LIC Jeevan Dhara II Plan: Secure Life-Long Income at Retirement
Life Insurance Corporation of India (LIC of India) brings forward different types of life insurance plans to complement important life stage needs of individuals. In the row, LIC India has brought LIC Jeevan Dhara II policy for individuals dreaming of achieving financial independence after retirement. With the flexibility of choosing desirable deferment years, you can retire young and secure a guaranteed income source with this plan by your side. In addition to it, the plan provides life cover during the deferment period.
LIC Jeevan Dhara II plan offers single and joint life annuity cover. Also, if you already own an LIC policy or are listed as a beneficiary/ nominee, you are eligible to attain incentives. Reading further, you will learn more about LIC Jeevan Dhara II policy details and plan a stress-free retirement.
What is LIC Jeevan Dhara II Plan?
LIC Jeevan Dhara II is a non-linked, non-participating, individual savings plan in the category of deferred annuity. The annuity rates under the plan are guaranteed at the time of policy inception. The annuitant(s) receive the annuities throughout their lifetime after the end of the deferment period.
Since the LIC Jeevan Dhara II plan is non-participating, the company's actual market experience does not affect the benefits. The death or survival benefits payable are guaranteed and fixed; no other bonuses or additions are payable. The plan is available for offline purchase from LIC agents or intermediaries and online on the official website of LIC of India.
Highlights of LIC Jeevan Dhara II Policy
The following key features of the LIC Jeevan Dhara II plan make it a suitable purchase option for individuals to plan a stress-free retirement:
- Plan Type: Annuity Plan
- Deferment Period: For Regular Premium Policy- 5 years to 15 years
For Single Premium Policy- 1 year to 15 years - Annuity Options: 11
- Incentives: On High Premium
- Premium Paying Term: Regular Premium: Same as deferment period Single Premium: Single pay
Eligibility Criteria of LIC Jeevan Dhara II
To buy LIC Jeevan Dhara II Policy, an individual needs to meet the following criteria and restrictions:
-
Minimum Entry Age
For Annuitant/ Primary/ Secondary Annuitant:
20 years -
Maximum Entry Age
For Annuitant/ Primary Annuitant:
Option 1, 2, 8, 9, 10 & 11: 80 minus Deferment Period
Option 5, 6, & 7: 70 minus Deferment Period
Option 3 & 4: 65 minus Deferment Period
For Secondary Annuitant:
Option 8 & 9: 75 years Option 11: 79 years -
Minimum Vesting Age
For Option 1 to 9: 35 years
For Option 10 & 11: 31 years -
Deferment Period
For Option 1 & 9: 5 to 15 years
For Option 10 & 11: 1 to 15 years -
Premium Paying Term
Regular Premium: Same as deferment period
Single Premium: Single pay
Special Features:
Don’t miss out on the special features of LIC Jeevan Dhara II, that makes it a prevailing option to invest in:
- Regular or single premium payment options
- Single life annuity and joint life annuity
- Pay annuity in yearly, half-yearly, quarterly or monthly modes
- Incentives available for existing LIC policyholders/ nominee/eneficiary
- Top-up annuity by paying additional premium
- Receive death benefit in a single lump sum amount or instalments
- Opt to receive a lump sum amount in return for a reduction in annuity payments
- Advanced annuity period option
- Avail of loan and fulfil your liquidity needs
Annuity Options Under LIC Jeevan Dhara II
An individual can opt from the following annuity options under LIC Jeevan Dhara II policy (Once opted, the annuity option cannot be changed)
| Premium Payment | Annuity Type | Annuity Options | |
|---|---|---|---|
| Regular Premium | Single Life Annuity | ||
| 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 | ||
| Option 8 | Life annuity for joint life | ||
| Joint Life Annuity | 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 | |
* If an individual selects the joint life annuity option under LIC Jeevan Dhara II plan, the primary annuitant will receive the annuity payments. The secondary annuitant receives the same annuity only in the event of the death of the primary annuitant.
