LIC Jeevan Utsav

LIC Jeevan Utsav- An Overview

LIC Jeevan Utsav policy is a Non-Par, Non-Linked, Individual, Savings, Whole life insurance plan that ensures financial support for the family in the policyholder’s absence. It has unique features like survival benefits through Regular Income Benefit or Flexi Income Benefit. This whole life insurance plan offered by the LIC of India comes with guaranteed additions throughout the premium-paying term, allowing flexibility in choosing the premium-paying term from 5 to 16 years. With attractive high-sum assured rebates, the policy also provides the option to enhance coverage through riders and addresses liquidity needs with a loan facility. Available for buying offline (through licensed agents, corporate agents, brokers, insurance marketing firms) and online (www.licindia.in), it offers a comprehensive solution for long-term financial security.

Key Features of LIC Jeevan Utsav

• Lifetime Protection with Limited Premiums: LIC Jeevan Utsav Policy offers whole-life coverage with the convenience of limited premium payments.

• Income Flexibility: One can choose between Regular or Flexi-Income Benefits at policy inception.

• Steady Growth: Guaranteed additions throughout the premium payment term.

• Flexible Premium Terms: Choose premium payment terms from 5 to 16 years.

• Payment of premiums: Premium amounts can be paid on a regular basis at yearly, half-yearly, monthly, or quarterly intervals. 

• Customizable Coverage: Enhance protection with optional riders for tailored benefits.

• Loan Facility: Caters to the liquidity needs of the policyholder.

Eligibility Criteria of LIC Jeevan Utsav 771

To purchase Jeevan Utsav LIC plan no. 771, the following criteria must be met.

Benefits of LIC Jeevan Utsav Policy

1. Death Benefit:

   In the event of the policyholder’s demise, the Death Benefit, including the "Sum Assured on Death" and accrued Guaranteed Additions, is paid to the nominee, similar to term insurance, ensuring financial support.

   The Death Benefit shall not be less than 105% of the total premiums paid, with the "Sum Assured on Death" being the higher of the Basic Sum Assured or 7 times the Annualized Premium.

2. Flexibility and Refund for Minors:

   Premium payment flexibility with various options.

   In the case of a minor Life Assured (age below 8 years at entry), if death occurs before the commencement of risk, the death benefit is a refund of premiums paid without interest.

3. Survival Benefit:

   Option I - Regular Income Benefit: Upon the survival of the Life Assured, a Regular Income Benefit equal to 10% of the Basic Sum Assured is payable at the end of each policy year.

   Option II - Flexi Income Benefit: At the end of each policy year, policyholders opting for the Flexi Income Benefit receive 10% of the Basic Sum Assured upon survival.

4. Guaranteed Additions:

   Guaranteed Additions accrue at Rs. 40 per thousand Basic Sum Assured at the end of each policy year during the Premium Paying Term, providing a consistent growth component.

   No further accrual of Guaranteed Additions occurs after the Premium Paying Term.

5. Maturity Benefits: 

   LIC Jeevan Utsav policy does not provide a maturity benefit.

   Option to take Death Benefit in Instalment:
   The plan provides an option to receive Death Benefit in installments over the chosen period of 5 or 10 or 15 years instead of a lump sum amount when the policy is active and paid-up. This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her lifetime; for full or part of Death benefits payable under the policy.

   Mode of paying installments	Minimum amount of installment (Rs.)
   Monthly	5,000
   Quarterly	15,000
   Half-Yearly	25,000
   Yearly	50,000

6. Tax Benefit

   Premiums paid for the LIC Jeevan Utsav policy, including for any riders, may be eligible for tax benefits under the prevailing income tax laws. These benefits are subject to conditions set by the Income Tax Act and may change from time to time. Any applicable GST or other statutory taxes on premiums will be charged extra and are not included in the policy benefits.

Riders Available With LIC Jeevan Utsav Plan 

Jeevan Utsav LIC plan has several riders that allow the policyholder to enhance their coverage by paying extra premiums. Among the riders available, the customer can choose between the Accidental Death and Disability Rider Benefit rider and the Accidental Benefit Rider, or the remaining two riders can be added as per the eligibility:

• LIC Accidental Death and Disability Rider Benefit
  This rider can be added to an active policy if there are at least five years left in the premium payment term. It offers financial protection in case of accidental death or disability. If the life assured dies due to an accident within 180 days of the incident, a lump sum amount called the Accident Benefit Sum Assured is paid along with the regular death benefit under the LIC’s Jeevan Utsav Plan. If the accident causes permanent disability, the same amount is paid in monthly installments over ten years. In this case, future premiums for the rider and the base policy (equal to the rider amount) are waived. Based on a specific request, this rider becomes available for minor policyholders once they turn 18.

• LIC Accidental Benefit Rider
  The Accident Benefit Rider under Jeevan Utsav LIC also provides coverage in case of accidental death. However, unlike the previous rider, it does not cover disability. If the policyholder dies in an accident, the Accident Benefit Sum Assured is paid as a lump sum along with the death benefit of the base policy. This rider can be added anytime during the premium-paying term, provided there are at least five years left, and it is available until the policyholder reaches age 70. This is also available for minors after they turn 18 upon request.

