LIC Jeevan Utsav Plan: Features, Benefits, and Eligibility

LIC’s Jeevan Utsav is an individual life insurance plan. It is a whole life insurance and non-participating plan. Since it is a non-participating plan, the benefits are fixed and discretionary benefits like bonuses etc. are not entitled. This LIC plan not only provides financial support to your family in case of your untimely demise but also offers survival benefits. These include Regular Income Benefit and Flexi Income Benefit.

Eligibility Criteria

To be eligible for the LIC Jeevan Utsav Plan, you must meet the following criteria:

Key Features and Benefits

• Ad On Benefits: The policy offers you additional benefits accrue at the rate of ₹40 per thousand of the Basic Sum Assured every year during the premium paying term. It means that the policy value increases every year providing extra guaranteed benefits to the policyholder.
• Death Benefit: The policy offers the sum assured on death with accrued guaranteed additions to the nominee in case of the death of insured person. This ensures financial security for the family in the hard times.
• Survival Benefit: The policy here gives two choices to the policyholders. They can either opt for Regular Income Benefit or Flexi Income Benefit.
• Regular Income Benefit: This includes 10% of the Basic Sum Assured payable at the end of each policy year, provided all due premiums have been paid.
• Flexi Income Benefit: This includes10% of the Basic Sum Assured yearly, with the option to defer and accumulate such benefits, provided all due premiums have been paid.
• Loan Facility: The policy provides loan facility to the policyholders which they can avail once the policy acquires a paid-up value.
• Rebate on High Sum Assured: If policyholders have higher sum assured policies, then they get an attractive rebate on the amount. 
• Riders: The plan offers you enhanced coverage which allows you to add more benefits to your policy by paying an extra premium amount. 

Exclusions

The LIC Jeevan Utsav Plan has specific exclusions related to suicide:

Clause 1: The nominee shall be given 80% of the total premiums paid if the policyholder commits suicide within 12 months from the date of commencement of risk. This excludes any taxes, riders, extra premium, provided the policy is in force. If the age of the assured at the entry is less than 8 years, then this clause is not applicable. 

Clause 2: If the Life Assured commits suicide within 12 months from the date of revival, the amount payable will be the higher of:

• 80% of the total premiums paid till the date of death, excluding any taxes, extra premiums, and rider premiums, or
• The surrender value available as on the date of death.

This clause shall not be applicable if:

• The age of the Life Assured is below 8 years at the time of revival, or
• The policy has lapsed without acquiring a paid-up value, in which case nothing shall be payable.

Riders Available

LIC Jeevan Utsav Plan offers several riders to expand your policy coverage. These are the additional benefits that you can add to your policy. 

1. Accidental Death and Disability Benefit Rider: This provides additional cover in case of accidental death or disability. This will be available before the policy anniversary on which the age nearer birthday of policyholder is 70 years. 
2. New Term Assurance Rider: This provides additional term insurance coverage. Here an amount equal to Term Assurance Rider Sum Assured will be given on the death of policyholder. 
3. New Critical Illness Benefit Rider: This benefit covers specified 15 critical illnesses in which the Critical Illness Sum Assured will be given. 
4. Premium Waiver Benefit Rider: This benefit allows for waving off the future premiums in case of the death of the proposer.

Please note that all the above riders have certain conditions. 

Premium Chart

The premium for the LIC Jeevan Utsav Plan varies based on the sum assured, age, and premium paying term. 

How to Buy Your Policy?

Purchasing the LIC Jeevan Utsav Plan is straightforward and can be done through:

• LIC Agents and Brokers: You can take the help of licensed agents and corporate agents to purchase the policy. 
• Online: Here you can buy the policy directly from the LIC website.
• Insurance Marketing Firms: Firms specializing in insurance products can help you get the policy with ease. 

FAQs

Ques 1. What is the premium paying term in the Jeevan Utsav Plan?

Ans. You can pay the policy premium from 5 years to 16 years. 

Ques 2. In case I surrender my LIC policy, how much money will I get?

Ans. You will receive the higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). But you must pay premiums for at least two full years,

Ques 3. Is the Jeevan Utsav maturity amount taxable?

Ans. The benefits received in Jeevan Utsav Policy are tax-free under Section 10(10D) of the Income Tax Act, 1961.

Ques 4. Does the Jeevan Utsav Plan come under 80C?

Ans. Yes, you can take the tax benefit under Section 80C of the Income Tax Act, 1961.

Ques 5. Can I stop LIC policy and get money back?

Ans. Yes, if you decide to stop your policy at any time, you can surrender it after paying premiums for at least two full years. You will get the Guaranteed Surrender Value or Special Surrender Value, whichever is higher.