LIC New Jeevan Dhara II (Plan 892) is a deferred annuity plan: you pay premiums now and receive a predetermined pension after a chosen waiting period. Its main choices concern whose lifetime the pension covers and whether premiums are returned to you during life or to your nominee after death.
Plan identification: New Jeevan Dhara-II, Plan No. 892, UIN 512N398V01. LIC announced the plan on 13 October 2026 and states that it will be available for purchase from 19 October 2026. This guide covers the new plan, not the earlier Jeevan Dhara-II Plan 872.
What is New Jeevan Dhara II?
The plan is a non-linked, non-participating, individual savings deferred annuity product. “Non-linked” means its benefits are not tied to stock-market fund values. “Non-participating” means it does not earn participating-policy bonuses. The annuity rates for the policy are guaranteed at inception, subject to the chosen option and payment of the required premiums.
The person whose life determines pension payments is called the annuitant. The waiting period is the deferment period, and its end is the vesting date. You can choose regular premiums or a single payment, and single-life or joint-life cover, within the options available for each payment type.
LIC New Jeevan Dhara II pension calculator
Estimate pension for single-life Options 1–7 and 10. Enter the premium for one instalment (or the full purchase price for Option 10), select the deferment period and compare pension frequencies. The calculator checks premium and pension minimums and includes eligible incentives and early premium returns. Joint-life, top-up, loan and surrender calculations are outside its scope.
Key features and eligibility at a glance
| Feature | Plan 892 rule |
|---|---|
| Minimum entry age | 18 years, age last birthday, for each annuitant |
| Minimum vesting age | 30 years for the annuitant / primary annuitant |
| Maximum vesting age | 65 for Options 1, 3, 4 and 8; 70 for Options 2, 5, 6, 7, 9, 10 and 11 |
| Maximum entry age | Applicable maximum age of 65 or 70 minus the deferment period; the secondary annuitant also has the option-specific entry limit |
| Regular-premium deferment | 2 to 15 years; premiums are payable throughout this period |
| Single-premium deferment | 1 to 15 years |
| Pension frequency | Monthly, quarterly, half-yearly or yearly, payable in arrears |
| Minimum pension | ₹1,000 monthly, ₹3,000 quarterly, ₹6,000 half-yearly or ₹12,000 yearly, subject to specified exceptions |
| Maturity benefit | No separate maturity benefit |
Eligibility example: With a 10-year deferment, the maximum entry age is 55 for Option 4 and 60 for Option 6. The minimum entry age of 18 does not make every deferment period available: the minimum vesting age must also be satisfied.
How the pension timeline works
- Choose the structure: select the annuity option, premium, deferment period and pension frequency.
- Fund the policy: pay one purchase price under single premium, or regular premiums throughout deferment.
- Wait until vesting: no survival pension is payable during deferment.
- Receive pension in arrears: payments start after the first selected payment interval following the end of deferment and continue under the chosen life option.
For example, a person entering at age 50 with 10-year deferment reaches vesting at age 60. With monthly pension, the first instalment falls one month after deferment ends; with yearly pension, it falls one year after deferment ends. The vesting date and the first pension-payment date are therefore different.
All 11 annuity options explained
Options 1 to 9 use regular premiums. Options 10 and 11 use a single premium. The annuity option cannot be changed once selected. The table below summarises base-policy benefits after deferment, before any adjustment for loans, liquidity withdrawals or advance annuity.
| Option | Pension arrangement | Premium-return feature |
|---|---|---|
| 1 | Single-life pension | No death benefit after deferment |
| 2 | Single-life pension | 100% of total premiums paid on death after deferment |
| 3 | Single-life pension | 50% early return at age 75; balance on subsequent death |
| 4 | Single-life pension | 100% early return at age 75 |
| 5 | Single-life pension | 50% early return at age 80; balance on subsequent death |
| 6 | Single-life pension | 100% early return at age 80 |
| 7 | Single-life pension | 5% early return each year from ages 76 to 95, inclusive |
| 8 | Joint-life pension; 100% continues to the survivor | No death benefit on the last survivor’s death after deferment |
| 9 | Joint-life pension; 100% continues to the survivor | 100% of total premiums paid on the last survivor’s death after deferment |
| 10 | Single-premium, single-life pension | 100% of purchase price on death after deferment |
| 11 | Single-premium, joint-life pension; 100% continues to the survivor | 100% of purchase price on the last survivor’s death after deferment |
For Options 3 to 7, early returns are payable on survival to the policy anniversary coinciding with or immediately following completion of the specified age. They are not necessarily paid on the birthday itself. Pension continues for life even after the scheduled premium return.
Joint life is available for specified family relationships, including spouses, siblings, parents and children, grandparents and grandchildren, and parent-in-law relationships. It provides one pension stream: the primary annuitant receives it while alive, and the secondary annuitant receives the same pension after the primary annuitant’s death.