LIC Jeevan Dhara II Plan Benefits
Depending on the annuity option selected under LIC Jeevan Dhara II policy, the following benefits are payable on the death or survival of the annuitant:
| Annuity Option | Benefits Payable | During Deferment Period | After Deferment Period |
|---|---|---|---|
| Annuity Option 1: Life annuity for single life | Upon survival of the annuitant | Nothing is payable. | Annuities are paid to the annuitant throughout his/ her life as per the selected mode. |
| Upon the death of the annuitant | 105% of the total premium paid upto the date of death is paid as the death benefit. | The annuity payments shall cease immediately. No death benefit is payable. | |
| Annuity Option 2: Life annuity with return of premium for single life | Upon survival of the annuitant | Nothing is payable. | Annuities are paid to the annuitant throughout his/ her life as per the selected mode. |
| Upon the death of the annuitant | 105% of the total premium paid upto the date of death is paid as the death benefit. | The annuity payments shall cease immediately. A death benefit equal to 100% of the total premium paid upto the date of death is payable. | |
| Annuity Option 3: Life annuity with 50% return of premium after attaining age 75 years for single life | Upon survival of the annuitant | Nothing is payable. | Annuities are paid to the annuitant throughout his/ her life as per the selected mode. Additionally, an early return of premium equal to 50% of the total premium paid is payable to the annuitant on the policy anniversary, coinciding with or immediately after the completion of age 75 years. |
| Upon the death of the annuitant | 105% of the total premium paid upto the date of death is paid as the death benefit. | The annuity payments shall cease immediately. A death benefit equal to 100% of the total premium paid upto the date of death minus sum of early return of premium already paid till the date of death is payable. | |
| Annuity Option 4: Life annuity with 100% return of premium after attaining age 75 years for single life | Upon survival of the annuitant | Nothing is payable. | The annuitant receives the annuity payments in the chosen mode as long as he/ she is alive. Additionally, an early return of premium equal to 100% of the total premium paid to the annuitant on surviving the policy anniversary coinciding with or immediately following the completion of 75 years of age. |
| Upon the death of the annuitant | 105% of the total premium paid up to the date of death is paid as the death benefit. | The annuity payment ceases immediately. A death benefit equal to 100% of the total premium paid upto the date of death after deducting a sum of early return of the premium already paid till the date of death is payable to the beneficiaries. | |
| Annuity Option 5: Life annuity with 50% return of premium after attaining the age of 80 years for single life | Upon survival of the annuitant | Nothing is payable. | The annuitant receives the annuity payments until he/she is alive, as per the chosen mode. Additionally, suppose the annuitant survives the policy anniversary coinciding with or immediately following the completion of 80 years. In that case, an early return of premium equal to 50% of the premiums paid is payable. |
| Upon the death of the annuitant | 105% of the total premium paid up to the date of death is paid as a death benefit. | The annuity payments shall cease immediately. A death benefit equal to 100% of the total premium paid up to the date of death after deducting a sum of early return of premium paid till the date of death is payable to the nominee. | |
| Annuity Option 6: Life annuity with 100% return of premium after attaining the age of 80 years for single life | Upon survival of the annuitant | No benefits are payable. | The annuitant receives the annuity payments throughout his/ her life in the chosen mode. Additionally, if the annuitant survives the policy anniversary coincides with or immediately after the completion of age 80 years. In that case, the annuitant is eligible to receive an early return of a premium amount equal to 100% of the total premiums paid. |
| Upon the death of the annuitant | The nominee receives a death benefit equal to 105% of the total premium paid up to the date of death. | The annuity payments cease immediately. The nominee receives the death benefit equal to 100% of the total premium paid up to the date of death after deducting the sum of early return of premium already paid, if any. | |
| Annuity Option 7: Life annuity with 5% return of premium after completing age 76 years to 95 years for single life | Upon survival of the annuitant | Nothing is payable. | Annuitant receives the annuity payment in the chosen mode, as long as he/ she is alive. Additionally, the annuitant receives an early return of a premium equal to 5% of the total premium paid on surviving each of the policy anniversaries coinciding with or immediately after the completion of ages from 76 years to 95 years. |
| Upon the death of the annuitant | Death benefit equal to 105% of the total premium paid upto the date of death. | The annuity payment shall cease immediately. The nominee receives the death benefit equal to 100% of the total premium paid up to the date of death after deducting the amount already paid as an early return of premium till the date of death. | |
| Annuity Option 8: Life annuity for joint life | Upon survival of the primary and/ or secondary annuitant | Nothing is payable. | The surviving annuitant(s) receive(s) the annuity payments, as per the chosen mode. |
| Upon the first death of any of the covered annuitants | No death benefit is payable, and the due premium payments continue. | No death benefit is payable. The last surviving annuity continues receiving 100% of the annuity amount until survival. | |
| Upon the death of the last survivor | Death benefit equal to 105% of the total premium paid up to the date of death is paid to the nominee. | The annuity payments shall cease immediately. No death benefit is payable. | |
| Annuity Option 9: Life annuity with return of premium for joint life | Upon survival of the primary and/ or secondary annuitant | Nothing is payable. | The surviving annuitant(s) receive(s) the annuity payments, as per the chosen mode. |
| Upon the first death of any of the covered annuitants | No death benefit is payable, and the due premium payments continue. | No death benefit is payable. The last surviving annuity continues receiving 100% of the annuity amount until survival. | |
| Upon the death of the last survivor | Death benefit equal to 105% of the total premium paid upto the date of death. | The annuity payments shall cease immediately. The beneficiaries receive the death benefit equal to 100% of the total premium paid upto the date of death. | |
| Annuity Option 10: Life annuity with return of purchase price for single life | Upon survival of the annuitant | Nothing is payable. | The annuitant receives the annuity payments as per the chosen mode until he/she is alive. |
| Upon the death of the annuitant | Nominee receives the death benefit equal to 105% of the purchase price. | The annuity payment shall cease immediately. The nominee receives the death benefit equal to 100% of the purchase price. | |
| Annuity Option 11: Life annuity with return of purchase price for joint life | Upon survival of the primary and/ or secondary annuitant | Nothing is payable. | The surviving annuitant(s) receive(s) the annuity payments, as per the chosen mode. |
| Upon the first death of any of the covered annuitants | No death benefit is payable and the premium payment shall continue. | No death benefit is payable. The last surviving annuity continues to receive 100% of the annuity amount as long as he/she is alive. | |
| Upon the death of the last survivor | The nominee receives the death benefit equal to 105% of the purchase price. | The annuity payments shall cease immediately. The nominee receives a death benefit of 100% of the purchase price. |
* Once the death benefit is paid to the beneficiaries, the LIC Jeevan Dhara II policy terminates.
