LIC is launching its new pension plan Jeevan Dhara 2 (No.872) on twenty second January 2024. Must you make investments on this GUARANTEED new pension plan of LIC?
LIC Jeevan Dhara 2 is a pension plan that GUARANTEES a hard and fast revenue to your retirement. It supplies life cowl solely through the deferment interval and gives each single and common premium choices. Moreover, present LIC policyholders, nominees, or beneficiaries can get pleasure from enhanced advantages of this plan.
Do do not forget that this can be a deferred annuity plan however not a right away annuity plan. Earlier than continuing additional, first, allow us to perceive few terminologies utilized in retirement plans.
In easy phrases, you possibly can say it’s a Pension, the place you’ll get common revenue as much as the required interval or situations. There are two forms of annuity.
1) Fast Annuity-On this case, you make investments a lump sum in a product and your pension or annuity begins instantly. Allow us to say you’ve round Rs.1 Cr and should you purchase rapid annuity plans, then the pension will begin instantly from subsequent month.
2) Deferred Annuity-On this case your annuity begins after a sure interval. Allow us to say your present age is 30 years and you’re planning to retire on the age of 60 years. If you happen to purchase a deferred annuity plan, then you’ll make investments as much as your retirement age i.e. as much as 60 years of age. After 60 years of retirement, your pension will begin.
I attempted to elucidate the identical with under illustration under.
As I discussed above, LIC New Pension Plan Jeevan Dhara 2 is a deferred annuity plan however not a right away annuity plan.
LIC New Pension Plan Jeevan Dhara 2 – Options and Eligibility
Allow us to see the options of LIC New Pension Plan Jeevan Dhara 2 options and eligibility.
| LIC New Pension Plan Jeevan Dhara 2 Options
|Minimal Age At Entry
|Most Age At Entry
|Choice – 1,2,8,9 (10 & 11- Single Premium) – 80 Yrs minus Deferrment Interval.
Choice – 5,6 & 7 – 70 Yrs minus Defferment Interval
Choice – 3 & 4 – 65 Yrs minus Defferment Interval
Choice – 8 & 9 (Secondary Annuitant) – 75 Yrs
Choice – 11 (Single Premium Secondary Annuitant) – 79 Yrs
|Minimal Vesting Age
|Choice – 1 to 9 – 35 Yrs
Choice – 10 and 11 – 31 Yrs
|Most Vesting Age
|Choice – 1,2,8,9 (10 & 11- Single Premium) – 80 Yrs
Choice – 5,6 & 7 – 70 Yrs
Choice – 3 & 4 – 65 Yrs
|Choice – 1 to 9 – 5 to fifteen Yrs
Choice – 10 and 11 – 1 to fifteen Yrs
|Premium Fee Time period and Mode
|Common (Yrly, Hly, Qtly and Mnthly (Equal to defferment Interval) and Single
|Pension Fee Mode
|You may pay a further premium to prime up your advantages. The charges can be primarily based on the prevailing annuity charges. Every such top-up is handled as a single coverage for advantages.
|Yrly – Rs.12,000, Hly – Rs.6,000, Qtly – Rs.3,000 and Month-to-month – Rs.1,000
|High Up Facility
|Obtainable just for RETURN OF PREMIUM choices (Choices 2,9,10 and 11)
You may avail of it after the 5 years of graduation of pension.
Max 3 instances you possibly can withdraw.
Withdrawal should not exceed 60% of the full premiums paid.
|Obtainable just for Return of Premium Choice or Buy Value.
|Incentive for Policyholders/Nominees/Beneficiary
|Obtainable just for OFFLINE buy coverage.
0.5% enhance in pension – For normal premium
0.25% enhance in pension – For single premium
|Obtainable just for Return of Premium Choice or Buy Value.
Mortgage might be availed throughout or after the deferment interval.
Notice – You may give up at any time limit for the insurance policies of a single premium. Nonetheless, for normal premiums, give up is obtainable throughout or after the deferment interval should you paid no less than 2 years of premium.
