LIC Jeevan Dhara II deferred annuity plan: What are the annuity options, mode of premium payment

LIC has launched a new plan dubbed as “Jeevan Dhara-II”, it is a non-linked, non-participating, individual, savings, deferred annuity plan wherein the policyholder has option to choose the mode of premium payment, deferment period, annuity option and mode of annuity payment.

Annuity rates are guaranteed at the inception of the policy and annuities are payable post Deferment Period in arrears throughout the life time of Annuitant(s) as per the Annuity Option chosen.

Depending on the annuity option selected, the maximum age at entry is 80, 70, or 65 years minus the deferral term. The minimum age at entry is 20 years (last birthday) for annuitant/primary/secondary annuitant.

1) Regular Premium and Single Premium.

2) Single Life Annuity and Joint Life Annuity.

3) 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.

4) Mode of Annuity payments (yearly, half-yearly, quarterly and monthly).

5) Annuity Option once chosen cannot be altered

There is an option to increase the Annuity (Top-up annuity) under the policy by paying additional premium as a Single Premium and at any time during the deferment period only and while the policy is in-force.

Under the plan, the annuity is guaranteed from inception and 11 annuity options are available to prospective policyholders.

Single Life Annuity for Regular Premium

Option-1: Life annuity for Single Life

Option-2: Life annuity with Return of Premium for Single Life

Option-3: Life annuity with 50% Return of Premium after attaining age 75 years for Single Life

Option-4: Life annuity with 100% Return of Premium after attaining age 75 years for Single Life

Option-5: Life annuity with 50% Return of Premium after attaining age 80 years for Single Life

Option-6: Life annuity with 100% Return of Premium after attaining age 80 years for Single Life

Option-7: Life annuity with 5% Return of Premium after attaining age 76 years to 95 years for Single Life.

Joint Life Annuity

Option-8: Life annuity for Joint Life

Option-9: Life annuity with Return of Premium for Joint Life.

Single Premium- Single Life Annuity

Option-10: Life annuity with Return of Purchase Price for Single Life.

Joint Life Annuity

Option-11: Life annuity with Return of Purchase Price for Joint Life

The following are the key elements to remember, according to the LIC website.

1) The Annuity Option once selected cannot be changed.

2) The Joint life annuity can be taken between any two lineal descendant/ascendant of a family (i.e. Grandparent, Parent, Children, Grandchildren) or spouse or siblings or Parent-in-law.

3) In case of Joint life Annuity Option-8, 9 and 11, the Primary Annuitant shall be the primary person to receive the annuity payments and the Secondary Annuitant shall receive the same annuity only in the event of death of the Primary Annuitant.

4) Under Single Life Annuity Option-3, 4, 5, 6 and 7 (i.e. Annuity Options with early Return of Premium), in addition to the annuity benefits, specified proportion of Total Premiums Paid, as per the chosen Annuity Option shall be payable on survival of the Annuitant to Policy Anniversary coinciding with or immediately following the completion of specified age.

5) Top-up facility : Minimum additional Premium for each Top-up Annuity is Rs.50,000