LIC Jeevan Dhara 2 – Will you get Enough Pension?

LIC Jeevan Dhara-II plan is a Non-Linked, Deferred Annuity plan, where you pay for a certain duration of 5 to 15 years or more and thereafter enjoy regular annuities. Jeevan Dhara provides the option to choose the mode of Premium Payment, Deferment Period, Annuity Option and mode of Annuity Payment too.

What’s so good about LIC Jeevan Dhara 2

LIC pension Plan provides guaranteed annuity rates at the inception of the policy.  The policyholder gets a pension/Annuity post-deferment period in arrears throughout the lifetime.

• Guaranteed Annuity – You know the annuity amount in beginning itself
• Wide range of annuity options to suit your needs.
• Flexibility to choose from: Regular Premium and Single Premium & Single Life Annuity and Joint Life Annuity.
• Available Deferment Period from 5 years to 15 years (in case of Regular Premium) and from 1 year to 15 years (in case of Single Premium)] i.e. when to start annuity payments as per your requirements.
• Mode of Annuity payments (yearly, half-yearly, quarterly and monthly).
• High Premium Incentive.
• Incentive for existing Policyholders/Nominees/Beneficiaries of the Corporation.
• Top-up Annuity i.e. Option to increase the annuity by paying additional premium at any time during the Deferment Period.
• Option to take death benefit as Lump-sum, in the form of Annuitisation or in installments.
• Liquidity Option i.e. option to receive a lump-sum amount in return of a reduction in annuity payments and other benefits.
• Advanced Annuity Option in case of Joint Life Annuity Options with Return of Premium i.e. option to the surviving Annuitant [on the first death (of either of the covered lives)] to withdraw discounted cash value of annuity payable during the ‘Advance Annuity Period’ as a lump-sum

Jeevan Dhara 2 – Annuity Options

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LIC’s Jeevan Dhara -II ( 872) – Eligibility & features

LIC new pension plan is Like other Endowment Plans only but with a variation of paying regular pension throughout life.

LIC Jeevan Dhara -II (872)- Premium paying term

Minimum Age at Entry	20 Years (last birthday)
Maximum Age at Entry	Option: 1, 2, 8, 9, 10 & 11 -80 minus Deferment Period Option: 5, 6 & 7- 70 minus Deferment Period Option: 3 & 4 -65 minus Deferment Period
Minimum Vesting Age at which income starts	[35] years (last birthday) [Option: 1 to 9] : [31] years (last birthday) [Option: 10 & 11
Maximum vesting Age at which income starts	Option: 1, 2, 8, 9, 10 & 11 – Age 80 Option: 5,6 & 7 – Age 70 Option: 3 & 4- Age 65
Premium paying Term	same as the Deferment Period for regular premium Under Single premium policy – Single premium
Deferment Period	5 to 15 years (Option 1 to 9) 1 to 15 years (Option 10 & 11)
Premium paying Mode	Yearly/ half yearly / Quarterly/ Monthly/ One time
Minimum pension	Yearly – Rs 12000/ half yearly-Rs 6000 / Quarterly -Rs 3000 Monthly – Rs 1000
Top Up facility	option to increase the Annuity (Top-up annuity) under the policy by paying an additional premium as a Single Premium
Liquidity Option	Option to receive a lump-sum amount in return of a reduction in annuity payments and other benefits -allowed for a maximum of 3 times under the policy. Annuity Options with Return of Premium (Option- 2, 9, 10 and 11)