You may also like to read: LIC Premium Calculator
Options Available Under LIC Jeevan Dhara II Plan
The policyholder can extend the LIC Jeevan Dhara II policy benefits by choosing from the following options available:
Top-Up Annuity
The policyholder can increase the base annuity under the Jeevan Dhara 2 policy by paying an additional premium as a single premium amount. The policyholder can exercise a top-up annuity option during the deferment period only while the policy is in force. At the time of annuity payment, the total amount received is the sum of the base and top-up annuity.
Liquidity Option
If the policyholder selects Annuity Options 2, 9, 10, and 11, they can opt to receive a lump-sum amount in return for a reduction in annuity payments and other benefits. This option can only be opted after the completion of 5 years from the first annuity payment and for a maximum of 3 times under the policy. The lump sum benefit cannot exceed 60% of the total premiums paid towards the policy.
Advanced Annuity Option
This option can be exercised when the policyholder chooses Annuity Option 9 or 11 (return of premium for joint life). On the first death of the covered annuitant, the surviving annuitant can withdraw the discounted lump sum of the annuity payable during the ‘Advanced Annuity Period’. The surviving annuitant of the LIC Jeevan Dhara II policy can receive a lump sum of a maximum of 5 years of annuities. The due annuity premium payments will continue to be paid during the period. The regular annuity payment resumes after completing the ‘Advanced Annuity Period’.
Death Benefit Payment Options
At the time of policy proposal, the annuitant can opt to pay the death benefit claim amount to the nominee in a lump sum or annuitisation, or in instalments. If the policyholder opts for the instalment option, the death benefit is paid to the nominee over the chosen period of 5, 10, or 15 years. The option can only be modified by the annuitant during the policy term.
Dependent Person with Disability Benefit Option
In case the policyholder has a dependent person with a disability, they can opt for Option 10 on their own life for the benefit of the person with disability as a nominee on a minimum purchase price of Rs. 50,000. When the purchase price is less than the minimum purchase price, in case of the death of the annuitant, the death benefit is utilized to purchase an immediate annuity for the dependent.
Explore LIC of India Resources
| Endowment Plan | Money Back Schemes | Term Insurance Plan | Pension Plan | Complete Life Plan |
|---|---|---|---|---|
Explore LIC Plans in Different Categories:
-
LIC Endowment Plan
-
LIC Pension Plan
-
LIC Whole Life Plan
-
LIC Money Back Schemes
-
LIC Term Plan
-
LIC Micro Plan
-
LIC Child Plan
Additional Features of LIC Jeevan Dhara II Policy
At the time of purchasing the LIC Jeevan Dhara II policy, the policyholder can benefit from the following additional features:
Payment of Premium
The policyholder can opt to pay the premiums towards Jeevan Dhara 2 plan in regular or single premium payment options. Under the regular premium option, the policyholder can make policy premium payments in annual, half-yearly, quarterly, or monthly modes.
Premium Conversion Factor
Under this option, the policyholder can choose the premium amount as per the chosen regular premium payment mode. The annuity rates and incentives depend on the annual equivalent premium, which is decided by the premium conversion factor.
