The Life Insurance Corporation of India (LIC) has launched a new insurance plan named Jeevan Utsav (Plan No. 871), which became available for sale on November 29, 2023. This plan is unique with its identification number 512N363V01. Jeevan Utsav is characterized as a Non-Linked, Non-Participating, Individual, Savings, Whole Life Insurance plan. It offers a Limited Premium plan with Guaranteed Additions throughout the Premium Paying Term. Policyholders can choose between Regular Income Benefit or Flexi Income Benefit based on their needs.
Key features of Jeevan Utsav include:
- Guaranteed income for life starting from age 18 till 100 years.
- An option to choose between regular income benefit or flexi income benefit, with both options providing guaranteed benefits from the inception of the policy.
- Guaranteed Additions at the rate of Rs. 40 per thousand sum assured till the premium paying term.
- An option to defer and accumulate income at an investment rate of 5.5% per annum, compounding annually.
- Policyholders can change the type of income benefit six months before the payment of benefits.
- Premium payment term options range from 5 years to 16 years.
- Available to a wide range of insurance ages, from 90-day-old children to 65-year-old adults.
- Multiple rider options are available.
The eligibility criteria for Jeevan Utsav vary based on the age of the life assured. There’s no limit to the maximum sum assured, but it will be based on LIC’s underwriting policy. The basic sum assured can be increased in increments of Rs. 25,000 up to Rs. 24 lakh and then by Rs. 1,00,000.
In the event of the death of the life assured, the policy provides a Death Benefit equal to the “Sum Assured on Death” along with accrued Guaranteed Additions. This benefit will not be less than 105% of total premiums paid up to the date of death. The “Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’.
For survival benefits, policyholders have two options:
- Regular Income Benefit: 10% of Basic Sum Assured paid at the end of each policy year, starting from a specified year, provided all due premiums have been paid.
- Flexi Income Benefit: Similar to the Regular Income Benefit but allows the policyholder to defer and accumulate these benefits. LIC will pay interest on the deferred and accumulated Flexi Income Benefits at the rate of 5.5% per annum.
Policyholders can withdraw up to 75% of the balance accumulated Flexi Income Benefit(s), including interest, once in a policy year.
Five optional riders are available under Jeevan Utsav, but the policyholder can opt for either LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider, and/or the remaining three riders, subject to eligibility as per underwriting practice and guidelines of LIC.
Jeevan Utsav also offers a surrender value, loan facility, free look period, a suicide clause, nomination, and assignment provisions. The policy can be surrendered if the first two years of premium are paid. A loan facility is available after paying the entire first two years of premiums, with the maximum loan permissible being up to 75% of the surrender value for in-force policies and up to 50% for paid-up policies.