LIC's Jeevan Utsav (771)

How the plan works

LIC's Jeevan Utsav is a non-participating, non-linked whole life savings plan. You pay premiums for a chosen term of 5 to 16 years. Guaranteed Additions build up while you pay premiums, and from a set policy year the plan starts paying a yearly income of 10% of the Basic Sum Assured for as long as the life assured lives. Because it is non-par, the benefits are fixed and do not depend on bonuses. There is no maturity benefit.

You choose one of two options at the start:

• Option I - Regular Income Benefit: 10% of Basic Sum Assured paid at the end of every policy year from the start year.
• Option II - Flexi Income Benefit: 10% of Basic Sum Assured becomes due every year, but you can leave it with LIC to accumulate at 5.5% p.a. (compounded yearly) and withdraw later.

You can switch the option up to six months before the start of the policy year in which the first income falls due.

Eligibility by premium paying term

• Maximum premium ceasing age: 75 years (nearer birthday)
• Minimum age at the start of the policy year in which the first income falls due: 18 years (completed)
• Basic Sum Assured: minimum ₹5,00,000; no maximum (subject to underwriting). Multiples of ₹25,000 from ₹5 lakh to ₹24 lakh, and ₹1,00,000 above ₹24 lakh.

Child policies: If entry age is below 8 years, risk starts 2 years from the policy start or from the policy anniversary on or after age 8, whichever is earlier. The policy vests in the child on the policy anniversary on or after age 18.

Death benefit

On death after risk has started (policy in force), the nominee receives the Sum Assured on Death plus accrued Guaranteed Additions. Sum Assured on Death is the higher of the Basic Sum Assured or 7 times the annualised premium. The death benefit is never less than 105% of total premiums paid up to the date of death.

For a child aged below 8 at entry who dies before risk starts, premiums paid are refunded without interest (excluding taxes, extra and rider premiums). Under the Flexi option, any accumulated income not yet withdrawn, with interest, is also paid on death.

Survival benefits

• Guaranteed Additions: ₹40 per ₹1,000 Basic Sum Assured accrue at the end of each policy year during the premium paying term only. If death happens during the premium term, the addition for that full year is given.
• Regular / Flexi Income: 10% of Basic Sum Assured each year from the start year shown in the table above, as long as the life assured survives.
• Flexi option withdrawals: Once a year, on written request, you can withdraw up to 75% of the accumulated Flexi Income balance (with interest). The rest keeps accumulating.

There is no maturity benefit under this plan.

Optional riders

Available on payment of extra premium (either of the two accident riders, plus the others):

• LIC's Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
• LIC's Accident Benefit Rider (UIN: 512B203V03)
• LIC's New Term Assurance Rider (UIN: 512B210V02), at inception only
• LIC's Premium Waiver Benefit Rider (UIN: 512B204V04), on the proposer's life for policies on minors

Total premiums for all life insurance riders cannot exceed 30% of the base plan premium.

Loan, surrender & revival

Loan: Available after the first policy year if one full year's premium is paid.

• Before the policy year in which income starts: up to 75% of surrender value (in-force) or 50% (paid-up).
• From the income start year: the loan is limited so that yearly interest does not exceed 50% of the yearly income, subject to the same 75% / 50% caps. Under the Flexi option, an extra loan of up to 50% of income due and not withdrawn is allowed. Loan interest is recovered from the yearly income.
• The brochure states 9.5% p.a. (compounding half-yearly) for loans sanctioned from 1 May 2024 to 30 April 2025; this is reviewed yearly.

Surrender: Possible after the first policy year if one full year's premium is paid. Guaranteed Surrender Value needs at least two full years' premiums; Special Surrender Value is available after one year. You get the higher of the two. Income already paid/due is deducted from the GSV.

Paid-up: After at least one full year's premium, the policy becomes paid-up with reduced cover. Income continues only if the Paid-up Sum Assured is ₹2,00,000 or more, at these rates:

Revival: A lapsed policy can be revived within 5 consecutive complete years from the first unpaid premium, by paying arrears with interest and meeting underwriting requirements.

Other key terms

• Grace period: 30 days for yearly, half-yearly and quarterly; 15 days for monthly premiums.
• Free-look period: 30 days from receipt of the policy document (electronic or physical, whichever is earlier).
• Death benefit in instalments: All or part of the death benefit can be paid over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
• Modal loading: Yearly nil; half-yearly 1.75%, quarterly 2.50%, monthly 3.25% of tabular annual premium.
• High Basic Sum Assured rebate: Available for three slabs (₹10 lakh to ₹24 lakh, ₹25 lakh to ₹49 lakh, ₹50 lakh and above); it varies by slab and premium paying term.
• Online rebate: 10% of tabular premium for policies bought online without an agent or intermediary.
• Sample premium: For ₹5 lakh Basic Sum Assured, a 30-year-old pays about ₹44,275 a year with a 12-year PPT (offline, excluding taxes), as per the brochure's table.
• Suicide exclusion: Within 12 months of risk start, 80% of premiums paid is payable (not applicable if entry age is below 8 years).