LIC New Jeevan Nidhi Policy Review

By | April 16, 2016
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lic-jeevan-nidhiLIC New Jeevan Nidhi policy 

Policy Review

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LIC New Jeevan Nidhi Plan 818 is a normal premium pension plan. Premium is required to be paid towards the conclusion of the accumulation period. Towards the end of the LIC Jeevan Nidhi accumulation period, the maturity having the sum assured, increment bonus & the concluding additional bonus will be transformed into pension. Post the demise of the life insured, a lump sum will be paid to the nominee.

It is very easy to calculate the LIC Jeevan Nidhi Plan 818 Maturity amount & Premium that has to be duly paid in order to get all the advantages obtainable under new jeevan nidhi plan 818 policy by making use of the LIC jeevan nidhi premium calculator & LIC new jeevan nidhi maturity calculator. 

In plan :- 0818 new jeevan nidhi there are 2 kinds of premium to be paid :-

  • Single Premium :- Purchasing Premium with lump sum amount at one go.
  • Regular Premium :- Paying Premium at different intervals such as Annually, Half-Annually, quarterly or monthly (through ECS only) or through SSS mode, over the term of policy.

Advantages of LIC New Jeevan Nidhi Policy :

The complete details of the Lic jeevan nidhi policy are given below :-

Advantage of Vesting :- On vesting an amount equivalent to the Basic Sum Assured together with accrued Guaranteed Additions, vested Simple Reversion bonuses & Final Additional bonus, if any, shall be made obtainable to the Life Assured.

Death Advantage :- In case, the policy holder expires before the vesting period ( before pension starting period ) then in that case :-

  • Within first 5 year policy :- The nominee will be offered the Basic Sum Assured plus accrued Guaranteed Additions which can be paid in a lump sum or as annuity or a combination of the two, provided all premiums have been paid.
  • After the first 5 years of the policy :- The nominee will be provided the Basic Sum Assured plus accrued Guaranteed Additions plus Simple Reversionary plus Final Additional Bonus, if any, which can be duly paid in a lump sum or as annuity or a combination of both, given that all premiums have been duly paid.

Income Tax Advantage :- Premiums paid under life insurance policy & 1 / 3rd of the maturity proceeds are free from paying tax. Though, the Pension amount will be taxable.

Guaranteed Additions :- Only for 1st year’s at the rate of 50 per thousand. Post completion of purchasing premium, the policy holder can take some amount of annuity & get pension from the remaining amount.

Terms & Eligibility conditions of LIC New Jeevan Nidhi Policy 

Entry age ·         Minimum age – 20 years

·         Maximum age – 60 years(under single premium)

·         Maximum age – 58 years(under regular premium)

Vesting age (Receiving Pension) ·         Minimum age- 55 years

·         Maximum age- 65 years

Minimum Sum Assured ·         Rs. 1,00,000 ( for regular premium )

·         Rs. 1,50,000 ( for single premium )

Maximum Sum assured ·         No limit
Premium Paying Modes ·         Single, Monthly (SSS, ECS), Quarterly, Half-Annually, Annually
Deferment Period ·         5 to 35 years (Under Single Premium)

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·         7 to 35 years (Under Regular Premium)

Service Tax ·         3.09% service tax is applicable
Grace Period ·         If the Premium is not paid within the time then a delay of 30 days for Annually, Half-Annually & Quarterly modes & 15 days for monthly mode is extended to pay the premium amount which is grace period.

LIC New Jeevan Nidhi Policy Rebates

Sum Assured Rebate for Regular premium policies are mentioned below :-

Sum Assured Rebate
Rs. 1,00,000/- to Rs. 2,95,000/- NIL
Rs. 3,00,000/- & above 2.00 % Basic Sum Assured

Sum Assured Rebate for Regular premium policies are mentioned below :-

Sum Assured Rebate
Rs. 1,00,000/- to Rs. 2,95,000/- NIL
Rs. 3,00,000/- & above 5.00 % Basic Sum Assured

 

Mode Rebate is mentioned below :-

Mode Percentage
Annually    Table premium 2%
Half annually Table Premium 1%

 

LIC New Jeevan Nidhi policy Purchasing Process

Documents needed to purchase LIC New Jeevan Nidhi Policy are mentioned as under :-

  • Application form / Proposal form along with photo.
  • Address proof
  • Age proof
  • Medical reports (if required)

 

Claim Process of LIC New Jeevan Nidhi policy

The documents needed for claim Process under LIC New Jeevan Nidhi Policy are mentioned as under :-

  • NEFT form
  • Discharge form
  • Cancel check or Bank Pass book Xerox
  • Policy bond
  • Death certificate

LIC New Jeevan Nidhi policy Premium calculator

Here’s a list of the necessary data required for calculating either single or regular premium rates in LIC New Jeevan Nidhi Policy. In Lic jeevan nidhi calculator you will be required to enter some details, you need to enter the following given details in Lic Jeevan Nidhi Pension Plan Calculator :-

  • Name :-
  • E-mail id :-
  • Mobile number :-
  • Age :-
  • Term :-
  • Sum assured :-

Additional Information of LIC New Jeevan Nidhi Policy

Vesting Period :- At the time of retirement or the starting time of receiving the pension.