Early return of premium: a simple ₹10 lakh example
Assume a fully paid regular-premium base policy has received ₹10 lakh in total premiums, excluding taxes and extra premiums. The figures below explain the return-of-premium mechanism only; they are not pension quotations.
- Option 3: ₹5 lakh is returned on the qualifying anniversary at age 75. If death occurs later, the remaining ₹5 lakh is the base death benefit.
- Option 4: ₹10 lakh is returned on the qualifying anniversary at age 75. Pension continues, but no further base premium-return death benefit remains.
- Option 5: ₹5 lakh is returned on the qualifying anniversary at age 80, leaving ₹5 lakh for subsequent death benefit.
- Option 6: ₹10 lakh is returned on the qualifying anniversary at age 80. Pension continues thereafter.
- Option 7: ₹50,000 is returned on each qualifying anniversary for ages 76 through 95. If six instalments have been paid, ₹3 lakh has been returned and ₹7 lakh remains as the base death benefit.
If death occurs after deferment but before any scheduled early return, the base death benefit under Options 3 to 7 is 100% of total premiums paid. Later, it is reduced by early premium returns already paid. Early return is a return of your premium capital, not an additional bonus or a second full refund on death.
What happens if death occurs during deferment?
For an in-force single-life base policy, the death benefit during deferment is 105% of total premiums paid up to death, or 105% of purchase price under single premium, with a floor of the applicable surrender value. Policy exclusions and claim conditions apply.
Under joint life, the first death during deferment does not trigger a death-benefit payment. The policy continues, and any remaining regular premiums must still be paid. The deferment-period death benefit becomes payable on the death of the last survivor.
“Total premiums paid” and “purchase price” exclude extra premiums and separately collected taxes. Top-up benefits are calculated separately. The standard benefit descriptions above must also be read with the policy’s suicide clause, paid-up rules and any outstanding loan adjustments.
How much premium is required?
There is no single minimum premium for everyone. The minimum depends on the option, deferment period and age band of the annuitant or primary annuitant. As one specific example, for someone below age 55 choosing Option 2 with 10 to 15 years’ deferment, the minimum yearly premium in the circular is ₹17,000. For Option 10 in the same age band and deferment range, the minimum single purchase price is ₹1,27,000.
Regular premiums can be yearly, half-yearly, quarterly or monthly; monthly collection uses the prescribed NACH/e-NACH or salary-deduction arrangements. Non-yearly instalments are calculated with conversion factors and are subject to a ₹1,000 minimum instalment. They should not be estimated by simply dividing the yearly premium.
How is the pension calculated?
The pension depends on age, option, deferment, premium and applicable incentives. For regular-premium policies, the rate table uses the annual equivalent premium, not the sum of all premiums over the entire deferment period. For single premium, it uses the purchase price.
Broadly, the yearly pension equals the applicable annual annuity rate per ₹1,000, including eligible incentives, multiplied by the annual equivalent premium or purchase price and divided by 1,000. Incentives for qualifying higher premiums and eligible customer or purchase channels must be applied according to the plan rules.
| Pension mode | Conversion from yearly pension |
|---|---|
| Yearly | Yearly pension × 1.00 |
| Half-yearly | Yearly pension × 0.98 ÷ 2 |
| Quarterly | Yearly pension × 0.97 ÷ 4 |
| Monthly | Yearly pension × 0.96 ÷ 12 |
Frequency example: If the calculated yearly pension is ₹1,00,000, the corresponding monthly pension is ₹8,000, not ₹8,333. This is an assumed yearly-pension amount used only to demonstrate the conversion factor.
A quoted annuity payout percentage should not be presented as an investment return or bank-deposit interest rate. Cash-flow timing, survival, premium returns and death benefits all affect the financial outcome. Use LIC’s personalised benefit illustration for an actual quotation.
Can you increase pension with a top-up?
Yes. Top-up annuity is available during deferment while the policy is in force, provided at least one full year of deferment remains and the product is available for sale, subject to prevailing eligibility conditions. The minimum additional premium for each top-up is ₹50,000.
Each top-up is treated as a separate single-premium tranche and uses the annuity rates prevailing when that top-up is paid. The original policy’s rate is not automatically extended to future top-ups. Its pension aligns with the base policy’s pension timing and payment mode, and benefits are calculated separately before being added together. A top-up cannot be surrendered independently of the base policy.
Liquidity, loans and surrender
Liquidity option
Options 2, 9, 10 and 11 allow a liquidity facility after five years from the first annuity payment. It can be exercised at most three times, within the prescribed limits. The lump sum is based on the relevant proportion of base-policy surrender value; it is not automatically the same percentage of premiums paid. Total lump-sum benefits under this facility cannot exceed 60% of total premiums paid, excluding top-ups.
