Sakthi Prabhakar

LIC Jeevan Utsav is a non-linked, participating, individual, whole-life insurance plan launched by the Life Insurance Corporation of India (LIC). It’s designed to offer life-long protection along with the option of guaranteed regular income or lump-sum benefits after the premium payment term is over.

Here’s a breakdown of its key features:

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🔑 Key Features of LIC Jeevan Utsav (Plan No. 871):

1. Whole Life Coverage
   Coverage continues for the entire lifetime of the policyholder after the premium payment term.
2. Limited Premium Payment
   Premiums are paid for a fixed period (say 5–16 years), after which benefits begin.
3. Two Benefit Options (chosen at the start): Option 1: Regular Income Benefit
   • After the premium payment term ends, the policyholder receives a guaranteed regular income every year.
   • This income is a fixed percentage (e.g., 10%) of the Basic Sum Assured.
   Option 2: Flexi Income Benefit
   • Instead of receiving the regular income yearly, the policyholder can accumulate the annual payouts with LIC and withdraw them as needed.
   • LIC gives interest on the accumulated amount.
4. Bonus Participation
   • Since it’s a participating plan, it is eligible for Simple Reversionary Bonuses and possibly a Final Additional Bonus.
5. Maturity Benefit
   • There’s no maturity benefit since it’s a whole-life plan.
   • However, in case of death, the Death Benefit is paid out to the nominee.
6. Death Benefit
   • Higher of:
     • 125% of Basic Sum Assured or
     • 7 times annualized premium
     • Bonuses (as applicable)

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✅ Other Features:

• Loan facility after 2 years.
• Surrender value is available after paying premiums for at least 2 years.
• Riders like Accidental Death Benefit or Disability Benefit can be added.

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Example Scenario:

Let’s say someone, age 35, takes a Jeevan Utsav policy with a Basic Sum Assured of ₹10 lakhs and chooses the Regular Income Option. If the premium payment term is 10 years:

• They pay premiums for 10 years.
• From the 11th year onward, they receive ₹1 lakh (10% of BSA) every year till death.
• If they die at age 80, the nominee receives the Sum Assured + bonuses in addition to the yearly payouts already received.