The Jeevan Nidhi is a pension plan from the stable of LIC. This plan offers guaranteed returns @ Rs.50 per thousand sum assured for the 1st five years and non-guaranteed bonuses payable from the 6th year of the policy. This policy also offers a wide assortment of annuity options to the policyholder.

The Jeevan Nidhi is a typical pension plan where the individual contributes a fixed sum as premium for a certain period. At the vesting age, the individual is given the option to commute a certain portion of the sum assured (33.33%) and the balance can be taken an annuities. This plan offers the sum assured along with guaranteed returns for the first five returns and non-guaranteed returns from the 6 th year of the policy. The guaranteed returns are payable @ Rs.50 per thousand sum assured.

At the time of retiring the individual has the option to commute 1/3rd (33.33%) of the corpus to receive a lump sum payment while the balance can be taken as annuities. In the context of annuity payouts, the following options are available:

• Annuity for life - In this case the individual can purchase annuity for the rest of his life.
• Annuity for a guaranteed period - In this case the individual gets an annuity for a specified period 5 / 10 / 15 or 20 years. The policyholder or his chosen representative (in the case of death of the policyholder) will receive the annuity for the specified period. On the policyholder's survival, he will continue to get the same amount for the rest of his life.
• Annuity for life with annuity return purchase price - In this case the annuity is paid through the life of the policyholder. However, in the event of the death of the policyholder, the annuity purchase price is refunded to the legal representatives of the policyholder.
• Increasing annuity - in this case the annuity is paid to the policyholder as long as he/she is alive. This annuity keeps increasing - The policyholder will also be entitled to other choices of annuities which may be offered by the company from time to time.

Basically, a pension plan is a special kind of an insurance plan which covers the risk of living too long. However, in case the pension plan takes care of the risk of dying early, then it may prove to be an attractive combination. The Jeevan Nidhi plan provides the risk cover, but only when the term rider is taken at a nominal cost. Thus, the cover for the risk of dying early comes at an additional cost over and above the normal rate.

• The minimum and maximum age at entry is 18 years to 65 years.
• The premium paying term will extend till the vesting age.
• Vesting age is between 40 years and 75 years.
• This plan permits commutation of 1/3rd of the corpus, while the balance can be invested in an annuity of the choice of the policyholder.

• An individual who is interested in living a comfortable life even after retirement.
• An individual who is comfortable with the flexibility that the plan offers.
• An individual who is keen on the plethora of annuity options that this policy bestows on the holder of the policy.