Life Insurance Corporation of India has decided to launch a new insurance plan named Jeevan Utsav (Plan No. 871). Jeevan Utsav will be available for sale from 29-11-2023. The unique Identification of Jeevan Utsav is 512N363V01.
LIC’s Jeevan Utsav is a Non-Linked, Non-Participating, Individual, Savings, Whole Life Insurance plan. It is a Limited Premium plan with Guaranteed Additions throughout Premium Paying Term. In Jeevan Utsav, Life Assured can choose the Regular Income Benefit or the Fexi Income Benefit according to their choice and need.
इस पोस्ट को हिंदी में पढें: एलआईसी की नई योजना जीवन उत्सव (प्लान न. 871)
Salient Features of LIC’s Jeevan Utsav
- Guaranteed Income for Life starting from age 18 till 100 years
- Option to choose regular income benefit or flexi income benefit
- All the benefits have been guaranteed since the inception of the policy.
- Guaranteed Insurance for Life
- Guaranteed Additions at the rate of Rs. 40 per thousand sum assured till the premium paying term
- Option to defer and accumulate the income at an attractive investment rate of Rs 5.5% per annum, compounding annually.
- Option to change the type of income benefit six months before the payment of benefits.
- Option of premium payment term from 5 years to 16 years only
- Available to almost all insurance ages from 90 days child to 65 years older person.
- Multiple rider options are available.
Eligibility conditions of LIC’s Jeevan Utsav
The minimum and maximum age at entry in the LIC’s Jeevan Utsav differs according to the life age to be assured. Although there is no limit to the maximum sum assured in the Jeevan Utsav plan, it will be based on the underwriting policy of the LIC of India. The basic sum assured can be increased by Rs. 25000 up to Rs. 24 Lakh BSA and then by Rs. 100000.
Age at Entry of Life assured will be taken as Age Nearer Birthday (NBD) except for Minimum Age at Entry.
Mode of Premium Payment: The modes of premium payment that are allowable are yearly, half-yearly, quarterly, and monthly (through NACH only) or salary deductions (SSS).
Date of commencement of risk in Jeevan Utsav
If the age at entry of the Life Assured is less than eight years. In that case, the risk under this plan will commence two years from the date of policy commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. Risk will commence immediately from the policy issuance date for those aged eight or older.
Here, the date of issuance of the policy is a date when a proposal after underwriting is accepted as a policy, and the contract gets affected.
Benefits Under LIC’s Jeevan Utsav Plan
Death benefit and Survival benefits payable in the inforce policy are given below.
Death Benefit
In the inforce policy and after the date of commencement of risk, if the life assured dies, then Death Benefit equal to “Sum Assured on Death” along with accrued Guaranteed Additions is payable.
The Death Benefit will not be less than 105% of total premiums paid up to the date of death.
“Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’. Here,
- “Annualized Premium” is the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums, loadings for modal premiums, High Sum Assured Rebate, and Rebate for CIS/ Online sale, if any.
- “Total Premiums Paid” means the total of all the premiums received, excluding any extra premium, rider premium, and taxes.
However, in the case of minor Life Assured, whose age at entry is below 8 years on death before the commencement of Risk, the death benefit will be the refund of premium(s) paid (excluding taxes, any extra premium, rider premium(s), if any), without interest.
Survival Benefit
Survival Benefits in the form of Regular Income Benefit or Flexi Income Benefit as per the option chosen by the Life Assured/Proposer is as follows:
Option I – Regular Income Benefit:
On survival of Life Assured, Regular Income Benefit equal to 10% of Basic Sum Assured will be paid at the end of each policy year starting from the year specified in the table below, provided all due premiums have been paid.
Option II – Flexi Income Benefit:
On survival of Life Assured, the policyholder will be eligible for Flexi Income Benefit equal to 10% of 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 flexibility to defer and accumulate such Flexi Income Benefits. LIC of India will pay interest on the deferred and accumulated Flexi Income Benefits at the rate of 5.5% p.a. compounding yearly for completed 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 purpose of calculation of interest.
