LIC Jeevan Utsav: New life insurance plan launched promises 10% of sum assured as regular income

The minimum sum assured under the policy is Rs 5 lakh. The premium paying terms range from five to 16 years. The minimum age at entry is eight years, while the maximum limit is 65 years. The income benefit, that is, survival benefit, will start flowing in after the periods specified in the policy that are, in turn, linked the premium paying term. You can choose between two payout options – regular income and flexi income benefits.

In the case of the former, 10 percent of the basic sum assured chosen by the policyholder will be paid starting from the 11th policy year, depending on the premium paying term selected. For instance, if you have chosen to pay premiums for five to eight years, the payouts will begin from the 11th year, but if you have chosen a longer-term – say, 10 years – income benefits will start from the 13th policy year.

The minimum basic sum assured is Rs. 5,00,000. There is no limit on the maximum basic sum assured, as per the LIC webite. This policy has limited premium paying term of 5 to 16 years with life time paying returns. There will be guaranteed additions during the premium paying term. The minimum age should be 18 Years (Completed) at the beginning of Policy Year and 75 Years (Nearer Birthday) is the maximum premium ceasing age.

PART-C: BENEFITS
1. The following benefits are payable under an in-force policy:
A. Death Benefit:
On death of the Life Assured after the date of commencement of risk, Death Benefit equal to
“Sum Assured on Death” along with accrued Guaranteed Additions shall be payable,
provided the policy is in-force.
This Death Benefit shall not be less than 105% of “Total Premiums Paid” up to the date of
death.
The “Sum Assured on Death” is defined as higher of Basic Sum Assured or 7 times of
Annualized Premium.
However, in case of minor Life Assured, whose age at entry is below 8 years, on death
before the commencement of Risk (as specified in Condition 4 of Part C below), the death
benefit payable shall be the refund of premium(s) paid (excluding taxes, any extra premium
and rider premium(s), if any), without interest.
The Death Benefit shall be paid in lump sum as specified above and/or in instalments, as
specified in Condition 8 of Part D of this Policy Document, as per the option exercised by the
Policyholder/ Life Assured.
On payment of Death Benefit, the policy shall terminate and no further benefits shall be
payable.
B. Survival Benefit:
Survival Benefits in form of Regular Income Benefit or Flexi Income Benefit as per the option
chosen shall be as under:
Option I – Regular Income Benefit:
On survival of Life Assured, Regular Income Benefit equal to 10% of Basic Sum
Assured shall be payable at the end of each policy year starting from the year as
specified in Table 1 below, provided all due premium have been paid.
Option II – Flexi Income Benefit:
On survival of Life Assured, the policyholder shall be eligible for Flexi Income Benefit
equal to 10% of Basic Sum Assured at the end of each policy year starting from the year
as specified in Table 1 below, provided all due premium have been paid.
Policyholder shall have the flexibility to defer and accumulate such Flexi Income
Benefits.
The Corporation shall pay interest on the deferred and accumulated Flexi Income
Benefit at the rate of 5.5% p.a. compounding yearly for completed months from its due
date till the date of withdrawal or surrender or death, whichever is earlier. Fraction of
months will be ignored for the purpose of calculation of interest.
Policyholder on written request can withdraw once in a policy year, a maximum of 75%
of balance accumulated Flexi Income Benefit(s) including interest, if any, which has not
already been withdrawn and the net amount after withdrawal will continue to accumulate
as mentioned above.
The accumulated Flexi Income Benefit(s) due and not withdrawn along with interest (if
any) shall be payable on death or surrender, whichever is earlier.

2. Guaranteed Additions:
Under an inforce policy, the Guaranteed Additions shall accrue at the rate of Rs. 40 per
thousand Basic Sum Assured at the end of each policy year during the Premium Paying Term.
There shall be no further accrual of Guaranteed Additions after Premium Paying Term.
In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a
policy.
Under an inforce policy on death of Life Assured during the Premium Paying Term, the
Guaranteed Addition in the year of death shall be payable for full policy year.
In case of surrender of an inforce policy during the Premium Paying Term, the Guaranteed
Additions for the policy year in which the policy is surrendered will be added on proportionate
basis in proportion to the completed months for the Policy Year in which policy is surrendered.
3. Rider Benefits:
The following five Optional rider(s) (or amended versions of these) shall be available on
payment of additional premium:
a) LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
b) LIC’s Accident Benefit Rider (UIN: 512B203V03)
c) LIC’s New Term Assurance Rider (UIN:512B210V01)
d) LIC’s New Critical Illness Benefit Rider (UIN: 512A212V02)
e) LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)