LIC Jeevan Nidhi policy - Review, pension plan, benefits, returns, premium and other features

LIC Jeevan Nidhi is a pension plan policy and for a happy retired life with regular income one should go for this policy. Here you can see detail review, benefits, returns, pension plans and alternatives and other details about LIC Jeevan Nidhi policy.

LIC Jeevan Nidhi is one of the bonus deferred annuity plan of Life Insurance Corporation (LIC) of India. This is one of the highly preferred non unit-linked insurance pension plans of the company. This plan is designed to cover the risk of living too long and hence offers multiple pension alternatives to cover the risk. The accumulated amount which is created to make pension amount for old age is the sum assured plus accrued guaranteed additions plus simple reversionary bonus plus terminal bonus. The age when pension is payable is called as vesting age and the time when pension starts is called as Vesting Date.

Features and returns in LIC Jeevan Nidhi pension plan policy

This plan is kind of deferred pension plan available with additional bonus facility.

Death Benefit after the defined Vesting Date mainly depends on the annuity option selected.

Death Benefit before Vesting Date is nothing but sum assured plus accrued guaranteed additions plus simple reversionary bonus and terminal bonus.

This plan has Guaranteed Additions for the first 5 years

Upon Vesting, there are two Vesting alternatives available for life insured
Policyholder may choose to avail pension from the overall corpus
Individual may prefer to choose withdrawal of 1/3rd of the corpus tax free and get pension from the remaining 2/3rd part of the corpus.

Pension plans and alternatives in LIC Jeevan Nidhi policy

There are 5 alternatives available for Pension
Annuity for Lifetime - Pension is paid till the policyholder is alive however nothing is payable on death.

Joint Life Last Survivor Annuity - Pension is paid till an individual is alive. On the death of the policyholder, 50% of the pension is payable to spouse of insured person as long as the spouse is alive.

Annuity Guaranteed for specific Periods - Pension is paid for 5/10/15 or 20 years as selected whether the policy holder is alive or not,

Increasing Annuity - Pension is paid till the policyholder is alive at constantly rising rate of 3% p.a.

Annuity with Return on premium paid on Death - Pension is paid till an individual is alive and the remaining amount of accumulated fund is paid to the nominee in the form of death benefit.

Benefits of LIC Jeevan Nidhi policy

Death and Maturity Benefit – At the maturity date of the policy, the policyholder will get some options. Besides this, to choose whether to withdraw 1/3rd of the corpus tax free and avail pension from remaining amount or withdraw pension from the overall corpus.

Income Tax Benefit – Premiums paid under Jeevan Nidhi plan are tax exempted under Section 80 C and 1/3rd of maturity proceeds an individual gets are exempted from income tax under Section 10 (10A).

Drawbacks of LIC Jeevan Nidhi policy

The premium charged in this plan is quite high as compared to other plans offered by LIC.

However, pension received as mentioned in plan is taxable.

LIC's Jeevan Nidhi is one of the highly preferred plans by investors that are stuffed with attractive benefits such as life insurance cover, reversionary, guaranteed additions and terminal bonus. Apart from all these policyholder can opt for riders and personalized cover himself.

Read LIC Jeevan Ankur optional premium policy - Reviews, benefits, features, returns and disadvantages

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