LIC Jeevan Utsav: An Overview
In a world full of uncertainties, Life Insurance Corporation of India has always ensured the financial security of its valuable customers. In the row, LIC of India has added a plan, “LIC Jeevan Utsav (Plan No. 871)”, with lifetime guaranteed returns in the whole life insurance category.
Being one of the most trusted life insurance companies, LIC of India has won millions of Indian hearts and sits at the top when it comes to choosing affordable insurance plans. When each type of life insurance plan, including LIC endowment plan, LIC term plan, LIC pension plan, LIC ULIP plan, or LIC child plan category, comes with its own benefits, opting for LIC whole life insurance provides you extended life coverage and benefits.
Reading this article, you will explore all about Jeevan Utsav LIC, its benefits, features, and exclusions that will help you make wiser investment decisions.
What is LIC Jeevan Utsav Plan?
Launched on 29th November of 2023, LIC Jeevan Utsav Plan is a non-linked, non-participating, individual savings plan added to the whole life insurance category. LIC’s latest plan, Jeevan Utsav, provides life-long risk coverage to the life assured and ensures financial security to the family members in case of death of the assured. Additionally, a survival benefit is provided as lifelong regular income if the life assured survives the policy tenure.
Being a non-participating life insurance product, the death or survival benefits are guaranteed and fixed under LIC Jeevan Utsav. Thus, purchasing this plan provides dual guaranteed savings and life cover benefits. The plan can be purchased online through the official website of LIC of India and offline through licensed agents, corporate agents, and brokers.
Highlights of LIC Jeevan Utsav
Have a look at the key highlights of the LIC Jeevan Utsav plan.
- Plan Type
- Policy Term
- Income-Benefit-Options
- Lock-in Period
Whole Life Insurance with Limited Premium Payment
5 - 16 years
Option 1: Regular Income Benefit
Option 2: Flexi Income Benefit
On High Sum Assured and Online Purchase
Eligibility Criteria of LIC Jeevan Utsav
To purchase LIC Jeevan Utsav, an individual must satisfy the given eligibility criteria and restrictions.
| Particulars | Specifications |
|---|---|
| Entry Age | 90 days - 65 years |
| Max Premium Ceasing Age | 75 years |
| Basic Sum Assured | Rs. 5 Lakh - No Limit |
| Benefit Due Age | Min. 18 years |
Date of Commencement of Risk:
If the entry age of life assured is less than 8 years, the risk begins either after 3 years from the date of risk commencement or after completion of 8 years, whichever is earlier. When the entry age of the life assured is more than 8 years, the risk starts immediately after the policy issuance.
Date of Vesting
If the Jeevan Utsav LIC plan is issued for the life of a minor, then the policy automatically vests on or after the policy anniversary following the completion of 18 years of age.
Jeevan Utsav LIC Plan Benefits
The key purpose of the LIC Jeevan Utsav plan is to secure the policyholder against any uncertainty of life and provide them with a second source of income if they survive the policy. Hence, if you purchase the Jeevan Utsav, you ultimately gain guaranteed financial security. Let’s understand the LIC Jeevan Utsav benefits in detail.
Death Benefit
If the life assured dies during the premium paying term, the family receives the death benefit equal to the ‘Sum Assured on Death’ with applicable guaranteed additions. The death benefit is equal to,
- Basic sum assured,
- Or, 7 times of annualised premium
The Sum Assured on Death is an amount not less than 105% of the total premium paid till the date of death.
Survival Benefit
If the life assured survives the whole premium payment term, they are eligible for the survival benefit as per the option selected at the time of policy inception. The policyholder can opt for the following two options and receive the benefits.
Option I: Regular Income Benefit
If the life assured chooses this option, in case of survival, they receive a regular income benefit equal to 10% of the Basic Sum Assured at the end of each policy year.
Option II: Flexi Income Benefit
If the life assured chooses this option, in case of survival, they receive a flexi income benefit equal to 10% of the Basic Sum Assured at the end of each policy year. In this option, the policyholder can defer and accumulate the benefits per the suitability and requirements.
