Life Insurance Corporation of India (LIC), the country’s largest public sector insurer, has launched a new insurance plan called LIC Jeevan Utsav – Single Premium, offering lifelong income with just a one-time investment. The policy will be available for purchase from January 12 and is designed for people looking for guaranteed returns along with insurance protection.
What is LIC Jeevan Utsav Single Premium?
LIC Jeevan Utsav is a non-linked, non-participating life insurance plan. This means the policy is not connected to the stock market, and returns remain stable regardless of market fluctuations. Since it is a non-participating plan, LIC does not share profits with policyholders. However, it offers guaranteed income for life, up to the age of 100.
Eligibility and Investment Details
People aged 30 days to 65 years can opt for this policy. The minimum basic sum assured is ₹5 lakh, while there is no upper limit on the maximum coverage. Policyholders pay the premium only once, making it suitable for long-term financial planning without recurring payments.
LIC provides Guaranteed Additions (GA) of ₹40 per year for every ₹1,000 of basic sum assured during the selected policy term, which enhances the overall benefits.
Two Income Options Available
The policy offers two benefit options to suit different financial needs:
Regular Income Benefit Option (Option 1)
Under this option, policyholders receive 10% of the basic sum assured every year after a chosen deferment period of 7 to 17 years. Once the income starts, it continues annually for life.
Flexi Income Benefit Option (Option 2)
In this option, policyholders can allow LIC to retain their annual income instead of withdrawing it immediately. LIC pays 5.5% compound annual interest on the accumulated amount. Policyholders can withdraw up to 75% of the deposited amount whenever required, offering greater flexibility.
Death and Maturity Benefits
If the policyholder dies during the policy term, the nominee receives the sum assured plus accrued guaranteed additions. If the policyholder survives till maturity, LIC pays 1.25 times the basic sum assured or the single premium paid (whichever is higher) along with guaranteed additions.
Optional Riders
Policyholders can enhance coverage by adding LIC Accident Death and Disability Benefit Rider and LIC New Term Assurance Rider by paying an additional premium, subject to eligibility conditions.
Example to Understand the Policy
Consider a 35-year-old individual opting for a ₹10 lakh sum assured with a 10-year guaranteed addition period. The single premium payable would be around ₹8.08 lakh. The income would start at age 45, providing ₹1 lakh annually until age 100. If the policyholder passes away during the term, the nominee would receive approximately ₹14.22 lakh.
Final Word
LIC Jeevan Utsav Single Premium is ideal for individuals seeking guaranteed lifelong income, capital safety, and insurance coverage with a one-time investment. With flexible income options and assured benefits, the plan aims to support long-term financial stability.
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