Life Insurance Corporation of India (LIC) has launched a special scheme, named Jeevan Utsav. LIC’s Jeevan Utsav is a non-linked, non-participating, individual, savings, whole life insurance plan.
Based on the selected Premium Paying Term (Regular Income to Flexi Income), 10% of the Sum Assured is paid back annually after the specified years. The fact that this plan offers life insurance coverage for the duration of the policy holder’s life is a plus point.
The policyholder will have two options to choose at inception of the cover. The benefits will vary as per the option chosen.
- Option I – Regular Income Benefit
- Option II – Flexi Income Benefit
According to an LIC post on social media X (previously known as Twitter), “Introducing LIC’s Jeevan Utsav – with Lifetime Guaranteed Returns offering Whole Life Insurance with flexibility to choose benefits.”
— LICIndiaForever (@LICIndiaForever)
LIC Jeevan Utsav details
The minimum basic sum assured is Rs. 5,00,000. There is no limit on the maximum basic sum assured, as per the LIC webite. This policy has limited premium paying term of 5 to 16 years with life time paying returns. There will be guaranteed additions during the premium paying term. The minimum age should be 18 Years (Completed) at the beginning of Policy Year and 75 Years (Nearer Birthday) is the maximum premium ceasing age.
Survival benefit
Survival Benefit in form of regular income benefit or flexi income benefit as per the option chosen shall be as under:
Option I – Regular Income Benefit: On survival of Life Assured, Regular Income Benefit equal to 10% of Basic Sum Assured shall be payable at the end of each policy year starting from the year as specified in Table below, provided all due premium have been paid.
Option II – Flexi Income Benefit: On survival of Life Assured, the policyholder shall be eligible for Flexi Income Benefit equal to 10% of Basic Sum Assured at the end of each policy year starting from the year as specified in the Table below, provided all due premium have been paid.
Interest
LIC will pay interest on delayed and cumulative Flexi Income Benefits at a rate of 5.5% p.a. compounded yearly for completed months from the due date until the date of withdrawal, surrender, or death, whichever comes first. For the purposes of calculating interest, fractions of months will be ignored.
Withdrawal
On writing request, a policyholder can withdraw up to 75% of the balance accumulated Flexi Income Benefit(s), including interest, if any, that has not already been taken, and the net amount after withdrawal will continue to build as described above.
Accumulated benefit
The accumulated flexi income benefit due and not withdrawn along with interest (if any) wil be payable on death or surrender, whichever is earlier.
Maturity benefit
Maturity Benefit is not available under this plan.
Benefits payable in case of Death
If the Life Assured passes after the date of risk beginning, a Death Benefit equal to the “Sum Assured on Death” plus accumulated Guaranteed Additions will be awarded, providing the policy is still in existence.
This Death Benefit shall not be less than 105% of total premiums paid up to the date of death. However, in case of minor Life Assured, whose age at entry is below 8 years on death before the commencement of Risk the death benefit shall be refund of premium(s) paid (excluding taxes, any extra premium, rider premium(s), if any), without interest.
Guaranteed additions
The guaranteed additions under an In-Force policy will accrue at the rate of Rs. 40 per thousand Basic Sum Assured at the conclusion of each policy year throughout the premium paying term.
After the premium paying term, there will be no further accumulation of guaranteed additions.
If the premiums are not paid on time, the guaranteed additions will cease to accumulate under the policy. Under an in force policy, the guaranteed addition in the year of death shall be payable for the whole policy year. If an in-force policy is surrendered within the premium paying term, the Guaranteed Additions for the policy year in which the policy is surrendered will be added in proportion to the completed months for the Policy Year in which the policy is surrendered.