The survival benefits are payable at the end of each policy year, as mentioned in the table below.
| Premium Paying Term | Regular Income Benefit/ Flexi Income Benefit Start Year |
|---|---|
| 5 years | 11th policy year |
| 5 Yaers | 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
Under the LIC Jeevan Utsav Plan, when all the premiums are duly paid, the Guaranteed Additions are added at the end of each policy year, only during the policy paying term. The rate of guaranteed additions is Rs. 40 per thousand basic sum assured.
Why Choose Jeevan Utsav LIC Plan?
LIC Jeevan Utsav plan is a suitable life insurance plan for those looking for whole life coverage and an opportunity to secure returns. The following reasons highlight why you should invest in the Jeevan Utsav LIC Plan.
Guaranteed Returns
LIC Jeevan Utsav provides lifetime guaranteed returns that can generate a second source of regular income in the most needed time.
Flexible Premium Paying Term
When LIC Jeevan Utsav offers whole life coverage, the policyholder has the flexibility to pay the premiums for a limited period of 5 to 16 years.
Enhance Coverage with Riders
By paying some additional premium, the policyholder can add optional riders per the requirements and enhance the base coverage.
Death Benefit in Instalments
Instead of receiving the death benefit in a one-time lump sum amount, the policyholder can choose the payouts to receive in instalments spread over 5, 10 or 15 years. The minimum instalment amount depends upon the mode of premium payout, as mentioned in the table below
| Mode of Instalment Payment | Minimum Instalment Amount |
|---|---|
| Monthly | Rs. 5,000 |
| Quarterly | Rs. 15,000 |
| Half-yearly | Rs. 25,000 |
| Yearly | Rs. 50,000 |
Tax Benefits
The policyholder can avail of tax benefits on the premium paid towards the LIC Jeevan Utsav policy under Section 80C of the Income Tax Act, 1961. Additionally, the benefits received are tax-free under Section 10 (10D) of the Income Tax Act.
Explore LIC of India Resources
| Endowment Plan | Money Back Schemes | Term Insurance Plan | Pension Plan | Complete Life Plan |
|---|---|---|---|---|
How Does LIC Jeevan Utsav Plan Work?
Let’s understand the working of LIC Jeevan Utsav plan with the following example. Say, an individual buys LIC Jeevan Utsav for standard life for a sum assured of Rs. 5,00,000 via offline mode. The premiums at different premium paying term are applicable as
| Premium Paying Term | Age at Entry | ||
|---|---|---|---|
| 10 Years | 30 Years | 50 Years | |
| 5 | Rs. 1,09,575 | Rs. 1,10,150 | Rs. 1,18,625 |
| 8 | Rs. 72,600 | Rs. 72,600 | Rs. 72,600 |
| 12 | Rs. 44,250 | Rs. 44,275 | Rs. 45,225 |
| 16 | Rs. 29,900 | Rs. 30,025 | Rs. 33,475 |
* All the information provided is taken from the official LIC of India sources.
Additional Features of Jeevan Utsav LIC Plan
Besides the LIC Jeevan Utsav benefits discussed, the plan offers some additional features mentioned below.
Flexible Premium Payment
The policyholder can choose to pay the premiums on a yearly, half-yearly, quarterly, or monthly basis, depending on their financial suitability.
Rebates
The policyholder can grab good rebates for a high basic sum assured and on online purchases.
Grace Period
In case the policyholder misses to pay the premium within the premium due date, a grace period of 30 days is allowed for yearly, half-yearly or quarterly premium payment mode and 15 days of grace period for monthly mode.
The policy lapses if the policyholder doesn’t pay the premium within the grace period.
Policy Revival
The policyholder can revive the lapsed policy within 5 consecutive years from the date of the first unpaid premium. The policyholder must pay all the outstanding premiums and the applicable interests.
Surrender Value
The policyholder can surrender the policy if at least two-year premiums are duly paid. The higher of the Guaranteed Surrender Value or Special Surrender Value is payable on the policy surrender.
