LIC Jeevan Utsav Plan No 871 – Introduction
LIC recently launched Jeevan Utsav Plan No. 871. LIC’s Jeevan Utsav is a whole life insurance plan that promises guaranteed returns for life. We offer flexible payment options and additional coverage during your premium payment period. The question is, are these returns really guaranteed? This article analyzes LIC Jeevan Utsav Plan No. 871, examines its features, benefits, sample premiums, various benefit calculators, positive aspects, negative factors and provides a comprehensive review. Masu.
About LIC Jeevan Utsav Plan No 871
LIC launched Jeevan Utsav on November 29, 2023. LIC’s Jeevan Utsav is a non-linked, non-participating individual, savings and whole life insurance plan. The plan provides financial support to the family in case of unfortunate death of the insured and provides survival benefit in the form of regular income benefit or flexible income benefit depending on the option chosen by the surviving policyholder. Offers.
This plan can be purchased offline (through licensed agents, corporate agents, brokers, and insurance marketing companies) and online directly from our website.
LIC Jeevan Utsav – Key Features
- A whole life insurance plan with limited premium payments.
- You have two options at the start to choose your plan benefits. Option I – regular income benefit and Option II – flexible income benefit.
- Guaranteed top-ups are provided throughout the premium payment period.
- Flexible premium payment terms ranging from 5 to 16 years.
- This plan offers attractive high guaranteed rebate benefits.
- You also have the option to enhance your coverage by choosing a rider for which you pay an additional premium.
- This policy allows for the availability of loans and provides a type of liquidity.
LIC Jeevan Utsav – Qualification
| I | Premium payment period | 5-16 years old | ||
| II | Minimum and maximum age for entry | Premium payment period | minimum age | maximum age |
| Five | 8 | 65 | ||
| 6 | 8 | 65 | ||
| 7 | 8 | 65 | ||
| 8 | 8 | 65 | ||
| 9 | 7 | 65 | ||
| Ten | 6 | 65 | ||
| 11 | Five | 64 | ||
| 12 | Four | 63 | ||
| 13 | 3 | 62 | ||
| 14 | 2 | 61 | ||
| 15 | 1 | 60 | ||
| 16 | 90 days | 59 | ||
| iii | Maximum premium termination age | 75 years | ||
| minimum age | 18 years | |||
| Minimum guarantee amount | 5,00,000 | |||
| Maximum basic guarantee amount | No limit |
LIC Jeevan Utsav – Benefits of this plan
This plan offers various benefits such as death benefit, survival benefit, and guarantees.
#1 – Death benefit
- If the life insured dies after the risk start date, the death benefit will be the sum of the “death benefit amount” plus the unpaid guaranteed premium.
- This death benefit will not be less than 105% of the total premiums paid up to the date of death.
- The “death benefit amount” is defined as the higher of the “basic guaranteed amount” or “7 times the annualized premium.”
#2 – Survival benefit
#3 – Maturity Profit
Maturity benefits are not available with this plan.
#4 – Guaranteed addition
- The guaranteed top-up will accumulate at the rate of Rs. 40 per 1,000 base amount guaranteed at the end of each policy year during the premium payment period. No additional coverage will be provided after the premium payment period ends.
- If the premium is not paid by the due date, the accumulation of guaranteed premiums under the insurance contract will be stopped.
LIC Jeevan Utsav – Various options available
#1 – Rider Options
There are five rider options available.
- LIC Accidental Death and Residual Disability Benefits Special Agreement
- LIC injury benefit special clause
- LIC’s new term warranty special clause
- LIC’s new critical illness benefit rider
- LIC Premium Exemption Benefit Special Agreement
#2 – Option to receive death benefit in installments
LIC Jeevan Utsav – Premium Option
Premiums can be paid on an annual, semi-annual, quarterly, or monthly basis (monthly premiums only through NACH), or by payroll deduction.
LIC Jeevan Utsav Sample Premium Chart
A sample annual premium for a standard life insurance policy with a sum assured of Rs 5,00,000 for a policy sold through offline is as follows:
LIC Jeevan Utsav Calculator – Explained with Examples
Due to the large size of the table, it is provided in PDF format.please Check out the link here.
