LIC New Jeevan Nidhi Plan 818
📅 Plan Details
Launch Date: Available from 2012
Withdrawal Date: 16th January 2020
Purpose: Retirement Planning & Pension
About LIC New Jeevan Nidhi Plan 818
LIC New Jeevan Nidhi Plan 818 was a deferred annuity pension plan that helped policyholders create a retirement corpus using guaranteed additions and LIC bonuses.
Guaranteed Additions
₹50 per ₹1000 SA for first 5 years.
Bonus Benefit
Reversionary bonus from 6th year onwards.
Pension Corpus
Corpus used for annuity purchase after vesting.
Plan Status
Withdrawn on 16 January 2020.
Important Notes
- The calculation shown is only an indicative estimate based on assumed LIC bonus rates.
- Actual maturity proceeds may change depending on LIC’s future bonus declarations.
- Guaranteed Additions of ₹50 per ₹1,000 Sum Assured are applicable for the first 5 policy years.
- Simple Reversionary Bonus becomes applicable from the 6th policy year onwards.
- At maturity, the accumulated retirement corpus must be used to purchase an immediate annuity or deferred annuity plan from LIC.
- Up to one-third of the maturity corpus can be withdrawn as a lump sum amount at vesting according to prevailing pension rules.
Introduction to LIC New Jeevan Nidhi Plan 818
LIC New Jeevan Nidhi Plan 818 was a retirement-oriented pension policy designed for individuals planning long-term financial security after retirement. The plan helped policyholders accumulate a retirement corpus during the policy term, which could later be converted into regular pension income through annuity purchase.
What is LIC New Jeevan Nidhi Plan 818?
LIC New Jeevan Nidhi Plan 818 is a deferred annuity pension plan offered by the Life Insurance Corporation of India (LIC). The policy combines retirement savings with bonus additions and guaranteed benefits to help build a stable post-retirement income source.
It is a participating with-profits pension policy, meaning the plan receives:
- Guaranteed Additions
- Simple Reversionary Bonuses
- Final Additional Bonus (if declared)
during the policy term.
Key Features of LIC New Jeevan Nidhi Plan 818
Flexible Premium Payment Options
The policy offered both:
- Single Premium option
- Regular Premium option
allowing policyholders to choose according to their financial convenience.
Guaranteed Additions
Guaranteed Additions were credited during the first 5 policy years, helping increase the retirement corpus.
Bonus Benefits
From the 6th year onwards, the policy became eligible for Simple Reversionary Bonuses declared by LIC based on company performance.
Retirement Corpus for Pension
At maturity, the accumulated corpus could not be fully withdrawn. It had to be used for purchasing:
- Immediate annuity plan
- Deferred annuity plan
to generate regular pension income after retirement.
Lump Sum Withdrawal Facility
Policyholders could withdraw up to one-third of the total accumulated corpus as a lump sum amount at maturity.
Optional Riders
Additional protection could be added through optional riders such as:
- Accidental Death Benefit Rider
- Accidental Disability Rider
No Loan Facility
Unlike many LIC plans, New Jeevan Nidhi Plan 818 did not provide any loan facility against the policy.
Launch and Withdrawal Details
| Event | Date |
|---|---|
| Launch Date | Introduced before 2014 reforms |
| Withdrawal Date | 16 January 2020 |
After withdrawal, no new policies were issued under this plan. However, existing policyholders continue to receive all policy benefits according to original terms and conditions.
Eligibility Criteria for LIC New Jeevan Nidhi Plan 818
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age (Last Birthday) | 20 years | 60 years (Single Premium) / 58 years (Regular Premium) |
| Vesting Age | 55 years | 65 years |
| Premium Payment Term | 5 years (Single Premium) / 7 years (Regular Premium) | Up to 35 years |
| Sum Assured | ₹1,50,000 (Single Premium) / ₹1,00,000 (Regular Premium) | No upper limit |
The policy term depends on the chosen entry age and vesting age selected by the policyholder.
How LIC New Jeevan Nidhi Plan 818 Works
LIC New Jeevan Nidhi Plan 818 is a deferred pension policy where the policyholder either pays:
- A one-time single premium, or
- Regular premiums over a selected period
During the policy term, the invested amount grows with:
- Guaranteed Additions
- Simple Reversionary Bonuses
- Final Additional Bonus (if declared)
Benefits at Vesting (Maturity)
At the end of the policy term, the accumulated retirement corpus includes:
- Basic Sum Assured
- Guaranteed Additions
- Vested Bonuses
- Final Additional Bonus (if applicable)
This accumulated amount must then be used to purchase an LIC annuity plan that provides regular pension income after retirement.
