LIC Jeevan Utsav
LIC's Jeevan Utsav Plan (Plan No. 871) is a limited premium, whole life insurance plan offering guaranteed additions throughout the premium-paying term. The plan is available for individuals aged 90 days to 65 years, with premium payment terms ranging from 5 to 16 years. It provides lifelong income and risk coverage.
Key Features of LIC Jeevan Utsav Plan
- Guaranteed additions of Rs.40 per Rs.1,000 Basic Sum Assured annually.
- Post premium term, choose between Regular Income (10% of Basic Sum Assured yearly) or Flexi Income (deferred withdrawals with 5.5% interest).
- Death benefit includes the "Sum Assured on Death" with guaranteed additions, ensuring a minimum payout of 105% of total premiums paid.
- Maturity benefit isn't offered as income continues for life.
- Additional liquidity is available through a loan against the policy.
- High Sum Assured Rebate is offered for larger coverage.
- The plan caters to the demand for a shorter and more flexible premium-paying term.
- Five optional riders can be added for enhanced coverage, including LIC's Accidental Death and Disability Benefit, Accident Benefit, New Term Assurance, New Critical Illness Benefit, and Premium Waiver Benefit, subject to eligibility and additional premium.
- The plan is non-linked and non-participating.
What Makes LIC Jeevan Utsav Unique?
- Plan Overview: LIC’s Jeevan Utsav is a non-linked, non-participating whole life insurance plan designed for individual savings. It offers lifelong insurance coverage with various premium payment options.
- Income Benefits: After a specified period, 10% of the sum assured is paid annually, depending on the chosen premium payment term, with options for either regular income or flexi income.
- Guaranteed Additions: The plan guarantees additions throughout the premium-paying term, enhancing the policy's value over time.
- Sum Assured: Large sum assured options are available, allowing policyholders to choose a coverage level that meets their needs.
- Liquidity: The plan provides liquidity through loans or surrender options, with loans available after two full years of premium payments.
- Optional Riders: Policyholders can opt for up to four out of five available riders for additional coverage. These riders include:
o Accidental Death and Disability Benefit Rider: Pays a lump sum in case of accidental death and provides monthly installments in case of disability.
o Accident Benefit Rider: Offers a lump sum payout in case of accidental death, valid during the premium-paying term.
o New Term Assurance Rider: Provides additional coverage alongside the base death benefit, with coverage lasting up to 35 years or until the policyholder turns 75.
o New Critical Illness Benefit Rider: Covers 15 specified critical illnesses, with benefits paid upon the first diagnosis, valid for up to 35 years or until age 75.
o Premium Waiver Benefit Rider: Waives future premium payments in case of the eligible proposer’s death, ensuring continued coverage.
- Flexibility: The plan allows for flexibility in premium payment terms, meeting diverse financial needs.
- Loan Facility: The policy offers a loan facility after two years of full premium payments, catering to liquidity needs.
This plan is ideal for those seeking lifelong coverage with savings benefits, and it includes options to enhance coverage through various riders.
Benefits of LIC Jeevan Utsav Plan
The benefits of LIC’s Jeevan Utsav Plan are given below:
Survival Benefit:
Option I - Regular Income Benefit: Upon survival, 10% of the Basic Sum Assured is paid yearly, starting from the specified policy year (see table below). All premiums must be paid in full.
Option II - Flexi Income Benefit: 10% of the Basic Sum Assured is paid annually, with an option to defer and accumulate the benefit. Interest of 5.5% p.a. (compounding annually) is applied to deferred amounts. The policyholder can withdraw up to 75% of the accumulated amount once per policy year.
Premium Paying Term | Regular/Flexi Income Start Year |
5–8 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 |
- Maturity Benefit: Not available under this plan.
- Death Benefit:
o Upon death after the risk commencement, the "Sum Assured on Death" plus accrued Guaranteed Additions are payable. The Death Benefit is at least 105% of total premiums paid.
o For minors (under 8 years), if death occurs before the risk commencement, the premiums paid are refunded (excluding taxes and additional premiums).