The special surrender value is reviewable and determined from time to time by the life insurance company, LIC of India and is priorly approved by IRDAI.
Avail of Loan
If at least two years' premium has been fully paid, the policyholder can avail of loans under the Jeevan Utsav LIC plan.
Free Look Period
A free look period of 30 days is available under LIC Jeevan Utsav, during which the policyholder can return the policy to the company if they are not satisfied with the terms and conditions. The policyholder needs to state the reason for objection to the company. Under such circumstances, the company cancels the policy and returns the amount of the premium paid after deducting any charges.
Forfeiture of the Policy
If any information the policyholder provides is found untrue or incorrect, the LIC Jeevan Utsav policy shall be void, and all the claims made will be subject to the provision of Section 45 of the Insurance Act, 1938.
Policy Termination
The policy automatically terminates in the following events:
- The date on which the Death benefit is paid.
- Or, the date of settlement of the surrender benefits
- Or, on the expiry of the revival period if the policy is not revived.
- Or, on the payment of the free look cancellation amount.
- Or, in the event of forfeiture of the policy.
Exclusion Under LIC Jeevan Utsav
Suicide is considered an exclusion under the LIC Jeevan Utsav Plan, and the benefits shall be paid as:
-
If the life assured commits suicide at any time within 12 months from the date of commencement of risk, the nominee may receive 80% of the total premium paid, excluding any taxes or extra premium.
-
If the life assured commits suicide at any time within 12 months from the date of revival, the nominee may receive the higher of 80% of the total premium paid till the date of death or the surrender value.
Riders Offered by LIC Jeevan Utsav
LIC Jeevan Utsav riders are offered to enhance the base plan coverage by payment of some additional premium. The policyholder can opt for a maximum of 4 riders from the mentioned
LIC Accidental Death and Disability Benefit Rider
Suppose the policyholder opts for LIC Accidental Death and Disability Benefit Rider, in case of accidental death (within 180 days from the date of the accident), the nominee receives an amount equal to Accident Benefit Sum Assured in a lump sum with the death benefit.
If the policyholder goes through an accident, and accidental disability arises within 180 days of the accident, the Accidental Benefit Sum Assured is paid in equal monthly instalments spread over 10 years.
LIC Accident Benefit Rider
If the policyholder opts for this rider, the Accidental Benefit Sum Assured is paid to the nominee with the death benefit in case of accidental death.
LIC New Term Assurance Rider
If the policyholder opts for the rider, in case of death of the life assured during the rider term, the nominee receives an amount equal to Term Assurance Rider Sum Assure with the death benefit.
LIC New Critical Illness Rider
If the policyholder opts for the rider and is diagnosed with any of the specified 15 critical illnesses covered, the LIC of India pays an amount equal to the Critical Illness Sum Assured.
LIC Premium Waiver Benefit Rider
This rider can opt in the name of the proposer only if the life assured covered under LIC Jeevan Utsav is a minor. If the rider is opted for, on the death of the proposer, all the premium payments of the base policy till the expiry of the rider should be waived off.
In case the base policy exceeds the rider term, all further premium payments after the expiry of the rider should be paid by the life assured. Note that the policyholder can choose either the LIC Accidental Death and Disability Benefit Rider or the LIC Accident Benefit Rider under the plan. The remaining 3 riders can be selected as per suitability. Hence, when buying LIC Jeevan Utsav, a maximum of 4 riders can be opted.
LIC Jeevan Umang
Final Words
There you are! Ready to buy the newly launched LIC Jeevan Utsav Plan from Life Insurance Corporation of India. The plan offers guaranteed lifelong income and lifelong risk coverage to the policyholder. This way, they can secure their family against any financial uncertainties. You can connect with LIC customer support or reach the nearest LIC branch for assistance. LIC of India has also launched LIC e-services to allow customers to log in and conduct policy-related activities, like LIC policy tracking, LIC policy status checks, LIC premium payment, and LIC policy updates.
To compare and buy a suitable life plan from LIC of India, you can connect with a LIC agent or life insurance agent nearby from RenewBuy Advisor Connect.
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