Plan Details
Calculation Result
Specimen Premium Rates from LIC Brochure
What is LIC Jeevan Nidhi Plan 169?
LIC New Jeevan Nidhi Plan 169 was an endowment-type deferred annuity plan designed for individuals who wanted to build a retirement corpus and convert it into a lifelong pension.
Under this plan, the policyholder could pay premiums either regularly or through a single premium, depending on the selected option. The accumulated amount, along with applicable guaranteed additions and bonuses, was used to provide an annuity after the deferment period.
The plan served two important purposes:
- Providing life insurance protection during the deferment period.
- Creating a corpus that could be converted into a pension after vesting.
If the policyholder died before the pension commenced, the applicable death benefit was payable according to the policy conditions.
Launch and Withdrawal Dates
- Launch Date: November 13, 2004
- Withdrawal Date: January 1, 2012
LIC subsequently stopped accepting new business under this plan. However, policyholders who already purchased the plan could continue to receive benefits according to their original policy conditions.
Eligibility Criteria
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age | 18 years completed | 65 years (nearest birthday) |
| Vesting Age | 40 years | 75 years |
| Policy Term – Regular Premium | 5 years | 35 years |
| Policy Term – Single Premium | 6 years | 35 years |
| Basic Sum Assured | ₹50,000 | No upper limit |
| Minimum Regular Premium | ₹3,000 per year | — |
| Minimum Single Premium | ₹10,000 | — |
| Premium Modes | Yearly, Half-yearly, Quarterly, SSS, Single Premium | — |
Main Features of LIC Jeevan Nidhi Plan 169
Deferred Annuity with Life Protection
LIC Jeevan Nidhi Plan 169 was structured as a deferred annuity product. This means pension payments did not start immediately. Instead, the policyholder selected a deferment period, after which the accumulated corpus was used to purchase an annuity.
During the deferment period, life insurance protection was also available according to the plan terms.
Flexible Deferment Period
The plan provided flexibility in choosing the deferment period. Depending on the premium option selected, the policy term could range from 5 years up to 35 years.
This allowed individuals to align the policy with their intended retirement age.
Premium Payment Choices
Policyholders could select a payment method according to their financial situation. Available options included:
- Single premium
- Yearly premium
- Half-yearly premium
- Quarterly premium
- Monthly/S.S.S. mode, wherever applicable
The applicable policy term depended on the premium payment option selected.
Entry and Vesting Age
The plan allowed individuals to enter from 18 years of age, with the maximum entry age extending up to 65 years, subject to the applicable age calculation method.
The vesting age could range from 40 years to 75 years.
Sum Assured and Premium Requirements
The minimum basic sum assured under the plan was ₹50,000, generally available in multiples of ₹5,000. There was no stated upper limit on the basic sum assured, subject to the applicable policy conditions.
The minimum premium was:
- ₹3,000 annually for regular-premium policies
- ₹10,000 for single-premium policies
Guaranteed Additions and Bonuses
The plan could provide guaranteed additions during the policy term, along with bonuses declared by LIC where applicable. These additions could increase the accumulated corpus available at vesting.
The final corpus would depend on the applicable policy terms, premium, duration and additions credited to the policy.
Optional Riders
Additional protection could be obtained through eligible riders associated with the plan. These could include:
- Term Assurance Rider
- Critical Illness Rider
- Premium Waiver Benefit Rider
Rider availability and conditions were subject to the applicable terms and additional premium requirements.
Pension Options Under LIC Jeevan Nidhi Plan 169
At the time of vesting, the accumulated amount could be used to purchase an annuity. Depending on the available options, policyholders could select an annuity structure suited to their retirement requirements.
Possible annuity choices could include:
- Life annuity
- Life annuity with return of purchase price
- Joint-life annuity
- Other applicable pension options
The selected annuity option determined how the pension would be paid and what benefits would be available to the policyholder or nominee.
Benefits of LIC Jeevan Nidhi Plan 169
Retirement Income
The primary purpose of the plan was to create a retirement corpus that could subsequently generate a regular pension for life.
Life Cover During Deferment
The plan provided insurance protection during the deferment period, offering financial support to the family if the life assured died before vesting.
Flexible Policy Terms
Policyholders could select an appropriate deferment period based on their retirement objectives and financial circumstances.
Bonus and Guaranteed Additions
Applicable guaranteed additions and bonuses could increase the corpus available when the policy reached vesting.
Loan Facility
A loan facility was available subject to the policy’s applicable conditions and eligibility requirements.
Tax Benefits
Premiums and benefits could qualify for tax treatment under the prevailing income-tax provisions applicable to life insurance policies. Tax rules may change over time, so current provisions should always be checked before making financial decisions.
How Does LIC Jeevan Nidhi Plan 169 Work?
The basic working of the plan can be understood through these steps:
- Purchase the Policy: The policyholder selects either a single-premium or regular-premium option.
