LIC Jeevan Dhara-II Details: Annuity Plans, Features and Eligibility

LIC Jeevan Dhara-II is a Non-Linked, Non-Participating, Individual, Savings, Deferred Annuity plan. It provides a steady income stream for policyholders, making it a suitable choice for those looking to plan their retirement effectively. The plan offers 11 annuity choices with different benefits. 

Here, we’ll be going to explain everything about LIC Jeevan Dhara-II policy to help you secure your retirement. 

Before we move forward, let’s first understand what exactly an “Annuity Plan” is, as the policy is all about the term “Annuity.”

“Annuity plans are retirement plans in which policyholders invest over the years to get a regular income during their retirement years.” 

Eligibility Criteria

Other Important Criterion

Annuity Options Available Under LIC Jeevan Dhara-II Plan

Let’s understand the benefits of all Annuity options in detail. 

Option 1: Life Annuity for Single Life

During Deferment Period

• If the Annuitant/policyholder survives, no money will be paid. 
• If the Annuitant dies, a death benefit equal to 105% of the total premiums will be paid up to the nominee. The policy ends after this payment. 

After Deferment Period: 

• Annuity payments will be made based on the chosen mode as long as the Annuitant is alive.
• If the annuitant dies, payments will stop immediately. No death benefit will be given, and the policy will end. 

Option 2: Life Annuity with Return of Premium for Single Life

During Deferment Period:

• No money will be paid if the annuitant survives. 
• If the Annuitant dies, a death benefit equal to 105% of the total premiums will be paid up to the nominee. The policy ends after this payment. 

After Deferment Period:

• Regular payments will be made based on the chosen mode as long as the Annuitant is alive.
• If the annuitant dies, payments will stop immediately, and a death benefit equal to 100% of the total premiums paid up to the date of death will be given. 

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

During Deferment Period:

• No benefits will be paid if the Annuitant/policyholder survives. 
• If the Annuitant dies, a death benefit equal to 105% of the total premiums will be paid up to the nominee/beneficiary.  

After Deferment Period:

• If the annuitant is alive, annuity payments will be made according to the chosen mode. When the annuitant turns 75, they will receive 50% of the total premiums paid.
• If the annuitant passes away, annuity payments will stop. A death benefit equal to 100% of the total premiums paid up to the date of death, less any early return of premium already paid, will be given to the nominee. 

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

During Deferment Period:

• No money will be paid if the Annuitant/policyholder survives. 
• If the Annuitant dies, a death benefit equal to 105% of the total premiums will be paid up to the nominee/beneficiary. 

After Deferment Period:

• If the annuitant survives, annuity payments will be made according to the chosen schedule. When the policyholder turns 75, they will receive 50% of the total premiums paid. 
• If the annuitant passes away, annuity payments will immediately stop. The policy will pay 100% of all premiums paid less any early return of the premium already given.  

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

During Deferment Period:

• No money will be paid if the Annuitant/policyholder survives. 
• If the annuitant passes away, a death benefit of 105% of all premiums paid up to that time period will be paid.

After Deferment Period:

• If the annuitant is alive, annuity payments will start and continue as long as the annuitant is alive. When the annuitant reaches 80 years of age, they will also receive 50% of the total premiums paid.
• In case the annuitant passes away, annuity payments will stop. The nominee will receive a death benefit of 100% of all premiums paid, less any early return of the premium already given. 

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

During Deferment Period:

•  No money will be paid if the annuitant/policyholder is alive. 
• If the annuitant passes away, a death benefit of 105% of all premiums paid up to that time period will be paid to the nominee. 

After Deferment Period:

• If the Annuitant is Alive: Annuity payments will start and continue as long as the annuitant is alive. When the annuitant reaches 80, they will also receive 100% of the total premiums paid.
• If the annuitant passes away, annuity payments will stop. The nominee will receive a death benefit of 100% of all premiums paid, less any early return of the premium already given. The policy will end after this payment.

Option 7: Life Annuity with a 5% Return of Premium after attaining age 76 years to 95 years for Single Life

During Deferment Period:

•  No money will be paid if the Annuitant/policyholder is alive. 
• If the annuitant passes away, a death benefit of 105% of all premiums paid up to that time period will be paid to the nominee. 

After Deferment Period:

• If the annuitant is alive, regular annuity payments will start till the survival. Additionally, between ages 76 and 95, a 5% return of the total premiums paid will be given each year on the policy anniversary.
• If the annuitant passes away, annuity payments will stop. The nominee will get a death benefit of 100% of all premiums paid, less any early return of the premium already given. The policy will end after this benefit.

