LIC Jeevan Dhara 2 (New Pension Plan) – Should You Invest?

LIC Jeevan Dhara 2 (Plan Number 872) is a new pension plan launched by LIC. What are its features and should you invest in the same? – Let’s find out.

LIC Jeevan Dhara 2 is a non-linked, non-participating, individual, savings, deferred annuity plan. Currently the plan is being offered under Unique Identification Number (UIN) 512N364V01.

Previously, LIC had 3 Pension Plans on offer namely –

LIC has now introduced a new Guaranteed Fixed Income plan for retirement called the LIC Jeevan Dhara 2. This plan provides for the option for both Single Life and Joint Life and has payment option of Single payment as well as Regular payment. The life cover is provided only during the deferment period in this plan.

Type of Plan

Typically there are 2 types of Annuity Plans (also known as Pension Plans):

Immediate Annuity Plans – In these plan, you make a lumpsum investment and your pension/annuity starts immediately. Next month in case you have chosen payment option as monthly or after an year in case of choosing annual annuity option.

Deferred Annuity Plans – In these plans, the pension starts after a certain pre defined period. Say you are at 40 years old and choose to invest in a Deferred income plan for a period of 20 years. Now, when you attain the age of 60 years, you will start getting the pension on Regular basis.

LIC Jeevan Dhara 2 Plan is a Deferred Annuity Plan which provides the annuitant with regular income after the deferment period is over.

Under this plan the annuity rates get secured when the policy begins, and annuity payments are made after the Deferment Period, paid retrospectively for the duration of the annuitant’s life based on the chosen Annuity Option.

You can watch this video to have a better understanding of how Pension Plans work?

Annuity Options

Following are the annuity or pension options available if you choose LIC Jeevan Dhara 2 (New Pension Plan).

Once you have selected an annuity option, it can no longed be changed.

The Joint life annuity can be taken between any two lineal descendant/ascendant of a family (i.e. Grandparent, Parent, Children, Grandchildren) or spouse or siblings or Parent-in-law.

LIC Jeevan Dhara 2 (New Pension Plan) – Features and Eligibility

Following are the features of the LIC Jeevan Dhara 2 (New Pension Plan) along with its eligibility criteria:

LIC Jeevan Dhara 2 (New Pension Plan)	Eligibility Conditions
Minimum Age At Entry	20 Years
Maximum Age At Entry	Option – 1,2,8,9 (10 & 11- Single Premium) – 80 Years – Deferment Period Option – 5,6 & 7 – 70 Years – Deferment Period Option – 3 & 4 – 65 Years – Deferment Period Option – 8 & 9 (Secondary Annuitant) – 75 Years Option – 11 (Single Premium Secondary Annuitant) – 79 Years
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 – ₹1,000 Quarterly – ₹3,000 Half yearly – ₹6,000 Yearly – ₹12,000
Top-up facility	Minimum additional Premium for each Top-up Annuity is Rs.50,000

Surrender Option for LIC Jeevan Dhara 2 (New Pension Plan)

If you opt for Single Premium plan, you can surrender the plan at any time and get your premium back.

However, if you have opted for Regular Premium plan, you can get the amount back after paying atleast 2 premiums.

LIC Jeevan Dhara 2 (New Pension Plan) – Death Benefit

Death during the Deferment period

Single Life -105% of the total premiums paid up to the date of the death will be payable to the nominee
Joint Life – Upon the initial demise of either policyholder, no death benefit will be provided, and the policy will proceed without interruption. Nevertheless, upon the passing of the last surviving policyholder, the nominee will receive death benefits amounting to 105% of the total premiums paid up to that date.

Death during the Pension Payment period

Single Life – The pension will cease immediately. No death benefits will be provided if you selected the annuity option without the return of premium.
If you choose the return of the purchase price, the nominee will receive 100% of the total premium paid. However, if you selected the return of premium under options 3 and 7, and the death occurs at the ages of 75, 80, or between 76 to 95, the nominee will be entitled to 100% of the total premium paid, minus the sum of early return of premium already paid up to the date of death.
Joint Life – If one of the policyholders passes away first, there won’t be any death benefit, but the policy benefit will go to the surviving policyholder. However, if the last surviving policyholder passes away, there won’t be a death benefit under option 8. Yet, under annuity options 9 and 11, the nominee will receive 100% of the total premium paid.

Can you get Loan on LIC Jeevan Dhara 2 (New Pension Plan)

A loan is only available for the Return of Premium Option or the Purchase Price. In such cases, you can obtain a loan either during or after the deferment period.

LIC Jeevan Dhara 2 (New Pension Plan) – Sample Premium

Age of Primary Annuitant: 40 Years
Age of Secondary Annuitant: 40 Years

For Regular Premium

Annual Premium: – ₹50,000/- (excluding taxes)
Age of Primary Annuitant: 45 Years
Age of Secondary Annuitant: 40 Years

For Single Premium

Premium : – ₹5,00,00/- (excluding taxes)
Age of Primary Annuitant: 45 Years
Age of Secondary Annuitant: 40 Years

LIC Jeevan Dhara 2 – Video Review