediate annuity at the then prevailing annuity rates. Commutation shall only be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938.


In case the total benefit amount is insufficient to purchase the minimum amount of annuity, then the said amount shall be paid as a lump sum to the Life assured.


The annuity shall only be purchased from Life Insurance Corporation of India.




2.    To purchase a new Single Premium deferred pension product from Life Insurance Corporation of India

Under this option the entire proceeds available on vesting shall be utilized to purchase a single premium deferred pension product provided the policyholder satisfies the eligibility criteria for purchasing single premium deferred pension product.


The Life Assured will have to intimate his / her intention to go for a particular option available on the date of vesting atleast six months prior to the date of vesting.


  1. Death Benefit:

Death during first five policy years: Basic Sum Assured along with accrued Guaranteed Addition shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee. 


Death after first five policy years: Basic Sum Assured along with accrued Guaranteed Addition, Simple Reversionary and Final Additional Bonus, if any, shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.


The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates.


  1. Guaranteed Additions:  The policy provides for Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.


  1. Participation in profits: The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive Simple Reversionary bonuses declared as per the experience of the Corporation, provided the policy is in full force.

 Final Additional Bonus may also be declared in addition.


  1. 2.    Optional Benefit:


Accident Benefit Rider:  Accident Benefit Rider is available as an optional rider by payment of additional premium under regular premium policies. In case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.  In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in monthly instalments spread over 10 years and future premiums shall be waived. If the policy becomes a claim either by way of death or the policy vests before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid in lump sum.


The Accident Benefit Sum Assured may be opted for an amount upto the Basic Sum Assured subject to minimum of Rs. 25,000 and maximum of Rs. 50 lakh (including all policies with LIC of India and other insurers). This benefit will be available only till the age nearer birthday of the Life assured is 65 yrs or till the vesting age, whichever is earlier.


  1. 3.    Paid-up Value:

Under regular premium policies, if after atleast three full year's premiums have been paid and any subsequent premium be not duly paid, this Policy shall not be wholly void but the Sum Assured under basic plan shall be reduced to such a sum, called the paid-up sum assured, as shall bear the same ratio to the full Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the Policy. The policy so reduced shall thereafter be free from all liability for payment of the within-mentioned premium but shall not be entitled to guaranteed additions and any bonuses in future. The accrued guaranteed additions and vested bonus additions, if any, will remain attached to the reduced paid-up policy.


This paid-up sum assured alongwith the accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, is payable on the date of vesting or on Life Assured's prior death.


On the death of the Life Assured, the nominee shall have an option to take the proceeds as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity.


On vesting the proceeds shall be payable as per one of the options as specified against para 1.a. above.


Accident Benefit rider do not acquire any paid-up value.


  1. 4.    Surrender Value:

The policy can be surrendered at any time after completion of at least 3 policy years but before the date on which annuity vests.


The Guaranteed Surrender Value will be as under:

        i)      Single Premium Policies: The Guaranteed Surrender value is equal to 90% of the premium paid excluding extras, if any.


       ii)      Regular Premium Policies: The Guaranteed Surrender Value will be available provided atleast three full years' premiums have been paid and is equal to 30% of the premiums paid excluding the premium paid for the first year and all premiums in respect of optional rider and extras, if any.


The surrender value shall be the guaranteed surrender value along with cash value of any accrued Guaranteed Additions and vested simple reversionary bonuses, if any.


Corporation may, however, pay Special Surrender value, as the discounted value of the paid-up sum assured (as specified in para 8), accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, as applicable on date of surrender, provided the same is higher than Guaranteed Surrender value.

Retirement plans offered by life insurance companies are bundled products, offering the benefits of both insurance and investment. A typical retirement plan has two phases.

The first is the accumulation phase, during which you pay premiums and the money accumulates through the tenure of the plan. The accumulated money is then invested in securities approved by the Insurance Regulatory and Development Authority, the insurance regulator.

These products are designed to protect the value of your principal while at the same time provide you with steady returns.

The accumulation stage is followed by the vesting age, which is the age when you start getting payouts from the kitty. This can be selected by you. The vesting age in most plans is 40 to 70 years. The period when a person gets pension is also called the annuity phase. During this phase, you can withdraw up to 33% of the accumulated amount in one go. The rest is paid as pension.

In the immediate annuity option, a person can pay in lump-sum, instead of over the years, and start getting income immediately. The frequency of payments received can be monthly, quarterly, half-yearly or annually.


Other Retirement Planning Options

1. Other endowment plans can also be used for retirement planning, but their returns are low. However, special endowment assurance plans such as Max New York Life Partner Plus provide 7.5% sum assured from 61 years up to 75 years of age. At 75 years, you will be paid the sum assured, which can be then used to buy annuity.


2. Ulips, such as long-term investment plans, can be used. Although they have a scope for building an unlimited corpus, their downside is not protected and you may end up losing your capital. Capital protection plans such as the highest Net Asset Value (NAV) guaranteed plans can be used, but their charges are higher as compared to retirement plans. These plans assure you payment at the highest NAV reached by the fund during its tenure. However, conditions may vary from company to company.

3. NPS (National Pension System), PPF (Public Provident Fund) and EPF (Employee Provident Fund) are some other options. However, under the proposed direct taxes code, their maturity proceeds will be taxable. This is not the case in insurance retirement plans. There is no insurance or protection cover either.

4. Direct equity or mutual fund investments can also be used to create long-term capital, but prudence will have to be used, as such products do not have any fixed time horizon and maturity value. You will have to time the market correctly to maximise benefits. Fund houses are coming up with options for retirement with fixed lock-in periods, but they still have to figure out issues related to downside and capital protection.

Retirement planning through insurance plans is a good option to maximise your returns. However like in most investment planning exercise, you will be better placed if you start your investment planning early in your financial life and keep investing regularly.



  • Start investing early so that you can channelise a larger part of your savings for a comfortable retired life.
  • For retiring, choose an age that coincides with the retirement age in your profession or falls later, so that you get a larger pension.
  • If you want a larger quantum of money in the earlier part of your retired life on a regular basis, go for plans such as Kotak Capital Multiplier Plan which allow immediate withdrawal or partial withdrawals till 75 years of age or for 15 years, whichever is earlier.
  • If you are looking at liquidity before retirement, pick plans such as BSLI Secure 58 Plan from Birla Sun Life that allow withdrawals even during the accumulation phase. This plan also provides pension till 90 years of age. No other plan has such a high vesting age.
  • If you have not bought a separate term plan for death benefits, Kotak Capital Multiplier Plan will be the best choice as it provides the accumulated amount or sum assured, whichever is higher.