Introduction
Retirement is a phase of life that everyone looks forward to. It is a time when you can relax, pursue your hobbies, travel, and spend quality time with your loved ones. However, retirement also comes with its own challenges, such as managing your finances, maintaining your lifestyle, and coping with health issues. Therefore, it is important to plan ahead and secure your retirement income with a reliable and suitable pension plan.
One such pension plan that can help you achieve your retirement goals is LIC Jeevan Dhara II, a new annuity plan launched by Life Insurance Corporation of India (LIC). This plan is an individual, savings, deferred annuity plan that guarantees annuity from inception. It is a non-linked and non-participating plan that can be purchased online at www.licindia.in and offline through LIC agents and other channels.
In this article, we will explain the features, benefits, and options of LIC Jeevan Dhara II and how it can help you secure your future with a guaranteed income for life.
Features of LIC Jeevan Dhara II
Entry Age and Deferment Period
The minimum entry age of this plan is 20 years and the maximum entry age can be 80/70/65 years minus the deferment period, depending on the chosen annuity option.
The deferment period is the time between buying the policy and starting to receive the annuity payments. You can choose the deferment period from 1 to 15 years for single premium payment and from 5 to 15 years for regular premium payment. During this period, you will get life insurance coverage as per the chosen option.
Annuity Options
This plan offers 11 annuity options for potential policyholders to choose from, catering to different needs and preferences. Some of the annuity options are:
- Single Life Annuity for life
- Single Life Annuity for life with return of purchase price
- Single Life Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant
- Single Life Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant
- Joint Life Annuity for life with a provision for 100% of the annuity payable as long as one of the annuitants survives
- Joint Life Annuity for life with a provision for 100% of the annuity payable as long as one of the annuitants survives and return of purchase price on death of last survivor
You can choose the option that suits your needs and preferences best. You can also change the option during the deferment period or while the policy is in force.
Annuity Rates
One of the attractive features of this plan is that it offers higher annuity rates at higher ages. This means that the older you are when you buy this plan, the more income you will receive every month or year. This can help you cope with the rising cost of living and inflation in your golden years.
The annuity rates are guaranteed from inception and are based on the purchase price, age at entry, deferment period, and annuity option chosen. The purchase price is the amount you pay as a single premium or as regular premiums to buy this plan.
Benefits of LIC Jeevan Dhara II
Death Benefit
This plan provides life insurance coverage during the deferment period. If something happens to you during this period, your nominee will receive the death benefit as per the chosen option. The death benefit can be taken as a lump sum, in the form of annuitisation or instalments.
Top-up Annuity
You can also increase your annuity by paying an additional premium during the deferment period or while the policy is in force. This can help you enhance your income stream and meet your changing needs. The additional premium can be paid as a single premium only and will be added to the purchase price.
Loan Facility
You can avail a loan facility during or after the deferment period under certain options. The loan amount will depend on the surrender value of the policy and will be subject to terms and conditions. The loan interest will be deducted from the annuity payments.
Liquidity Option
You can also access a liquidity option that allows you to receive a lump sum amount in return for a reduction in annuity payments. This option is available under certain options with return of purchase price or premium. The lump sum amount will depend on the surrender value of the policy and will be subject to terms and conditions.
Incentive for Online Sale and Existing Policyholders
This plan also offers an incentive for high Premium/purchase price/ for online sale by way of an increase in the annuity rate/ for existing policyholders/nominees/beneficiaries of the corporation. This means that if you buy this plan online or if you are an existing LIC policyholder, nominee, or beneficiary, you will get a higher annuity rate than the normal rate.
Conclusion
LIC Jeevan Dhara II is a comprehensive and flexible plan that can help you secure your retirement income and protect your family. It is suitable for anyone who wants to enjoy a guaranteed income for life with various options and benefits. You can buy this policy online or offline from 22nd January 2024 onwards.