Annuity Payment Mode
The policyholder can opt to receive the annuity payments yearly, half-yearly, quarterly or monthly. The annuity payments under LIC Jeevan Dhara II plan start as:
| Annuity Payment Mode | Payment of Annuity Arrears |
|---|---|
| Yearly | 1 year from the date of vesting of annuity |
| Half-yearly | 6 months from the date of vesting of annuity |
| Quarterly | 3 months from the date of vesting of annuity |
| Monthly | 1 month from the date of vesting of annuity |
Grace Period
A grace period of 30 days is allowed for yearly, half-yearly, or quarterly payments and 15 days for monthly premium payments from the first unpaid premium. During this period, all the benefits under the Jeevan Dhara 2 policy will continue without interruption. If the policyholder doesn’t pay the premium payment before the completion of the grace period, the policy lapses.
Policy Revival
The lapsed LIC Jeevan Dhara II policy can be revived within 5 consecutive years from the date of the first unpaid premium payment. For the same, the policyholder must pay all the outstanding premiums with interest. Once the policy is revived, all the benefits are restored.
Paid Up Value
Suppose the policyholder has paid the premiums for at least two full years, and any subsequent premiums are not made even after the completion of the grace period. In that case, the policy shall not be wholly void but acquire a paid-up value. The benefits are reduced to ‘Paid-Up Death Benefit’ and ‘Paid-Up Annuity’
Surrender
If the policyholder has duly paid the premiums for at least two full years for the regular premium payment mode, they can surrender the LIC Jeevan Dhara II policy any time during or after the deferment period. Under the single premium payment, the policy can be surrendered anytime on the purchase price payment.
Avail of Incentives
The policyholder can avail of the incentives under LIC Jeevan Dhara 2 plan in the following manner:
- Incentives for high premium purchase price
- Incentives for online sale
- Adjustment of annuity payment frequency
- Incentive for existing LIC policyholders/ nominee/ beneficiaries
Policy Loan
For regular premium payments under Options 2, 3, 4, 5, 6, 7, and 9, the policyholder can avail of a loan only after at least two full years of premiums have been paid. In the case of a single premium payment under Options 10 and 11, the policyholder can avail of a loan anytime after three months from the policy issuance or after the expiry of the free-look period, whichever is later.
Policy Alteration
To provide the maximum flexibility to the policyholder, the following alterations are possible under LIC Jeevan Dhara 2 plan:
- Change in premium payment mode during the deferment period
- Change in mode of annuity payments
Free Look Period
A 30 day free look period is provided under LIC Jeevan Dhara II plan, during which the policyholder can return the policy to the corporation if not satisfied with the terms and conditions. The policyholder needs to state the reasons for objection, and the corporation returns the premium deposited after deducting any charges.
Tax Benefits
Under Section 80C of the Income Tax Act, 1961, the policyholder can avail of tax benefits of up to Rs. 1.5 lakhs on the premium paid towards the LIC Jeevan Dhara II policy. Moreover, the benefits received are tax exempted under Section 10 (10D).
Get to know: What tax benefits do you enjoy buying an LIC policy?
Exclusions Under LIC Jeevan Dhara II Plan
Suicide committed under a certain time period prevents the annuitant or the nominee from receiving the predefined benefits of the LIC Jeevan Dhara II plan as committed during the policy inception. The benefits payable to the nominee/ last surviving annuitant will be as follows:
| Annuity Option | Mode of Payment | Suicide Committed By | Benefits Payable |
|---|---|---|---|
| Annuity Option 1 to 9 | Regular Premium Payment | Annuitant or last survivor anytime within 12 months from the date of commencement of risk | 80% of the total premium paid till the date of death |
| Annuitant or last survivor within 12 months from the date of revival | Higher of 80% of the total premium paid till the date of death Surrender value available on the date of death |
||
| Annuity Option 10 & 11 | Single Premium Payment | Annuitant or last survivor anytime within 12 months from the date of commencement of risk | 80% of the purchase price or surrender value available on the date of the death |
Final Words
LIC Jeevan Dhara II policy is a suitable choice for individuals looking to safeguard their retirement years financially. Purchasing the Jeevan Dhara 2 plan can secure a lifelong guaranteed income for you and your loved ones. Before purchasing the policy, you can use the LIC Jeevan Dhara 2 plan premium calculator to estimate the premium amount. The plan is available for online and offline purchases.
Once the policy is purchased, you can use the LIC e-portal and log in to your customer account to add the policy and keep track of it. Additionally, you can make LIC premium payments, check claim status, download premium receipts, and seek assistance using the portal. To purchase the LIC Jeevan Dhara II plan offline, you can contact the nearest LIC branch or any LIC agent. Connect with an insurance agent or advisor nearby with the help of RenewBuy Advisor Connect.
Explore LIC of India Resources
| Category Pages | ULIP Plan | Micro Insurance Plan | Health Plan | Child Plan |
|---|---|---|---|---|