LIC is launching its new pension plan Jeevan Dhara 2 (No.872) on twenty second January 2024. Do you have to make investments on this GUARANTEED new pension plan of LIC?

LIC Jeevan Dhara 2 is a pension plan that GUARANTEES a set revenue in your retirement. It gives 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 get pleasure from enhanced advantages of this plan.

Do do not forget that this can be a deferred annuity plan however not an instantaneous annuity plan. Earlier than continuing additional, first, allow us to perceive few terminologies utilized in retirement plans.

In easy phrases, you’ll be able to say it’s a Pension, the place you’ll get common revenue as much as the required interval or situations. There are two kinds of annuity.

1) Rapid 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 have got round Rs.1 Cr and when you 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. Should you 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 an instantaneous 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.

Notice – You possibly can give up at any cut-off date for the insurance policies of a single premium. Nonetheless, for normal premiums, give up is on the market throughout or after the deferment interval when you paid a minimum of 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 Demise Advantages

# Single Life (Choices 1 to 7 and 10)

Demise in the course of the deferment interval -105% of the whole premiums paid as much as the date of the demise shall be payable to the nominee.

Demise throughout pension cost interval – Pension will cease instantly. No demise advantages when you opted for the choice of an annuity with out the return of a premium. Should you go for the return of buy worth, 100% of the whole premium paid shall be payable to the nominee. Nonetheless, when you opted for the return of premium underneath choices 3 and seven and demise occurs at 75,80, or between 76 to 95 years of age, then the nominee will obtain 100% of the whole premium paid minus the sum of early return of premium already paid until the date of demise.

# Single Life (Choices 8,9 and 11)

Demise in the course of the deferment interval – On the primary demise of both of the policyholders, there is not going to be any demise profit and the coverage will proceed as standard. Nonetheless, on the demise of the final survivor, demise advantages equal to 105% of the whole premiums paid as much as the date shall be payable to the nominee.

Demise throughout pension cost interval – On the primary demise of both of the policyholders, there is not going to be any demise profit and coverage profit shall be payable to the survivor. Nonetheless, on the demise of the final survivor, underneath possibility 8, no demise profit shall be payable. However underneath the 9 and 11 annuity choices, 100% of the whole 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’ll be able to name it a typical TRADITIONAL PLAN of LIC.
• Then what’s GUARANTEED right here? The pension you’ll get a post-deferment interval is assured. It means you might be certain of how a lot pension you’ll get.
• Look at the accessible pension choices extra intently and you’ll discover that all of them provide a set pension quantity, though with slight variations. Nonetheless, this strategy fails to contemplate the potential results of inflation in your retirement funds. To deal with this, you don’t have any possibility however to speculate extra to maintain your retirement with rising inflation.
• The second largest drawback is as that is an annuity plan, the pension you obtain throughout your retirement is taxable revenue and taxed as per your tax slab.
• LIC has launched further pension choices that weren’t accessible in its earlier plans, such because the return of premium in the course of the pension interval at a selected age. This gives some reduction for pensioners when it comes to bills like healthcare. Nonetheless, as talked about earlier, it doesn’t handle the difficulty of inflation. Despite the fact that Choice 7 permits for a 5% premium payout from 76 to 95 years (along with common premiums), the annuity price 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 look like insignificant. Moreover, these advantages are solely accessible for offline purchases, indicating a method to spice up gross sales via brokers.
• In case you are 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 in your retirement, then this coverage is an possibility for you.
• Do do not forget that the above publish is written primarily based on the options however doesn’t contemplate the annuity price. Nonetheless, even when the annuity charges are good (in comparison with different insurers), I strongly recommend you to steer clear of such GUARANTEED merchandise.