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| Insurance >> Youngsters >> Jeevan Nidhi |
| Table No. 169 |
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| Features |
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| LIC's JEEVAN NIDHI 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 plan also provides a risk cover during the deferment period. The USP of the plan being the pension can commence at 40 years. The premiums paid are exempt under Section 80CCC of Income Tax Act. |
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| Salient Features |
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a . Guaranteed Additions : Guaranteed Additions @ Rs.50/- per thousand Sum assured for each completed year, for the first five years.
b. Participation in profits : The policy shall participate in profits of the Corporation from the 6th year onwards and shall be entitled to receive bonuses declared as per the experience of the Corporation.
c. Benefit On Vesting :
1. Option to commute up to 1/3rd of the amount available on vesting, which shall include the Sum Assured under the Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any.
2. Annuity as per the option selected :
Annuity on the balance amount if commutation is exercised, otherwise annuity on the full amount.
d. Annuity Options :
On vesting, the annuity instalment, mode of annuity payment and type of annuity which shall be made available to the Life Assured (Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity plan of the Life Insurance Corporation of India and its terms and conditions.
Currently the following options are available under LIC’s immediate annuities:
1. Annuity for life : The annuity is paid to the life assured as long as he/she is alive.
2. Annuity Guaranteed for certain periods : The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured as long as he/she is alive.
3. Annuity with return of purchase price on death : The annuity is paid to the life assured as long as he/she is alive. On the death of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding the commuted value, if any.
4. Increasing annuity : The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.
5. Joint Life Last Survivor Annuity : The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.
e. Death Benefit on death before annuity vests : On the death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal to the Sum Assured under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. Nominee will also have the option to purchase an annuity with this amount. |
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| Benefits |
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| Eligibility Conditions And Other Restrictions Under This Plan : |
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| For Basic Benefits |
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| a) |
Minimum age at entry: |
18 years (completed) |
| b) |
Maximum age at entry: |
65 years |
| c) |
Minimum age at vesting: |
40 years |
| d) |
Maximum age at vesting |
75 years |
| e) |
Policy terms: |
6 to 35 years under Single Premium policies and 5 to 35 years under Regular Premium policies |
| f) |
Modes of premium payment: |
Yearly, Half-yearly, Quarterly, SSS & Single Premium |
| g) |
Sums Assured allowed: |
Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper limit. |
| h) |
Minimum Annual Premium: |
Rs.3,000/- |
| i) |
Minimum Single premium: |
Rs.10,000/- |
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| For Term Assurance Rider Option |
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| a) |
Minimum age at entry: |
18 years (completed) |
| b) |
Maximum age at entry: |
50 years |
| c) |
Maximum age at vesting |
60 years |
| d) |
Policy terms: |
6 to 35 years under Single Premium mode and 10 to 35 years under regular premium mode |
| e) |
Minimum Sum Assured: |
Rs.1,00,000/- |
| f) |
Maximum Sum Assured: |
An amount equal to the Sum Assured under the Basic plan subject to a limit of Rs.25,00,000/- taking all Term Assurance Rider Sum Assured under all policies of a life assured. |
| g) |
Multiples of Sum Assured: |
Rs.25,000/- |
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| Rebates |
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| Rebate for mode of Premium Payment |
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| Yearly |
2% of tabular premium |
| Half-Yearly |
1% of tabular premium |
| Quaterly |
Nil |
| Monthly |
5% extra of tabular premium |
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| Large Sum Assured Rebates |
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| For Regular Premium Policies |
| Sum Assured |
Rebate |
| 50,000 to 1,00,000 |
Nil |
| 1,05,000 to 3,00,000 |
1%o S.A. |
| 3,05,000 and above |
2%o S.A. |
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| For Single Premium Policies |
| Sum Assured |
Rebate |
| 50,000 to 1,00,000 |
Nil |
| 1,05,000 to 3,00,000 |
5%o S.A. |
| 3,05,000 and above |
10%o S.A. |
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f. Grace Period :
A grace period of 30 days will be available for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.
g. 15 – days Cooling-off period :
If policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to us within 15 days.
h. Paid-up Value :
The policy will acquire paid-up value after at least 3 full year’s premiums have been paid.
i. Guaranteed Surrender Value :
Before the annuity vests, the policy can be surrendered at any time after the completion of 3 policy years. For a regular premium policy, the Guaranteed Surrender value is available provided 3 years’ premiums are paid, and it is 30% of the premiums paid excluding premiums paid in the first year. For a Single Premium policy, the Guaranteed Surrender Value available after completion of 3 policy years is 90% of the Single Premium. Any extra premiums and premiums for Term Assurance Rider Option, Critical Illness Rider option and Accident Benefit, if any will be excluded.
j. Revival : The policyholder can revive his lapsed policy by paying arrears of premium together with interest within a period of five years from the date of first unpaid premium subject to satisfactory evidence of health. The rate of interest for this purpose will be decided by the Corporation from time to time. The present rate of interest is 9% pa.
k. Options : Accidental Death and Disability Benefit :
In case of death due to accident (within 180 days) an additional amount equal to the Accident Benefit Sum assured will be payable. In case of Total and Permanent disability arising due to accident an amount equal to accident benefit sum assured will be payable over a period of 10 years in monthly instalments. However, the payment of accident benefit will be subject to an overall limit of Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.