LIC Jeevan Dhara – Death Claim

Death Claim

LIC Jeevan Dhara II (872) Death Claim, tenure, Vesting age
( BestInvestIndia.com)
No.	Annuity option	Death benefit Before Deferment	Death benefit After Deferment	Deferment Period	Vesting Age ( min)
1	Life annuity for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Normal Annuity. On death of the Annuitant, the annuity payments shall cease immediately. No death benefit shall be payable and the policy shall terminate.	80- Deferment Period	35 yrs
2	Life annuity with Return of Premium for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Normal Annuity. On death, 100% paid premium is returned
3	Life annuity with 50% Return of Premium after attaining age 75 years for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Normal Annuity & 50% refund of paid premium at age 75. On death, 100% paid premium is returned Less the Sum of the Early Return of Premium already paid till the date of death	65- Deferment Period
4	Life annuity with 100% Return of Premium after attaining age 75 years for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Normal Annuity & 100% refund of paid premium at age 75. On death, 100% paid premium is returned Less Sum of Early Return of Premium already paid till the date of death
5	Life annuity with 50% Return of Premium after attaining age 80 years for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Normal Annuity & 50% refund of paid premium at age 80. On death, 100% paid premium is returned Less the Sum of the Early Return of Premium already paid till the date of death	70- Deferment Period
6	Life annuity with 100% Return of Premium after attaining age 80 years for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Normal Annuity & 100% refund of paid premium at age 80. On death, 100% paid premium is returned Less Sum of Early Return of Premium already paid till the date of death
7	Life annuity with 5% Return of Premium after attaining age 76 years to 95 years for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	Annuity payments for life along with 5% of the total premium are paid after age 76 to age 95. On death, 100% of the paid premium is returned after subtracting the 5% premium paid from age 76 to the date of death.
8	Life annuity for Joint Life	1. On first death (of either of the covered lives) – No Death Benefit. Policy continues with premium payment	On first death (of either of the covered lives), no death benefit shall be payable and 100% of the annuity amount shall continue to be paid as long as the last survivor is alive.	80- Deferment Period
		On death of the last survivor, death benefit equal to 105% of Purchase Price shall be payable	On the death of the last survivor, the annuity payments shall cease immediately and NO death benefit The policy shall terminate on payment of death benefit.
9	Life annuity with Return of Premium for Joint Life	1.On first death (of either of the covered lives) – No Death Benefit. Policy continues with premium payment	On first death (of either of the covered lives), no death benefit shall be payable and 100% of the annuity amount shall continue to be paid as long as the last survivor is alive.
		On death of the last survivor, death benefit equal to 105% of Purchase Price shall be payable	On death of the last survivor, the annuity payments shall cease immediately and death benefit equal to 100% of Total Premiums Paid upto the date of death shall be payable. The policy shall terminate on payment of death benefit.
10	Life annuity with Return of Purchase Price for Single Life	On death of the Annuitant, death benefit equal to 105% of Purchase Price shall be payable.	death benefit equal to 100% of Purchase Price shall be payable. The policy shall terminate on payment of death benefit.
11	Life annuity with Return of Purchase Price for Joint Life	1.On first death (of either of the covered lives) – No Death Benefit.	1.On first death (of either of the covered lives) – No Death Benefit.		31 yrs
		On death of the last survivor, death benefit equal to 105% of Purchase Price shall be payable	2.On death of the last survivor, the annuity payments shall cease immediately and death benefit equal to 100% of Purchase Price shall be payable. The policy shall terminate on payment of death benefit.

Should you buy LIC Jeevan Dhara 2 ?

For Regular Premium: Annual Premium:  50,000/- (excluding applicable taxes) Age of Annuitant at entry: 45 years (Last Birthday), Age of Secondary Annuitant at entry: 40 years (Last Birthday) (applicable for Option 8 & 9)

Under Life Annuity option -The yearly pension amount for the 5-year deferment period is 20K, and the 10-year deferment period is 53K & the 15-year deferment period is 104k.

For other options the pension amount is relatively far less than this. If you check the return part it varies from 5%- 7% ( depending on surviving years). Which is low w.r.t inflation rate.

Additionally, the pension amount is taxable. This amount will be added to income & taxed as per your tax slab rate. The New LIC pension Plan is not suitable if we consider the inflation rate and another lifestyle based inflation.

However, if you still have very high faith in such products LIC is all yours 🙂

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