{"id":3142,"date":"2013-01-03T11:15:22","date_gmt":"2013-01-03T05:45:22","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=3142"},"modified":"2013-01-03T11:15:27","modified_gmt":"2013-01-03T05:45:27","slug":"should-you-invest-in-lic-new-jeevan-nidhi-plan","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/should-you-invest-in-lic-new-jeevan-nidhi-plan\/","title":{"rendered":"Should you Invest in LIC New Jeevan Nidhi Plan?"},"content":{"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.<\/strong><\/p>\n

The term vesting<\/strong> has been used extensively in the article. For simplification vesting can be assumed equivalent to maturity of policy.<\/em><\/p>\n

LIC New Jeevan Nidhi –\u00a0Eligibility:<\/h3>\n

The table below shows the eligibility for \u00a0LIC New Jeevan Nidhi Pension Plan.<\/p>\n

\"LIC
LIC New Jeevan Nidhi – Eligibility<\/strong><\/figcaption><\/figure>\n

LIC New Jeevan Nidhi –\u00a0Benefits on Vesting:<\/h3>\n

On Vesting you would get the basic sum assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any. This can be used for the following purpose only:<\/strong><\/p>\n

    \n
  1. To buy an immediate annuity plan from LIC or<\/li>\n
  2. In case the total benefit amount is insufficient to purchase the minimum amount of annuity, then it would be paid as a lump sum or<\/li>\n
  3. To purchase a Single Premium deferred pension product from LIC<\/li>\n<\/ol>\n

    The option needs to be selected at least 6 months prior to the date of vesting.<\/p>\n

    LIC New Jeevan Nidhi –\u00a0Death Benefit:<\/h3>\n

    Death during first five policy years:<\/strong> Basic Sum Assured along with accrued Guaranteed Addition shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.<\/p>\n

    Death after first five policy years:<\/strong> Basic Sum Assured along with accrued Guaranteed Addition, Simple Reversionary and Final Additional Bonus, if any, shall be paid as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity to the nominee.<\/p>\n

    The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates.<\/p>\n

    LIC New Jeevan Nidhi –\u00a0Riders:<\/h3>\n

    Accident Benefit Rider:<\/strong> Accident Benefit Rider is available as an optional rider by payment of additional premium under regular premium policies. In case of accidental death, the Accident Benefit Rider Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.<\/p>\n

    LIC New Jeevan Nidhi –\u00a0Surrender Value:<\/h3>\n

    The policy can be surrendered at any time after completion of at least 3 policy years but before the date on which annuity vests.<\/p>\n

    The Guaranteed Surrender Value will be as under:<\/p>\n

      \n
    1. Single Premium Policies:<\/strong> The Guaranteed Surrender value is equal to 90% of the premium paid excluding extras, if any.<\/li>\n
    2. Regular Premium Policies:<\/strong> The Guaranteed Surrender Value will be available provided atleast three full years’ premiums have been paid and is equal to 30% of the premiums paid excluding the premium paid for the first year and all premiums in respect of optional rider and extras, if any.<\/li>\n<\/ol>\n

      The surrender value shall be the guaranteed surrender value along with cash value of any accrued Guaranteed Additions and vested simple reversionary bonuses, if any.<\/p>\n

      How much Return can you expect?<\/h3>\n

      You can expect following types of returns from the policy:<\/p>\n

        \n
      1. Guaranteed Additions @ Rs.50\/- per thousand Sum assured<\/strong> for each completed year, for the first five years.<\/li>\n
      2. The policy is profit participating and hence would receive Simple Reversionary bonuses declared as per the experience of the LIC from the 6th year of policy<\/strong>.<\/li>\n
      3. Final Additional Bonus<\/strong> may also be declared in addition.<\/li>\n<\/ol>\n

        You can check benefit illustration of LIC New Jeevan Nidhi at the LIC website here<\/a>.<\/p>\n

        Here is some calculation on expected returns using the same assumption as on LIC Website:<\/p>\n