LIC Jeevan Utsav Plan 771 – In a world where financial markets are becoming increasingly volatile, and investment risks are rising, customers are increasingly attracted to policies that promise guaranteed returns. One such plan that has caught the attention of the people since its modified launch on October 1, 2024, is LIC Jeevan Utsav Plan Table No. 771. This policy not only provides lifetime income, but it also offers insurance coverage, savings options and pension benefits. Jeevan Utsav is a whole life, non-linked, non-participating insurance plan, which means it is not subject to market risks, making it a safe and reliable investment option for those seeking financial security.
In this comprehensive article, we will explore every detail about LIC Jeevan Utsav Plan, including its features, eligibility criteria, riders, premium payment options, benefits (death, maturity, survival) and a practical example of how this policy works. We will also discuss how Jeevan Utsav Plan compares to other LIC plans and why it is considered to offer the highest guaranteed returns among the newly launched LIC policies.
Also see: LIC New Bima Jyoti Plan 760
Introduction to LIC Jeevan Utsav Plan 771
LIC Jeevan Utsav Plan is a newly launched whole-life insurance plan that aims to provide comprehensive benefits, including:
- Insurance Coverage: Provides a death benefit to the policyholder’s family.
- Savings Component: Assures guaranteed income over the policyholder’s lifetime.
- Pension: Ensures a continuous income stream from the deferment period till 100 years of age.
This policy is ideal for those who prioritize financial security with a focus on guaranteed returns rather than market-based investment options. It is designed for customers who seek assured returns, as it is free from the uncertainties of stock markets or other investments.
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Key Features of LIC Jeevan Utsav
Here’s a breakdown of the most notable features of this plan:
1. Guaranteed Income for Lifetime: One of the most attractive features of the Jeevan Utsav plan is that it provides lifetime guaranteed income from the 11th year until the policyholder turns 100 years old.
2. Two Income Options: The policyholder has two choices:
- Regular Income Benefit: The policyholder receives guaranteed regular income throughout their lifetime after a deferment period.
- Flexi Income Benefit: Offers the flexibility to choose how the income is received based on the policyholder’s needs.
3. Guaranteed Additions: For every ₹1000 of the sum assured, the policyholder will receive ₹40 as guaranteed additions during the premium payment term (PPT). This guaranteed addition is an integral component that boosts the overall returns of the plan.
4. Flexible Premium Payment Options: Policyholders have the flexibility to choose the premium payment term (PPT) from a minimum of 5 years to a maximum of 16 years.
5. Premium Payment Modes: LIC Jeevan Utsav offers various modes of premium payment – monthly, quarterly, half-yearly, and yearly. However, for monthly premium payments, an advance of three months’ premium must be deposited initially.
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6. Eligibility:
- Minimum age at entry: 30 days.
- Maximum age at entry: 65 years.
- Maximum maturity age: 100 years.
7. Loan Facility: After completing one year of premium payments, policyholders can avail a loan against the policy, which makes it a liquidity-friendly product. Additionally, the policy allows for surrender after one year of premium payment.
8. Income Flexibility: Six months before receiving the first income payment, the policyholder can opt to change their chosen income benefit option.
9. No Market Risk: As a non-linked and non-participating plan, LIC Jeevan Utsav offers guaranteed returns without any exposure to market risks, making it ideal for risk-averse customers.
10. Rebates: The plan also offers two types of rebates—High Sum Assured Rebate and Premium Mode Rebate, making the policy more affordable for individuals willing to pay a higher premium upfront or annually.
Also see: LIC New Policy on Premium Refunds for Lapsed Policies in Moradabad
Riders Available in LIC Jeevan Utsav
Riders enhance the value of the base policy by providing additional benefits in exchange for a nominal extra premium. LIC Jeevan Utsav offers four important riders:
- Accidental Death and Disability Benefit (ADDB) Rider: This rider provides financial support if the policyholder suffers accidental death or disability. In case of disability, the policyholder may receive the sum assured in installments, ensuring continued financial support.
- Accidental Benefit Rider: While similar to ADDB, this rider only applies to accidental death, offering a lump-sum payout in such an event.
- New Term Insurance Rider: This rider allows the policyholder to increase their coverage by paying an additional premium, ensuring higher financial security for their family.
- Premium Waiver Benefit Rider: If the proposer (the person paying the premium) dies during the policy term, this rider waives all future premiums while keeping the policy benefits intact.
Premium Payment and Mode Rebate
When it comes to premium payment, LIC Jeevan Utsav allows for flexible options. Here’s how the rebates work:
Premium Mode Rebate: If the policyholder pays the premium annually, there will be no extra loading. However, for half-yearly, quarterly, and monthly payments, loading will be applied as follows:
- Half-yearly: 1.75%
- Quarterly: 2.50%
- Monthly: 3.25%
High Sum Assured Rebate: A rebate is also available if the policyholder opts for a higher sum assured. This rebate is applicable at the discretion of LIC, depending on the sum assured chosen by the policyholder.
Benefits of LIC Jeevan Utsav Plan
Maturity Benefit
In LIC Jeevan Utsav, there is no direct maturity benefit like other traditional policies. In contrast to plans like Jeevan Umang, where a lump-sum maturity benefit is paid, Jeevan Utsav focuses on providing guaranteed income throughout the policyholder’s life.