- Guaranteed Additions:
o Rs. 40 per Rs.1,000 Basic Sum Assured accrues yearly during the Premium Paying Term under an active policy.
o Accruals cease if premiums are unpaid or after the Premium Paying Term ends.
o Proportionate Guaranteed Additions are paid upon surrender during the Premium Paying Term.
Eligibility Criteria
- Premium Paying Term: Ranges from 5 to 16 years.
- Minimum & Maximum Age at Entry:
o For Online Purchase:
Premium Paying Term | Minimum Age (Completed) | Maximum Age (Nearer Birthday) |
5 to 16 years | 18 years | 59 years |
5 to 15 years | 18 years | 60 years |
5 to 14 years | 18 years | 61 years |
5 to 13 years | 18 years | 62 years |
5 to 12 years | 18 years | 63 years |
5 to 11 years | 18 years | 64 years |
Maximum Premium Ceasing Age: 75 years (nearer birthday).
- Minimum Age at the Beginning of the Policy Year: 18 years when the first Regular Income Benefit/Flexi Income Benefit becomes due.
- Basic Sum Assured:
o Minimum: Rs.5 lakh
o Maximum: No upper limit, subject to underwriting.
- Basic Sum Assured Multiples:
Premium Paying Term | Minimum Age (Completed) | Maximum Age (Nearer Birthday) |
5 to 16 years | 18 years | 59 years |
5 to 15 years | 18 years | 60 years |
5 to 14 years | 18 years | 61 years |
5 to 13 years | 18 years | 62 years |
5 to 12 years | 18 years | 63 years |
5 to 11 years | 18 years | 64 years |
- Commencement of Risk:
o For those under 8 years, the risk begins 2 years from the policy start date or on the policy anniversary following the 8th birthday, whichever is earlier.
o For those aged 8 and above, risk starts immediately upon policy issuance.
- Date of Vesting:
o If the Life Assured is below 18 years at policy start, the policy automatically vests on the Life Assured when they turn 18. Life Assured becomes the absolute owner of the policy at this point.
FAQs on LIC Jeevan Utsav
- What's the Jeevan Utsav Plan of LIC?
The LIC Jeevan Utsav plan offers survival benefits in the form of regular income benefits or flexi income benefits, depending on the choice selected by the surviving policyholder, as well as financial help to the family in the tragic event of the insured person's death.
- Does the LIC Jeevan Utsav Plan offer any rider options?
Yes, the insurance allows for five optional Rider benefits, each requiring an additional premium payment from the insured. Under this plan, a maximum of 4 riders may be selected from the following 5 optional riders (based on eligibility and terms & conditions).
- Which premium payment methods are offered?
The premiums can only be paid through salary savings plans or NACH on a yearly, half-yearly, quarterly, or monthly basis.
- How can the cost of obtaining the policy be paid for?
Netbanking, e-wallets, Amex cards, debit cards, credit cards, UPI, and NEFT can all be used to make payments.
- How long will this plan's grace period be?
There will be a grace period of thirty days for the payment of quarterly, half-yearly, or annual premiums. 15 days for monthly premium payments. The policy lapses if the premium is not paid before the grace period expires.
- How would one revitalise the policy?
Setting reminders for your insurance plans' premium payments is a good habit to get competitive policy advantages. However, an expired insurance policy may still be renewed if the terms and circumstances specified in the policy statement are met. Campaigns for the restoration of expired policies are also carried out by LIC of India. When a lapsed policy is revived, benefits are restored.
- What is Free-look cancellation?
Within 30 days of receiving the policy document (or the first in either physical or electronic format), the policyholder may return the policy to the corporation with a statement outlining any concerns if they are unhappy with the "Terms and Conditions" of the policy.
- Can I take out a loan using the Jeevan Utsav Plan?
Indeed, LIC's Jeevan Utsav Plan offers a lending facility (terms and conditions apply). Under this plan, a loan facility will become accessible following the payment of at least two complete years' worth of premiums. The proposer may take out the loan while the life assured is still a minor if it is raised for the minor's benefit.
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