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 set earnings on your retirement. It supplies life cowl solely in the course of the deferment interval and affords each single and common premium choices. Moreover, current LIC policyholders, nominees, or beneficiaries can take pleasure in enhanced advantages of this plan.
Do keep in mind that it is 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 may say it’s a Pension, the place you’re going to get common earnings as much as the required interval or circumstances. There are two varieties of annuity.
1) Quick 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 will have round Rs.1 Cr and for those who purchase instant 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 might be planning to retire on the age of 60 years. For those who 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
|Possibility – 1,2,8,9 (10 & 11- Single Premium) – 80 Yrs minus Deferrment Interval.
Possibility – 5,6 & 7 – 70 Yrs minus Defferment Interval
Possibility – 3 & 4 – 65 Yrs minus Defferment Interval
Possibility – 8 & 9 (Secondary Annuitant) – 75 Yrs
Possibility – 11 (Single Premium Secondary Annuitant) – 79 Yrs
|Minimal Vesting Age
|Possibility – 1 to 9 – 35 Yrs
Possibility – 10 and 11 – 31 Yrs
|Most Vesting Age
|Possibility – 1,2,8,9 (10 & 11- Single Premium) – 80 Yrs
Possibility – 5,6 & 7 – 70 Yrs
Possibility – 3 & 4 – 65 Yrs
|Possibility – 1 to 9 – 5 to fifteen Yrs
Possibility – 10 and 11 – 1 to fifteen Yrs
|Premium Cost Time period and Mode
|Common (Yrly, Hly, Qtly and Mnthly (Equal to defferment Interval) and Single
|Pension Cost Mode
|You may pay an extra premium to high 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
|Prime Up Facility
|Out there 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 occasions you may withdraw.
Withdrawal should not exceed 60% of the entire premiums paid.
|Out there just for Return of Premium Possibility or Buy Value.
|Incentive for Policyholders/Nominees/Beneficiary
|Out there just for OFFLINE buy coverage.
0.5% improve in pension – For normal premium
0.25% improve in pension – For single premium
|Out there just for Return of Premium Possibility or Buy Value.
Mortgage will be availed throughout or after the deferment interval.
Be aware – You may give up at any cut-off date for the insurance policies of a single premium. Nonetheless, for normal premiums, give up is accessible throughout or after the deferment interval for those who paid at the least 2 years of premium.
Under 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
|Possibility 1 – Life annuity for single
Possibility 2 – Life annuity with return of premium
Possibility 3 – Life annuity with 50% of the return of premium after 75 Yrs
Possibility 4 – Life annuity with 100% return of premium after 75 Yrs
Possibility 5 – Life annuity with 50% of the return of premium after 80 Yrs
Possibility 6 – Life annuity with 100% return of premium after 80 Yrs
Possibility 7 – Life annuity with 5% return of premium after 76 Yrs to 95 Yrs
|Common Premium Joint Life
|Possibility 8 – Life annuity for joint life
Possibility 9 – Life annuity with return of premium for joint life
|Single Premium Single Life
|Possibility 10 – Life annuity with return of ourchase worth
|Single Premium Joint Life
|Possibility 11 – Life annuity with return of buy worth
LIC New Pension Plan Jeevan Dhara 2 Loss of life Advantages
# Single Life (Choices 1 to 7 and 10)
Loss of life in the course of the deferment interval -105% of the entire premiums paid as much as the date of the dying can be payable to the nominee.
Loss of life throughout pension cost interval – Pension will cease instantly. No dying advantages for those who opted for the choice of an annuity with out the return of a premium. For those who go for the return of buy worth, 100% of the entire premium paid can be payable to the nominee. Nonetheless, for those who opted for the return of premium underneath choices 3 and seven and dying occurs at 75,80, or between 76 to 95 years of age, then the nominee will obtain 100% of the entire premium paid minus the sum of early return of premium already paid until the date of dying.
# Single Life (Choices 8,9 and 11)
Loss of life in the course of the deferment interval – On the primary dying of both of the policyholders, there won’t be any dying profit and the coverage will proceed as normal. Nonetheless, on the dying of the final survivor, dying advantages equal to 105% of the entire premiums paid as much as the date can be payable to the nominee.
Loss of life throughout pension cost interval – On the primary dying of both of the policyholders, there won’t be any dying profit and coverage profit can be payable to the survivor. Nonetheless, on the dying of the final survivor, underneath possibility 8, no dying profit can be payable. However underneath the 9 and 11 annuity choices, 100% of the entire 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 may name it a typical TRADITIONAL PLAN of LIC.
- Then what’s GUARANTEED right here? The pension you’re going to get a post-deferment interval is assured. It means you might be positive of how a lot pension you’re going to get.
- Look at the out there pension choices extra intently and you’ll discover that all of them provide a set 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 take a position extra to maintain your retirement with growing inflation.
- The second largest drawback is as that is an annuity plan, the pension you obtain throughout your retirement is taxable earnings and taxed as per your tax slab.
- LIC has launched extra pension choices that weren’t out there in its earlier plans, such because the return of premium in the course of the pension interval at a particular age. This supplies some reduction for pensioners by way of bills like healthcare. Nonetheless, as talked about earlier, it doesn’t deal with the difficulty of inflation. Despite the fact that Possibility 7 permits for a 5% premium payout from 76 to 95 years (along with common premiums), the annuity charge is probably going decrease than the straightforward 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 seem like insignificant. Moreover, these advantages are completely out there for offline purchases, indicating a technique to spice up gross sales via brokers.
- If you’re prepared to miss the impression of inflation in your retirement funds, have a robust religion in LIC, anticipate decrease inflation throughout your retirement, and rely partially on this product on your retirement, then this coverage is an possibility for you.
- Do keep in mind that the above submit is written primarily based on the options however doesn’t think about the annuity charge. Nonetheless, even when the annuity charges are good (in comparison with different insurers), I strongly counsel you to keep away from such GUARANTEED merchandise.