LIC Jeevan Utsav (Plan No. 871, UIN 512N363V02) is a non‑linked, non‑participating, individual, savings, whole‑life insurance plan. It provides financial support to the family on the death of the life assured and survival benefits in the form of guaranteed lifelong income (Regular or Flexi) after premiums stop.
Key features
- Whole‑life cover: Life cover continues for the whole life of the insured (up to age 100 as per policy definition) while premiums are paid only for a fixed term.
- Non‑par, non‑linked: No equity exposure and no bonuses; benefits are driven by guaranteed additions and defined income options.
- Guaranteed Additions: ₹40 per ₹1,000 of Basic Sum Assured accrue every year during the premium‑paying term on an in‑force policy, increasing the guaranteed corpus.
- Two survival‑benefit options (chosen at inception):
- Premium‑paying flexibility: Premium Paying Term (PPT) options from 5 to 16 years, with maximum premium‑ceasing age of 75 years (nearer birthday).
- Multiple riders available: Accidental Death and Disability Benefit, Accident Benefit, New Term Assurance Rider, New Critical Illness Benefit Rider and Premium Waiver Benefit Rider (for eligible proposer), subject to rider terms.
Eligibility and basic parameters
From current brochure/CIS and public descriptions:
- Entry age:
- Premium Paying Term (PPT): 5 to 16 years, subject to maximum premium‑ceasing age of 75 years (nearer birthday).
- Policy term: Whole‑life (benefits defined for the entire life; maturity/death treatment as per policy wording).
- Basic Sum Assured:
- Age for starting income: Regular/Flexi Income Benefit can be chosen to start from a policy year where life assured is at least 18 years old; exact grid (PPT vs start‑age combination) is defined in brochure.
- Premium modes: Yearly, half‑yearly, quarterly, monthly (NACH/ECS) during PPT.
You should lift the exact PPT–age grids and start‑age combinations from LIC’s official Sales Brochure/CIS when you build the page.
Benefits at a glance
Guaranteed additions
During the entire premium‑paying term, the policy earns:
- Guaranteed Additions of ₹40 per ₹1,000 of Basic Sum Assured per policy year,
credited to the policy and forming part of the guaranteed benefits. Accrual stops after PPT or if premiums fall overdue beyond grace.
Survival (income) benefits
After completion of PPT and once the chosen income‑start condition is met, the life assured receives survival benefits under either:
- Regular Income Benefit: Guaranteed income (commonly 10% of Basic Sum Assured per year) payable at the end of each policy year for life or till policy termination, subject to the policy being in force.
- Flexi Income Benefit: Benefit amounts accrue and can be accumulated with LIC at a guaranteed rate; life assured may withdraw them later in lump sums/instalments as per policy rules.
This structure effectively creates a lifetime income stream backed by guaranteed additions and life cover.
Death benefit
If the life assured dies while the policy is in force:
- Death Benefit = Sum Assured on Death plus accrued Guaranteed Additions (and any other guaranteed components as defined).
Public descriptions note that Sum Assured on Death is linked to Basic Sum Assured and premium pattern, and will be at least a regulatory minimum (e.g., 105% of total premiums paid excluding taxes, extra premiums and rider premiums), with special provisions for minors before risk commencement.
Any remaining accumulated Flexi income (if chosen and not withdrawn) is also payable as per policy rules.
Maturity/terminal benefit
As a whole‑life plan, the policy may define a maturity/terminal benefit at a specified terminal age (e.g., age 100) or event, where remaining guaranteed benefits become payable; exact wording must be taken from the LIC policy document.
Who should consider LIC Jeevan Utsav?
- Individuals wanting a limited‑pay, lifelong income plus cover structure instead of pure accumulation or pure term insurance.
- Professionals and business owners who can pay for 5–16 years and then want guaranteed, predictable yearly income (or flexible withdrawals) for the rest of their life.
- HNIs and family heads using it as a legacy and retirement‑income tool: income for life for themselves, and a lump‑sum death benefit for heirs.
Example: A 40‑year‑old chooses a 12‑year PPT and Regular Income option; she pays premiums till 52, after which she receives 10% of Basic Sum Assured every year for life while staying covered, and on her death the nominee receives the defined death benefit including guaranteed additions.
Important points and disclaimers
- LIC Jeevan Utsav is non‑participating and non‑linked; there are no bonuses or market‑linked upsides, only guaranteed additions and defined income/death benefits, so IRR is stable but moderate.
- True effective yield depends on entry age, PPT, Basic Sum Assured, chosen income option, income start age and tax bracket; clients should always review a detailed illustration and IRR analysis.
- Exact definitions of Sum Assured on Death, income percentages, guaranteed‑addition period, start ages, Flexi accumulation/withdrawal rules and rider terms must be taken from LIC’s official Jeevan Utsav Sales Brochure, Customer Information Sheet and policy document.
- Premiums and benefits may be eligible for tax treatment under sections 80C and 10(10D) of the Income‑tax Act, subject to prevailing law and conditions; clients should seek personalised tax advice.