Death Benefit
In the unfortunate event of the policyholder’s demise during the policy term, the following benefits will be paid to the nominee:
- Sum Assured on Death + Guaranteed Additions.
- The death benefit will not be less than 105% of the total premiums paid by the policyholder.
Survival Benefit
One of the key aspects that sets the Jeevan Utsav plan apart from others is its survival benefit. If the policyholder survives during the term, they will receive 10% of the basic sum assured every year until they reach 100 years of age. This annual payout serves as a guaranteed return and is the highlight of the plan.
Loan Facility
After one year of policy activation, policyholders can avail themselves of a loan against their policy. The amount and terms will depend on the premiums paid and the total sum assured, making the policy more versatile for customers seeking liquidity options.
Example: How Jeevan Utsav Works
Let’s illustrate how this plan works with an example:
- Mr. Shyam, 35 years old, opts for a sum assured of ₹10 lakhs with a premium payment term (PPT) of 5 years.
- The guaranteed addition will be ₹40 for every ₹1000 sum assured. Thus, the total guaranteed addition after 5 years will be ₹2 lakhs.
- Mr. Shyam pays an annual premium of ₹2,22,350 (excluding GST). After including GST, the premium is ₹2,32,950 for the first year.
- From the 11th year onward, Mr. Shyam will start receiving 10% of his sum assured, i.e., ₹1 lakh annually, as guaranteed income for life.
- Over the course of his policy, Mr. Shyam will pay a total premium of ₹11,41,768 over 5 years. Starting from the 11th year, he will receive a lifetime annual income of ₹1 lakh, significantly surpassing the total premiums paid over time.
This example demonstrates the lucrative nature of the Jeevan Utsav plan, offering both income security and lifetime coverage for the policyholder.
Comparison: LIC Jeevan Utsav vs. LIC Jeevan Umang
Customers often wonder how Jeevan Utsav compares with other popular LIC plans like Jeevan Umang. Here’s a quick comparison:
| Feature | LIC Jeevan Utsav (771) | LIC Jeevan Umang |
|---|---|---|
| Sum Assured | Minimum ₹5 lakh | Minimum ₹2 lakh |
| Guaranteed Income | 10% of the Sum Assured annually | Annual survival benefit |
| Premium Payment Term | 5 to 16 years | Flexible |
| Maturity Benefit | No lump-sum maturity amount | Sum assured + bonus |
| Death Benefit | Sum Assured + Guaranteed Additions | Sum Assured + Bonus |
| Loan Facility | Available after 1 year | Available after 3 years |
| Market Risk | Non-linked, guaranteed returns | Non-linked, guaranteed returns |
While both plans offer attractive benefits, LIC Jeevan Utsav highlight is its 10% guaranteed annual income, which starts from the 11th year and continues until the policyholder reaches 100 years. This makes it more suitable for individuals looking for a consistent income stream over the long term.
Conclusion
LIC Jeevan Utsav is a highly attractive plan for individuals seeking lifelong financial security with guaranteed income. Its flexibility in premium payment, high returns, and added benefit of riders makes it a holistic insurance plan. Whether you’re looking to save for the future, secure your family’s financial needs, or simply receive a regular income, Jeevan Utsav ticks all the boxes.
Also see:
- LIC Jeevan Lakshya Plan 733
- LIC Nivesh Plus Plan 749
- LIC Jeevan Labh Plan 736
- LIC Jeevan Anand Plan 715
FAQs
What is the key feature of LIC Jeevan Utsav Plan 771?
The key feature of LIC Jeevan Utsav Plan 771 is that it offers a guaranteed annual income of 10% of the basic sum assured starting from the 11th policy year, continuing until the policyholder reaches 100 years of age. This ensures a consistent and stable income throughout the policyholder’s lifetime.
What happens if the policyholder dies during the policy term?
In case of the policyholder’s demise during the policy term, the nominee will receive the death benefit, which includes the sum assured on death plus the accumulated guaranteed additions. The death benefit will not be less than 105% of the total premiums paid.
Can I take a loan against LIC Jeevan Utsav Plan?
Yes, LIC Jeevan Utsav Plan provides a loan facility after the policyholder has paid premiums for at least one year. This allows policyholders to maintain liquidity without compromising the benefits of the policy.
What is the minimum and maximum premium payment term for LIC Jeevan Utsav Plan?
The minimum premium payment term (PPT) for LIC Jeevan Utsav Plan is 5 years, and the maximum PPT is 16 years. The policyholder has the flexibility to choose the PPT based on their financial capability and future goals.
Can I change the income benefit option in the Jeevan Utsav Plan?
Yes, policyholders have the option to change their income benefit option (from Regular Income to Flexi Income or vice versa) up to six months before the first income payment. This provides flexibility to adjust the income benefits based on future needs.
Disclaimer: The information provided in this article about LIC Jeevan Utsav Plan (Table No. 771) is for informational purposes only and does not constitute financial advice. Terms and conditions of the policy may vary, and it is advisable to consult an LIC agent or financial advisor before making any decisions. The actual benefits and premiums may differ based on individual eligibility and policy selections.