Lic jeevan nidhi 169

Intro Features Benefits FAQ’s

LIC’s Jeevan NidhiLIC’s Jeevan Nidhi [Table No. 169]

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• Retirement PlanningRetirement Planning– Why?Why?

» To support and sustain the existing lifestyle after To support and sustain the existing lifestyle after retirement when income either ceases or declines retirement when income either ceases or declines considerably.considerably.

– What are the solutions?What are the solutions?» PensionPension

– What is Pension?What is Pension?» Regular or periodic payments made in consideration Regular or periodic payments made in consideration

either of past service or contributions to the pension either of past service or contributions to the pension fund.fund.



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• Retirement PlanningRetirement Planning– NeedNeed

» Increased longevityIncreased longevity» Declining incomeDeclining income» Rising medical costsRising medical costs» Disintegration of traditional joint family systemDisintegration of traditional joint family system» Maintenance of same standard of livingMaintenance of same standard of living

– FactsFacts» Persons aged > 60 will be 113 million by 2016Persons aged > 60 will be 113 million by 2016» Average educated Indian is expected to live 20 years Average educated Indian is expected to live 20 years

beyond his retirement at 60 yearsbeyond his retirement at 60 years



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• Introduction:Introduction:– LIC’s JEEVAN NIDHI is a with profits LIC’s JEEVAN NIDHI is a with profits Deferred Deferred

AnnuityAnnuity (Pension) plan. (Pension) plan. – On survival of the policyholder beyond term of the policy the On survival of the policyholder beyond term of the policy the

accumulated amount (i.e. Sum Assured + Guaranteed accumulated amount (i.e. Sum Assured + Guaranteed Additions + Bonuses) is used to generate a pension (annuity) Additions + Bonuses) is used to generate a pension (annuity) for the policyholder. for the policyholder.

– The plan also provides a risk cover during the deferment The plan also provides a risk cover during the deferment period. period.

– The USP of the plan being the pension can commence at 40 The USP of the plan being the pension can commence at 40 years. years.



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• FeaturesFeatures– Risk Cover:Risk Cover:

» Sum Assured under basic plan + Optional accidental risk Sum Assured under basic plan + Optional accidental risk cover, term assurance rider, critical illness rider and cover, term assurance rider, critical illness rider and premium waiver benefits.premium waiver benefits.

– Profits:Profits:» Guaranteed additions @ Rs. 50/- per thousand sum Guaranteed additions @ Rs. 50/- per thousand sum

assured per year for the first five years and in the assured per year for the first five years and in the subsequent years simple reversionary bonus and subsequent years simple reversionary bonus and terminal bonus, if anyterminal bonus, if any

– Income Tax rebate:Income Tax rebate:» Rebate allowed up to Rs. 10,000/- under section 80(CCC) Rebate allowed up to Rs. 10,000/- under section 80(CCC)

of Income Tax Act, 1961.of Income Tax Act, 1961.



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• BenefitsBenefits– Before Vesting:Before Vesting:

» Death Benefit on death before annuity vests:Death Benefit on death before annuity vests: On the On the death of the Life Assured during the deferment period of death of the Life Assured during the deferment period of the policy, i.e. before the annuity vests, an amount equal the policy, i.e. before the annuity vests, an amount equal to the Sum Assured under the Basic plan along with the to the Sum Assured under the Basic plan along with the accrued Guaranteed Additions, simple Reversionary accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Bonus, if any, will be paid in a Bonuses and Terminal Bonus, if any, will be paid in a lump sum to the appointed nominee, provided the policy lump sum to the appointed nominee, provided the policy is in force for full Sum Assured. Nominee will also have is in force for full Sum Assured. Nominee will also have the option to purchase an annuity with this amount. the option to purchase an annuity with this amount.



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• BenefitsBenefits– After Vesting:After Vesting:

» Guaranteed additionsGuaranteed additions @ Rs. 50/- per thousand sum @ Rs. 50/- per thousand sum assured per year for the first five years and in the assured per year for the first five years and in the subsequent years simple reversionary bonus and subsequent years simple reversionary bonus and terminal bonus, if anyterminal bonus, if any

» Option to commuteOption to commute up to 1/3rd of the amount available up to 1/3rd of the amount available on vesting, which shall include the Sum Assured under on vesting, which shall include the Sum Assured under the Basic Plan together with accrued Guaranteed the Basic Plan together with accrued Guaranteed Additions, simple Reversionary Bonuses and Terminal Additions, simple Reversionary Bonuses and Terminal Bonus, if any. Bonus, if any.

» Annuity as per the option selectedAnnuity as per the option selected: Annuity on the : Annuity on the balance amount if commutation is exercised, otherwise balance amount if commutation is exercised, otherwise annuity on the full amount.annuity on the full amount.



