LIC launched New Jeevan Nidhi-What is new??

LIC recently launched one more traditional pension product naming “New Jeevan Nidhi”. It purely resemble old pension plan “Jeevan Nidhi” except few changes.

Let us see the difference between old and new version plans.


Benefits also from both policies looks same.


Now big question-How much return we can expect from such policies?

As usual this is a traditional plan. Expenses are hidden. Agents commission from old Jeevan Nidhi was 7.5% in first year, and from next year onward it is 2%. I hope the same commission from this too. So your agent may not push you this product as eagerly as any other LIC’s product. Bonus for old Jeevan Nidhi is between Rs.32 to Rs.38 per Rs.1,000. So we can expect the same returns from this new product too. Overall this product is suitable to risk averse investor, who have a faith on LIC and ready to contribute higher amount without bothering about return part.

But in my view your retirement goal is a long term goal. So if you add equity exposure then it will automatically give leverage of high return, you may fund for your other financial goals too and faith in LIC?? I can’t say anything….because it is your money you need to decide wisely :)




  1. Biju DanielBiju Daniel says

    I would like to do a one time investment of 20 lakhs. This amount is the return I got from LIC for my daughters education plan. She is 11 yrs now. I need to invest where this will be useful, when she is 17yrs.

  2. vijayvijay says

    sir/madam, my name is vijay, my questn is i am paying a yearly single lic jeevan nidhi premium of 26562/year for 21 years, after 21 years how much monthly pension i will get? pls reply

    • BasuNiveshBasuNivesh says

      Vijay-Looking at the old closed Jeevan Nidhi returns, we can presume that same will follow in this policy too as this too belongs to traditional plan. Hence your returns from this policy may be around 6-8%. So for generating the good retirement corpus this plan is actually a big no. Instead you can easily accumulate good amount by investing in PPF kind of instruments.

  3. SaurabSaurab says

    From an agent of LIC I got these details below. Mr.Basu, plz correct if anything is wrong.
    For 10 Lakhs Insurance, u’ve to invest Rs.3337 per month (I am 30 now) for 25 years.
    After 25 years, u’ll get 10 Lakhs + 9.5 Lakhs Bonus @Rs.38 + 4.5 Lakhs Addl Bonus. Total Rs.24 Lakhs.
    He says without commuting this amount, i’ll get at Age 55, Rs.15,000 per month(as per LICs Jeevan Akshay immediate pension policy) life long with 24 Lakhs Insurance coverage.
    Are all these factors true???

    • BasuNiveshBasuNivesh says

      Saurab-Let us keep your agents calculations aside. First think yourself whether you can sustain with Rs.15,000 per month after 25 years? Suppose your current household expenses are around Rs.15,000 then do you know what will be the same amount after 25 years (considering inflation of 6%)?? It is Rs.64,378. If we do the reverse valuation of Rs.15,000 what you will get after 25 years monthly in the same manner. Then today’s value is Rs.3,500 of what you get Rs.15,000 after 25 years.
      Now think and decide yourself is it worth to invest or not?? Retirement is the long term goal and your investment should be in such a way that it can give returns which is over and above inflation rate.

  4. RonyRony says

    Hi. I am looking out for options on pension fund and am a bit confused on Annuity option.
    All pension funds mention about creating a corpus and then choosing any company’s annuity plan to invest this corpus amount created over a life time. Does this also mean that the corpus created could be through any means like stock options, Mutual Funds (non Pension schemes) and at the age of retirement invest the amount in any annuity options provided by any Fund operator at that time. Is this possible.

    • BasuNiveshBasuNivesh says

      Rony-Dont make it that much confused. Retirement corpus creation means, suppose your current age is around 30 yrs and you are planning to retire at the age of 60 yrs. Now your task is to build the amount which fulfills your expenses which will come after the age of 60 yrs to till your last breath. Building this corpus need a proper planning. No doubt you can create it by any means. But with proper planning you start early then it will be helpful for you. Hence creation of this corpus depends on investing in Stocks, Options, Mutual Funds or even with above reviewed products too. But be careful about what and where you are investing, risk associated with them and whether by such investments your goals are fulfilled or not.

      Hope I solved your doubt. If still facing doubt then please let me know.

      • RonyRony says

        Hi Basu, My query isn’t addressed yet. What I need to know is can I invest my earnings after reaching the age of 60 or so in any Anuity fund then, without presently investing in any pension plans? Hope my query is clear now.

        • BasuNiveshBasuNivesh says

          Rony-When you reach the age of 60 years, you can invest too. But a large sum to withdraw from 61 yrs to the end of your breath. What I am saying is, suppose you created the corpus of Rs.1,00,00,000 when you reach at 60 is good and you can do that when you reach 60 years. But to create that Rs.1,00,00,000 you need to start investing from now onward. Have you got clarity now?

  5. ShyamShyam says

    My age is 32 years. I want to invest a lumbsum of 60k per year for 21-25years. can you suggest me some good plans with good returns-not good insurance.

    • BasuNiveshBasuNivesh says

      Shyam-First of all good to hear that for your investment you have not choosen Insurance. Go ahead with equity exposure by a well diversified funds. Also put around 10-15% into PPF (which will act as debt instrument for your portfolio). Put around 5-10% into Gold too (either in any Gold ETF, Gold Mutual Funds or E-Gold). This will really diversify your portfolio into all asset classes and as your waiting period is more than 20 years then you will definitely get good return.

  6. PrasannaPrasanna says


    I really liked this article. Can you please suggest me some Good Pension Plan please. It will be great.


    • BasuNiveshBasuNivesh says

      Prasanna-Retirement planning is usually a long term goal. Hence you need to invest in such a way that your return on investments should be above inflation. To do it, diversifying in all asset class is must. Hence in my view it is better to go for equity, debt, gold in a good proportion. So in my view NPS is good else choose the mutual fund way to accumulate a better retirement corpus.

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