Maintaining the standard of living seems difficult after retirement. There is no source of income; you have to live on whatever you have saved throughout your life. Your life’s savings may run out some day leaving you in a nagging debt trap. If all these thoughts make you frequently worried then you need to be serious about your retirement now. A little thought and planning may help you get rid of those disturbing worries surrounding your retirement.
The secret behind a happy and peaceful life post retirement is a proper financial planning at the right time. A pension plan is an integral part of retirement planning. If you have started saving for retirement from an early age of your life no one can hold you back from leading a happy and financially independent life post retirement.
Almost all life insurance companies in India offer pension plans. Among them all LIC pension plans are most popular, especially among the middle class Indians.
LIC New Jeevan Nidhi is a deferred annuity retirement plan which is traditional and participating in nature. A deferred annuity plan allows you to save money throughout the policy term. At the end of the accumulation period, you will start receiving annuities for the rest of your life. In case of your unfortunate demise, the nominee appointed by you will receive the lump sum assured by the insurance company.
Before going to the detailed discussion of this LIC Pension plan, let us have a look at the key features of LIC New Jeevan Nidhi as highlighted below:
- It is a with–profit deferred annuity plan.
- Bonuses are payable with the sum assured.
- Guaranteed additions are added in every year for the first five years.
- Both single and regular premium paying terms are available.
- Rebates are available if you opt for a sum assured or Rs. 3,00,000/- or above.
LIC New Jeeavan Nidhi offers numerous benefits to the annuitant. Following are the basic benefits of this LIC pension plan:
- Death benefit is payable to your loved ones in case of your unexpected death.
- On vesting (maturity), the basic sum assured is payable to the policy holder along with the vested simple reversionary bonus, guaranteed additions, terminal bonuses (if any).
- The guaranteed addition is the 5% of the basic sum assured which is added every year to be paid at the end of the policy. In case of your untimely death within the first 5 years of the accumulation period, the basic sum assured is paid out as the death benefit along with guaranteed additions.
- In case of your death after 5 years from the commencement of the policy, you the sum assured will be paid along with the vested simple reversionary bonus, guaranteed additions and terminal bonuses (if any).
- This LIC pension plan allows you to enjoy tax benefits under section 80CCC and section 10(10D) of the Income Tax Act.
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Now that you know the benefits offered by LIC New Jeevan Nidhi, it is now time to know whether or not you are eligible for this pension plan. Following are the eligibility criteria of this LIC pension plan:
- You have to minimum 20 years old to be eligible for this pension plan.
- If you opt for regular premium paying term, your age should not be more than 58 years and if you opt for the single pay option your age should not exceed 60 years at the time of the entry.
- The minimum and maximum policy term include 5 years and 35 years respectively.
- Under the regular pay option, the minimum basic sum assured amount is Rs.1, 00,000/- and under the single pay option, the minimum amount is Rs. 1, 50,000/- but there is no limit to the maximum sum assured for any of the options.
- Premium paying frequencies include yearly. Half-yearly, quarterly and monthly.
- The premium to be paid depends largely on the sum assured and the premium paying term you opt for.
After going through all the features and benefits of the LIC New Jeevan Nidhi, we can opine that, this plan is undoubtedly one of the best pension plans currently available in the market. So, if you are thinking of investing in a retirement plan, there is no better option than investing in LIC pension plan which offers life coverage and also takes care of your income flow after retirement.
This is very helpful post. Thanks for posting and looking for more posts like this, Keep Posting.
I agree with you. Jeevan Akshay VI option pays you an annuity ‘certain’ for a period of 5, 10, 15 or 20 years and thereafter for the rest of your life. In other words, if you die within the ‘certain’ period of 5/10/15/20 years, your heirs will continue to get the annuity for the rest of the ‘certain’ period. Payments will stop thereafter. Since this is a slightly better deal than ‘annuity for life’, the annuity rate (what LIC pays you) is also lower than the latter.
Thank you so much @Rakesh Sharma.
This was a great experience to read this article. Thanks for the giving precious knowledge about Jeevan Nidhi.