Using it reduces future base pension, death benefit and other benefits proportionately, and the revised pension must meet the applicable minimum. It does not apply to top-up annuity.
Advance annuity for a surviving joint annuitant
Under Options 9 and 11, after deferment, the survivor may opt within six months of the first death to receive the discounted value of up to five years of future annuities, or a proportion of them, as a lump sum. Payments during that advance period are correspondingly reduced; original annuity payments resume afterwards. Death or surrender benefits can also be reduced by the outstanding advance. This facility brings future pension forward rather than creating an extra benefit.
Loans and surrender conditions
Loans are available under eligible return-of-premium options, subject to waiting periods, premium-payment conditions and surrender value. The loan is capped at 80% of surrender value and must also satisfy the condition that effective annual loan interest does not exceed 50% of annual annuity. Under Options 3 to 6, loans are unavailable on or after the early-return due date; under Option 7, this restriction starts with the first early-return tranche.
Single-premium policies can be surrendered after payment of purchase price. For regular premiums, surrender eligibility requires at least one full year’s premiums; where the premium-paying term is five years or more, the first policy year must also be completed. During deferment, surrender is available under all options subject to eligibility. After deferment, Options 1 and 8 have no surrender payout. Eligible policies use the applicable surrender-value rules, which can produce an amount lower than premiums paid.
What if regular premiums stop?
The grace period is 30 days for yearly, half-yearly and quarterly premiums, and 15 days for monthly premiums. If premiums stop before one full year’s premiums have been paid, benefits cease after grace and premiums are not refundable under the lapse provisions.
Once the relevant paid-up conditions are met, a reduced paid-up benefit can remain. Broadly, paid-up pension is the original pension multiplied by the proportion of the premium-paying period actually paid. For terms of five years or more, paid-up status also requires completion of the first policy year. Minimum-annuity and revival conditions still apply; a small paid-up pension is not automatically payable indefinitely. Revival is subject to the plan’s five-year revival window and LIC’s conditions.
Related pension and retirement guides
For a different pension starting point, see our LIC Smart Pension Plan 879 guide and calculator, which explains immediate annuity options. New Jeevan Dhara II provides pension after the chosen waiting period.
For background on earlier annuity products, read the Jeevan Shanti Plan 850 revised guide and the Jeevan Akshay VII Plan 857 guide. These articles describe their named plan versions; their rates, eligibility and calculators should not be used for Plan 892.
To work out the income you may need before selecting a pension amount, use our retirement planning guide and calculator.
Points to weigh before choosing an option
- Income start date: the plan provides future pension, so match deferment and the first payment date to actual retirement needs.
- Family income: compare a single-life pension with a joint-life pension that continues to the survivor.
- Capital return: decide whether a return during life or a benefit for nominees matters more, and compare the corresponding pension quotations.
- Inflation: a fixed pension loses purchasing power as prices rise. Keep this in mind when estimating future expenses.
- Access to money: loans, liquidity and surrender have restrictions and consequences. Keep a separate emergency fund.
- Premium commitment: check that regular premiums remain affordable throughout deferment.
Frequently asked questions
Is New Jeevan Dhara II the same as Plan 872?
No. This article concerns Plan 892, UIN 512N398V01. Our earlier Jeevan Dhara-II article covers Plan 872. Always match the plan number and UIN before comparing benefits or using a rate table.
Does pension stop after a 100% early return of premium?
No. Under Options 4 and 6, pension continues while the annuitant is alive. Once the full base premium has been returned, no further base premium-return death benefit remains. Separate top-up benefits, if any, follow their own terms.
Does Option 7 mean pension rises by 5% every year?
No. It returns 5% of total premiums paid on each qualifying anniversary from ages 76 to 95, in addition to pension. It is not a 5% annual increase in the pension amount.
Is there a lump-sum maturity payment at vesting?
No separate maturity benefit is payable. Vesting marks the end of deferment; pension then follows the selected payment schedule. Scheduled early premium returns under Options 3 to 7 are separate benefits.
Can the policy be cancelled after receipt?
The free-look period is 30 days from receipt of the electronic or physical policy document, whichever is earlier. The circular provides for return of deposited premium after deduction of stamp duty, subject to applicable special conditions.
Is the pension tax-free?
Do not assume that it is tax-free. The tax treatment of premiums and benefits depends on applicable law and individual circumstances. Check current tax rules before relying on a deduction or exemption.
Sources and scope
This educational explanation is based on LIC’s New Jeevan Dhara-II product circular CO/PD/313 dated 12 October 2026, its accompanying annexures, and LIC’s public announcement dated 13 October 2026. Information reviewed on 14 October 2026. The public announcement confirms purchase availability from 19 October 2026.
Examples explain benefit mechanics and are not personalised quotations. The issued policy document, customer information sheet, sales brochure and signed benefit illustration govern individual benefits. Share this guide with fellow agents and readers who want to understand how deferred pension options work.
