New Jeevan Nidhi - Life Insurance Policy

New Jeevan Nidhi Plan is a conventional with profits pension plan with a combination of protection and saving features. This plan provides for death cover during the deferment period and offers annuity on survival to the date of vesting. Benefits: Benefit on Vesting:  Provided the policy is in full force, on vesting an amount equal to the Basic Sum Assured along with accrued Guaranteed Additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall be made available to the Life Assured.

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 The following options shall be available to the Life Assured for utilization of the benefit amount.

To purchase an immediate annuity

The Life Assured shall have a choice to commute the amount available on vesting to the extent allowed under Income Tax Act. The entire amount available on vesting or the balance amount after commutation, as the case may be, shall be utilized to purchase immediate annuity at the then prevailing annuity rates. Commutation shall only be allowed provided the balance amount is sufficient to purchase a minimum amount of annuity as per the provisions of section 4 of Insurance Act, 1938.

In case the total benefit amount is insufficient to purchase the minimum amount of annuity, then the said amount shall be paid as a lump sum to the Life assured.

The annuity shall only be purchased from Life Insurance Corporation of India.
or

To purchase a new Single Premium deferred pension product from Life Insurance Corporation of India

Under this option the entire proceeds available on vesting shall be utilized to purchase a single premium deferred pension product provided the policyholder satisfies the eligibility criteria for purchasing single premium deferred pension product.

The Life Assured will have to intimate his / her intention to go for a particular option available on the date of vesting atleast six months prior to the date of vesting.

Death Benefit:

Death during first five policy years: Provided the policy is in full force, 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. 

Death after first five policy years: Provided the policy is in full force, 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.

In any case, provided all due premiums have been paid, the total death benefit at any time shall not be less than 105% of the total premiums paid (excluding taxes, extra premium and rider premium, if any).

The amount of annuity will depend on the payable lump sum and the then prevailing immediate annuity rates.

Guaranteed Additions:  The policy provides for Guaranteed Additions @ Rs.50/- per thousand Basic Sum Assured for each completed year, for the first five years.

Participation in profits: Provided the policy is in full force, depending upon the Corporation’s experience the policies shall participate in profits from 6th year onwards for a Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.

Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by way of death or on vesting, provided the policy has run for certain minimum term.

Optional Benefit:

LIC’s Accidental Death and Disability Benefit Rider:  LIC’s Accidental Death and DisabilityBenefit Rider is available as an optional rider by payment of additional premium under regular premium policies. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.  In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived. If the policy becomes a claim either by way of death or the policy vests before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid in lump sum.

Eligibility Conditions and Other Restrictions :a) Minimum Basic Sum Assured  :  Rs.1,00,000 under Regular Premium policies

Rs.1, 50,000 under Single Premium policies

(The Basic Sum Assured shall be in multiples of Rs.5000/-)
(in years)

d) Maximum Entry Age  :  60 (nearest Birthday) under Single Premium 
    58 (nearest birthday) under Regular Premium 
e)  Deferment period  :  5 to 35 under Single Premium &
     7 to 35 under Regular Premium 
f) Minimum Vesting Age   :  55 (nearest birthday)
g)  Maximum Vesting Age  :  65 (nearest Birthday)

Payment of Premiums:

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (through ECS only) or through SSS mode over the term of policy. Alternatively, a single premium can be paid.

A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. If the premium is not paid before the expiry of days of grace, the policy lapses.

Sample Premium Rates:

Following are some of the sample premium rates (exclusive of service tax) per Rs. 1000/- S.A.:

1. Mode and High S.A. Rebates:

Mode Rebate:
Yearly  …  2% of tabular premium
Half-Yearly  …  1% of tabular premium
Quarterly …  Nil

Sum Assured Rebate: 
For Regular Premium policies:
Basic Sum Assured    Rebate
1, 00,000 to 2, 95,000   Nil
3, 00,000 and above   2%o S.A.

For Single Premium Policies:
Basic Sum Assured    Rebate
1, 50,000 to 2, 95,000   Nil
3, 00,000 and above   5%o S.A.

Revival:

If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of two consecutive years from the date of first unpaid premium and before the date of vesting by paying all the arrears of premium together with interest, compounding half-yearly at such rate as fixed by the Corporation at the time of the payment subject to submission of satisfactory evidence of continued insurability.

The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the life assured.

LIC’s Accidental Death and Disability Benefit Rider, if opted for, shall be revived along with the basic plan and not in isolation.

Paid-up Value (applicable for regular premium policies):

For policies with deferment period less than 10 years if atleast two full years’ premiums have been paid and for policies with deferment period 10 years or more than 10 years if atleast three full years’ premiums have been paid and any subsequent premium be not duly paid, this Policy shall not be wholly void, but shall subsist as a paid-up policy. The Basic Sum Assured under basic plan shall be reduced to such a sum, called the paid-up sum assured, as shall bear the same ratio to the full Basic Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the Policy. The policy so reduced shall thereafter be free from all liability for payment of the within-mentioned premium but shall not be entitled to guaranteed additions and any bonuses in future. The accrued guaranteed additions and vested bonus additions, if any, will remain attached to the paid-up policy.

This paid-up sum assured alongwith the accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, is payable on the date of vesting or on Life Assured’s prior death.

On the death of the Life Assured, the nominee shall have an option to take the proceeds as lump sum or in the form of an annuity or partly in lump sum and balance in the form of an annuity.

On vesting the proceeds shall be payable as per one of the options as specified against para 1.a. above.

LIC’s Accidental Death and Disability Benefit rider do not acquire any paid-up value.

Surrender Value:

The Surrender Value available under this plan is as under:

Single Premium policies: The policy can be surrendered at any time during the deferment period. The Guaranteed Surrender Value shall be as under:

Within three policy years from Date of Commencement of policy: 70% of the Single premium excluding taxes and extra premium, if any.

Thereafter: 90% of the Single premium excluding taxes and extra premium, if any.

Regular Premium policies: 
For deferment period less than 10 years: The policy can be surrendered provided the premiums have been paid for atleast two consecutive years.
For deferment period 10 years or more: The policy can be surrendered provided the premiums have been paid for atleast three consecutive years.