Vesting Age: 60<\/li>\n<\/ul>\nOn maturity you would get following:<\/strong><\/p>\n\nGuaranteed Vesting Benefit<\/strong> (Rs 50 per 1000 sum assured for 25 years): Rs 1,25,000<\/li>\nSimple Reversionary bonuses*<\/span><\/strong> (Rs 34 \u2013 38 per 1000 sum assured for 20 years): Rs 68,000 to Rs 76,000<\/li>\nFinal Additional Bonus**<\/span><\/strong> (Rs 0 – 50 per 1000 sum assured for 1 year): Rs 0 to Rs 5,000<\/li>\n<\/ol>\nTotal Amount at Maturity<\/strong>: Rs 1,93,000 to Rs 2,06,000<\/p>\nAnnualized return: 4.54% to 4.98% per annum<\/strong><\/p>\n*\u00a0<\/span>Simple Reversionary bonuses has been assumed from the\u00a0Simple Reversionary bonuses declared for LIC Jeevan Nidhi for some recent years by LIC.<\/em><\/p>\n**<\/span>\u00a0Final Additional Bonus is assumed for calculation purpose and it might vary<\/em><\/p>\nNow you will need to invest this maturity sum to buy an annuity plan from LIC. At this time LIC Jeevan Akshay VI is the only annuity plan from LIC<\/strong>. So assuming today returns, if you invest the above amount for Life time annuity, you would get Rs. 18,060 \u2013 Rs 19,261 per year.<\/strong> And the amount which you would get from the annuity would be added to your total income and taxed according to your tax slab.<\/p>\nSimplifying the above, you would invest Rs 4,121 per year for 25 years and after that LIC would pay you Rs. 18,060 \u2013 Rs 19,261 per year for\u00a0your lifetime. <\/strong><\/p>\nThis might sound good to some of you but you can get better returns by just investing in PPF and then buying annuity from the maturity amount.<\/p>\n
Should you invest in\u00a0LIC New Jeevan Nidhi?<\/h3>\n I would not advise to invest in LIC New Jeevan Nidhi Plan on account of following reasons:<\/p>\n
\nThe guaranteed return is less than 1.5% per annum<\/li>\n Even when we realistically add all bonuses, the return is less than 5% per annum<\/li>\n You can easily get these kind of returns by investing in PPF, Fixed Deposits or Debt Mutual Funds.<\/li>\n Other than the above reasons, the maturity amount needs to be invested in LIC Annuity Plan. This might not be the best retirement plan and you would want to keep the flexibility of investing your maturity amount in Post office MIP or something similar.<\/li>\n Also in case you need to surrender the policy, you won\u2019t be able to recover your initial amount.<\/li>\n<\/ol>\nYou might want to also consider NPS (New Pension Scheme) which has given better returns historically and at maturity you need to invest only half of proceeds in annuity plan. And you are also open to choose annuity plan from the market rather than only from LIC.<\/p>\nLIC New Jeevan Nidhi<\/strong><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"LIC New Jeevan Nidhi Plan is a conventional with profits pension plan which provides for death cover during the deferment period and offers annuity on survival to the date of vesting. The term vesting has been used extensively in the article. For simplification vesting can be assumed equivalent to maturity of policy. LIC New Jeevan […]<\/p>\n","protected":false},"author":1,"featured_media":3143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[5,16,393],"tags":[582,581,38,1766,1764,40,1765,947],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi.png",946,1481,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi-191x300.png",191,300,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi.png",768,1202,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi-654x1024.png",654,1024,true],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi.png",946,1481,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi.png",946,1481,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/01\/LIC-New-Jeevan-Nidhi-120x120.png",120,120,true]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":9,"uagb_excerpt":"LIC New Jeevan Nidhi Plan is a conventional with profits pension plan which provides for death cover during the deferment period and offers annuity on survival to the date of vesting. The term vesting has been used extensively in the article. For simplification vesting can be assumed equivalent to maturity of policy. LIC New Jeevan…","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/3142"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=3142"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/3142\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/3143"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=3142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=3142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=3142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}