The disability due to accident should be total and such that the Life Assured is unable to carry out any work to earn a living. Following disabilities due to accident are also covered -
a) irrevocable loss of the entire sight of both eyes or
b) amputation of both hands at or above the wrists or
c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at or above the ankle.
No benefit will be paid in case of accidental death or disability due to accident in case of
a) intentional self-injury, attempted suicide, insanity or immorality or the Life Assured is under the influence of intoxicating liquor, drug or narcotic,
b) engagement in aviation or aeronautics other than that of a passenger in any air craft,
c) injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting, mountaineering, steeple chasing or racing of any kind,
d) accident resulted from committing any breach of law.
e) accident arising from employment in armed forces or military services or police organisation.
Term Assurance Rider Option : Term Assurance as optional rider will be available under this plan. Premiums for this option are payable during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy term. The maximum cover for this rider will be Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.
Critical Illness Rider Option : An amount equal to the Critical Illness Rider Sum Assured as optional rider will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions. The maximum cover for this rider will be Rs.5 lakh under all policies of the Life Assured with the Corporation taken together.
If opted for Premium Waiver Benefit, then in case the Life Assured is diagnosed with any of the Critical Illnesses covered under the policy, the total future premiums in respect of the policy will be waived. Sum Assured under all such policies with the Corporation taken together will not exceed Rs.5 lakh. |
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Loan / Assignment :
No Loan/Assignment will be available by the Corporation to the policyholders under this plan. |
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| Exclusions |
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| Suicide : This policy shall be void if the Life Assured commits suicide (whether sane or insane at the time) at any time on or after the date on which the risk under the policy has commenced but before the expiry of one year from the date of commencement of risk under the policy and the Corporation will not entertain any claim by virtue of this policy except to the extent of a third party’s bonafide beneficial interest acquired in the policy for valuable consideration of which notice has been given in writing to the office in which the policy is being serviced, at least one calendar month prior to death. |
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| Specimen Premium Rates per Rs.1000/- Sum Assured |
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| Single Premium |
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| Age at entry |
Policy Term |
| 10 |
15 |
20 |
25 |
30 |
35 |
| 20 |
- |
- |
616.40 |
523.40 |
446.50 |
384.35 |
| 25 |
- |
727.30 |
617.30 |
525.35 |
450.30 |
390.70 |
| 30 |
856.45 |
728.05 |
619.25 |
529.40 |
457.45 |
401.85 |
| 35 |
857.10 |
730.10 |
623.70 |
537.50 |
470.35 |
420.80 |
| 40 |
858.40 |
733.85 |
631.60 |
550.95 |
490.95 |
450.35 |
| 45 |
860.70 |
740.35 |
644.15 |
571.80 |
522.35 |
- |
| 50 |
864.55 |
750.40 |
663.30 |
603.10 |
- |
- |
| 55 |
869.95 |
764.85 |
691.20 |
- |
- |
- |
| 60 |
878.30 |
787.25 |
- |
- |
- |
- |
| 65 |
892.25 |
- |
- |
- |
- |
- |
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| Annual Premium |
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| Age at entry |
Policy Term |
| 5 |
10 |
15 |
20 |
25 |
30 |
35 |
| 20 |
- |
- |
- |
52.45 |
40.30 |
32.35 |
26.90 |
| 25 |
- |
- |
72.75 |
52.55 |
40.55 |
32.75 |
27.45 |
| 30 |
- |
113.05 |
72.90 |
52.90 |
41.05 |
33.45 |
28.40 |
| 35 |
231.90 |
113.40 |
73.45 |
53.60 |
42.05 |
34.80 |
30.15 |
| 40 |
232.35 |
114.05 |
74.40 |
54.95 |
43.80 |
37.05 |
33.05 |
| 45 |
233.05 |
115.25 |
76.10 |
57.15 |
46.65 |
40.70 |
- |
| 50 |
234.45 |
117.40 |
78.85 |
60.75 |
51.30 |
- |
- |
| 55 |
236.55 |
120.45 |
83.05 |
66.40 |
- |
- |
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| 60 |
239.55 |
125.40 |
90.15 |
- |
- |
- |
- |
| 65 |
245.00 |
134.55 |
- |
- |
- |
- |
- |
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Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI).
For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum. |
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Product Summary :
This is a with-profits pension plan which provides for death cover during the deferment period and on survival to the date of vesting, the maturity proceeds are compulsorily to be used for purchase of annuity.
Premiums :
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deduction, as opted by you, throughout the term of the policy or till earlier death. Alternatively, the premium may be paid in one lump sum (single premium).
Tax Benefits :
Tax relief under Section 80CCC(1) is available on premiums paid under this policy.
Guaranteed Additions during the first five years :
The policy provides for the Guaranteed Additions at the rate of Rs.50/- per thousand Sum Assured during first five years of the policy. The Guaranteed Additions are payable along with the basic Sum Assured on vesting or on earlier death.
