Life Insurance Corporation of India (LIC) has launched a new insurance plan – Jeevan Dhara II – an individual, savings, deferred annuity plan, the insurer said in a press release. It is a non-linked and non-participating annuity plan. LIC Jeevan Dhara II can be purchased online and offline channels both starting from January 22, 2024, it added.
According to a press release by LIC dated January 19, 2024, the minimum age of entry into the Jeevan Dhara II policy is 20 years and the maximum age of entry into the policy can be 80/70/65 years minus the deferment period, depending upon the annuity option chosen.
LIC Jeevan Dhara II policy launched: All you need to know
According to the press release the annuity is guaranteed from inception and 11 annuity options are available to policyholders. Further, there is a provision for higher annuity rates at higher ages.
Here are the summarised details of LIC Jeevan Dhara II
- Life insurance cover is available during the policy’s deferment period.
- There is an option to increase the annuity (top-up annuity) under the policy by paying the additional premium as a single premium and at any time during the deferment period only and while the policy is in force.
- There is an option to take death claim proceeds as a lump sum, in the form of annuitisation or instalments.
- There is 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.
- Liquidity option is also available i.e. option to receive a lump-sum amount in return for a reduction in annuity payments and other benefits available under annuity options with return of premium/ purchase price.
- Loan facility shall be available during or after the deferment period under annuity options with the return of premium/ purchase price.
- Benefits are payable under an in-force policy on survival/death of the annuitant(s) under applicable annuity options selected.
Type of annuity options available for LIC’s Jeevan Dhara II
As per the press release, the annuity options are:
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- Regular premium- The deferment period is from 5 years to 15 years,
- Single premium- The deferment period is from 1 year to 15 years,
- Single life annuity and joint life annuity,
“Prospective policyholders can choose when to start annuity payments as per their requirements, further there are various modes of annuity payments yearly, half-yearly, quarterly, and monthly. However it must be noted that once an annuity option is chosen it cannot be altered,” mentioned LIC’s press release.
Earlier launches of LIC insurance policies
On December 7, 2023, LIC launched the Jeevan Utsav Insurance plan which is a lifetime guaranteed income plan. Based on the selected Premium Paying Term (Regular Income to Flexi Income), 10% of the Sum Assured is paid back annually after the specified years.
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