The Life Insurance Corporation of India (LIC) offers Jeevan Utsav, an individual life insurance plan designed for people seeking life cover alongside a potential source of regular income in later years. The policy provides flexibility in choosing the premium payment period and offers income benefits according to its terms.
Jeevan Utsav is a non-linked, non-participating life insurance plan. This means its benefits are not directly linked to stock market performance or participation in LIC’s profits. However, buyers should review the policy conditions carefully before deciding whether it suits their financial needs.
LIC Jeevan Utsav: Premium Payment Options
The plan allows policyholders to select a premium payment period ranging from 5 to 16 years. The minimum basic sum assured starts at ₹5 lakh.
For example, for a 30-year-old seeking a basic sum assured of ₹5 lakh, the annual premiums listed for different payment periods are:
| Premium payment period | Annual premium |
|---|---|
| 5 years | ₹1,10,150 |
| 8 years | ₹72,600 |
| 12 years | ₹44,275 |
| 16 years | ₹30,025 |
These figures illustrate how the annual payment changes with the selected premium term. The actual premium payable may depend on the policy conditions and applicable factors, so buyers should confirm the figures with LIC before purchasing.
Regular Income Benefit: How Much Can Policyholders Receive?
Under the Regular Income Benefit option, the policy provides an annual income equal to 10% of the basic sum assured, subject to the policy’s terms.
For a basic sum assured of ₹5 lakh, this works out to ₹50,000 per year. With a five-year premium payment term, the income is stated to begin in the 11th policy year and continue throughout the policyholder’s lifetime, in accordance with the plan conditions.
It is important to understand that an annual income equivalent to 10% of the basic sum assured does not mean the policy delivers a 10% investment return. The overall financial outcome depends on the total premiums paid, the timing of benefits and the applicable policy terms.
Guaranteed Additions and Flexible Income Options
LIC Jeevan Utsav also provides guaranteed additions during eligible premium-paying years, as specified in the policy. The stated rate is ₹40 for every ₹1,000 of basic sum assured for each eligible year.
For a basic sum assured of ₹5 lakh, the guaranteed additions would amount to ₹20,000 for each eligible year, subject to the policy conditions.
The plan also offers a Flexi Income Benefit option for policyholders who prefer to postpone receiving their income. Under this feature, deferred income can earn interest at the policy’s specified rate, stated in the supplied information as 5.5% per annum. This may suit people who do not need the income immediately, although the applicable conditions should be checked before choosing the option.
Death Benefit and Important Points to Check
If the policyholder dies while the policy is in force, the nominee is eligible to receive a death benefit in accordance with the policy terms. The calculation includes the applicable sum assured and guaranteed additions, subject to LIC’s rules and conditions.
Before buying Jeevan Utsav, prospective policyholders should compare the premium commitment, income start date, guaranteed additions, flexibility options and death benefit with their own financial goals. The complete benefit illustration and policy document should be reviewed to understand the actual terms.
Disclaimer: This article is for general informational purposes only and does not constitute financial, insurance or investment advice. Premiums, benefits, eligibility and policy conditions are subject to LIC’s official terms and may vary. Verify the latest details and obtain the official benefit illustration from LIC before making a purchase decision. Consider consulting a qualified financial adviser to determine whether the policy suits your needs.