Know Everything About LIC Jeevan Nidhi Plan

The Life Insurance Corporation of India's (LIC) New Jeevan Nidhi Scheme is a profit-making pension plan. This insurance covers the risk of death throughout the policy's deferral term and also provides the policyholder with an annuity beyond the date of vesting. To supplement the coverage provided by this policy, policyholders can purchase LIC's Accidental Death and Disability Benefit Rider. Policyholders are eligible for tax breaks under Sections 80C and 10(10D) of the Income Tax Act of 1961.

The Features of LIC's New Jeevan Nidhi

The following are the characteristics of the LIC New Jeevan Niddhi:

• As a participating deferred annuity plan, it offers both a single and recurring premium payment option.
• For the first five years, guaranteed additions are available.
• The plan includes incentives beginning in the sixth year.
• The plan's coverage includes an optional accidental death benefit and disability benefit rider.
• The plan includes a significant amount of guaranteed refunds for retirement plans.

Benefits of LIC's New Jeevan Nidhi Policy

The LIC New Jeevan Nidhi, as a delayed annuity plan, provides a continuing source of income after the insured's retirement. Along with this, the policy provides a slew of other advantages, like as

• The Death Benefit

If the insured dies within the first 5 years of the policy's issue date (i.e. before the vesting date), a basic sum assured plus cumulative guaranteed addition is paid to the policy beneficiary as a lump sum, an annuity, or a combination of the two.
If the insured dies after the first five years of the policy, the nominee receives the basic sum promised + cumulative guarantee addition + simple reversionary bonus + final reversionary bonus (if any), which can be paid as a lump sum, an annuity, or a combination of the two. If the life insured dies after the vesting date, the death benefit is completely dependent on the pension plan selected.

• Benefit of Vesting

At the moment of vesting, the insured has three options: The policyholder can take one-third of the whole corpus tax-free and use the remainder to acquire an instant annuity plan at current annuity rates.
The insured can purchase an instant annuity plan at current annuity rates using the whole vesting amount. A delayed annuity plan with a single premium payment option is available to the policyholder.

• Income Tax Break

Although the pension amount is taxable, the premium paid and one-third of the maturity earnings are excluded from taxation under Income Tax Act sections 80C and 10(10A).

Conclusion

The LIC's New Jeevan Nidhi Plan provides members with both comprehensive risk coverage and a savings opportunity. In addition to policy-related payouts, one is also eligible for bonuses, which might boost one's corpus. In terms of the insurer, LIC is one of the most well-known firms in the country.
For fiscal year 2015-16, they had a claim settlement ratio of 98.33 percent and addressed 100 percent of grievances. LIC has also received a number of honors in recent years. Now that you know more about the LIC New Jeevan Nidhi Plan, you may compare quotes online and select the best plan with an inexpensive premium choice.

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Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.