Life Insurance Corporation of India (LIC) has introduced a novel plan encompassing individual savings and whole life insurance. The plan is called LIC’s Jeevan Utsav with effect from November 29, 2023. This plan is non-linked and non-participating, offering extensive life insurance coverage throughout one’s lifetime.
Also, the plan allows scope to pay limited premiums featuring guaranteed additions throughout the premium-paying term. The major features that make up this plan include:
- This scheme is accessible for individuals aged between 90 days and 65 years, providing assured lifelong income and lifelong coverage against risks.
- The premium paying term must be a minimum of five years and a maximum of 16 years.
- At the conclusion of each policy year in which the premium is paid, guaranteed additions of ₹40 per thousand basic sum assured will accumulate throughout the premium paying term.
- If the life assured survives beyond the premium paying term, the policyholder has the option to select from
Option I: Regular Income Benefit: This entails 10 per cent of the basic sum assured, paid at the end of each policy year, commencing three to six years after the deferment period.
Option II: Flexi Income Benefit: Policyholders can choose the Flexi Income Benefit, wherein 10 per cent of the basic sum assured can be accumulated and withdrawn later, contingent upon the policy’s terms and conditions. LIC will provide interest on these Deferred Flexi Income payments at a rate of 5.5 per cent per annum, compounded yearly.
Since the policyholder is provided life coverage for their entire lifetime, the death benefit will be disbursed in the following manner:
• In the event of the life assured’s demise after the commencement of risk, the Death Benefit, equivalent to the “Sum Assured on Death" along with accrued guaranteed additions, will be paid, provided the policy is active. This Death Benefit will not be less than 105 per cent of the total premiums paid up to the date of death. The “Sum Assured on Death" is either the “Basic Sum Assured" or “7 times the Annualized Premium", whichever is higher.
• Maturity benefits are not applicable under this plan, as regular/flexi income benefits continue for the lifetime based on the option selected.
• Additional liquidity can be accessed through a loan.
• An attractive high sum assured rebate is offered.
• This product addresses the longstanding demand for a lower and flexible premium paying term.
• Five optional riders are provided with this plan. The policyholder can choose LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider. Additionally, the remaining three riders—LIC’s New Term Assurance Rider, LIC’s New Critical Illness Benefit Rider, and LIC’s Premium Waiver Benefit Rider—are available by paying an additional premium, subject to eligibility conditions.
• The plan is non-linked and non-participating.