A Comprehensive Guide to Your Retirement Planning
In today’s uncertain world, one thing we all seek is a financially secure retirement. LIC of India understands this need and has launched a powerful pension product — LIC Jeevan Dhara-2 Plan 872 (Plan No. 872). This plan is designed to give you peace of mind in your retirement years by offering guaranteed annuity income and several customizable options.
Launched on 22nd January 2024, this plan is ideal for individuals seeking regular income after retirement with added security, flexibility, and guaranteed annuity benefits.
What is LIC Jeevan Dhara-2?
LIC Jeevan Dhara-2 is a Non-Linked, Non-Participating, Individual Savings, Deferred Annuity Plan, which means it’s not affected by the stock market and doesn’t participate in company profits. It’s purely designed to give you a guaranteed pension income after a deferment period that you choose.
It offers:
- Deferred annuity income: You decide when you want the pension to start.
- 11 unique annuity options: Choose based on your needs — single life, joint life, with or without return of purchase price.
- Flexibility to pay premiums: One-time or regular payments.
- Life cover during deferment period.
Key Features of LIC Jeevan Dhara-2
| Feature | Description |
|---|---|
| Plan Type | Deferred Annuity with 11 options |
| Launch Date | 22nd January 2024 |
| UIN | 512N364V01 |
| Premium Modes | Single Premium or Regular Premium |
| Life Cover | Available during deferment period |
| Loan Facility | Available under return of premium options |
| Liquidity Option | Lump-sum withdrawal facility (with conditions) |
| Top-up Option | Additional premium allowed during deferment period |
Eligibility Criteria
| Parameter | Regular Premium | Single Premium |
|---|---|---|
| Minimum Entry Age | 20 years | 20 years |
| Maximum Entry Age | Varies by annuity option: up to 80 years minus deferment period | |
| Deferment Period | 5 to 15 years | 1 to 15 years |
| Minimum Annuity Purchase Price | ₹1,50,000 (can vary based on option) | |
| Maximum Age at Vesting | 80 years (single life) / 75 years (joint life) |
Available Annuity Options
LIC offers 11 annuity options under this plan, broadly categorized into:
- Single Life Options (1 to 7, 10)
- Joint Life Options (8, 9, 11)
You can choose annuity:
- With or Without Return of Purchase Price
- With increasing annuity
- With or Without Early Return Benefits
- Joint Life Options for spouse/parent/child
Once selected, the annuity option cannot be changed later.
Deferment Period: Your Control Over Pension Start
You can decide when you want your annuity payments to begin, called the Deferment Period.
| Premium Type | Deferment Period Range |
|---|---|
| Regular Premium | 5 to 15 years |
| Single Premium | 1 to 15 years |
Mode of Annuity Payout
You can choose how frequently you want to receive your pension:
- Monthly
- Quarterly
- Half-yearly
- Yearly
More frequent payouts may have slightly lower annuity rates due to administrative costs.
Death Benefits
LIC provides death benefit coverage during deferment period, which varies by annuity option:
A. Single Life Options (1 to 7, 10)
- Death During Deferment Period:
105% of total premiums paid will be paid to nominee(s). - Death After Deferment Period:
- Option 1 (without return): No benefit, annuity stops.
- Option 2 & 10 (with return): 100% of premiums paid.
- Options 3 to 7: 100% of premiums minus early return (if any).
B. Joint Life Options (8, 9, 11)
- Death During Deferment:
- First death: Policy continues.
- Last death: 105% of premiums paid to nominee(s).
- Death After Deferment:
- First death: Full annuity continues to survivor.
- Last death: Annuity stops.
- Options 9 & 11: Return of purchase price on last death.
Liquidity Option: Emergency Support
You can opt for partial withdrawal of premiums under select annuity options (2, 9, 10, 11) after 5 years of policy commencement.
| Feature | Description |
|---|---|
| Eligibility | Only for annuity with return of premium |
| When? | After 5 years from commencement |
| How Many Times? | Maximum 3 times |
| Limit | Up to 60% of total premiums paid |
| Impact | Annuity reduces proportionally |
Top-up Annuity Option
During the deferment period, while your policy is active, you can increase your pension income by paying additional Single Premiums. This helps boost your retirement income without buying a new plan.
Surrender & Loan Facility
Surrender:
- Single Premium: Can be surrendered anytime.
- Regular Premium: After 2 years of premium payment.
Loan:
- Available during/after deferment for options with return of premium.
- Max Loan: 80% of surrender value, interest should not exceed 50% of annual annuity.
Revival
If you miss premiums under the Regular Premium plan, you can revive your policy within 5 years from the date of the first unpaid premium.
Tabular Example: LIC Jeevan Dhara-2 Pension Illustration
Let’s assume the following for illustration:
| Particular | Details |
|---|---|
| Age at Entry | 45 Years |
| Premium Type | Single Premium |
| Purchase Price | ₹10,00,000 |
| Deferment Period | 10 Years |
| Annuity Option | Option 2: Life Annuity with Return of Purchase Price |
| Payout Mode | Yearly |
| Annuity Rate (Approx.) | ₹7.8% (age-based, estimated) |
| Year | Age | Status | Annual Annuity | Death Benefit |
|---|---|---|---|---|
| 1-10 | 45–54 | Deferment Period | ₹0 | 105% of Premium = ₹10,50,000 |
| 11–Lifetime | 55+ | Annuity Starts | ₹78,000/year | ₹10,00,000 to nominee (on death) |
Note: Actual annuity rates will depend on LIC’s prevailing rates at purchase and can vary.
Why Choose LIC Jeevan Dhara-2?
✅ Guaranteed Lifetime Income
✅ Customizable Plans to Suit Every Need
✅ Death Cover During Deferment
✅ Tax Benefits under 80CCC & 10(10A)
✅ Backed by India’s Most Trusted Insurer – LIC
Final Thoughts
LIC Jeevan Dhara-2 is more than just a pension plan — it’s your retirement partner for life. With guaranteed income, life cover, liquidity, and flexibility, it’s one of the most versatile annuity plans in the Indian insurance market.
Whether you are salaried, self-employed, or planning early retirement, this plan can be tailored to ensure a stress-free golden age.