Deferment Period :- Period between the subscription date of an insurance cum pension policy & the time during which the 1st installment of pension is inward bound is called as deferment period.

Date of beginning of Risk :- In the case wherein the children whose age is less than eight years, the risk begins either from two years of taking the policy or  from the time when the child is eight years old, whatsoever is earlier.

Loan facility :- Loan facilities are not obtainable under LIC New Jeevan Nidhi policy.

Policy Revival :- In the case wherein the premium is not duly paid by you, within the grace period then the policy is likely to lapse. If you are interested to go forward with this policy then you can renew your policy on or before 2 years from date of 1st Un – paid premium.

House Loan Surety :- House loan surety is obtainable under this LIC New Jeevan Nidhi policy.

Suicide clause :- If the policy holder commits suicide due to any reason within twelve months of date of beginning of risk or from date of renewal, then eighty percent of premium for what he had paid will be returned to his assignees & nominees.

Proposal Forms :- Proposal Form no. 300 or 340 will be made use of under this plan.

Riders :- Riders are obtainable under this LIC New Jeevan Nidhi policy. Availability of Accidental Death & Disability Advantage rider is present.

Backdating interest :- The policy cannot be back dated within the very same financial year.

Locking Period :- If you are dissatisfied with this policy you may return the policy within a period of fifteen days from date of receiving the policy. Post 15 days you are not eligible for cancelling the policy up to a period of 3 years.

Risk coverage :- Risk coverage will be offered till the end of the term policy.

Income Tax Reduction :- Obtainable for premiums paid & for the Maturity returns.

Surrender Value :- There is a Guaranteed Surrender Value in this plan

For Single Premium :- The policy can be surrendered at any time in the tenure of the deferment period & the Guaranteed Surrender Value is given below :-

  • Within three policy years – it would be 70% of the Single Premium Paid exclusive of the taxes & extra premium, if any.
  • Post three policy years – It would be 90% of the Single Premium Paid exclusive of the taxes & extra premium, if any.

For Regular Premium :-

  • In case of deferment period being less than 10 years :-The policy can be surrendered, given that the premiums have been duly paid for at least 2 successive years.
  • In case of deferment period being ten years or more :-The policy can be surrendered, given that the premiums have been duly paid for at least 3 successive years.
  • The Guaranteed Surrender Value is a % of the total paid premiums. It is exclusive of taxes, extra premiums, if any & rider premium. Basically, It depends on the deferment period & the policy year in which the policy is surrendered.

Assignments / Nominations :- Assignees & nominees are relevant under this plan.

Cooling-off Period :- If you are not satisfied with this policy term you may return the policy within 15 days from the date of receipt of the policy.

An Example of LIC New Jeevan Nidhi policy :– 

In order to understand the Jeevan nidhi policy completely, the following example is necessary :-

Case 1 :-  Vijay Sinha is going to purchase LIC New Jeevan Nidhi policy at Regular Premiums. Below mentioned are his details:

Age :- 20 years

Term :- 35 years

Sum Assured :- Rs.25,00,000

Now, the case of Vijay Sinha wherein he is paying premium with & without tax are given in the below table:

Premium Without Tax With tax
Annually 60905 62787
Half-Annually 30116 31740
Quarterly 15563 16043
Monthly 5188 5348

 Case 2 :- If Vijay Sinha had determined to purchase the LIC New Jeevan Nidhi policy at Single Premium then the necessary details are as follows:

Age :- 20 years

Term :- 35 years

Sum Assured :- Rs.25,00,000

Now, the case wherein Vijay Sinha is paying premium with & without tax are given in the below table:

Premium Without Tax With tax
Single Premium 909250 937346

 

FAQ’s Of LIC New Jeevan Nidhi policy

Q1. What happens if a policy holder stops paying the premium?

A1. If the premiums are not duly paid within the grace period, then the policy will be likely to lapse & all advantages will be ceased. However, the policy can be renewed within a period of 2 years from the date of 1st unpaid premium.

Q2. Are additional accidental riders obtainable under  the LIC New Jeevan Nidhi Policy?

A2. Additional advantage riders can be opted by paying an extra nominal amount.

For further details please refer the given below official link,

Click here for Lic New Jeevan Nidhi Plan

 

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