Option 8: Life Annuity for Joint Life

During Deferment Period:

• No money will be paid if the Primary Annuitant or Secondary Annuitant survives. 
• On the first death (Either of the primary or secondary annuitant), no death benefit will be paid, and the policy will continue with payment of any due premiums. 
• On the death of the last survivor, a death benefit of 105% of the total premiums paid up to that point will be given. The policy will end after this payment. 

After Deferment Period:

• Annuity payments will start and continue till the primary or secondary annuitant is alive.
• On the first death (Primary or Secondary Annuitant), no death benefit will be paid, but 100% of the annuity amount will continue to be paid to the last survivor.
• On the unfortunate death of the last survivor, annuity payments will stop immediately. No death benefit will be given, and the policy ends.

Option 9: Life Annuity with Return of Premium for Joint Life

During Deferment Period:

• No money will be paid if the Primary Annuitant or Secondary Annuitant is alive. 
• On the first death (Either of the primary or secondary annuitant), no death benefit will be paid, and the policy will continue with payment of any due premiums. 
• On the death of the last survivor, a death benefit of 105% of the total premiums paid up to that point will be given, and the policy ends. 

After Deferment Period:

• Annuity payments will start and continue till the primary or secondary annuitant is alive.
• On the first death (Primary or Secondary Annuitant), no death benefit will be paid, but 100% of the annuity payment will continue to be given to the last survivor.
• On the unfortunate death of the last survivor, annuity payments will stop immediately. The nominee/beneficiary will receive a death benefit of 100% of the total premiums paid.  

Option 10: Life Annuity with Return of Purchase Price for Single Life

During Deferment Period:

• No money will be paid if the annuitant/policyholder is alive. 
• If the annuitant passes away, a death benefit of 105% of all premiums will be paid. 

After Deferment Period:

• If the annuitant is alive, annuity payments will start and continue as long as the policyholder is alive.
• If the annuitant passes away, annuity payments will stop. The nominee/beneficiary will receive a death benefit of 100% of all premiums paid. 

Option 11: Life Annuity with Return of Purchase Price for Joint Life

During Deferment Period:

• No money will be paid if the annuitant/policyholder survives. 
• On the first death (Either of primary or secondary annuitant), no death benefit will be paid, and the policy will continue.
• On the death of the last survivor, a death benefit of 105% of the total premiums paid up to that point will be given, and the policy ends. 

After Deferment Period:

• If either annuitant is alive, annuity payments will start and continue as long as the person is alive.
• If one person passes away, no death benefit will be paid, but 100% of the annuity amount will continue to be paid to the survivor.
• If both of the annuitants pass, the payments will stop. The nominee will receive 100% of the total premiums paid as the death benefit. 

Key Features of LIC Jeevan Dhara-II Plan

Check key features of Jeevan Dhara LIC plan in below list:

• Variety of Annuity Options: Policyholders can choose from 11 annuity options according to their requirements. 
• Premium Flexibility: You can opt for either regular premium payments or a single premium payment with different payment modes, including yearly, half-yearly, quarterly, and monthly. Also, there is flexibility to choose between a single-life annuity or a joint-life annuity. 
• Death Benefit Options: Choose to receive the death benefit as a lump sum, through annuitisation, or in installments.
• Top-up Annuity Options: Increase your annuity by making additional premium payments during the deferment period.
• Liquidity Option: Access a lump sum amount in exchange for reduced annuity payments and other benefits.

Optional Features Available Under LIC Jeevan Dhara II 

• Top-up Annuity

You can increase your annuity by paying additional premiums as a single premium, subject to the following conditions:

• You can add more premiums anytime during the deferment period as long as your policy is active. 
• How It Works: The amount of extra annuity you get will be based on the annuity rates at the time you pay the additional premium. These rates depend on the current rules for age, deferment period, and minimum additional premium. For instance, if you top up your annuity after 2.5 years in a 10-year deferment period, the rates for a 7.5-year deferment will be used.

• Liquidity Option

This option allows you to receive a lump-sum amount in exchange for reducing your annuity payments and other benefits under the base policy. It can only be used after 5 years from the first annuity payment and up to 3 times during the policy term. 

However, the total lump-sum benefits you can get through this option cannot exceed 60% of the total premiums paid. After using this option, your annuity payments, death benefits, and other benefits will be adjusted. For example, if you liquidate 10% and then 20% of your total premium at different times, your benefits will be declined to 70% of the original amounts.  