- Pay the Premium: Premiums are paid according to the selected payment mode and policy conditions.
- Deferment Period: The policy continues for the selected period while applicable life cover remains in force.
- Accumulation of Benefits: The policy value can increase through applicable guaranteed additions and bonuses.
- Vesting: At the end of the deferment period, the accumulated corpus becomes available according to the policy terms.
- Purchase an Annuity: The corpus is used to purchase the selected pension/annuity option.
- Receive Pension: The policyholder receives annuity payments according to the selected payment frequency and annuity option.
LIC Jeevan Nidhi Plan 169 Calculator
Calculating the expected corpus and pension manually can be difficult because several factors can affect the final outcome. These may include the policyholder’s age, premium, policy term, guaranteed additions, bonuses and selected annuity option.
A LIC Jeevan Nidhi Plan 169 Calculator can simplify these calculations by allowing users to enter relevant policy information and obtain an estimated projection.
Depending on the calculator, it may provide information such as:
- Premium payable
- Expected accumulated corpus
- Guaranteed additions
- Applicable bonus estimates
- Death benefit
- Vesting value
- Possible pension amount
- Loan eligibility
- Surrender value
- Paid-up value
Because this was a withdrawn LIC plan, historical calculator results should be treated as estimates and checked against the actual policy documents.
How to Use the LIC Jeevan Nidhi Plan 169 Calculator
A typical calculator may require the following information:
- Enter Your Age: Provide your age when the policy begins.
- Select Premium Type: Choose regular premium or single premium.
- Enter Premium Amount: Specify the premium you intend to pay.
- Choose the Policy Term: Select the desired deferment period.
- Enter the Sum Assured: Provide the applicable basic sum assured.
- Select Riders: Add any eligible riders, if required.
- Enter Vesting Age: Specify the age at which you want the policy to vest.
- Calculate: The calculator generates an estimated corpus and related benefits.
- Compare Annuity Options: Review the potential pension under the available annuity choices.
Example of Using the Calculator
Consider a 30-year-old individual who chooses to pay a premium of ₹20,000 per year for a period of 20 years.
Using a calculator, the policyholder could examine:
- The estimated corpus available at vesting.
- Applicable guaranteed additions and bonuses.
- The life cover available during the deferment period.
- Potential pension after purchasing an annuity.
- The impact of selecting different annuity options.
- Whether additional riders may be useful.
The actual benefits would depend on the policy conditions and applicable additions rather than the calculator estimate alone.
Advantages of Using the LIC Jeevan Nidhi Calculator
Better Financial Planning
The calculator provides an easier way to understand how premiums and policy duration may affect the eventual retirement corpus.
Easy Comparison
Different premium amounts, policy terms and annuity options can be compared before making a financial decision.
Greater Clarity
It can provide an estimate of the accumulated value, pension and other policy benefits without requiring complex manual calculations.
Retirement Planning
Understanding the potential pension amount can help individuals evaluate whether the accumulated corpus may support their retirement objectives.
Understanding Policy Benefits
The calculator can also help existing policyholders review features such as loan eligibility, surrender value and death benefits where applicable.
Frequently Asked Questions
What is LIC Jeevan Nidhi Plan 169?
LIC New Jeevan Nidhi Plan 169 was a deferred annuity plan that combined life insurance protection during the deferment period with the option to receive pension income after vesting.
When was LIC Jeevan Nidhi Plan 169 launched?
The plan was introduced by LIC on November 13, 2004.
Is LIC Jeevan Nidhi Plan 169 currently available?
No. LIC withdrew the plan from new sales on January 1, 2012. Existing policyholders continue according to the terms of their respective policies.
What was the minimum deferment period?
The minimum policy/deferment period was 5 years for the regular-premium option and 6 years for the single-premium option.
What was the maximum policy term?
The policy term could extend up to 35 years, subject to the applicable premium option and policy conditions.
What were the premium payment options?
The plan offered single-premium as well as regular premium payment modes, including yearly, half-yearly and quarterly options, with applicable monthly/SSS arrangements.
What happens at maturity or vesting?
At vesting, the accumulated corpus was used according to the policy terms to purchase an annuity, which could provide regular pension income based on the selected annuity option.
Conclusion
LIC New Jeevan Nidhi Plan 169 was designed to combine retirement planning with life insurance protection. By allowing policyholders to build a corpus during a deferment period and subsequently convert that corpus into an annuity, the plan provided a structured approach to generating retirement income.
Although LIC withdrew the plan from new sales in 2012, it remains relevant to existing policyholders and to those researching LIC’s earlier pension products. A LIC Jeevan Nidhi Plan 169 Calculator can help understand the historical premium structure, accumulated corpus, applicable benefits and potential pension options, although actual policy benefits should always be determined from the original policy documents and applicable LIC terms.
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