LIC New Jeevan Suraksha I Plan 147
Deferred Annuity Calculator
Plan Number: 147 (UIN: 512N205V01)
Plan Type: Deferred Annuity Plan
Launch Date: Earlier (Withdrawn on 01.01.2012)
Entry Age: 18 - 65 years
Vesting Age: 50 - 79 years
Deferment Period: 2 - 35 years
Minimum Annual Premium: ₹2,500
Minimum Notional Cash Option: ₹50,000 (for regular premium policies)
Calculation Results
The LIC New Jeevan Suraksha I Plan 147 was a popular life insurance pension plan aimed at providing financial security during retirement. Though withdrawn from sale on January 1, 2012, it remains an important part of LIC’s portfolio history, and understanding this plan can help policyholders or those interested in pension plans.
What is LIC New Jeevan Suraksha I Plan 147?
LIC New Jeevan Suraksha I was a deferred annuity pension plan designed to help individuals build a retirement corpus by paying premiums during the policy term and then receiving a regular pension (annuity) after the plan matures (vests).
Deferred Annuity Meaning
Deferred annuity means the benefits or pension payments are postponed until the end of the premium-paying term, called the deferment period. During this period, the policyholder pays premiums regularly or as a single premium. After maturity, the policyholder starts receiving pension payments based on the accumulated corpus.
Launch and Withdrawal Dates
- Launch Date: The plan was introduced several years before 2012 (the exact launch date is not prominently available in recent records).
- Withdrawal Date: The LIC New Jeevan Suraksha I Plan was officially withdrawn from sale on January 1, 2012. This means no new policies can be issued under this plan as of this date. However, existing policyholders may continue to receive their benefits.
Eligibility Criteria
To purchase or have purchased this plan during its availability, the following eligibility conditions applied:
| Parameter | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 70 years |
| Minimum Vesting Age | 50 years |
| Maximum Vesting Age | 79 years |
| Policy Term (Deferment Period) | 2 to 35 years |
| Minimum Annual Premium | Rs. 2500 |
| Minimum Single Premium | Rs. 10,000 |
This meant that anyone between 18 and 70 years of age could start the plan, and the pension would commence after the deferment period, usually when the policyholder reached at least 50 years of age.
Features and Benefits
Pension on Maturity
The most important feature of this plan was to provide a pension after the deferment period. At maturity, the policyholder receives the corpus in the form of guaranteed annuity payments.
Premium Payment Options
Policyholders could opt for:
- Regular premium payment for the entire deferment period, or
- Single premium payment as a lump sum at the start.
Guaranteed Benefits
The plan promised guaranteed benefits either on death or on maturity, ensuring financial security.
Tax Benefits
Premiums paid under this policy were eligible for tax deductions under Section 80CCC(1) of the Income Tax Act in India. Moreover, the maturity or pension amount was tax-exempt under Section 10(23AAB).
Flexibility for Annuity
Upon vesting, the policyholder could choose the frequency of their annuity payments—monthly, quarterly, half-yearly, or annually.
Loan Facility
Note: Unlike some other LIC plans, loans were generally not allowed under this plan.
How Does LIC New Jeevan Suraksha I Plan Work?
This plan works in two phases:
Phase 1: Premium Payment or Deferment Period
During this phase, the policyholder pays premiums either regularly or as a single payment. These contributions accumulate with bonuses declared by LIC.
Phase 2: Annuity or Pension Payout Phase
After the policy completes the deferment period (reaching the vesting age), the savings are converted into an annuity. The annuity provides a fixed monthly, quarterly, half-yearly, or annual pension for life or a fixed term, depending on the annuity option chosen.
Use of LIC New Jeevan Suraksha I Plan 147 Calculator
For those holding this plan, an LIC New Jeevan Suraksha I Plan Calculator is useful to estimate:
- Maturity benefits
- Pension (annuity) amounts
- Surrender values
- Bonuses applicable
How to Use the Calculator
- Enter Policy Term or Deferment Period: Duration of premium payments (between 2 to 35 years).
- Enter Premium Amount: Annual or single premium paid.
- Specify Age at Entry and Vesting Age: To confirm eligibility and proper maturity date.
- Bonus Rate: LIC declares bonuses annually or periodically, which can be added in the calculator.
- Annuity Payment Frequency: Monthly, quarterly, half-yearly, or annually.
The calculator then estimates the maturity corpus and expected pension amount based on these inputs.
Benefits of Using the Calculator
- Helps policyholders plan their retirement finances by estimating future pension amounts.
- Enables comparison of expected returns with other pension plans.
- Useful for surrender or loan-related value calculations.
Bonus and Surrender Value
LIC declares bonuses regularly, which are added to the policy value. For Plan 147, bonuses vary year by year and significantly increase the maturity corpus.
Surrender value refers to the amount payable if the policyholder wishes to exit the plan before maturity. Special surrender values were applicable, especially for policies with short deferment periods such as 2 years.
Annuity Options on Maturity
After the deferment period, the policyholder can choose from various annuity options, such as
- Life annuity for self
- An annuity payable for a guaranteed period and life
- Joint life annuity including spouse
- Annuity with return of purchase price on death
These options allow flexibility in financial planning based on individual needs.
Why Was LIC New Jeevan Suraksha I Plan Withdrawn?
The exact reasons for withdrawal were not explicitly published, but generally:
- LIC regularly updates and enhances its product portfolio.
- Introduction of newer, more flexible pension products like LIC New Jeevan Nidhi and LIC Jeevan Shanti.
- Changing market dynamics and regulatory requirements.
Policyholders could consider alternative pension plans currently available for new investment.
Alternative Pension Plans from LIC
Since the withdrawal of New Jeevan Suraksha I, LIC offers various other pension plans, including
These plans offer modern features with similar or enhanced retirement benefits.
Who Should Consider a Deferred Annuity Plan?
- Individuals planning for retirement and seeking a steady source of income.
- Those desiring tax savings while building a retirement corpus.
- Investors looking for low-risk, guaranteed returns.
Important Points to Remember
- LIC New Jeevan Suraksha I (Plan 147) is no longer available for purchase.
- Existing policyholders should keep track of their policy statements and maturity dates.
- Claim all tax benefits by preserving premium receipts and documents.
- Consult LIC agents or officials for specific queries or annuity options after maturity.
Frequently Asked Questions
What is LIC New Jeevan Suraksha I Plan 147?
It is a deferred annuity pension plan by LIC designed to provide a regular pension after the policy matures.
Is LIC New Jeevan Suraksha I Plan 147 still available?
No, the plan was withdrawn on January 1, 2012, and no new policies can be issued under it.
What is the minimum entry age for this plan?
The minimum entry age to start this plan was 18 years.
What is the maximum vesting age?
The maximum vesting or maturity age under this plan was 79 years.
What are the premium payment options?
Policyholders could pay a single lump sum premium or regular premiums during the deferment period.
Are there tax benefits available for this plan?
Yes, premiums paid qualified for deductions under Section 80CCC, and the annuity income is tax-exempt under Section 10(23AAB).
Conclusion
LIC New Jeevan Suraksha I Plan 147 was a valuable pension product that helped many individuals secure their retirement financially with guaranteed benefits and tax advantages. Though withdrawn, understanding this plan’s features and benefits remains useful for current policyholders and those researching pension plans.