LIC Jeevan Utsav Plan Details (Hindi)
see this link Jeevan Utsav LIC Plan in Hindi
LIC Jeevan Utsav – Positive aspects of this plan
Positive aspects of LIC Jeevan Utsav Plan No 871. These are considered from the following points: LIC Jeevan Utsav Policy Brochure.
- Lifetime coverage with limited premium payments: This plan provides whole life insurance and guarantees financial support to the family in case of unfortunate death of the insured. Limited premium payment options provide greater flexibility for policyholders.
- Flexible payment options: Policyholders can choose premium payment terms ranging from 5 to 16 years, allowing them to tailor their plans to suit their financial preferences.
- Guaranteed additions: This plan offers guaranteed top-ups throughout the premium payment period, giving you an additional layer of guaranteed income.
- High Guaranteed Rebate: Policyholders can benefit from attractive high guarantee rebates and potentially increase their overall coverage.
- Rider options: This plan has a variety of special provisions such as accidental death and residual disability benefit special contract, injury benefit special contract, new term guarantee special contract, new serious illness benefit special contract, and insurance premium exemption benefit special contract, which can be tailored to meet individual needs. Customization is possible.
- Financing system: This policy allows for loans and provides a source of liquidity to policyholders in case of need.
- Death benefit: This is a plan that guarantees a death benefit equal to the “death benefit” and unpaid additional guarantee money if the insured person dies. This benefit is not less than his 105% of the total premium paid.
- Option to receive death benefit in installments: This plan gives you the option to receive your death benefit in installments, giving you flexibility in managing your financial payments.
- Premium payment flexibility: For the convenience of policyholders, premiums can be paid at various intervals, including annual, semi-annual, quarterly, monthly (via NACH only), and payroll deduction.
- Different rider options: The inclusion of rider options enhances plan coverage and allows policyholders to tailor coverage to their specific needs.
LIC Jeevan Utsav – Hidden or Negative Aspects
- Product misrepresentation: This plan is touted to offer lifetime guaranteed returns, safe returns, 10% guaranteed returns, and more. The 10% shown is correct, but it is 10% of the base guaranteed amount paid each year, not a return. This can lead to confusion and misunderstanding among potential policyholders.
- For individuals aiming to save tax at the end of the year: LIC often launches new products such as Jeevan Utsav towards the end of the year to tap into the tax-saving mindset of individuals, especially the salaried class. Don’t just aim to save tax. First, understand the plan and consider such a plan if appropriate.
- Limited maturity benefits: Since it is whole life insurance, there is no maturity benefit. This can be a disadvantage for individuals who seek both protection and financial benefits when they reach a certain age.
- Low return on investment: Even if the policyholder lives to be 100 years old, the return on investment is less than 6%. As rightly pointed out by Basu Nivesh, SEBI Registered Investment Advisor, The 30 year old’s return from LIC Jeevan Utsav is only 5.88%.
- Complex survival benefit options: The plan offers two living benefit options: regular income benefit and flexi income benefit, and offers deferred and cumulative benefits. The complexity of these options, such as interest-bearing benefit deferrals and accumulation features, can make it difficult for some policyholders to fully understand and take advantage of the features.
- Additional limitations warranted: Although the plan includes guaranteed additions, these additions stop after the premium payment period has elapsed. This limitation may disappoint policyholders who were expecting continued additional coverage throughout the policy term.
LIC Jeevan Utsav (Plan No. 871) – Should I invest?
- LIC Jeevan Utsav Plan No. 871 offers life insurance with limited premium payments, flexible payment options, guaranteed supplements, high guaranteed rebates, various rider options, loan facilities, and a series of death benefits. It offers some great features. Additionally, the plan also offers premium payment interval options for the convenience of policyholders.
- However, potential drawbacks include concerns about misrepresentation, as some people may perceive the product as having a 10% return guarantee. The timing of launching the plan near the end of the year for tax-saving purposes raises questions about its long-term investment effectiveness. Lack of maturity benefits, low investment returns, complex options for survival benefits, limitations on guaranteed coverage, and dependence on the policyholder’s lifespan are also major drawbacks.
Those who are okay with returns of less than 6% for owning the LIC brand can still consider this plan. Those looking for investment returns above 6% can consider several investment options such as mutual funds and simple bank FDs, but there are also many investment options.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
