LIC Jeevan Utsav is a New Guaranteed Pension Plan by LIC of India. Jeevan Utsav Plan 871 is a traditional plan which means not linked to the market. Jeevan Utsav Plan is a combination of insurance, savings, and pension.
LIC Jeevan Utsav Plan 871 stands as a Non-Linked, Non-Participating, Individual, Savings, Whole Life Insurance plan. This Limited Premium plan ensures Guaranteed Additions throughout the Premium Paying Term, making it a reliable choice for those seeking financial stability.
One of the standout features of LIC Jeevan Utsav 871 is its limited premium payment option, ranging from 5 to 16 years for whole-life policy terms. The plan uniquely identifies as ‘Jeevan Utsav Plan 871’ with code 512N363V01.
LIC Jeevan Utsav Options for Proposers
At the policy’s inception, the proposer faces a pivotal decision between two options, each with its set of benefits:
Option I – Regular Income Benefit
Option II – Flexi Income Benefit
Notably, flexibility isn’t sacrificed, as the policyholder can switch between these options up to six months before the commencement of the policy year in which the first income benefit becomes due.
Key Features That Set LIC Jeevan Utsav Plan 871
Guaranteed Income for a Lifetime – The plan assures a steady income stream from the age of 18 to 100 years, providing financial security through various life stages.
Dual Income Benefit Options – Policyholders can opt for either regular income benefits or flexi income benefits, tailoring the plan to their unique financial preferences.
Initial Guaranteed Benefits
All benefits are guaranteed at the policy’s inception, establishing a strong foundation for long-term financial planning.
Lucrative Guaranteed Additions
Enjoy guaranteed additions at an attractive rate of Rs. 40 per thousand sum assured throughout the premium paying term.
Income Accumulation Option
Policyholders can defer and accumulate income at an appealing investment rate of Rs 5.5% per year, with compounding annually.
Flexible Benefit Modification
The plan allows for changing the type of income benefit six months before the payment of benefits, ensuring adaptability to changing financial needs.
Wide Range of Policyholders
From 90-day-old children to 65-year-old individuals, this plan accommodates a diverse range of policyholders.
Comprehensive Rider Options
Enhance your coverage with multiple rider options, including:
- LIC’s Accident Benefit Rider
- LIC’s Accidental Death and Disability Benefit Rider
- LIC’s New Term Assurance Rider
- LIC’s New Critical Illness Benefit Rider
- LIC’s Premium Waiver Benefit Rider
LIC Jeevan Utsav Plan Eligibility
Minimum Age at Entry 90 Days (Completed)
Maximum Age at Entry 65 Years
Maximum premium ceasing age 75 Years
Premium Paying Mode Yearly, half-yearly, quarterly, and monthly (through NACH only) or salary deductions (SSS)
Policy Term 100 – Current age
Premium Payment Term 5 to 16 years
Basic Sum Assured 5,00,000 and above (in multiple of 25,000 and 1,00,000)
Loan After 2 years
Surrender After 2 years of premium payment
LIC Jeevan Utsav Benefits
Maturity Benefits
Contrary to some plans, LIC Jeevan Utsav Plan 871 does not offer a maturity benefit.
Death Benefits
Upon the unfortunate demise of the Life Assured, the Death Benefit equals the “Sum Assured on Death” along with accrued Guaranteed Additions. This benefit, ensuring financial security, shall not be less than 105% of the total premiums paid.
Survival Benefits
Survival benefits manifest in the form of Regular Income Benefits or Flexi Income benefits, based on the chosen option:
Option I – Regular Income Benefit:
On survival, the Life Assured receives a Regular Income Benefit equal to 10% of the Basic Sum Assured at the end of each policy year, provided all due premiums have been paid.
Option II – Flexi Income Benefit:
Survivors opting for Flexi Income Benefit enjoy 10% of the Basic Sum Assured at the end of each policy year. Additionally, policyholders can defer and accumulate these benefits, with an enticing interest rate of 5.5% p.a., compounding yearly.
The Corporation shall pay interest on the deferred and accumulated Flexi Income Benefit at the rate of 5.5% p.a. compounding yearly for completed months from its due date till the date of withdrawal or surrender or death, whichever is earlier. The fraction of months will be ignored for the purpose of calculation of interest.
Policyholder on written request can withdraw once in a policy year, a maximum of 75% of the balance accumulated Flexi Income Benefit(s) including interest, if any, which has not already been withdrawn and the net amount after withdrawal will continue to accumulate as mentioned above. The accumulated Flexi Income Benefit(s) due and not withdrawn along with interest (if any) shall be payable on death or surrender, whichever is earlier.
| Table 1 | |
|---|---|
| Premium Paying Term | Regular Income Benefit / Flexi Income Benefit Start Year |
| 5 years | 11th policy year |
| 6 years | 11th policy year |
| 7 years | 11th policy year |
| 8 years | 11th policy year |
| 9 years | 12th policy year |
| 10 years | 13th policy year |
| 11 years | 14th policy year |
| 12 years | 15th policy year |
| 13 years | 16th policy year |
| 14 years | 17th policy year |
| 15 years | 18th policy year |
| 16 years | 19th policy year |
Guaranteed Additions
Under an inforce 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.
In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy.
Under an enforced policy on the death of Life Assured during the Premium Paying Term, the Guaranteed Addition in the year of death shall be payable for the full policy year.
Surrender period: Policy can be surrendered after 2 years at least 2 full years of payment of premiums.
Loan Facility: Loan facility is available under LIC Jeevan Utsav plan 871, after at least 2 full years of premium paid.
Paid-up value: Once a LIC Jeevan Utsav Plan 871 policy has completed a minimum 2 full years and more premiums paid, and the policyholder chooses to stop paying further premiums, it automatically becomes eligible for paid-up value.
