LIC of India
LIC's Jeevan Utsav Policy

LIC Jeevan Utsav

LIC (Life Insurance Corporation of India) has launched a unique financial plan that combines individual savings with whole life insurance. Known as LIC Jeevan Utsav, this plan became effective on November 29, 2023. Jeevan Utsav is an Individual, Non-Linked, Non-Participating, Savings, Whole Life Insurance plan offered by LIC. It offers financial assistance to the family in the event of Life Assured’s unfortunate demise and provides survival benefits in the form of Regular Income Benefits or Flexi Income Benefits, depending on the option chosen by the surviving policyholder.

This non-participating product ensures that benefits paid upon death or survival remain guaranteed and fixed, regardless of experience. As a result, the policy does not qualify for discretionary benefits such as bonuses or a share in surplus. Additionally, the plan offers the flexibility to make limited premium payments while incorporating guaranteed additions throughout the premium-paying term.

Continue reading to know more about LIC Jeevan Utsav’s eligibility criteria, features and benefits, exclusions, rider details, premium calculation, and more.

Eligibility Criteria: Are You Eligible to Buy the Plan?

Here are the eligibility criteria for LIC Jeevan Utsav.

Minimum Age at Entry90 days
Maximum Age at Entry65 years
Premium Paying Term5 to 16 Years
Maximum Premium ceasing age75 Years (Nearer Birthday)
Minimum Basic Sum AssuredRs. 5,00,000/-
Maximum Basic Sum AssuredNo Limit. However, the maximum Basic Sum Assured allowed to each individual will be subject to an underwriting decision as per the Board Approved Underwriting Policy.
Basic Sum Assured MultiplesThe Basic Sum Assured shall be in multiples of the amounts specified below:

Basic Sum Assured Range

Rs. 5,00,000 to Rs. 24,00,000

Above Rs. 24,00,000

Basic Sum Assured Multiples

Rs. 25,000

Rs. 1,00,000

What Are The Key Features and Benefits of LIC Jeevan Utsav?

Here are the salient features and benefits of LIC Jeevan Utsav.

Death Benefit:

In the unfortunate event of the life-assured passing away after the commencement of risk, the death benefit will be the sum assured on death, along with accrued guaranteed additions, provided the policy is in force. The minimum death benefit will be 105% of the total premiums paid up to the date of death. The sum assured on death is determined as the basic sum assured or seven times the annualized premium, whichever amount is higher.

Guaranteed Additions:

For every policy year in which the premium is paid under this plan, guaranteed additions of Rs. 40 per thousand basic sum assured will accumulate at the conclusion of each policy year throughout the premium-paying term. Upon the survival of the life assured after the premium-paying term, the policyholder has the option to choose between Regular Income Benefit and Flexi Income Benefit.

Survival Benefit:

The Survival Benefit, in the form of either a Regular Income Benefit or Flexi Income Benefit, is outlined as follows based on the chosen option:

Option I – Regular Income Benefit:

Upon the survival of the Life Assured, a Regular Income Benefit equivalent to 10% of the Basic Sum Assured will be disbursed after each policy year. This commences from the specified year in Table 1 below, contingent upon the payment of all due premiums.

Option II – Flexi Income Benefit:

Upon the survival of the Life Assured, the policyholder qualifies for the Flexi Income Benefit, amounting to 10% of the Basic Sum Assured. This benefit will be disbursed after each policy year, commencing from the specified year indicated in Table 1 below, subject to the payment of all due premiums.

Grace Period:

Policyholders are granted a grace period of 30 days for yearly, half-yearly, or quarterly premium payments, and 15 days for monthly premiums, beginning from the date of the First Unpaid Premium. During this period, the policy will maintain its active status, ensuring continuous risk coverage in line with the policy terms. It’s important to note that failure to settle the premium by the end of the grace period will result in the policy lapsing.

Surrender Benefit:

The policyholder has the option to surrender the policy at any time, provided that two full years’ premiums have been paid. Upon surrender, the amount payable will be the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).

