In a move to redefine financial security, the Life Insurance Corporation of India (LIC) has introduced a groundbreaking non-linked, non-participating individual savings whole life insurance product named ‘Jeevan Utsav.’ This innovative plan is meticulously designed to cater to the diverse needs of the domestic market.
Sum Assured and Premium Terms
The Jeevan Utsav plan offers a minimum sum assured of Rs 5 lakh, providing policyholders with a robust financial safety net. Premium paying terms range from five to 16 years, ensuring flexibility to align with individual financial goals.
Entry Age Criteria
Prospective policyholders can enter the plan as early as eight years old, with a maximum entry age limit of 65 years. This inclusivity allows individuals across different life stages to benefit from the plan.
One of the plan’s standout features is the flexibility it offers in terms of payout options. Policyholders can choose between two compelling options: regular income and flexi-income benefits.
Regular Income Option
Under this option, 10 percent of the basic sum assured is paid at the end of each policy year, commencing after 3 to 6 years from the deferment period. This ensures a steady stream of income, providing financial stability to policyholders.
For those seeking more flexibility, the flexi-income benefit allows policyholders to accumulate and withdraw 10 percent of the basic sum assured later, subject to terms and conditions. Additionally, LIC provides interest on Deferred Flexi Income payments at a competitive rate of 5.5% per annum, compounding yearly.
The Jeevan Utsav plan ensures that policyholders receive income benefits, known as survival benefits, after specific periods linked to the premium paying term. This unique feature adds an extra layer of financial security, aligning with the diverse needs of policyholders.
Insights from LIC Chairman
During a recent interaction with Business Standard, LIC Chairman Siddhartha Mohanty emphasized that the introduction of new products, including Jeevan Utsav, is a key strategy to regain market share in the current financial year. This move comes in response to LIC’s market share dipping below 60% in 2023-24.
Exploring LIC’s Jeevan Utsav – Lifelong Guaranteed Returns and Benefit Options
LIC’s Jeevan Utsav plan, designated as Plan Number 871, ensures lifelong guaranteed returns. It offers options for both whole life insurance and benefit payments. The premium payment term is limited to 5 to 16 years, with a provision for guaranteed additions during premium payments. Regular income benefits and flexible income benefits are incorporated into the plan. The minimum sum assured is set at INR 5 lakhs. At the commencement of the policy, the minimum age is 18, and the maximum age at premium maturity is 75. Policyholders under this scheme will also enjoy an annual interest rate of 5.5%. However, it’s crucial to note that majority benefits will not be applicable with this plan.
Insights from LIC Chairman on the Jeevan Utsav Plan
Siddharth Mohanti, the Chairman of LIC, shared details of the plan last week, emphasizing its commitment to providing assured returns. Upon completion of the policy term, policyholders will receive 10% of the life insurance amount throughout their lives. Mohanti expressed confidence that this new product is poised to create waves in the market. Everyone wishes to know their investment and the potential returns after 20-25 years. Apart from guaranteed returns, the plan includes loan facilities and premature withdrawals, adding unique features to this new offering.
Frequently Asked Questions
Q: What is the minimum sum assured under the Jeevan Utsav plan?
A: The minimum sum assured is Rs 5 lakh.
Q: What are the premium paying terms available for the plan?
A: The premium paying terms range from five to 16 years.
Q: When does the survival benefit, or income benefit, start flowing in?
A: The income benefit starts flowing in after specific periods linked to the premium paying term.
Q: How does the Flexi-Income option work?
A: Policyholders can accumulate and withdraw 10 percent of the basic sum assured later, with LIC providing interest on Deferred Flexi Income payments at 5.5% per annum, compounding yearly.
In conclusion, LIC’s Jeevan Utsav emerges as a compelling option for individuals seeking a comprehensive whole life insurance plan with flexible payout options and attractive benefits. As the insurance landscape evolves, this innovative product stands out as a testament to LIC’s commitment to providing financial security and value to its policyholders.