The Life Insurance Corporation of India (LIC) has launched a new individual, savings, deferred annuity plan called Jeevan Dhara II. The plan was unveiled by LIC Chairperson Siddhartha Mohanty on January 19, 2024, and will be available for sale from January 22, 2024. The plan offers a range of benefits and features to suit the needs of different customers.
What is a deferred annuity plan?
A deferred annuity plan is a type of pension plan that allows the customer to accumulate a corpus during the deferment period and receive regular annuity payments after the deferment period ends. The deferment period is the time between the purchase of the plan and the start of the annuity payments. The customer can choose to pay a single premium or regular premiums during the deferment period.
What are the benefits of Jeevan Dhara II?
Jeevan Dhara II is a non-linked, non-participating plan that guarantees annuity from inception. The customer can choose from 11 annuity options, including single life and joint life annuity, with or without return of premium or purchase price, and with or without death benefit. The plan also offers higher annuity rates at higher ages, which means that older customers can get more income from their investments. The plan also provides life cover during the deferment period, which ensures financial security for the nominee in case of death of the customer.
Some of the other features of Jeevan Dhara II are:
- Flexibility to choose the deferment period between 1 and 15 years for single premium and between 5 and 15 years for regular premium
- Incentive by way of increase in the annuity rate for high premium/purchase price/for online sale
- Option to take loan during or after the deferment period under certain annuity options
- Option to receive a lump-sum amount in return of reduction in annuity payments under certain annuity options
- Option to top-up annuity by paying additional premium/purchase price
How to buy Jeevan Dhara II?
Jeevan Dhara II can be purchased online or offline through LIC’s website or agents. The minimum age at entry should be 20 years (last birthday) and the maximum age at entry depends on the annuity option chosen. The minimum premium/purchase price is Rs. 1 lakh for single premium and Rs. 50,000 for regular premium. The maximum premium/purchase price is subject to underwriting.
Jeevan Dhara II is a reliable savings and annuity plan that can help customers secure their retirement income and achieve their financial goals.