Not too way back LIC has launched Jeevan Dhara II, a model new pension plan geared towards attracting folks looking for last-minute tax-saving decisions all through the financial year-end. On this text, we’ll current an in-depth look into LIC Jeevan Dhara II, masking its choices, quite a few benefits, and potential drawbacks.

Moreover Study: LIC New Pension Plus – Do you must select?

About LIC Jeevan Dhara II Pension Plan

LIC has launched Jeevan Dhara II, a model new pension plan on January 22, 2024.

This plan, commonly known as LIC’s Jeevan Dhara – II, is a Non-Linked, Non-Collaborating, Specific particular person, Monetary financial savings, Deferred Annuity plan.

This pension plan Ensures a tough and quick income to your retirement. It comes with the one life and joint life risk and with single premium and customary premium value decisions. The life cowl is provided all through the deferment interval and pension is paid after the deferment interval.

This pension plan is being offered beneath Distinctive Identification Amount (UIN) 512N364V01

This Plan is likely to be purchased Offline by way of brokers / totally different intermediaries along with On-line straight by way of site.

LIC’s  Current Pension Plans

In the mean time, LIC has 3 Pension Plans indicated beneath:

• LIC Jeevan Akshay – VII
• LIC New Jeevan Shanti
• LIC Saral Pension Plan

What are a number of sorts of Annuity Plans?

Sometimes, there are two most vital forms of annuity plans, each serving fully totally different capabilities:

#1 – Speedy Annuity Plans:

• The best way it Works: On this plan, merchants make a lump-sum value, and the pension or annuity kicks in immediately.
• Key Perform: This characteristic is nice for people who want to start receiving a each day income just about immediately after making a one-time value.

#2 – Deferred Annuity Plans:

• The best way it Works: In distinction, deferred annuity plans include making frequent funds over a predefined interval.
• Key Perform: The pension funds start after this deferment interval, which can fluctuate from 5, 10, and even 20 years, offering a additional strategic methodology to planning for retirement.

LIC’s Jeevan Dhara II falls into the category of Deferred Annuity Plans

LIC Jeevan Dhara II – New Pension Plan – Choices and Eligibility

Underneath are the choices and eligibility particulars.

What are fully totally different annuity decisions accessible on this plan?

Lack of life Revenue in LIC Jeevan Dhara II

A) Lack of life all through the Deferment interval

• Single Life –105% of the general premiums will be paid to the nominee.
• Joint Life – Throughout the event of the preliminary demise of each policyholder, no dying revenue shall be provided. The protection, nonetheless, will persist. If the ultimate surviving policyholder passes away, 105% of the general premiums paid shall be given to the nominee.

B) Lack of life all through the Pension Payment interval

• Single Life – The pension will cease immediately, and no extra benefits shall be provided besides the policyholder had opted for the return of the premium. If the return of the acquisition value was chosen, the nominee would receive 100% of the general premiums paid.
• Joint Life – Specific circumstances regarding dying benefits for quite a few annuity decisions are outlined inside the protection doc. It’s endorsed to consult with these protection particulars for an entire understanding of the dying revenue beneath joint life annuity decisions.

Constructive Elements in LIC Jeevan Dhara II

• This pension plan offers assured pension. We’d understand how quite a bit about will be paid after the deferment interval.
• Not like earlier pension plans of LIC, this plan comes with additional pension decisions similar to return of the acquisition value all through the pension value interval as a lot as certain age and lots of others.,
• Good for merchants who’re attempting low menace low return pension plans.

Harmful Elements in LIC Jeevan Dhara II

• Whereas the plan advertises life prolonged assured income, in fact it’s guaranteeing the amount after deferment interval. Typical pension plans in any case current the indicated amount one would get after deferment interval, due to this fact such ‘assured’ phrases are often not one factor new.
• The pension amount obtained after deferment interval is taxable.
• This plan provides additional incentive of 0.25% to 0.5% elevated pension income for offline purchase solely. Such offline purchases improve LIC brokers’ product sales. If you happen to occur to need for on-line purchase solely, it’s attainable you’ll not get benefitted with such additional incentives.
• The returns present in such LIC pension plans is low and fail to beat inflation.

You may like: 7 Funding Selections for Senior Residents – Low Menace to Common Menace

LIC Jeevan Dhara II – Do you must Subscribe or Stay away from?

Jeevan Dhara II comes with distinctive choices, nevertheless you’ll need to phrase that such pension plans embody low returns too. Given the current state of affairs the place inflation is on the rise, selecting funding schemes with low returns won’t be advisable. Till you is likely to be LIC fan and like low risk-low return schemes, it’s best to avoid such plans for now.

One can talk about with LIC Jeevan Dhara II Protection doc for added particulars about this pension plan.

Suresh KP is the Founding father of Myinvestmentideas. He’s NISM Licensed – Funding Adviser and NISM Licensed – Evaluation Analyst. He has been analyzing financial markets inside the last 20 years.He is likely to be reached at suresh@myinvestmentideas.com

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