To safeguard the future of our uncertain life and keep financial security in mind, we need to plan the right investment and savings of our money almost constantly. Financial planning has become more important than ever these days.
Therefore, one of the country’s leading insurance companies, ‘Life Insurance Corporation of India’ (LIC), has launched a new plan that is up to date with the needs of today’s people, which is Plan No. 871 or ‘Jiwan Utsav Policy’. This article provides detailed information about policy details, features, benefits, premium amount etc.
What is LIC Jeevan Utsav Policy?
Jeevan Utsav Policy is a new plan of LIC, launched on 29th November 2023. It is both a savings scheme and an investment from which you will get a guaranteed annual return for life and in addition it will also provide you with the security of life insurance coverage and finally you will be paid a lump sum after the maturity of the policy.
Another significant aspect of this policy is that it is not market linked so there is no risk on its returns. Besides, this investment has other benefits like, you can choose the premium period, you can choose whether you want to get the annual return at a fixed rate or keep it variable.
LIC Jeevan Utsav Policy Details
Details of Jeevan Utsav Policy are mentioned in the table below:
| Policy Name | LIC Jeevan Utsav |
| Plan no | 871 |
| Started | 29th November 2023 |
| Life Insurance Term | Lifetime |
| Policy Term | Lifetime |
| Maturity | No |
| Minimum policy commencement age | 90 days |
| Maximum policy commencement age | 65 years |
| Term of premium payment | 5 years to 16 years |
| Mode of payment of premium | Monthly, Quarterly, Half-yearly and Annually |
| Minimum amount | ₹5 lakh |
| Maximum amount | There is no limit |
Key features of LIC Jeevan Utsav
Key features of Jeevan Utsav Policy are listed below:
Lifetime Protection:
In this policy you get whole life coverage by paying premium for a fixed period.
Income flexibility:
You can choose between regular income or flexi income while taking this policy.
Guaranteed increase in savings:
An additional amount will be credited to the account along with your premium every year for as long as you pay premium on this policy.
Premium Period:
You can choose the premium payment tenure under this policy between 5 to 16 years
| Term of premium payment | Minimum policy commencement age | Maximum policy initiation age |
|---|---|---|
| 5 years | 8 years | 65 years |
| 6 years | 8 years | 65 years |
| 7 years | 8 years | 65 years |
| 8 years | 8 years | 65 years |
| 9 years | 7 years | 65 years |
| 10 years | 6 years | 65 years |
| 11 years | 5 years | 64 years |
| 12 years | 4 years | 63 years |
| 13 years | 3 years | 62 years |
| 14 years | 2 years | 61 years |
| 15 years | 1 years | 60 years |
| 16 years | 90 days | 59 years |
Mode of payment of premium:
You can pay the premium of this policy annually, half-yearly, quarterly or every month.
Optional coverage:
Also, like other policies, you can add additional protection through optional riders as per your convenience.
Loan facilities:
If you have paid at least 2 years of premium on the Jeevan Utsav policy, you can also take a loan through this policy.
LIC Jeevan Utsav Policy Benefits
You will get following benefits under Jeevan Utsav policy:
Death Benefit:
In case of death of the insured of this policy, the nominee will be paid the ‘Sum Assured on Death’ or death sum assured along with the additional sum assured. This Sum Assured on Death is always more than the Basic Sum Assured.
The amount of this death benefit is 105% or more of the total premium paid, or 7 times the annual premium paid.
Death benefit by installments:
You can opt to avail the death benefit in this policy in installments over 5, 10 or 15 years instead of a lump sum.
A table of minimum installment amounts is mentioned below:
| Mode of installment payment | Minimum installment amount |
|---|---|
| Monthly | ₹5,000/- |
| Quarterly | ₹15,000/- |
| Semi-Annually | ₹25,000/- |
| Annually | ₹50,000/- |
Refund in case of Minors:
In case of Minor Life Assured i.e. who is less than 8 years of age and in case of his death before the commencement of the specified period of risk, his premium will be refunded without interest as death benefit.
Survival Benefit:
As survival benefit you can choose 2 options, respectively (1) Regular Income (2) Flexi Income.
Two options are described below:
Regular Income Benefit: In this option the policyholder will get 10% of the basic sum assured for life at the end of each policy year during his lifetime.
Flexi Income Benefit: In this case also the policyholder will get 10% of the basic sum assured at the end of every policy year, but he can withdraw up to a maximum of 75% of the total balance once a year, in which case he will be paid 5.5% interest at the annual compounding rate.
From what time you will get money for any premium term is shown in the table below:
| Term of premium | Year of Commencement of Regular Income Benefit/FlexiIncome Benefit |
|---|---|
| 5 years | 11th policy year |
| 6 years | 11th policy year |
| 7 years | 11th policy year |
| 8 years | 11th policy year |
| 9 years | 12th policy year |
| 10 years | 13th policy year |
| 11 years | 14th policy year |
| 12 years | 15th policy year |
| 13 years | 16th policy year |
| 14 years | 17th policy year |
| 15 years | 18th policy year |
| 16 years | 19th policy year |
Guaranteed Additions:
At the end of each policy year during your premium paying period you will earn an additional profit of Rs.40/- on every Rs.1000 of Basic Sum Assured, which will be credited with your premium. But if the premium is not duly paid, this additional payment will cease.
