Jeevan Nidhi

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Features

Special Features

Benefits

Policy Parameters

Features

LIC's Jeevan Nidhi Plan is a with-profits plan which provides for death cover during the deferment period and on survival to the date of vesting, the maturity proceeds are compulsorily to be used for purchase of annuity.

Guaranteed Additions

Provided the policy is in full force, Guaranteed Additions @ Rs.50/- per thousand Sum Assured will be added to the Sum Assured under the Basic Plan at the end of each policy year, for the first five years.

Participation in profits

The policy shall participate in profits of the "With Profit Assurance Policies" from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation provided the policy is kept in force for full Sum Assured.

Terminal Bonuses, if any, may also be declared under the policy depending upon the experience of the Corporation and shall be payable either on death of the Life Assured or on vesting.

Options

The plan offers the following optional riders by payment of additional premium -

Special Features

Accident Benefit Option

Accident Benefit as optional rider will be available under this plan for a sum not exceeding the Sum Assured under the Basic Plan. This will be called the Accident Benefit Sum Assured, the maximum limit of which shall be Rs.25 lakh for all policies of the Life Assured with the Corporation taken together. An amount equal to the Accident Benefit Sum Assured shall be payable on death if the same occurs as a result of accident provided the policy is in full force. This benefit will be available for the full deferment period of the policy or till the policy anniversary on which the age nearer birthday of the Life Assured is 70 years which ever is earlier.

Term Assurance Rider Option

Term assurance as optional rider will be available under this plan for a sum not exceeding the Sum Assured under the Basic Plan. This will be called the Term Assurance Rider Sum Assured, the maximum limit of which shall be Rs.25 lakh for all policies of the Life Assured with the Corporation taken together. An amount equal to the Term Assurance Rider Sum Assured shall be payable on death during the deferment period provided the policy is in full force.

Critical Illness Rider Option

Critical Illness as optional rider will be available under this plan for a sum not exceeding the Sum Assured under the Basic Plan. This will be called the Critical Illness Rider Sum Assured, the maximum limit of which shall be Rs. 5 lakh for all policies of the Life Assured with the Corporation taken together. An amount equal to the Critical Illness Rider Sum Assured shall be payable in case of diagnosis of a defined categories of critical illness during the deferment period of the plan subject to the terms and conditions of Critical Illness Rider provided the policy is in full force.

Premium Waiver Benefit Option

This is an optional benefit which may be opted in case of the following :

If critical illness rider has been opted for ; and

The Sum Assured under the Basic Plan is equal to the Critical Illness Rider Sum Assured.

In case, the Life Assured is diagnosed with any of the Critical Illnesses covered under the policy, the total future premiums (i.e. premium for Sum Assured under the Basic Plan and the premiums for the Riders opted for) in respect of the policy shall be waived provided the policy is in full force.

Loans

No loans will be available to the policyholders under this plan.

Paid-up value

If, after at least three full year's premiums have been paid in respect of this Policy, any subsequent premium be not duly paid, this Policy shall not be wholly void but the Sum Assured under Basic Plan shall be reduced to such a sum, called the paid-up value, which shall bear the same ratio to the full Sum Assured under the Basic Plan 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 liabilities for payment of the within-mentioned premium and shall not be entitled to the future Guaranteed Additions and Bonuses. However the existing accrued Guaranteed additions and vested Simple Reversionary Bonuses, if any, will remain attached to the reduced paid-up policy. On policy being paid up, all the optional / rider benefits will cease to apply.

Guaranteed Surrender Value

Before the annuity vests, the policy can be surrendered for cash after the policy is kept in force by payment of premiums for at least three years. The guaranteed surrender value allowable under this Plan for all modes, except the single premium mode, will be equal to 30 per cent of the total premiums paid excluding the premiums paid for the first year and all extra premiums and the premiums paid for optional/rider benefits. In case of single premium mode, the guaranteed surrender value will be 90 per cent of the premiums paid excluding all extra premiums and the premiums paid for optional / rider benefits. The cash value of any existing accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will be allowed in the surrender value.

Surrender value will not be available on Term Assurance Rider option, Accident Benefit and Critical illness Rider option premiums.

Special Surrender Values

The factors for calculation of Special Surrender Value will be the same as under Endowment plan (Table No.14) for term equivalent to the deferment period.

Grace period for payment of premium

A grace period of one month but not less than 30 days will be allowed for payment of the yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.

Revivals or Reinstatements of lapsed policy

If the policy has lapsed, it may be revived during the life time of the Life Assured, but within a period of five years from the date of first unpaid premium and before the date of vesting on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest at such rate as may be prevailing at the time of the payment.

Normal requirements for claim

The normal documents which the claimant shall submit while lodging the claim in case of death of the policyholder shall be the claim forms, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, employer's certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.

If the policy is surrendered, the Life Assured shall be required to submit the discharge form along with the original policy document besides proof of age, if the age is not admitted earlier.

Claim concession

If premiums have been paid for at least first three years and death occurs within 6 months from the due date of the first unpaid premium, then the claim may become payable. Similarly if premiums have been paid for at least first five years and death occurs within one year from due date of the first unpaid premium, then the claim may become payable.

Cooling-off period

If a policy holder 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.

Back-dating interest

The Policy can be dated back within the financial year as usual. Back-dating interest will be charged at the rate of 9% p.a. for dating back in excess of one month. This rate is subject to revision. The interest shall be charged even where the policy is back dated to a lean month. Benefits

Benefit On Vesting

Provided the policy is in full force, Sum Assured under the Basic Plan along with accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Terminal Bonus, if any, will compulsorily be converted into annuity. There is an option to commute up to 1/3rd of Sum Assured under the Basic Plan together with accrued Guaranteed Additions and Bonuses. If commutation is exercised then the annuity is payable for the balanced amount.

Benefit on death before annuity vests

On death of the Life Assured during the deferment period of the policy an amount equal to the Sum Assured under the Basic Plan along with accrued Guaranteed Additions, vested Simple Reversionary Bonuses and Terminal Bonus, if any, shall be payable in a lump sum to the appointed nominee provided the policy is in full force.

Annuity Options

On vesting Life Assured shall have an option to purchase annuity from Life Insurance Corporation of India or from any other Life Insurance Company. If the Life Assured desires to purchase the annuity from other company, he/she shall be required to inform the same to Life Insurance Corporation of India in writing three months before the date of vesting. If purchased from LIC, then the type of annuity and annuity rate will be that applicable at the time of vesting.

IT Rebate

As per present tax provisions, the premiums under the plan shall be allowed for rebate under Section 80CCC of the IT Act, 1961.

Guaranteed Additions

Provided the policy is in full force, Guaranteed Additions @ Rs.50/- per thousand Sum Assured will be added to the Sum Assured under the Basic Plan at the end of each policy year, for the first five years.

Participation in profits

The policy shall participate in profits of the "With Profit Assurance Policies" from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation provided the policy is kept in force for full Sum Assured.

Terminal Bonuses, if any, may also be declared under the policy depending upon the experience of the Corporation and shall be payable either on death of the Life Assured or on vesting.

Policy Parameters