Death Benefit
Death Within First 5 Years
If the life assured dies within 5 years from policy commencement, the nominee receives:
- Sum Assured
- Guaranteed Additions
Death After 5 Years but Before Vesting
If death occurs after completion of 5 years but before maturity, the nominee receives:
- Sum Assured
- Guaranteed Additions
- Vested Simple Reversionary Bonuses
- Final Additional Bonus (if declared)
Benefits of LIC New Jeevan Nidhi Plan 818
Deferred Retirement Pension
The policy helps build a retirement corpus that can generate regular pension income after vesting.
Guaranteed Additions
Guaranteed Additions of ₹50 per ₹1,000 Sum Assured are credited every year for the first 5 years.
Bonus Participation
Simple Reversionary Bonuses are declared annually from the 6th year onward, increasing the maturity corpus.
Tax Benefits
Premiums paid qualified for tax deductions under Section 80CCC within the overall Section 80C limits, subject to prevailing tax laws.
Eligible lump sum withdrawals at maturity were also tax-efficient according to applicable rules.
Financial Protection
In case of death before vesting, the nominee receives death benefits along with bonuses and guaranteed additions.
Optional Rider Protection
Additional protection could be added through optional riders such as:
- Accidental Death Benefit Rider
- Disability Benefit Rider
Flexible Premium Payment
Policyholders could choose between:
- Single premium payment
- Regular premium payment
based on their financial planning needs.
LIC New Jeevan Nidhi Plan 818 Calculator
The LIC New Jeevan Nidhi Plan 818 Calculator is a useful online estimation tool that helps users understand:
- Premium payable
- Expected retirement corpus
- Bonus accumulation
- Estimated pension benefits after vesting
By entering details such as:
- Entry age
- Vesting age
- Sum assured
- Premium payment mode
the calculator estimates the maturity corpus available for annuity purchase and helps policyholders plan retirement income more effectively.
How to Use LIC New Jeevan Nidhi Plan 818 Calculator?
The LIC New Jeevan Nidhi Plan 818 Calculator is designed to estimate the maturity corpus and expected pension benefits based on your investment details.
Details Required in the Calculator
To generate estimates, the calculator generally asks for:
- Entry age
- Premium amount (single or regular)
- Premium payment term
- Policy term or vesting age
- Basic Sum Assured
What the Calculator Estimates
The calculator projects the likely retirement corpus by considering:
- Guaranteed Additions for the first 5 years
- Simple Reversionary Bonuses from the 6th year onward
- Final Additional Bonus, if declared by LIC
- Estimated annuity pension purchasable at maturity
Guaranteed Additions Calculation
Guaranteed Additions are calculated as:
- ₹50 per ₹1,000 Sum Assured
- Applicable for the first 5 policy years
Bonus Estimation
From the 6th policy year onwards, the calculator estimates bonuses according to LIC’s declared bonus rates.
Pension Estimation
The maturity corpus is then used to estimate the pension amount that could be purchased through LIC annuity products such as:
- Immediate annuity
- Deferred annuity
Advantages of Using LIC New Jeevan Nidhi Plan 818 Calculator
Better Financial Planning
The calculator helps policyholders understand premium affordability and future retirement benefits.
Maturity Corpus Estimation
Users can estimate the expected retirement fund before investing.
Pension Comparison
It allows comparison between:
- Immediate annuity options
- Deferred annuity options
Premium Planning
The calculator also helps compare:
- Single premium plans
- Regular premium plans
according to long-term retirement goals.
Sample Calculation (Illustrative)
Suppose the following details are entered into the LIC New Jeevan Nidhi Plan 818 Calculator:
| Parameter | Example Value |
|---|---|
| Age at Entry | 30 years |
| Sum Assured | ₹10,00,000 |
| Premium Type | Regular Premium |
| Premium Payment Term | 15 years |
| Vesting Age | 60 years |
Estimated Output from Calculator
The calculator may display:
- Total premiums payable
- Guaranteed Additions for first 5 years
- Accrued Simple Reversionary Bonuses
- Estimated Final Additional Bonus
- Total maturity corpus at vesting
- Approximate pension amount available after annuity purchase
This helps users estimate the retirement income they may receive after maturity.
Important Points to Remember
- LIC New Jeevan Nidhi Plan 818 was withdrawn from sale on 16 January 2020.
- Existing policyholders continue to receive policy benefits according to original terms.
