LIC Jeevan Dhara II (Plan 872): A Guaranteed Pension Plan for Your Retirement
LIC Jeevan Dhara II (Plan 872): A Guaranteed Pension Plan for Your Retirement
Introduction
Retirement planning is not just about saving money. It is about making sure you get a regular income for life when your salary stops. LIC's Jeevan Dhara II is a pension plan designed exactly for this. Here is a simple guide to how it works, its features, annuity options and who should consider it. What is LIC Jeevan Dhara II?
LIC's Jeevan Dhara II (Plan No. 872) is an individual, savings, deferred annuity plan. It is non-linked and non-participating, which means your pension is not affected by stock market ups and downs. The annuity rate is guaranteed from the day you buy the policy. Launched on 22 January 2024, the plan lets you build a pension for the future and then receive it as regular income, either for life or according to the option you choose.
What is a Deferred Annuity?
In a deferred annuity, you pay premiums first and your pension starts after a waiting period (called the deferment period). This is different from an immediate annuity (like LIC Jeevan Akshay), where you pay a lump sum and the pension begins right away. Jeevan Dhara II suits people who are still earning and want to build a pension in advance.
Key Features of LIC Jeevan Dhara II
• Guaranteed annuity rate fixed at the time of purchase. • 11 annuity options to choose from, so you can match the plan to your family's needs. • Regular premium or single premium payment. • Single life or joint life annuity (joint life covers you and your spouse). • Flexible payout modes: yearly, half-yearly, quarterly or monthly. • Higher annuity rate at higher entry ages. • Life cover during the deferment period. • Top-up annuity facility to increase your pension. • Loan facility available under annuity options with Return of Premium / Purchase Price. • Extra benefits for existing LIC policyholders, nominees and beneficiaries. • Buy online or offline through an LIC agent or other intermediaries. Note: Once you choose an annuity option, it cannot be changed later, so choose carefully.
Eligibility
• Minimum entry age: 20 years (last birthday). • Maximum entry age: 80, 70 or 65 years minus the deferment period, depending on the annuity option chosen. • Available for both single life and joint life (primary and secondary annuitant). For exact minimum premium, deferment period and annuity amounts, please refer to the latest LIC brochure or ask us for a personalised illustration.
Annuity Options Explained
The plan offers 11 options. In simple terms, they fall into these groups: 1. Life annuity for single life: Pension for as long as you live. 2. Life annuity with Return of Premium (single life): Pension for life, and your premiums are returned to the nominee after your death. 3. Life annuity with 50% / 100% Return of Premium after age 75: A part or all of the premium is returned after you reach 75. 4. Life annuity for joint life: Pension continues for the surviving spouse. 5. Joint life with Return of Premium: Pension for both lives, and premiums are returned to the nominee after the last survivor's death. 6. Life annuity with Return of Purchase Price: Purchase price is returned to the nominee after death, for single or joint life. Options with Return of Premium / Purchase Price are suitable if you want your family to get back the invested amount. Basic life annuity options usually give a higher pension but no money back. Who Should Consider This Plan?
• Salaried or self-employed people without a pension (private jobs, business owners, professionals). • Anyone who wants a guaranteed, market-independent retirement income. • Couples who want a joint life pension that continues for the surviving spouse. • Conservative investors who prefer safety over market-linked returns.
Pros and Cons
Advantages
• Guaranteed pension rate, fixed from day one. • Backed by LIC, a government-owned insurer. • Many options for spouse protection and return of money. • No market risk.
Things to keep in mind
• The annuity option cannot be changed once selected. • The pension is fixed and may lose purchasing power over the years due to inflation. • Annuity income is taxable as per your income tax slab. • A deferred plan needs long-term commitment. Check surrender terms before buying.
Smart Tips Before You Buy
1. Start early. A longer deferment period generally means a higher pension. 2. Compare annuity rates for the same age and option, not just the brand. 3. Don't rely on a single product. Combine this with PPF, NPS or equity mutual funds for inflation-beating growth. 4. Choose the option based on family needs, especially whether your spouse depends on your income. Frequently Asked Questions (FAQ) Q1. What is the plan number of LIC Jeevan Dhara II? Plan No. 872 (UIN: 512N364V01). Q2. Is LIC Jeevan Dhara II a market-linked plan? No. It is a non-linked, non-participating plan with a guaranteed annuity rate. Q3. What is the minimum age to buy this plan? 20 years (last birthday). Q4. Can I pay a single premium? Yes. The plan offers both single premium and regular premium options. Q5. Can I change my annuity option later? No. Once chosen, it cannot be altered. Q6. Is the pension from Jeevan Dhara II taxable? Annuity income is generally taxable as per your applicable income tax slab. Please consult a tax advisor. Q7. Is a loan available? Yes, under annuity options with Return of Premium / Purchase Price, during or after the deferment period.
Conclusion
LIC Jeevan Dhara II is a straightforward way to lock in a guaranteed retirement income with the backing of LIC. If you want a stable pension without market risk, it deserves a place in your retirement plan, along with growth investments to beat inflation. Want a personalised pension illustration? Contact us: [Your name / phone / WhatsApp link]
Disclaimer: This article is for general information only. Features, annuity rates and eligibility are subject to the plan's terms and conditions and may change. Please read the sales brochure carefully before concluding a sale. Insurance is the subject matter of solicitation.
