LIC Jeevan Utsav Plan : Everyone knows about LIC because it is a very trustworthy insurance company. And it provides many insurance plans and it provides maximum life insurance plans. LIC makes provision for all types of financial security, life and health.
The best thing about this company is that it provides good financial security for little money. This is a very old company and has been providing insurance services to people since a long time.
It keeps providing new offers to the customers from time to time, that is why Life Insurance Corporation of India (LIC India) is a big name in the life insurance business. A plan LIC Jeevan Pragati Plan has been launched by the company in 2023. In this article we will tell you what is LIC New Jeevan Utsav Plan and how to take LIC New Jeevan Utsav Plan.
What is LIC Jeevan Utsav Plan – 871?
LIC New Jeevan Utsav Plan (Table No. 868) :- LIC Jeevan Utsav is a guaranteed return plan, it is a non-linked plan which is not linked to the share market, hence it is a guaranteed return plan.
This plan is a non-participating plan, meaning the insured No bonus will be given on completion of the policy. This plan provides security along with savings. LIC Jeevan Utsav Plan is an individual saving plan.
Features of LIC Jeevan Utsav
- Guaranteed Income for lifetime from 18 years to 100 years
- Option to choose Regular Income Benefit or Flexi Income Benefit
- All benefits have been guaranteed since the inception of the policy.
- Guaranteed insurance for life
- Guaranteed additional at the rate of Rs. Rs 40 per thousand sum assured till the premium payment period
- Option to postpone and accumulate income at an attractive investment rate of 5.5% per annum, compounded annually.
- Option to change the type of income benefit six months before payment of benefit.
- Option of premium payment term only from 5 years to 16 years
- Insurance is available for almost all individuals from 90 days old to 65 years of age.
- Multiple rider choices available.
LIC Jeevan Utsav Plan Benefits
Death Benefit
In the applicable policy and after the date of commencement of risk, if the Life Assured dies, a death benefit equal to the “Sum Assured on Death” along with accrued Guaranteed Excess is payable.
Death benefit will not be less than 105% of the total premium paid till the date of death.
“Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times the Annualized Premium’. Here,
“Annual Premium” is the premium amount payable in the year chosen by the policyholder, exclusive of taxes, rider premium, underwriting additional premium, loading for modal premium, higher sum assured discount and discount for CIS/online sales, if any Is.
“Total Premiums Paid” means the total sum of all premiums received, excluding any additional premium, rider premium and taxes.
However, in case of a minor Life Assured, whose age at the time of entry is less than 8 years on death before the commencement of risk, the death benefit will be a refund of the premium paid (except taxes, any additional premium, rider premium) ) if any), without interest.
Survival Benefit
Life Protection benefits in the form of Regular Income Benefit or Flexi Income Benefit as per the option chosen by the Insured Person/Proposer are as follows:
Option I – Regular Income Benefits:
On the survival of the Life Assured, a regular income benefit equal to 10% of the Basic Sum Assured will be paid at the end of each policy year beginning from the year specified in the table below, provided all due premiums have been paid
Option II – Flexi Income Benefit:
On the survival of the Life Assured, the policyholder will be eligible for a Flexi Income benefit equal to 10% of the Basic Sum Assured at the end of each policy year starting from the year specified in the table below, provided all due premiums have been paid .
Policyholders will have the facility to defer and deposit such flexi income benefits. Life Insurance Corporation of India will pay interest at 5.5% per annum on deferred and accumulated flexi income benefits.
Compounding will be done annually for complete months from its due date till the date of withdrawal, surrender or death, whichever is earlier. The fraction of months will be ignored for the calculation of interest.
Other conditions in LIC Jeevan Utsav
- Surrender: Jeevan Utsav can be surrendered during the policy term if first two years of premium are paid.
- Loan: Loan facility is available in Jeevan Utsav after paying the full first two years of premium. The maximum loan permissible as a percentage of the surrender value under both the options will be as follows: For current policies – up to 75%; For paid-up policies- up to 50%
- Free Look Period: If a policyholder is not satisfied with the “Terms and Conditions” of the Jeevan Utsav policy, he can return the policy to the Life Insurance Corporation of India within 30 days from the date of receipt stating the reason for the objections. In electronic or physical mode of policy document, whichever is earlier.
- Suicide Clause If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk. In that case, the nominee or beneficiary of the insured will be entitled to get 80% of the total premium paid, excluding any taxes, extra premium and rider premium, if any, provided the policy is in force. This clause will not be applicable if the entry age of the Life Assured is less than 8 years.
- Nomination: Nomination on your life is required by the Jeevan Utsav policy holder as per Section 39 of the Insurance Act, 1938, as amended from time to time.
- Nomination: An assignment is permitted under the scheme as per Section 38 of the Insurance Act, 1938, as amended from time to time.
- Online Sale: Jeevan Utsav policy is also available for sale through the LIC portal.
- Previous Date Of Policy:: Jeevan Utsav policy can be within the same financial year, but not earlier than the date of inception of this plan.
- Forfeiture In Certain Events: If it is found that the offer, personal statement, declaration, and related documents contain any false or incorrect statement or any material information has been withheld, then in every such case, the policy will be void. and all claims for any benefit thereon shall be subject to the provisions of section 45 of the Insurance Act, 1938, as amended from time to time.
Read Also