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• Annuity Options:Annuity Options: On vesting, the annuity instalment, mode of annuity payment On vesting, the annuity instalment, mode of annuity payment and type of annuity which shall be made available to the Life and type of annuity which shall be made available to the Life Assured (Annuitant) / Nominee will depend upon the then Assured (Annuitant) / Nominee will depend upon the then prevailing Immediate Annuity plan of the Life Insurance prevailing Immediate Annuity plan of the Life Insurance Corporation of India and its terms and conditions. Corporation of India and its terms and conditions. Currently the following options are available under LIC’s Currently the following options are available under LIC’s immediate annuities: immediate annuities: Annuity for life:Annuity for life: The annuity is paid to the life assured as long The annuity is paid to the life assured as long as he/she is alive.as he/she is alive.Annuity Guaranteed for certain periods:Annuity Guaranteed for certain periods: The annuity is paid to The annuity is paid to the life assured for periods of 5 or 10 or 15 or 20 years as 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. chosen by him/her, whether or not he/she survives that period. After the chosen period, the annuity is paid to the life assured After the chosen period, the annuity is paid to the life assured as long as he/she is alive.as long as he/she is alive.



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• Annuity Options: Annuity Options: Annuity with return of purchase price on death:Annuity with return of purchase price on death: The annuity is The annuity is paid to the life assured as long as he/she is alive. On the death 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 of the life assured, the purchase price of the annuity is paid as death benefit. The purchase price includes the Sum Assured death benefit. The purchase price includes the Sum Assured under the Basic Plan, the accrued Guaranteed Additions and any under the Basic Plan, the accrued Guaranteed Additions and any accrued bonuses, excluding the commuted value, if any.accrued bonuses, excluding the commuted value, if any.

Increasing annuity:Increasing annuity: The annuity is paid to the life assured as The annuity is paid to the life assured as long as he/she is alive. The amount of annuity increases every long as he/she is alive. The amount of annuity increases every year at a simple rate of 3% per annum.year at a simple rate of 3% per annum.

Joint Life Last Survivor AnnuityJoint Life Last Survivor Annuity:: The annuity is paid to the life The annuity is paid to the life assured as long as he/she is alive. On death of the life assured, 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 50% of the annuity is payable to the nominated spouse as long as the spouse is alive.as the spouse is alive. ..



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ELIGIBILITY CONDITIONS/RESTRICTIONSELIGIBILITY CONDITIONS/RESTRICTIONSFor Basic BenefitFor Basic Benefit

Minimum age at entryMinimum age at entry 18 years 18 years (completed) (completed)

Maximum age at entry Maximum age at entry 65 years 65 years Minimum age at vesting Minimum age at vesting 40 years 40 years Maximum age at vesting Maximum age at vesting 75 years 75 years

Policy terms Policy terms 6 to 35 years under Single Premium 6 to 35 years under Single Premium policies and 5 to 35 years under policies and 5 to 35 years under Regular Premium policies Regular Premium policies

Modes of premium payment Modes of premium payment Yearly, Half-yearly, Quarterly, SSS & Yearly, Half-yearly, Quarterly, SSS & Single Premium Single Premium

Sums Assured allowed Sums Assured allowed Rs.50,000/- and in multiples of Rs.50,000/- and in multiples of Rs.5,000/- thereafter, with no upper Rs.5,000/- thereafter, with no upper limit. limit.

Minimum Annual Premium Minimum Annual Premium Rs.3,000/- Rs.3,000/- Minimum Single premium Minimum Single premium Rs.10,000/- Rs.10,000/-



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ELIGIBILITY CONDITIONS/RESTRICTIONSELIGIBILITY CONDITIONS/RESTRICTIONSFor Term Assurance Rider OptionFor Term Assurance Rider Option


Maximum age at entry Maximum age at entry 50 years 50 years Maximum age at vesting Maximum age at vesting 60 years 60 years

Policy terms Policy terms 6 to 35 years under Single Premium 6 to 35 years under Single Premium mode and 10 to 35 years under regular mode and 10 to 35 years under regular premium modepremium mode

Minimum Sum Assured Minimum Sum Assured Rs. 1,00,000/-Rs. 1,00,000/-Maximum Sum AssuredMaximum Sum Assured An amount equal to the Sum Assured An amount equal to the Sum Assured

under the Basic plan subject to a limit under the Basic plan subject to a limit of Rs. 25,00,000/- taking all Term of Rs. 25,00,000/- taking all Term Assurance Rider Sum Assured under Assurance Rider Sum Assured under all policies of a life assuredall policies of a life assured

