LIC Jeevan Nidhi
LIC Jeevan Nidhi is a profit Deferred Annuity or Pension plan. Upon the survival of the policy holder extending the term of the policy, the entire amount accumulated is used in generating the pension or Annuity for the policy holder. This accumulated amount includes the sum assured, guaranteed additions along with the bonuses.
The LIC Jeevan Nidhi policy also risk cover during the deferment period. The USP of the pension plan start at the age of forty (40) years of the policy holder. The premium amounts that are paid are exempted under the section 80 CCC of the Income Tax Act.
The salient features of this plan are as listed below:
Participation in the profits.
For the first five years, the guaranteed addition at the rate of Rs.50 for each thousand rupees of sum assured is paid for each of the completed year.
Starting from the sixth year onwards, the LIC Jeevan Nidhi policy will participate in the profits provided by the corporation and as per the experience of the corporation, the policy is entitled to receive all types of the bonuses.
The following are the benefits that are available on the vesting bonus:
Option to commute
Annuity based on the selected option
It provides the option to commute about one – third of the available vesting amount. This amount includes the sum assured on the basic along with the guaranteed addition, the simple reversionary bonus and the terminal bonus, if available.
Currently, under this LIC Jeevan Nidhi policy, the following options are made available for the immediate annuities. They are as listed below:
Annuity for life ,
Annuity Guaranteed for certain periods,
Annuity with return of purchase price on death,