Free Look Period:

If the Policyholder finds the “Terms and Conditions” unsatisfactory, they have the option to return the policy to the Corporation within 30 days of receiving the electronic or physical Policy Document, whichever comes first. The reason for objections should be clearly stated. Upon receiving the policy with objections, the Corporation will proceed to cancel it and refund the deposited premium amount. 

However, deductions will be made for the proportionate risk premium (covering both the Base Policy and Rider(s), if applicable) for the period of coverage, as well as any incurred expenses related to medical examination, special reports, if any, and stamp duty charges.

What are the Exclusions Under LIC Jeevan Utsav?

If, within the first 12 months from the commencement of risk, the Life Assured, whether in a sane or insane state, commits suicide, the nominee or beneficiary is entitled to receive 80% of the total premiums paid. This amount excludes any taxes, extra premiums, and rider premiums, if applicable. It’s important to note that this provision does not apply if the Life Assured’s age at entry is below 8 years.

There are some situations where this clause is not applicable:

  • If, at the time of revival, the life assured is younger than eight years old.
  • If an insurance lapses without accruing paid-up value, no benefits are due.

What are the Riders Available Under LIC Jeevan Utsav?

LIC Jeevan Utsav comes with 5 riders. Let’s discuss each in detail!

LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02):

Benefit coverage with this rider will become accessible before the policy anniversary when the life-assured’s age is nearer 70 years old. This rider may be selected under an active policy at any point during the Base plan’s premium-paying term, provided that both the Rider and the Base plan’s outstanding premium-paying term are at least five years old and before the policy anniversary, which occurs before the life assured’s 65th birthday.

LIC’s Accident Benefit Rider (UIN:512B203V03):

This rider can be selected at any point during the premium-paying term of the Base plan as long as the Rider and the Base plan have outstanding premium payments for at least five years and before the policy anniversary, which occurs before the Life Assured’s 65th birthday. Benefit coverage under this rider will only be provided for the premium-paying term or, if earlier, until the policy anniversary that coincides with Life Assured’s age nearest birthday of 70 years.

LIC’s New Term Assurance Rider (UIN: 512B210V01):

This rider is only accessible at the policy’s start. The benefit coverage provided by this rider will last for 35 years, or until the policy anniversary falls on the day the life insured’s age is 75 years, whichever comes first. If this rider is selected, upon the death of the life insured within the rider term, a sum equal to the Term Assurance Rider Sum Assured will be paid.

LIC’s New Critical Illness Benefit Rider (UIN: 512A212V02):

This rider can be availed only at the commencement of the policy. The benefit cover provided by this rider is accessible for a term of 35 years or until the policy anniversary when the Life Assured reaches the age of 75, whichever occurs earlier. In the event of a first diagnosis of any one of the 15 specified Critical Illnesses covered under this rider, the Critical Illness Sum Assured will be payable.

LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03):

As long as the outstanding premium paying term of the Base Policy and the rider is at least five years, this rider may be selected during the proposer’s lifetime and at any point during the policy anniversary as long as the policy is still in effect and paying premiums. Additionally, this rider will be permitted under the policy if the life insured is a minor at the time the rider is selected.

Premium Illustration of LIC Jeevan Utsav

In the bustling city of New Delhi, Mr. Ram Kumar, aged 35, a seasoned Data Analyst at Cognizant, found himself navigating the complexities of life and securing his financial future. At the age of 35, with a strategic mindset honed through years of analyzing data trends, he decided to embark on a financial journey with a comprehensive savings cum life insurance plan.

Choosing a premium paying term of 10 years and a yearly premium payment mode, Mr. Kumar opted for a Basic Sum Assured of Rs. 10,00,000. In the first year, the GST rate stood at 4.50%, presenting an initial challenge for him to optimize his financial planning. However, as the second year dawned, Mr. Kumar experienced a welcome change in the GST landscape, with the rate dropping to 2.25%.