Multiples of Sum Assured Multiples of Sum Assured Rs. 25,000/- Rs. 25,000/-



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ELIGIBILITY CONDITIONS/RESTRICTIONSELIGIBILITY CONDITIONS/RESTRICTIONSFor For Critical Illness Rider OptionCritical Illness Rider Option


Maximum age at entry Maximum age at entry 50 years 50 years Maximum age at vesting Maximum age at vesting 60 years 60 years

Policy terms Policy terms 10 to 35 years10 to 35 yearsMinimum Sum Assured Minimum Sum Assured Rs. 50,000/-Rs. 50,000/-Maximum Sum AssuredMaximum Sum Assured An amount equal to the Sum Assured An amount equal to the Sum Assured

under the Basic plan subject to a limit under the Basic plan subject to a limit of Rs.5,00,000/- taking all Critical of Rs.5,00,000/- taking all Critical Illness Rider Sum Assured under all Illness Rider Sum Assured under all policies of a life assuredpolicies of a life assured

Multiples of Sum Assured Multiples of Sum Assured Rs. 10,000/- Rs. 10,000/-



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RidersRidersTerm Assurance Rider Option:Term Assurance Rider Option: Term Assurance as optional rider Term Assurance as optional rider will be available under this plan. Premiums for this option are payable will be available under this plan. Premiums for this option are payable during the premium paying term and an amount equal to Term during the premium paying term and an amount equal to Term Assurance Sum Assured will be payable on death during the policy 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 term. The maximum cover for this rider will be Rs.25 lakh under all policies of the Life Assured with the Corporation taken together. policies of the Life Assured with the Corporation taken together. Critical Illness Rider Option:Critical Illness Rider Option: An amount equal to the Critical Illness An amount equal to the Critical Illness Rider Sum Assured as optional rider will be payable in case of Rider Sum Assured as optional rider will be payable in case of diagnosis of defined categories of Critical Illness subject to certain diagnosis of defined categories of Critical Illness subject to certain terms and conditions. The maximum cover for this rider will be Rs.5 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 lakh under all policies of the Life Assured with the Corporation taken together.together.Premium Waiver Benefit Option:Premium Waiver Benefit Option: In case the Life Assured is diagnosed In case the Life Assured is diagnosed with any of the Critical Illnesses covered under the policy, the total with any of the Critical Illnesses covered under the policy, the total future premiums in respect of the policy will be waived. Sum Assured future premiums in respect of the policy will be waived. Sum Assured under all such policies with the Corporation taken together will not under all such policies with the Corporation taken together will not exceed Rs.5 lakhexceed Rs.5 lakh



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End of End of year year

Total premiums paid Total premiums paid till end of year till end of year

Benefit payable on death / Amount available on survival up to the date of Benefit payable on death / Amount available on survival up to the date of vesting for purchase of annuity vesting for purchase of annuity

Guaranteed Guaranteed Variable Variable Total Total

Scenario 1 Scenario 1 Scenario 2 Scenario 2 Scenario 1 Scenario 1 Scenario 2 Scenario 2

11 4,1214,121 1,00,0001,00,000 -- -- 1,00,0001,00,000 1,00,0001,00,000

22 8,2428,242 1,05,0001,05,000 -- -- 1,05,0001,05,000 1,05,0001,05,000

33 12,36312,363 1,10,0001,10,000 -- -- 1,10,0001,10,000 1,10,0001,10,000

44 16,48416,484 1,15,0001,15,000 -- -- 1,15,0001,15,000 1,15,0001,15,000

55 20,60520,605 1,20,0001,20,000 -- -- 1,20,0001,20,000 1,20,0001,20,000

66 24,72624,726 1,25,0001,25,000 2,3002,300 7,3007,300 1,27,3001,27,300 1,32,3001,32,300

77 28,84728,847 1,25,0001,25,000 4,6004,600 14,60014,600 1,29,6001,29,600 1,39,6001,39,600

88 32,96832,968 1,25,0001,25,000 6,9006,900 21,90021,900 1,31,9001,31,900 1,46,9001,46,900

99 37,08937,089 1,25,0001,25,000 9,2009,200 29,20029,200 1,34,2001,34,200 1,54,2001,54,200

1010 41,21041,210 1,25,0001,25,000 11,50011,500 36,50036,500 1,36,5001,36,500 1,61,5001,61,500

1515 61,81561,815 1,25,0001,25,000 23,00023,000 73,00073,000 1,48,0001,48,000 1,98,0001,98,000

2020 82,42082,420 1,25,0001,25,000 48,50048,500 1,57,5001,57,500 1,73,5001,73,500 2,82,5002,82,500

2525 1,02,3051,02,305 1,25,0001,25,000 63,50063,500 2,06,0002,06,000 1,88,5001,88,500 3,31,0003,31,000