• LIC New Term Assurance Rider
  This rider is only available when buying the policy and cannot be added later. It ensures that an extra sum assured will be paid if the life assured dies during the rider term. The cover lasts for up to 35 years or until the policyholder turns 75, whichever comes earlier. 

• LIC Premium Waiver Benefit
  This rider applies to policies where the life assured is a minor. It offers relief if the proposer (who pays the premium) passes away during the policy term. If this happens, all future premiums of the base policy are waived until the rider term ends. After that, if the base policy’s premium term is longer than the rider’s, the life assured (the child) will need to pay the remaining premiums. This rider can only be added if both the base policy and rider have at least five years of premium term left. It cannot be taken if the combined age of the proposer and the rider term exceeds 70 years.

• Tax Benefit
  Premiums paid for the LIC Jeevan Utsav policy, including for any riders, may be eligible for tax benefits under the prevailing income tax laws. These benefits are subject to conditions set by the Income Tax Act and may change from time to time. Any applicable GST or other statutory taxes on premiums will be charged extra and are not included in the policy benefits.

Sample Premium Illustration of LIC Jeevan Utsav Policy 771

Here are sample annual premiums for standard lives with a sum assured of Rs. 5,00,000 for policies available through offline channels:

You can use the LIC Jeevan Utsav Calculator to easily check the premiums payable for your LIC Jeevan Utsav Policy. Additionally, it helps you estimate the maturity amount you’ll receive at the end of the policy term.

LIC Jeevan Utsav Plan Details

Below are the LIC Jeevan Utsav Plan Details. Take a look to understand the plan better.

• Grace Period:
  LIC provides a grace period of 15 days (monthly) - 30 days (quarterly/bi-annually/ annually) for policyholders who have not paid their premiums. If the payment is not made within this timeframe, the policy lapses. The policy remains active and covers the policyholder during the grace period.

• Free-Look Period:
  Policyholders have a 30-day free-look period from the policy initiation date during which they can cancel the policy if they are dissatisfied with its terms and conditions. If the policy is cancelled, the paid premiums are returned after deducting the pro-rata risk premium for the covered period of medical examination expenses, admin costs, and stamp duty charges.

• Policy Surrender:
  You can surrender the LIC Jeevan Utsav policy after completing one policy year if one full year’s premium is paid. However, the policy will only get the Guaranteed Surrender Value (GSV) after paying at least two full years’ premiums. If you surrender the policy after this point, LIC will pay the surrender value equivalent to higher of the Guaranteed Surrender Value or the Special Surrender Value.

• Loan Facility:
  LIC Jeevan Utsav offers a loan facility that allows policyholders to obtain loans to address financial emergencies. The loan can be availed after the policy has completed one year the full year’s premium(s) have been paid.

• Rebate:

  • Online Sale Rebate- 10% discount on the tabular premium.

  • Rebate for High Basic Sum Assured- Offered in three ranges: ₹10–24 lakh, ₹25–49 lakh, and ₹50 lakh & above. Higher the sum assured, bigger the rebate. However, the rebate is lower for longer premium payment terms.

• Revival:
  The policy will lapse if the premium amounts are not paid within the grace period. A lapsed plan can be revived within a period of 5 consecutive years from the date of 1st unpaid premium. 

• Paid Up Value:
  If at least one full year’s premium has been paid and further payments stop, the policy becomes a paid-up policy instead of ending completely. It stays active with reduced benefits until the life assured dies or the policy ends.
  In a paid-up policy, the Death Sum Assured and Basic Sum Assured are reduced based on how many premiums were paid compared to the original premium term. These are called the Death Paid-up Sum Assured and Paid-up Sum Assured.

• Policy Termination:
  The LIC Jeevan Utsav policy will terminate automatically when any of the following happens:

  • The death benefit (lump sum or last instalment) is paid

  • The surrender value is paid

  • For Option I, if the loan interest isn't paid and the total loan plus interest becomes more than the surrender value

  • For Option II, if the loan interest isn't paid and the loan plus interest becomes more than the surrender value plus any unclaimed Flexi Income Benefits with interest

  • The policy isn’t revived within the revival period and hasn’t acquired paid-up status

  • The free-look cancellation amount is paid

Exclusions Under LIC Jeevan Utsav Plan?

Suicide

In the event of the Life Assured (whether sane or insane) committing suicide within 12 months, the nominee will receive 80% of the total premiums paid, excluding taxes, extra premiums, and rider premiums, provided the policy is in force.
This exclusion doesn't apply if the Life Assured's age at entry is below 8 years.

Suppose the Life Assured commits suicide within 12 months from the date of revival. In that case, the payable amount will be the higher of 80% of the total premiums paid till the date of death (excluding taxes, extra premium, and rider premiums), or the surrender value as of the date of death.

This exclusion is not applicable if the life assured is below 8 years at the time of revival or for a lapsed policy without acquisition. 

How to Buy LIC Jeevan Utsav Plan from Policybazaar?

LIC Jeevan Utsav plan 771 is available for purchase online on Policybazaar. Here are a few easy steps to buy this plan:

Step 1: Go to the official Policybazaar LIC page.

Step 2: Fill in the form at the top right corner with details like name and contact number. Then select your current city, age, and annual income.

Step 3: Go to Jeevan Utsav and click on “Get Details”.

Step 4: Go through the LIC Jeevan Utsav plan details and benefits. Proceed to pay the premium to purchase the plan.

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