- Final pension income depends on:
- Premium paid
- Sum Assured
- Bonus declarations
- Annuity rates at vesting
- Only up to one-third of the maturity corpus can generally be withdrawn as lump sum according to pension regulations.
- Remaining corpus must be used to purchase an annuity plan.
- No loan facility was available under this plan.
- Bonus rates are not guaranteed and may vary yearly.
LIC New Jeevan Nidhi Plan 818 vs Other LIC Pension Plans
| Feature | LIC New Jeevan Nidhi 818 | LIC Jeevan Akshay VI | LIC Jeevan Shanti |
|---|---|---|---|
| Plan Type | Deferred Annuity with Bonuses | Immediate Annuity | Deferred Annuity |
| Premium Payment | Single / Regular Premium | Single Premium | Single Premium |
| Bonus Facility | Guaranteed Additions + Bonuses | No Bonus | No Bonus |
| Pension Start | After maturity | Immediate | After deferment |
| Loan Facility | Not Available | Not Available | Not Available |
| Entry Age | 20 to 60 years | 30 to 80 years | 30 to 80 years |
Tax Benefits Under LIC New Jeevan Nidhi Plan 818
Premiums paid under the plan qualified for tax deduction under Section 80CCC within the overall limit prescribed under Section 80C.
Tax Treatment
- Eligible premium deductions under prevailing tax laws
- Lump sum withdrawal portion at vesting was generally tax-efficient according to existing rules
- Pension income received after annuity purchase remained taxable according to the policyholder’s income tax slab
Policyholders should always consult a tax advisor for updated tax treatment and retirement planning guidance.
Why Should You Choose LIC New Jeevan Nidhi Plan 818?
LIC New Jeevan Nidhi Plan 818 was considered a reliable retirement-focused insurance plan because it combined pension planning with life protection and bonus benefits.
Trusted LIC Brand
The plan was backed by LIC, one of India’s most trusted life insurance providers with government ownership and a strong claim settlement reputation.
Retirement Corpus Creation
It helped policyholders gradually build a retirement fund through regular or single premium payments along with guaranteed additions and bonuses.
Guaranteed Pension Planning
After maturity, the accumulated corpus could be used to purchase an annuity plan that provided regular pension income during retirement.
Bonus Benefits
The plan offered:
- Guaranteed Additions during the first 5 policy years
- Simple Reversionary Bonuses from the 6th year onwards
- Final Additional Bonus, if declared
These additions increased the overall maturity corpus significantly over time.
Family Financial Protection
In case of the policyholder’s unfortunate death before vesting, the nominee received death benefits including:
- Basic Sum Assured
- Guaranteed Additions
- Accrued Bonuses
- Final Additional Bonus (if applicable)
Flexible Premium Payment Options
The policy allowed both:
- Single Premium payment
- Regular Premium payment
This flexibility made it suitable for different financial situations and retirement planning goals.
Frequently Asked Questions
What is LIC New Jeevan Nidhi Plan 818?
LIC New Jeevan Nidhi Plan 818 was a deferred annuity pension plan offered by LIC that helped policyholders build a retirement corpus through premiums, guaranteed additions, and bonuses.
Is LIC New Jeevan Nidhi Plan 818 still available?
No, the plan was withdrawn from sale on 16 January 2020. However, existing policyholders continue to receive benefits according to policy terms.
What is the minimum entry age under this plan?
The minimum entry age for the policy was 20 years.
What premium payment options were available?
The plan offered:
- Single Premium option
- Regular Premium option
Policyholders could choose according to their financial convenience.
Does the plan provide bonus benefits?
Yes, the plan included:
- Guaranteed Additions for the first 5 years
- Simple Reversionary Bonuses from the 6th year onward
- Final Additional Bonus (if declared)
What happens after policy maturity?
At vesting, the accumulated maturity corpus had to be used to purchase an annuity plan from LIC to receive pension income.
Is a loan facility available under this plan?
No, LIC New Jeevan Nidhi Plan 818 did not offer any loan facility.
Conclusion
LIC New Jeevan Nidhi Plan 818 was designed as a simple and secure pension-oriented insurance plan that helped individuals prepare financially for retirement. Through guaranteed additions, bonus participation, and annuity-based pension benefits, the plan aimed to create long-term financial stability after retirement.
Although the plan has been withdrawn, it still remains useful for existing policyholders and as a reference for understanding traditional LIC pension products. Using the LIC New Jeevan Nidhi Plan 818 Calculator can help policyholders estimate maturity benefits, expected retirement corpus, and future pension income more effectively.
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