Additional protection with the rider:
In this policy you get the benefit of several riders that provide additional coverage to the policyholder through an additional premium, they are:
Accidental death and disability benefit rider This rider is only applicable to policy holders below 70 years of age. In case of accidental death or disability of the insured during the period of payment of premium under this rider, within 6 months or 180 days from the date of accident, the nominee will get Death Benefit along with Accident Benefit Sum Assured.
Accidental Benefit Rider This rider is also applicable only to the policy holder below 70 years of age and in case of accidental death during the premium period you will get the benefit of this rider where the nominee will be paid the Accident Benefit Sum Assured along with the death benefit.
New Term Assurance Rider This rider can be taken only when you take the policy and the duration of this rider is 35 years or till the age of 75 years of the policy holder. A lump sum of term assurance sum along with death benefit will be paid to your nominee in your absence during this period.
New Critical Illness Rider This rider can also be taken only at the time of taking the policy and its tenure is 35 years or 75 years of the policy holder whichever occurs earlier. Critical Illness Sum Assured will be paid to the policyholder in case of any of the 15 specified critical illnesses covered under this policy in respect of this rider.
Premium Waiver Benefit Rider This rider can be taken only in case of minor insured person. Under this rider, in case of death of the proposer i.e. who normally pays the premium on behalf of a minor, all the premiums of the base policy are fully waived till the expiry of the rider.
Other Features of LIC Jeevan Utsav
Other features of Jeevan Utsav policy are as follows:
Rebates:
The higher the value of the Basic Sum Assured policy, the higher the rebate or discount you will be given. This policy has three slabs of Basic Sum Assured namely –
- ₹10,00,000 – ₹24,00,000/-
- ₹25,00,000 – ₹49,00,000/-
- ₹50,00,000/- and above
The amount of rebates depends on the basic sum assured slab and premium payment tenure.
Grace Period:
Like other LIC policies, you get a grace period of 30 days for annual, half-yearly or quarterly premium payments and 15 days for monthly premium payments.
Policy Recovery:
If you do not pay the premium within the grace period, the policy will be cancelled. However, you can revive the policy by paying all outstanding premiums and applicable interest within 5 years from the date of first premium due.
Paid-up value:
While taking the policy you must remember that at least 2 years of premium must be deposited otherwise you will not get any benefit even the premium paid is non-refundable. However, if no more premium is deposited after at least two years of premium deposits, the policy will remain in force and the benefit will be paid to you depending on the amount of Sum Assured.
Free-Look Period:
The policy holder has a free-look period of 30 days from the policy inception date, i.e. during this period the policyholder can cancel the policy if he is not satisfied with the terms and conditions.
Surrender Value:
The policyholder can surrender the policy after paying at least two years of premium and in that case you will get Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) depending on the amount of premium paid by you.
Policy Termination:
The cases in which this policy will be automatically terminated are mentioned below:
- Date on which lumpsum death benefit is payable.
- Date on which the benefits will be settled after surrendering the policy.
- When the renewal period of the policy expires.
- Free-look cancellation payment made.
- If the policy is forfeited.
Exclusions:
- In case of suicide due to health/sickness or insanity within 12 months of commencement of risk period of life assured policy, nominee will get 80% of total premium payable.
- If the Life Assured commits suicide due to health/sickness or insanity within 12 months after the policy revival, the nominee will get more than 80% of the total premium payable.
For details Jeevan Utsav Policy
LIC Jeevan Utsav related Queries (FAQs):
What are the survival benefits of LIC Jeevan Utsav?
In case of LIC Jeevan Utsav, the policyholder will get 10% of the initial sum assured at the end of every policy year for as long as he lives, i.e. you can use it as a steady source of income.
How much premium to pay for LIC Jeevan Utsav?
Under LIC Jeevan Utsav you can choose the premium payment period from 5 years to 16 years as per your convenience.
How much is the minimum deposit for LIC Jeevan Utsav?
LIC Jeevan Utsav minimum amount is ₹5 lakh and there is no maximum limit.
What is the death benefit of LIC Jeevan Utsav?
In case of death of Jeevan Utsav policyholder, death benefit is paid to the nominee along with ‘sum assured on death’ and earned guaranteed excess, which must not be less than 105% of the total premium.
Is there maturity benefit in LIC Jeevan Utsav?
No, there is no maturity benefit in LIC Jeevan Utsav Plan.
Can LIC Jeevan Utsav coverage be extended?
You can extend the coverage with this policy through 5 types of riders such as ‘Accidental Death and Disability Rider’, ‘Accidental Benefit Rider’, ‘New Term Assurance Rider’, ‘New Critical Illness Rider’, and ‘Premium Waiver Benefit Rider’. You can avail these additional coverages by paying additional premium