Beneath are the pension or annuity choices one can select from LIC New Pension Plan Jeevan Dhara 2.
| LIC New Pension Plan Jeevan Dhara 2 Annuity Choices
|Common Premium Single Life
|Choice 1 – Life annuity for single
Choice 2 – Life annuity with return of premium
Choice 3 – Life annuity with 50% of the return of premium after 75 Yrs
Choice 4 – Life annuity with 100% return of premium after 75 Yrs
Choice 5 – Life annuity with 50% of the return of premium after 80 Yrs
Choice 6 – Life annuity with 100% return of premium after 80 Yrs
Choice 7 – Life annuity with 5% return of premium after 76 Yrs to 95 Yrs
|Common Premium Joint Life
|Choice 8 – Life annuity for joint life
Choice 9 – Life annuity with return of premium for joint life
|Single Premium Single Life
|Choice 10 – Life annuity with return of ourchase worth
|Single Premium Joint Life
|Choice 11 – Life annuity with return of buy worth
LIC New Pension Plan Jeevan Dhara 2 Demise Advantages
# Single Life (Choices 1 to 7 and 10)
Demise through the deferment interval -105% of the full premiums paid as much as the date of the loss of life can be payable to the nominee.
Demise throughout pension cost interval – Pension will cease instantly. No loss of life advantages should you opted for the choice of an annuity with out the return of a premium. If you happen to go for the return of buy worth, 100% of the full premium paid can be payable to the nominee. Nonetheless, should you opted for the return of premium beneath choices 3 and seven and loss of life occurs at 75,80, or between 76 to 95 years of age, then the nominee will obtain 100% of the full premium paid minus the sum of early return of premium already paid until the date of loss of life.
# Single Life (Choices 8,9 and 11)
Demise through the deferment interval – On the primary loss of life of both of the policyholders, there is not going to be any loss of life profit and the coverage will proceed as typical. Nonetheless, on the loss of life of the final survivor, loss of life advantages equal to 105% of the full premiums paid as much as the date can be payable to the nominee.
Demise throughout pension cost interval – On the primary loss of life of both of the policyholders, there is not going to be any loss of life profit and coverage profit can be payable to the survivor. Nonetheless, on the loss of life of the final survivor, beneath possibility 8, no loss of life profit can be payable. However beneath the 9 and 11 annuity choices, 100% of the full premium paid is payable to the nominee.
LIC New Pension Plan Jeevan Dhara 2 – Ought to You Make investments?
- As it’s a deferred non-linked annuity plan, you possibly can name it a typical TRADITIONAL PLAN of LIC.
- Then what’s GUARANTEED right here? The pension you’ll get a post-deferment interval is assured. It means you’re positive of how a lot pension you’ll get.
- Look at the out there pension choices extra carefully and you’ll discover that all of them supply a hard and fast pension quantity, though with slight variations. Nonetheless, this method fails to contemplate the potential results of inflation in your retirement funds. To handle this, you haven’t any possibility however to speculate extra to maintain your retirement with growing inflation.
- The second greatest drawback is as that is an annuity plan, the pension you obtain throughout your retirement is taxable revenue and taxed as per your tax slab.
- LIC has launched further pension choices that weren’t out there in its earlier plans, such because the return of premium through the pension interval at a selected age. This supplies some aid for pensioners when it comes to bills like healthcare. Nonetheless, as talked about earlier, it doesn’t deal with the difficulty of inflation. Though Choice 7 permits for a 5% premium payout from 76 to 95 years (along with common premiums), the annuity price is probably going decrease than the easy annuity for all times possibility.
- In an try to draw present policyholders and their beneficiaries, LIC has launched one other tactic by offering incentives within the type of pension advantages. Nonetheless, these advantages look like insignificant. Moreover, these advantages are solely out there for offline purchases, indicating a method to spice up gross sales via brokers.
- If you’re prepared to miss the impression of inflation in your retirement funds, have a powerful religion in LIC, anticipate decrease inflation throughout your retirement, and rely partially on this product to your retirement, then this coverage is an possibility for you.
- Do do not forget that the above publish is written primarily based on the options however doesn’t think about the annuity price. Nonetheless, even when the annuity charges are good (in comparison with different insurers), I strongly recommend you to steer clear of such GUARANTEED merchandise.