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Annuity Options for Maturing LIC Jeevan Nidhi

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04 Jul, 2021 by  ashis

Dear Sir/ Madam,


I have a Jeevan Nidhi Plan maturing later this year which was bought in early 2000s. LIC has asked me to choose an annuity plan. Given that it was bought to save tax at that point of time and the likely maturity amount of approx. Rs. 3 Lakhs, which looked significant that time but is insignificant now, is there an option to take out all the money, without buying annuity? Especially as the annuity rates are low, the pension isn't going to be very material amount.

But if it is compulsory to buy annuity, what are the best annuity plans available at the moment assuming I can opt from any insurer?

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05 Jul, 2021

Dear Ashish

We all face two risks .

1. Risk of dying early is covered through insirance .

2. Risk of living too long is covered through annuity .Your plan has matured and hsve two option :

1. You can withdraw one third amount and use

2. You can use two third to buy annuity for life with return of purchase price so you will get a guaranteed income till death and purchase price will be given to your nominee post death .

3. You get maximum as annual return so go for annual option .

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06 Jul, 2021
ashis
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