• Advanced Annuity Option

If one of the annuitants dies under Joint Life Annuity Options 9 or 11, the surviving annuitant can choose to get a lump sum instead of regular annuity payments for up to 5 years. Here’s how it works: 

• This option can be chosen within 6 months of the first death after the deferment period ends.
• The lump sum is only available for up to 5 years of annuity payment after the Advanced Annuity Option is chosen. After the advance period ends, annuity payments return to the original terms. 

• Options for Death Benefit Payment

The LIC Jeevan Dhara-II offers nominees to receive death benefits in the following 3 ways. 

• Lump-Sum Payment: The entire death benefit is paid in one lump sum.
• Annuitisation of Death Benefit: The death benefit is used to buy an Immediate Annuity for the nominee, starting from the date of the annuitant's death. The annuity amount will depend on the nominee(s)' age and the annuity rates at that time. 
• Installments: The death benefit can be paid in installments over 5, 10, or 15 years on a yearly, half-yearly, quarterly, or monthly basis with minimum amounts as follows:

• Monthly: ₹5,000
• Quarterly: ₹15,000
• Half-Yearly: ₹25,000
• Yearly: ₹50,000

• Option for Dependents with Disability (Divyangjan)

If the policyholder has a dependent with a disability (Divyangjan), they can choose Option-10 (Life Annuity with Return of Purchase Price for Single Life) and get the below benefit for Divyangjan. 

If the annuitant dies and the amount spent is less than the required minimum, the death benefit won't be given as a lump sum. Instead, it will be used to buy an Immediate Annuity for the Divyangjan nominee. The best part is that the annuity will be paid to Divyangjan without any restrictions according to the current Immediate Annuity rates. 

Important: The dependent with a disability must fit the definition of "person with benchmark disability" according to "The Rights of Persons with Disabilities Act, 2016" or any similar law.

Exclusions

For Regular Premium Policies (Options 1 to 9):

• Within the First 12 Months

In a joint life annuity, if the annuitant or the last survivor commits suicide within 12 months from the policy start date, the nominee gets 80% of the total premiums paid until the date of death if the policy is active.

*****This clause doesn't apply to lapsed policies without a paid-up value; nothing will be paid in such cases.

• After the Deferment Period

If the annuitant or last survivor commits suicide after the deferment period, this clause doesn't apply, and the death benefit as chosen will be paid.

For Single Premium Policies (Options 10 & 11):

If the annuitant or the last survivor in a joint life annuity commits suicide within 12 months from the policy start date, the nominee gets the higher amount between 80% of the purchase price or the surrender value at the date of death.

Premium Chart

Policyholders can choose to pay either 

• Regular Premium 

OR

• Single Premium

Here’s the premium chart for both of the options. 

For Regular Premium

For Single Premium

How to Buy LIC Jeevan Dhara-II Policy From InsuranceDekho?

Here’s how you can buy the LIC Jeevan Dhara-II Policy From InsuranceDekho. 

1. Head to our official website and choose “Life Insurance” under the “Insurance” tab. To view all the available plans, enter your personal information and click on "View Plans."
2. Find and select the "LIC Jeevan Dhara-II" policy. Make sure to thoroughly understand the terms and conditions. Then, choose the sum assured and policy term that fits your needs.
3. Provide your education, occupation, and annual income details, check the premium amount, and proceed with the payment.
4. A medical check might be required depending on the policyholder’s age and chosen term. After approval, you will receive the policy confirmation through email or SMS.

Give us a call at +91-7551196989 if you face any difficulty in buying the plan or need expert assistance. Team InsuranceDekho is here to help you 24*7!

Frequently Asked Questions (FAQs)

Ques 1. Is Grace Period available for LIC Jeevan Dhara-II policy? 

Ans. Yes! A grace period of 30 days is available for payment of yearly, half-yearly, or quarterly premiums and 15 days for monthly premiums. 

Ques 2. Is LIC Jeevan Dhara Plan a good plan to buy?

Ans. LIC Jeevan Dhara-II is a deferred annuity plan and can be a good choice if you are looking for a steady income post-retirement. The best part is that it comes with multiple options for annuity payments, including yearly, half-yearly, quarterly, and monthly. So, you can choose the one according to your budget and risk appetite. 

Ques 3. Is Free Look Period available for LIC Jeevan Dhara-II policy? 

Ans. 30 days of Free Look Period is available for LIC Jeevan Dhara-II policy.