LIC Introduces a New Plan named Jeevan Utsav

Published : 7 December 2023
Updated : 24 May 2024
LIC Introduces a New Plan named Jeevan Utsav

Life Insurance Corporation of India (LIC) has launched a special scheme, named Jeevan Utsav. LICs 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 policyholder's life is a plus point. The policyholder will have two options to choose from at the inception of the cover. The benefits will vary as per the option chosen.

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 website. This policy has a limited premium paying term of 5 to 16 years with lifetime paying returns. There will be guaranteed additions during the premium paying term. The minimum age should be 18 Years (Completed) at the beginning of the Policy Year and 75 Years (Nearer Birthday) is the maximum premium ceasing age.

This scheme is accessible for individuals aged between 90 days and 65 years, providing assured lifelong income and lifelong coverage against risks. The premium paying term must be a minimum of five years and a maximum of 16 years.

After each policy year in which the premium is paid, guaranteed additions of ₹40 per thousand basic sums assured will accumulate throughout the premium paying term.

If the life assured survives beyond the premium paying term, the policyholder has the option to select from

Option I: Regular Income Benefit: This entails 10 percent of the basic sum assured, paid at the end of each policy year, commencing three to six years after the deferment period.

Option II: Flexi Income Benefit: Policyholders can choose the Flexi Income Benefit, wherein 10 percent of the basic sum assured can be accumulated and withdrawn later, contingent upon the policy's terms and conditions. LIC will provide interest on these Deferred Flexi Income payments at a rate of 5.5 percent per annum, compounded yearly.

Conclusion

This plan of LIC is beneficial to people who are thinking of investing and insuring together. This plan by LIC is a good step as far as financial planning is concerned. Insuring yourself is the need of an hour. Get yourself insured and start planning to invest at the same time.