Illustration 1:Illustration 1:Age at entryAge at entry: 35 years; : 35 years; Policy Term:Policy Term: 25 years; 25 years; Premium paying term:Premium paying term: 25 years 25 yearsMode of premium payment:Mode of premium payment: Yearly; Yearly; Annual Premium:Annual Premium: Rs.4,121; Rs.4,121; Sum Assured:Sum Assured: Rs.1,00,000 Rs.1,00,000



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End of End of year year

Total premiums paid Total premiums paid till end of year till end of year

Benefit payable on death / Amount available on survival up to the date of Benefit payable on death / Amount available on survival up to the date of vesting for purchase of annuity vesting for purchase of annuity

Guaranteed Guaranteed Variable Variable Total Total

Scenario 1 Scenario 1 Scenario 2 Scenario 2 Scenario 1 Scenario 1 Scenario 2 Scenario 2

11 53,75053,750 1,00,0001,00,000 -- -- 1,00,0001,00,000 1,00,0001,00,000

22 53,75053,750 1,05,0001,05,000 -- -- 1,05,0001,05,000 1,05,0001,05,000

33 53,75053,750 1,10,0001,10,000 -- -- 1,10,0001,10,000 1,10,0001,10,000

44 53,75053,750 1,15,0001,15,000 -- -- 1,15,0001,15,000 1,15,0001,15,000

55 53,75053,750 1,20,0001,20,000 -- -- 1,20,0001,20,000 1,20,0001,20,000

66 53,75053,750 1,25,0001,25,000 2,5002,500 12,40012,400 1,27,5001,27,500 1,37,4001,37,400

77 53,75053,750 1,25,0001,25,000 5,0005,000 24,80024,800 1,30,0001,30,000 1,49,8001,49,800

88 53,75053,750 1,25,0001,25,000 7,5007,500 37,20037,200 1,32,5001,32,500 1,62,2001,62,200

99 53,75053,750 1,25,0001,25,000 10,00010,000 49,60049,600 1,35,0001,35,000 1,74,6001,74,600

1010 53,75053,750 1,25,0001,25,000 12,50012,500 62,00062,000 1,37,5001,37,500 1,87,0001,87,000

1515 53,75053,750 1,25,0001,25,000 25,00025,000 1,24,0001,24,000 1,50,0001,50,000 2,49,0002,49,000

2020 53,75053,750 1,25,0001,25,000 53,50053,500 2,68,0002,68,000 1,78,5001,78,500 3,93,0003,93,000

2525 53,75053,750 1,25,0001,25,000 70,00070,000 3,50,5003,50,500 1,95,0001,95,000 4,75,5004,75,500

Illustration 2:Illustration 2:Age at entryAge at entry: 35 years; : 35 years; Policy Term:Policy Term: 25 years; 25 years; Premium paying term:Premium paying term: 1 year 1 yearSingle Premium:Single Premium: Rs.53,750; Rs.53,750; Sum Assured:Sum Assured: Rs.1,00,000 Rs.1,00,000



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FrequentlyFrequently Asked Questions Asked Questions

What are annuities?What are annuities?Annuities are contracts whereby the insurance company makes a seriesAnnuities are contracts whereby the insurance company makes a seriesof payments at regular intervals from a fixed date of payments at regular intervals from a fixed date (vesting) until the death until the deathof the annuitant.of the annuitant.

What is the vesting age?What is the vesting age?It is the age at which the policy benefits will be available for purchase ofIt is the age at which the policy benefits will be available for purchase ofan annuity.an annuity.

What is the right amount pension?What is the right amount pension?A simple thumb rule – 2.5 times your current monthly expenditureA simple thumb rule – 2.5 times your current monthly expenditure



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FrequentlyFrequently Asked Questions Asked QuestionsIs pension related to inflation?Is pension related to inflation?No. However, there is an option of pension wherein pension increases No. However, there is an option of pension wherein pension increases @ 3 % p.a. @ 3 % p.a. (simple)(simple)

Is policy loan available?Is policy loan available?Jeevan Nidhi is designed to help you build a corpus which will yield a Jeevan Nidhi is designed to help you build a corpus which will yield a handsome pension on vesting. To shield the corpus from any withdrawals,handsome pension on vesting. To shield the corpus from any withdrawals,there is no facility for loan. Policy loan can be availed from other plans viz; there is no facility for loan. Policy loan can be availed from other plans viz; Jeevan Pramukh, Jeevan Shree, Endowment, etcJeevan Pramukh, Jeevan Shree, Endowment, etc

Is the Sum Assured Guaranteed?Is the Sum Assured Guaranteed?Yes, it is guaranteedYes, it is guaranteed

Economy & Finance

Lic jeevan nidhi 169