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LIC Jeevan Utsav Insurance Plan: A Comprehensive Guide

In the dynamic landscape of insurance offerings, the Life Insurance Corporation of India (LIC) has set the stage for a game-changer. Welcome to the world of Jeevan Utsav (Plan No. 871), a non-linked, non-participating, whole life insurance plan that promises not just protection but also a celebration of financial well-being.

Key Features at a Glance

Limited Premium, Maximum Benefits

Jeevan Utsav is not just an insurance plan; it’s a celebration of financial foresight. With a limited premium payment term, policyholders can enjoy guaranteed additions throughout the premium-paying period. But that’s just the beginning.

Tailored for You: Choose Your Benefit

Jeevan Utsav understands that one size doesn’t fit all. It offers a choice between Regular Income Benefit or Flexi Income Benefit, allowing you to align the plan with your unique needs and preferences.

Age is Just a Number

While there’s no upper limit to the maximum sum assured, the minimum and maximum entry ages vary based on the life age to be assured. The plan takes a flexible approach, allowing you to tailor it to your life stage and financial goals.

Payment Made Easy

Jeevan Utsav understands the importance of flexibility. Premium payments can be made yearly, half-yearly, quarterly, or even monthly through NACH or salary deductions. It’s insurance on your terms.

Understanding Risks and Rewards

Commencement of Risk: A Closer Look

The commencement of risk under Jeevan Utsav depends on the age at entry. For those below eight years, the risk begins two years from the policy commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years. For those eight or older, risk starts immediately from the policy issuance date.

Death Benefit: Security Beyond

In the unfortunate event of the life assured’s demise, Jeevan Utsav ensures financial security for your loved ones. The death benefit includes the “Sum Assured on Death” along with accrued Guaranteed Additions. This sum is never less than 105% of total premiums paid, providing a safety net even in challenging times.

Survival Benefits: Live Your Dreams

Survival benefits come in two flavours: Regular Income Benefit or Flexi Income Benefit. Choose what suits you best. The Regular Income Benefit offers a steady stream, while the Flexi Income Benefit allows you to accumulate and earn interest, providing financial flexibility.

Optional Riders for Extra Protection

Jeevan Utsav offers a range of optional riders, enhancing the plan to suit your specific needs. From Accidental Death and Disability Benefit to Critical Illness and Premium Waiver, you can customize your coverage for comprehensive protection.

Read: 5 Key Metrics for Life Insurance Companies

Making Informed Choices: Additional Insights

Option I – Regular Income Benefit:

With this option, policyholders can enjoy a regular income boost. Imagine receiving 10% of your Basic Sum Assured at the end of each policy year, starting from the specified year.

The catch? Ensure all due premiums have been dutifully paid. It’s a simple yet powerful way to enhance your financial well-being.

Option II – Flexi Income Benefit:

For those who prefer financial flexibility, Jeevan Utsav has the Flexi Income Benefit. This option allows policyholders to defer and accumulate their benefits. What’s more, LIC of India sweetens the deal by offering a 5.5% per annum interest rate, compounding yearly for completed months.

This interest applies from the benefit’s due date until the eventual event – withdrawal, surrender, or sadly, in the event of demise. It’s your money, growing at your pace, with the flexibility to match your financial rhythm.

Loans and Surrender: Your Policy, Your Control

Need liquidity? Jeevan Utsav allows for policy surrender after paying the initial two years’ premiums. A loan facility is also available after this period, providing financial flexibility when you need it most.

Look Before You Commit: Free Look Period

LIC understands that decisions take time. The free look period of 30 days lets you review the policy. If dissatisfied, return it to LIC within this period, stating your objections.

Guarding Against the Unthinkable: Suicide Clause

In difficult times, Jeevan Utsav stands by you. If the life assured, whether sane or insane, commits suicide within 12 months from the commencement of risk, the nominee is entitled to 80% of total premiums paid.

Sealing the Deal: Nomination, Assignment, and More

Jeevan Utsav allows policyholders to nominate a beneficiary, as per Section 39 of the Insurance Act, 1938. Assignment is also permitted under Section 38 of the same act, ensuring flexibility in managing your policy.

Bringing It All Together: The Jeevan Utsav Experience

Online Convenience

In the digital age, Jeevan Utsav is just a click away. The policy is available for purchase through the LIC portal, making the entire process seamless and convenient.

Time Travel with Backdating

Need coverage from a specific date within the same financial year? Jeevan Utsav allows backdating within the fiscal year but not before the plan’s introduction date.

Forfeiture Safeguards

Honesty is the best policy. In case of any untrue or incorrect statements, the policy may be void. Transparency is key to enjoying the full benefits of Jeevan Utsav.

Read: Understanding Life Insurance

Conclusion: A Celebration of Financial Security

LIC’s Jeevan Utsav isn’t just an insurance plan; it’s a journey towards financial security and celebration. With its flexible options, comprehensive coverage, and rider choices, it caters to the diverse needs of policyholders.

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