Recently LIC has launched Jeevan Dhara II, a new pension plan aimed at attracting individuals looking for last-minute tax-saving options during the financial year-end. In this article, we will provide an in-depth look into LIC Jeevan Dhara II, covering its features, various benefits, and potential drawbacks.
Also Read: LIC New Pension Plus – Should you opt?
About LIC Jeevan Dhara II Pension Plan
LIC has launched Jeevan Dhara II, a new pension plan on January 22, 2024.
This plan, known as LIC’s Jeevan Dhara – II, is a Non-Linked, Non-Participating, Individual, Savings, Deferred Annuity plan.
This pension plan Guarantees a fixed income for your retirement. It comes with the single life and joint life option and with single premium and regular premium payment options. The life cover is provided during the deferment period and pension is paid after the deferment period.
This pension plan is being offered under Unique Identification Number (UIN) 512N364V01
This Plan can be purchased Offline through agents / other intermediaries as well as Online directly through website.
LIC’s Current Pension Plans
Currently, LIC has 3 Pension Plans indicated below:
- LIC Jeevan Akshay – VII
- LIC New Jeevan Shanti
- LIC Saral Pension Plan
What are different types of Annuity Plans?
Generally, there are two main types of annuity plans, each serving different purposes:
#1 – Immediate Annuity Plans:
- How it Works: In this plan, investors make a lump-sum payment, and the pension or annuity kicks in immediately.
- Key Feature: This option is ideal for those who want to start receiving a regular income almost immediately after making a one-time payment.
#2 – Deferred Annuity Plans:
- How it Works: In contrast, deferred annuity plans involve making regular payments over a predefined period.
- Key Feature: The pension payments start after this deferment period, which could range from 5, 10, or even 20 years, offering a more strategic approach to planning for retirement.
LIC’s Jeevan Dhara II falls into the category of Deferred Annuity Plans
LIC Jeevan Dhara II – New Pension Plan – Features and Eligibility
Below are the features and eligibility details.
| Minimum Age At Entry | 20 Years |
| Maximum Age At Entry | Option – 1,2,8,9 (10 & 11- Single Premium) – 80 Yrs minus Deferrment Period. Option – 5,6 & 7 – 70 Yrs minus Defferment Period Option – 3 & 4 – 65 Yrs minus Defferment Period Option – 8 & 9 (Secondary Annuitant) – 75 Yrs Option – 11 (Single Premium Secondary Annuitant) – 79 Yrs |
| Deferment Period | Option – 1 to 9 – 5 to 15 Years |
| Option – 10 and 11 – 1 to 15 Years | |
| Minimum Vesting Age | Option – 1 to 9 – 35 Years |
| Option – 10 and 11 – 31 Years | |
| Maximum Vesting Age | Option – 1,2,8,9 (10 & 11- Single Premium) – 80 Years |
| Option – 5,6 & 7 – 70 Years | |
| Option – 3 & 4 – 65 Years | |
| Minimum Pension | Monthly – Rs 1,000 |
| Quarterly – Rs 3,000 | |
| Half yearly – Rs 6,000 | |
| Yearly – Rs 12,000 |
What are different annuity options available in this plan?
| Regular Premium Single Life | Option 1 – Life annuity for single |
| Option 2 – Life annuity with return of premium | |
| Option 3 – Life annuity with 50% of the return of premium after 75 Years | |
| Option 4 – Life annuity with 100% return of premium after 75 Years | |
| Option 5 – Life annuity with 50% of the return of premium after 80 Years | |
| Option 6 – Life annuity with 100% return of premium after 80 Years | |
| Option 7 – Life annuity with 5% return of premium after 76 Years to 95 Years | |
| Regular Premium Joint Life | Option 8 – Life annuity for joint life |
| Option 9 – Life annuity with return of premium for joint life | |
| Single Premium Single Life | Option 10 – Life annuity with return of ourchase price |
| Single Premium Joint Life | Option 11 – Life annuity with return of purchase price |
Death Benefit in LIC Jeevan Dhara II
A) Death during the Deferment period
- Single Life –105% of the total premiums would be paid to the nominee.
- Joint Life – In the event of the initial demise of either policyholder, no death benefit will be provided. The policy, however, will persist. If the last surviving policyholder passes away, 105% of the total premiums paid will be given to the nominee.
B) Death during the Pension Payment period
- Single Life – The pension will cease immediately, and no further benefits will be provided unless the policyholder had opted for the return of the premium. If the return of the purchase price was chosen, the nominee would receive 100% of the total premiums paid.
- Joint Life – Specific conditions regarding death benefits for various annuity options are outlined in the policy document. It is recommended to refer to these policy details for a comprehensive understanding of the death benefit under joint life annuity options.
Positive Factors in LIC Jeevan Dhara II
- This pension plan offers guaranteed pension. We would know how much about would be paid after the deferment period.
- Unlike earlier pension plans of LIC, this plan comes with additional pension options such as return of the purchase price during the pension payment period up to certain age etc.,
- Good for investors who are looking low risk low return pension plans.
Negative Factors in LIC Jeevan Dhara II
- While the plan advertises life long guaranteed income, in reality it is guaranteeing the amount after deferment period. Typical pension plans anyways provide the indicated amount one would get after deferment period, hence such ‘guaranteed’ words are not something new.
- The pension amount received after deferment period is taxable.
- This plan provides additional incentive of 0.25% to 0.5% increased pension income for offline purchase only. Such offline purchases boost LIC agents’ sales. If you prefer for online purchase only, you may not get benefitted with such additional incentives.
- The returns offer in such LIC pension plans is low and fail to beat inflation.
You may like: 7 Investment Options for Senior Citizens – Low Risk to Moderate Risk
LIC Jeevan Dhara II – Should you Subscribe or Avoid?
Jeevan Dhara II comes with unique features, but it is important to note that such pension plans come with low returns too. Given the current scenario where inflation is on the rise, opting for investment schemes with low returns is not advisable. Unless you are LIC fan and prefer low risk-low return schemes, you should stay away from such plans for now.
One can refer to LIC Jeevan Dhara II Policy document for further details about this pension plan.
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