LIC New Jeevan Nidhi (818)

This is a with profits deferred pension plan, which provides for death cover during the deferment period, and annuity on survival to the date of vesting.

The policy provides for Guaranteed Additions @ Rs-50/- per thousand Sum assured for the first 5 years. From 6th year onwards the vested simple Reversionary Bonus and Final Additional Bonus if any will also be payable either on Death or Vesting.
Options at Vesting:

1. Commutation is allowed to the extent permissible under Income Tax Act (Present rate 1/3rd), provided balance
amount is sufficient to purchase minimum annuity as per provisions of section 4 of Insurance Act, 1938. The entire
amount or balance after commutation shall be utilized to purchase immediate annuity at the then prevailing rates
from LIC of India only.

2. The entire proceeds without commutation may be utilized to purchase a new single premium deferred pension
product from LIC of India only. 3% rebate on Purchase Price will be given under both the cases.

Example*:

Features & Conditions:

Minimum age at entry : 20 years nbd
Maximum age at entry:
For Single Prem. (SP) : 60 years nbd
For Regular Prem. (RP) : 58 years nbd
Min. age at Vesting : 55 years nbd
Max. age at Vesting : 65 years nbd
Min. Deferment Period (DP) :
For SP : 5 years
For RP : 7 years
Max.Deferment Period (DP) : 35 years
Minimum S.A :
For SP : ` 1,50,000
For RP : ` 1,00,000
Maximum S.A. : No limit
S.A in multiples of ` 5,000 only.
Available Riders:
Accident & Permanent Disability Benefit – Max 50 lakhs.
Mode of Payment:
Yearly, Half Yly, Qly, Mly (SSS & ECS) & Single

Policy Loan: Not Available.
Revivals: Within 2 years of FUP.
Paid Up/Surrender: ( Under Regular Pemium)
Policy Term: less than 10 years- After payment of 2 years Premium.
Policy Term: 10 years & above : After payment of 3 years Premium
LA has to opt for pension only as per options available on vesting.

Service Tax: 1st Year of RP Policy/SP : 3.75%
2nd Year onwards : 1.875%

Tax Benefits :
On Premiums : u/s 80C
Commutation Tax free : u/s 10(10A)iii
Death claim Tax free : u/s 10(10D)
Pension : Taxable.