This reduction provided him with the opportunity to optimize his financial strategy further, aligning with the dynamic nature of his work. With an annual installment premium of Rs. 1,11,050, Mr. Ram Kumar seamlessly balanced the intricacies of premium payments with the demands of his professional life.

Illustration 1: Option I – Regular Income Benefit:

Policy Year (End of Year)Annualised Premium (Cumulative)Guaranteed AdditionGuaranteed BenefitsNon-Guaranteed Benefit (in Rs.)
   Regular Income BenefitMaturity BenefitDeath BenefitMinimum Guaranteed Surrender ValueSpecial Surrender Value
65Rs. 1110500Rs. 400000Rs. 1000000Rs. 14000000Rs. 1400000

Illustration 2: Option II – Flexi Income Benefit:

Under the second option, now the premium payment term is 12 years and the amount of installment premium is Rs. 86, 850.

Policy Year (End of Year)Annualised Premium (Cumulative)Guaranteed AdditionGuaranteed BenefitsNon-Guaranteed Benefit (in Rs.)
   Flexi Income BenefitMaturity BenefitDeath BenefitMinimum Guaranteed Surrender ValueSpecial Surrender Value
65Rs. 1042200Rs. 480000Rs. 1000000Rs. 14800000Rs. 1480000

Buying Process: How to Buy LIC’s Jeevan Utsav Plan?

Having said that LIC’s Jeevan Utsav is one of the most anticipated plans that an individual may consider to get the benefit of life savings and whole life insurance. If anyone is interested in buying the plan, they are required to follow these steps and make their buying process smooth and hassle-free. Let’s discuss the procedure in detail!

  • Visit the official website of LIC.
  • Then, on the left, you will see a “Buy Online” section under “How May We Help You Today?”. Click on it.
  • When you click on it, you will need to scroll down a bit. Then, you will see the LIC’s Jeevan Utsav under the “Whole Life Plan” section. Click on “Know More”.
  • The moment you click on it, you will see the details of the plan. Just below it, you will see an option “Click to Buy Online”. Simply left-click on it and a pop-up will arise saying “This is an external link, are you sure you want to continue?”. Then, Click on “OK”.
  • A new tab will be opened. Then, again, you will need to click on the “Click to Buy Online” button.
  • After that, you are required to keep the following documents ready for upload before proceeding such as
  • Photograph (only JPEG format)
  • Signature (only JPEG format)
  • Self-Attested copy of any one Address Proof (only PDF format)
  • Self-attested copies of Income Proof (only in PDF format)
  • Self-Attested copy of PAN Card (only PDF format)
  • Self-Cancelled Cheque (only PDF format)
  • Once you have gathered all these documents, click on the “Proceed” button.
  • In the next step, you are required to enter your first name, middle name, last name, date of birth, mobile number, and email, “select nearest city”, enter the captcha code, and then click on both checkboxes. Ensure you entered the correct details.
  • Then, click on the “Proceed” button.
  • After that, you will see a box showcasing your Access ID ( recently generated). In the below, you will need to enter the OTP sent to your Mobile number and Email ID. Then, click on the “proceed” button.
  • In the following step, you will then need to select your Resident Status, Country of Residence, and Gender. Under the product information below, you are required to enter the sum assured, Premium payment option, benefit option, payment mode, policy term, and premium paying term. Then, under the Rider Benefits, you are supposed to select the rider as per your choice.
  • After entering all the details and verifying them, click on “Calculate Premium”. If you are satisfied with the premium amount, you can simply make the payment using Net Banking, Credit/Debit Card, or UPI. Then, your purchase will be completed and all the necessary details will be sent to your registered email ID.

Frequently Asked Questions

Yes, Jeevan Utsav by LIC offers a loan facility but it becomes available under this plan once the policy attains a paid-up value, meaning after the payment of at least two full years’ premiums.

No, the plan does not offer a maturity benefit because regular and flexible income benefits are paid out as long as the peer option is engaged.

There are Five optional riders are available under this plan.

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