LIC Launches Jeevan Utsav Plan with Lifetime Guaranteed Returns: Check Details Here

The largest insurance company in India, Life Insurance Corporation (LIC) have initiated the Jeevan Utsav Plan with effect from 29th November 2023, empowering individual savings and whole life insurance. It is claimed that apart from many other benefits, this scheme is non-linked, non-participating and would ensure lifetime returns for the policyholders. Under this scheme, the customer can avail of 10 per cent of the sum insured, after the maturity as life long benefit.

Extensive life insurance coverage is offered throughout the policyholder's lifetime, with a scope of limited premiums and confirmed returns on the investment. The policyholder of the Jeevan Utsav scheme can be 18 years of age as well as an adult under 75 years of age. The premium paying terms for LIC Jeevan Utsav are from a minimum of 5 years to a maximum of 16 years which can be paid regularly at monthly, quarterly, semi-annually and annual intervals. However for monthly premiums, one has to pay either through the electronic payment system NACH by National Payments Corporation India or through direct salary deductions.

Benefits of the LIC Jeevan Utsav Policy

Death Benefits

After the date of commencement of the risk, if the policyholder or the assured individual dies, then a 'Sum Assured On Death' with the addition of the Guaranteed interest shall be payable, provided that the policy is still in force. Here the sum assured on death can be either the basic sum assured till then or seven times the annualised premium, which is seven times the premium amount payable in a given year excluding the taxes, whichever is higher. The death benefit would be more than 105% of total premiums paid up until the date of death.

Survival Benefits

The scheme has two options available in case of no death of the assured individual, one is the Regular income benefit and the other is the Flexible Income Benefit. Under Regular income benefit, the LIC assures a 10% of the basic sum to be payable at the end of each policy year, starting from the year the premium payment begins. Whereas, for the Flexible Income Benefit, 10% of the basic sum of the premium paid during the policy year, the policyholder can opt to either withdraw the benefit or accumulate the amount with the policy. These deferred Flexible Income Payments would gain an additional 5.5% interest per annum from LIC, which would compound year by year.

Maturity

There are no maturity benefits applicable in this plan as the scheme is continuous for a lifetime and benefits are paid according to the sub-plan selected.

Guaranteed Additions

Once the premium for the policy is made for the particular year, guaranteed returns of Rs. 40 per thousand would be accumulated throughout the LIC Jeevan Utsav policy paying tenure. After the premium-paying tenure ends, no guaranteed additions would be paid and if premiums are not duly paid, guaranteed additions would cease to accrue.

Rider Benefits

As mentioned above, this scheme is a non-linked and non-participating policy and under this LIC Jeevan Utsav scheme, five rider benefits are provided. The individual can either select LIC's Accident Benefit Rider or opt for LIC's Accidental Death & Disability Benefit Rider without paying any extra charges. However, the LIC's New Term Assurance Rider, New Critical Illness Benefit Rider and Premium Waiver Benefit Rider would be aligned as per eligibility, only by paying an additional premium.