HomePersonal FinanceLife InsuranceLIC Jeevan Utsav Guaranteed Pension Plan 871 

LIC Jeevan Utsav Guaranteed Pension Plan 871 

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 Plan 871

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 TermRegular Income Benefit / Flexi Income Benefit Start Year
5 years11th policy year
6 years11th policy year
7 years11th policy year
8 years11th policy year
9 years12th policy year
10 years13th policy year
11 years14th policy year
12 years15th policy year
13 years16th policy year
14 years17th policy year
15 years18th policy year
16 years19th 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.

Shitanshu Kapadia
Shitanshu Kapadiahttp://moneyexcel.com/
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion. We do not offer any stock tips, investment, insurance or finance product related advice. Please consult a qualified financial planner and do your own due diligence before making any investment decision.
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