LIC Jeevan Utsav: What are the 2 income benefits under the policy

Survival Benefit in form of Regular Income Benefit or Flexi Income Benefit as per the option chosen shall be as under:
(1) Option I – Regular Income Benefit
(2)Option II – Flexi Income Benefit

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.

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. Policyholder shall have the flexibility to defer and accumulate such Flexi Income Benefits.

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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.

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According to the LIC website, “Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’. Where “Annualized Premium” shall be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums and loadings for modal premiums, if any.”

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Under an In-Force policy, the guaranteed additions shall accrue at the rate of Rs. 40 per thousand basic sum assured at the end of each policy year during the premium paying term. There shall be no further accrual of guaranteed additions after premium paying term.

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If the premiums are not paid on time, the guaranteed additions under a policy will stop accruing.

In the event of the death of a life assured during the premium paying term, the guaranteed addition in the year of death is payable for the entire policy year.

In case of surrender of an inforce policy during the premium paying term, the guaranteed additions for the policy year in which the policy is surrendered will be added on proportionate basis in proportion to the completed months for the Policy Year in which policy is surrendered.

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Minimum Age at entry: [90 days] completed; Maximum Age at entry: [65] years (Nearer Birthday); Minimum Premium Paying Term : [5] years; Maximum Premium Paying Term: [16] years

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