LIC Pension Plan New Jeevan Nidhi Eligibility Conditions and Other Restrictions

LIC Pension Plan New Jeevan Nidhi Eligibility Conditions and Other Restrictions

  1. Eligibility Conditions and Other Restrictions :
  2. a) Minimum Basic Sum Assured           :  Rs.1,00,000 under Regular Premium policies
        Rs.1, 50,000 under Single Premium policies
    b) Maximum Basic Sum Assured    :  No Limit
      (The Basic Sum Assured shall be in multiples of Rs.5000/-)
                                                        (in years)
    c) Minimum Entry Age                       :  20 (nearest Birthday)
      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)
  1. 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.
  1. Sample Premium Rates:
Following are some of the sample premium rates (exclusive of service tax) per Rs. 1000/- S.A.:
Single Premiums
Age at entry
Deferment period
10
20
30
25
-
-
435.80
35
-
612.00
456.15
45
852.55
632.80
-
Annual Premiums
Age at entry
Deferment period
10
20
30
25
-
-
32.75
35
-
53.60
34.80
45
115.25
57.15
-
  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.
  1. 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.
  1. 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.
  1. 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:
  1. Within three policy years from Date of Commencement of policy: 70% of the Single premium excluding taxes and extra premium, if any.
  2. 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.
The Guaranteed Surrender Value shall be a percentage of total premiums paid excluding taxes, extra premiums, if any and rider premium, if opted for .This percentage will depend on the deferment period and the policy year in which the policy is surrendered and are specified below:


In addition, the surrender value of any accrued Guaranteed Additions and vested simple reversionary bonuses, if any, shall also be payable, which is equal to the sum of accrued Guaranteed Additions and vested simple reversionary bonuses, if any, multiplied by the Surrender Value factor applicable to accrued Guaranteed Additions and vested bonuses. These factors will depend on the deferment period and the policy year in which the policy is surrendered and are specified below:
Corporation may, however, pay Special Surrender value, if it is more favourable to the Life Assured.
The following options shall be available to the Life Assured for utilization of the Surrender proceeds:
  1. To purchase an immediate annuity
The Life Assured shall have a choice to commute the amount available on surrender to the extent allowed under Income Tax Act. The entire amount available on surrender 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
  1. To purchase a new Single Premium deferred pension product from Life Insurance Corporation of India
Under this option the entire proceeds available on surrender may be utilized to purchase a single premium deferred pension product provided the policyholder satisfies the eligibility criteria for purchasing single premium deferred pension product.
Surrender value will not be available on LIC’s Accidental Death and Disability Benefit Rider.
  1. Policy Loan:
 No loan facility will be available under this plan.
  1. Taxes: 
Taxes including service tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.
The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
  1. Cooling-off period:
If the Life Assured is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium for the period on cover (for basic plan and LIC’s Accidental Death and Disability Benefit rider, if any), expenses incurred on medical examination, special reports, if any and stamp duty.
  1. Exclusion:
Suicide:
Under Single Premium policies:
The policy shall be void if the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 90% of the single premium paid excluding taxes, extra premium and rider premium, if any.
Under Regular Premium policies:
This policy shall be void
    • If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and rider premiums, if any, provided the policy is inforce.
    • If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums, if any) or the surrender value, provided the policy is inforce, shall be payable. The Corporation will not entertain any other claim under this policy.

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