The innovative plan from Life Insurance Corporation of India (LIC) combines entire life insurance with individual savings. Designated as LIC’s Jeevan Utsav, the scheme will go into effect on November 29, 2023. This plan provides comprehensive life insurance coverage for the duration of an individual’s lifetime and is non-linked and non-participating.
Furthermore, the plan permits the payment of restricted premiums with assured additions for the duration of the premium-paying term. The following are the main components of this plan:
- Anyone between the ages of 90 days and 65 years old can participate in this scheme, which offers guaranteed lifetime income and risk coverage for life.
- A minimum of five years and a maximum of sixteen years must pass within the premium payment term.
- Guaranteed additions of ₹40 for every thousand basic sum assured at the end of each policy year in which the premium is paid will accrue over the premium-paying term.
- The policyholder can choose from among the following options if the life assured lives past the term for which premiums are paid:
Option I: Regular Income Benefit: Starting three to six years after the deferment period, this option pays 10% of the basic sum assured at the end of each policy year.
Option II: Flexi Income Benefit: If policyholders select this option, they will be able to accumulate and withdraw 10% of the basic sum assured at a later time, subject to the terms and conditions of the policy. On these Deferred Flexi Income payments, LIC will pay interest at a yearly compound rate of 5.5%.
The policyholder will receive life insurance coverage for the duration of their life, so the death benefit will be paid out as follows:
- If the policy is still in effect and the life assured passes away after the risk has begun, the Death Benefit which is equal to the “Sum Assured on Death” plus any accumulated guaranteed additions will be paid. At least 105% of all premiums paid up until the date of death will be covered by this death benefit. Either the “Basic Sum Assured” or “7 times the Annualized Premium,” whichever is greater, is the “Sum Assured on Death.”
- This plan does not provide maturity benefits; instead, depending on the option chosen, regular or flexible income benefits are paid out over the course of a person’s lifetime.
- You can obtain more liquidity by taking out a loan.
- There is a tempting high sum guaranteed refund available.
- The long-standing need for a more flexible and affordable premium payment term is met by this product.
- This plan includes five optional riders. The policyholder has a choice between the Accident Benefit Rider and the Accidental Death and Disability Benefit Rider offered by LIC. Subject to qualifying requirements, the remaining three riders LIC’s New Term Assurance Rider, LIC’s New Critical Illness Benefit Rider, and LIC’s Premium Waiver Benefit Rider can also be obtained by paying an extra premium.
- There is no participation and no link in the plan.