Policyholders, 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 yet to be withdrawn. The net amount after withdrawal will continue to accumulate, as mentioned above.
Benefit / Flexi Income Benefit becomes due on survival of Life Assured:
Rider available in the LIC’s Jeevan Utsav
The following five optional riders are available under Jeevan Utsav. However, 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 are subject to eligibility as per underwriting practice and guidelines of LIC of India.
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC’s Accident Benefit Rider (UIN: 512B203V03)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
- LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
- LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
Paid up value in Jeevan Utsav
If, after at least two full years’ premiums have been paid and any subsequent premiums are not duly paid, this policy shall not be wholly void but shall subsist as a paid-up policy till the life assured survives, or the policy terminates, whichever is earlier.
The “Sum Assured on Death” under a paid-up policy will be reduced to a sum called Death Paid-up Sum Assured. It will equal the Sum Assured on Death multiplied by the ratio of the total period for which premiums have already been paid to the maximum period for which premiums were initially payable.
Under a Paid-up Policy where ‘Paid-up Sum Assured’ is less than Rs 2,00,000:
In case of death of the life assured, the death paid the sum assured, along with any accrued guaranteed addition, will be paid to the nominee/beneficiary of the life assured.
On survival of Life Assured, Regular Income Benefits or Flexi Income Benefits will not be payable under a Paid-up Policy where Paid-up Sum Assured is less than Rs 2,00,000.
Under a Paid-up Policy where ‘Paid-up Sum Assured’ is equal to or greater than Rs 2,00,000:
Under Option I- Regular Income Benefit: Death Benefit equal to ‘Death Paid-up Sum Assured’ and accrued Guaranteed Additions will be payable to the Nominee/Beneficiary on the death of the Life Assured.
On survival of Life Assured, the Regular Income Benefit as specified below will be payable at the end of each policy year as per the premium paying term of the policy
Under a Paid-up Policy where ‘Paid-up Sum Assured’ is equal to or greater than Rs 2,00,000:
Under Option II- Flexi Income Benefit: Death Benefit equal to ‘Death Paid-up Sum Assured’ and accrued Guaranteed Additions will be payable to the Nominee/Beneficiary on the death of the Life Assured.
On survival of Life Assured, the Flexo Income Benefit, as specified below, will be payable at the end of each policy year as per the premium paying term.
Other Conditions in LIC’s Jeevan Utsav
- Surrender: Jeevan Utsav can be surrendered during the policy term if the entire first two years of premium are paid.
- Loan: A loan facility is available after paying the entire first two years of premiums in Jeevan Utsav. The maximum loan permissible as a percentage of surrender value under both options will be as follows: For in-force policies- upto 75%; for paid-up policies- upto 50%
- Free Look Period: If a Policyholder is not satisfied with the “Terms and Conditions” of the Jeevan Utsav policy, he/she may return the policy to the LIC of India, stating the reasons for objections, within 30 days from the date of receipt of the electronic or physical mode of the 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 Life Assured shall be entitled to 80% of the total premiums paid, excluding any taxes, extra premiums and rider premiums, if any, provided the policy is in force. This clause shall not be applicable if the age at entry of the Life Assured is below 8 years.
- Nomination: Nomination by the holder of the Jeevan Utsav policy on his/her own life is required as per Section 39 of the Insurance Act, 1938, as amended from time to time.
- Assignment: An assignment is allowed under the plan as per Section 38 of the Insurance Act, 1938, as amended from time to time.
- Online Sale: The Jeevan Utsav policy is also available for sale through the LIC portal.
- Backdating of the policy: The Jeevan Utsav policy can be dated back within the same financial year but not before the Date of Introduction of this Plan.
- Forfeiture in certain Events: In case it is found that any untrue or incorrect statement is contained in the proposal, personal statement, declaration, and connected documents or any material information is withheld, then and in every such case, the policy shall be void, and all claims to any benefit by virtue thereof shall be subject to the provisions of Section 45 of the Insurance Act, 1938 as amended from time to time.
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Disclaimer: This blog post is written based on the information available. In case of any discrepancy or the wrong information, please contact any authorized LIC agent or the nearest LIC office for clarification.