Bonuses after the first 5 years :
This is a with-profit plan and participates in the profits of the Corporation’s life insurance business after 5 years. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.
Death Benefit :
The Sum Assured along with accrued guaranteed additions and vested simple reversionary bonuses and Final (Additional) Bonus, if any, is payable in a lump sum on death of the life assured during the deferment period of the policy.
Benefit on vesting :
On the date of vesting you can encash up to a maximum of 1/3rd of the amount consisting of the Sum Assured along with accrued guaranteed additions, vested simple reversionary bonuses and Final (Additional) Bonus, if any as a tax-free lump sum. The balance amount shall be compulsorily converted into an annuity at the option and the rates applicable at the time of vesting of the annuity.
Supplementary / Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits. |
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Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract.
Guaranteed Surrender Value :
The policy may be surrendered for cash after the policy is kept in force by payment of premiums for at least three years. The guaranteed surrender value available under this plan for all modes, except the single premium mode, will be equal to 30% of the total amount of premiums paid excluding the first year’s premium and the extra premiums. In case of single premium mode, The guaranteed surrender value will be 90% of the premium paid excluding all extra premiums.
Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, especially in case of early termination of the policy, the surrender value payable may be less than the total premium paid. The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.
Note : The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document. Further, the tax benefits are as per present Tax Laws. |
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| Benefit Illustration |
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Statutory Warning
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.” |
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Illustration 1 :
Age at entry : 35 years
Policy Term : 25 years
Premium paying term : 25 years
Sum Assured (Rs.) : 100000
Yearly Premium (Rs.) : 4121 |
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| End of year |
Total premiums paid till end of year |
Benefit payable on death / Amount available on survival up to the date of vesting for purchase of annuity |
| Guaranteed |
Variable |
Total |
| Scenario 1 |
Scenario 2 |
Scenario 1 |
Scenario 2 |
| 1 |
4,121 |
1,00,000 |
0 |
0 |
100000 |
100000 |
| 2 |
8,242 |
1,05,000 |
0 |
0 |
105000 |
105000 |
| 3 |
12,363 |
1,10,000 |
0 |
0 |
110000 |
110000 |
| 4 |
16,484 |
1,15,000 |
0 |
0 |
115000 |
115000 |
| 5 |
20,605 |
1,20,000 |
0 |
0 |
120000 |
120000 |
| 6 |
24,726 |
1,25,000 |
2300 |
7300 |
127300 |
132300 |
| 7 |
28,847 |
1,25,000 |
4600 |
14600 |
129600 |
139600 |
| 8 |
32,968 |
1,25,000 |
6900 |
21900 |
131900 |
146900 |
| 9 |
37,089 |
1,25,000 |
9200 |
29200 |
134200 |
154200 |
| 10 |
41,210 |
1,25,000 |
11500 |
36500 |
136500 |
136500 |
| 15 |
61,815 |
1,25,000 |
23000 |
73000 |
148000 |
198000 |
| 20 |
82,420 |
1,25,000 |
48500 |
157500 |
173500 |
282500 |
| 25 |
1,03,025 |
1,25,000 |
63500 |
206000 |
188500 |
331000 |
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Illustration 2:
Age at entry: 35 years
Policy Term: 25 years
Sum Assured (Rs.): 100000
Single Premium (Rs.): 53750 |
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| End of year |
Total premiums paid till end of year |
Benefit payable on death / Amount available on survival up to the date of vesting for purchase of annuity |
| Guaranteed |
Variable |
Total |
| Scenario 1 |
Scenario 2 |
Scenario 1 |
Scenario 2 |
| 1 |
53,750 |
1,00,000 |
0 |
0 |
100000 |
100000 |
| 2 |
53,750 |
1,05,000 |
0 |
0 |
105000 |
105000 |
| 3 |
53,750 |
1,10,000 |
0 |
0 |
110000 |
110000 |
| 4 |
53,750 |
1,15,000 |
0 |
0 |
115000 |
115000 |
| 5 |
53,750 |
1,20,000 |
0 |
0 |
120000 |
120000 |
| 6 |
53,750 |
1,25,000 |
2500 |
12400 |
127500 |
137400 |
| 7 |
53,750 |
1,25,000 |
5000 |
24800 |
130000 |
149800 |
| 8 |
53,750 |
1,25,000 |
7500 |
37200 |
132500 |
162200 |
| 9 |
53,750 |
1,25,000 |
10000 |
49600 |
135000 |
174600 |
| 10 |
53,750 |
1,25,000 |
12500 |
62000 |
137500 |
187000 |
| 15 |
53,750 |
1,25,000 |
25000 |
124000 |
150000 |
249000 |
| 20 |
53,750 |
1,25,000 |
53500 |
268000 |
178500 |
393000 |
| 25 |
53,750 |
1,25,000 |
70000 |
350500 |
195000 |
475500 |
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i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.
ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.
iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.
iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.
v) The Maturity benefit is the amount shown at the end of the Policy term. |
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