When it comes to financial planning, individuals seek insurance solutions that not only provide security but also align with their dynamic lifestyles. LIC’s recently launched Jeevan Utsav emerges as a noteworthy player in this domain, offering a non-linked, non-participating, individual, savings, whole life insurance plan designed to cater to the diverse needs of modern investors.
Key features of LIC’s Jeevan Utsav:
Non-linked and non-participating: LIC’s Jeevan Utsav distinguishes itself as a non-linked and non-participating plan, emphasising stability and predictability in returns. This characteristic aligns with the preferences of investors seeking a reliable and straightforward insurance solution.
Savings and whole-life coverage: At its core, Jeevan Utsav combines the elements of savings and whole life coverage. This unique blend ensures not only financial support for the family in the unfortunate event of the policyholder’s demise but also survival benefits in the form of regular income benefit or flexi income benefit, depending on the chosen option.
Flexible premium paying term: Recognising the need for flexibility in financial planning, this plan offers a limited premium paying term ranging from 5 to 16 years. Investors can enjoy lifetime returns, contributing to a robust financial strategy that adapts to their evolving needs.
Guaranteed additions: During the premium paying term, Jeevan Utsav accrues guaranteed additions at the conclusion of each policy year. This feature enhances the overall value of the plan, ensuring a steady accumulation of benefits over time.
It is crucial for prospective buyers to be aware that guaranteed additions will cease if premiums are not paid on time. Additionally, in the event of policy surrender within the premium paying term, Guaranteed Additions for the policy year of surrender will be applicable.Options tailored to individual preferences:
For this policy, the minimum basic sum assured is Rs. 5,00,000. There is no limit on the maximum basic sum assured, as per the LIC website. At the inception of the policy, individuals are presented with two distinctive options:
- Option I – Regular income benefit: This choice entails a regular income benefit, where, upon the survival of the life assured, some of the the basic sum assured is paid annually, provided all due premiums have been paid. This option caters to those seeking a steady income stream over the policy duration.
- Option II – Flexi income benefit: For those desiring flexibility, option II offers a flexi income benefit. LIC pays interest on delayed and cumulative flexi income benefits, ensuring financial growth for the policyholder.
Comprehensive benefits:
Beyond the core features, LIC Jeevan Utsav encompasses a range of benefits, including:
- Withdrawal options: Policyholders can make written requests to withdraw up to 75% of the balance accumulated flexi income benefits, providing liquidity when needed.
- Accumulated benefit: The accumulated flexi income benefit, along with interest, becomes payable on death or surrender, offering a safety net for unforeseen circumstances.
- Death benefit: In the unfortunate event of the life assured’s demise, a death benefit is awarded. However, if the life assured is a minor with an age at entry below 8 years and passes away before the commencement of the risk period, the death benefit will be a refund of premiums paid. This refund excludes taxes, any extra premiums, and rider premiums, if applicable, and does not include interest
- Optional riders: The plan offers five optional riders, allowing customisation based on individual needs. These include accidental death and disability benefit rider, accident benefit rider, new term assurance rider, new critical illness benefit rider, and premium waiver benefit rider.
LIC’s Jeevan Utsav stands as a holistic solution, marrying the stability of whole life insurance with the flexibility of savings. As investors work through the complexities of financial planning, Jeevan Utsav offers a reliable companion, ensuring both protection and growth.
Prospective buyers are encouraged to delve into the product features, sales literature, and policy conditions to make well-informed decisions that align with their unique financial goals.