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.