The LIC Jeevan Utsav Plan offers coverage for up to 100 years by paying a premium for a limited period. After spending the premium for a fixed period and then after a lock-in period, the policyholder starts repaying the premium. Ten percent of the policy amount is paid annually for life.
The Life Insurance Corporation of India (LIC) offers a plan with personal savings and life insurance. The non-linked, non-participating ‘LIC Jeevan Utsav’ plan offers life-long insurance coverage.
The premium is paid for a limited period, followed by a lock-in period. After that, you will receive a return every year. This plan is available for people between 90 and 65 years old.
It provides lifetime income and insurance coverage. The premium payment period must be at least five years and a maximum of 16 years.
Rs. 40 will be credited at the time of premium payment. After paying the premium for a few years, the policyholder starts to be repaid over time. Ten percent of the policy amount is spent every year. Income benefits depend on the policyholder’s options.
Regular Income Benefit: It starts three to six years after the deferment period. Ten percent of the policyholder’s money is paid every year.
This payment is for the policyholder’s lifetime. For example, if a policyholder takes a Rs. 5 lakh policy and pays the premium five years after the lock-in period, i.e., from the 11th year of the policy, he will pay Rs. Fifty thousand (10 percent of the policy) annually for the rest of his life (up to 100 years).
Flexi Income Benefit: Policyholders can opt for a flexible income Benefit. Under this benefit, 10 percent is given annually to the policyholder per policy terms.
He can keep it with LIC if he thinks he doesn’t need this 10 percent. These flexible income payments carry compound interest at 5.5 percent per annum.
If the policy is active at the time of the policyholder’s death, the death benefit will be paid to the nominee. The death benefit is paid at least 105 percent of the total premium paid up to the date of death. Seven times the Basic Sum Assured or Annual Premium, whichever is higher, will be paid to the nominee.
There are no maturity benefits under this plan. Regular/Flexi Income benefits are available for life based on the option. It is paid until a person attains 100 years of age. Additional liquidity can be obtained through a loan on this plan.
The premium will be higher if you want to pay in less time. A longer tenure means a lower premium. Five optional riders are offered with this plan.
The policyholder can opt for accidental death, disability benefit, or accident benefit rider. A New Term Assurance Rider, New Critical Illness Benefit Rider, and Premium Exemption Benefit Rider can be selected. These can be availed of by paying an additional premium subject to conditions.
This policy provides financial support to the family in the unfortunate event of the policyholder’s death and additional benefits in the form of regular or flexi income benefits, depending on the chosen option.
A 35-year-old man decides on a premium payment period of 10 years and a 10 lakh policy, and he will pay an annual premium of Rs. 1,11,050. From the 13th year of taking the policy under the regular income option, he gets Rs. 1 lakh will be paid.