LIC Jeevan Utsav Policy: Customers of Life Insurance Corporation of India (LIC) have received a significant gift. The Insurance Company has launched a new money-back policy that is non-participating. This programme, called Jeevan Utsav, is a fully insurance-based, non-participating, non-linked personal savings plan with guaranteed returns. A ten percent income benefit is provided by this LIC policy.
Minimum Insured Sum and Premium Payment Duration
The Jeevan Utsav Insurance Scheme (LIC Jeevan Utsav) has a minimum insured sum of Rs 5 lakh. Five to sixteen years are allowed for premium payments. You can invest in it if you are eight years old, but the maximum age is sixty-five. This policy offers two different payment options: a regular income and a flexible income benefit. Any one of these can be used to pay the premium. After the allotted time, the policy’s benefit is granted.
Premium-Dependent Income Benefit
The information provided by Life Insurance Corporation of India states that, depending on the premium chosen, payment of 10% of the basic sum assured selected by the policy holders begins in the eleventh year. For instance, the payment will begin in the eleventh year if you have selected to pay the premium for a period of five to eight years. On the other hand, the income benefit will begin on the thirteenth policy year if you have selected a longer term, such as ten years.
Payment Structure for Flexi Income Benefit Option
In contrast to Jeevan Utsav, which operates on a money-back plan, Jeevan Utsav does not pay policy benefits in full or at maturity. This implies that payments are made periodically rather than all at once. Depending on the length of the premium payment period, you will receive a payment equal to 10% of the basic sum assured at the conclusion of each policy year if you choose the Flexi Income Benefit option as well. This option is also subject to the income payment matrix and the premium payment term.
Deferred Payment Options with Interest Accrual
You will be able to defer these two payment options and collect interest on the remaining shares under the terms of LIC’s new life policy. On these postponed benefits, LIC will provide interest at the rate of 5.5% annually, compounded yearly from the date of withdrawal to the date of death, whichever comes first. You may request a withdrawal of up to 75% of the total amount, plus interest, once under this policy. After that, interest on the remaining sum will be available at a rate of 5.5% annually.
Death Benefit Guarantees
This benefit will be paid to the policyholder’s nominee or family member in the event of their death. You will receive an additional guarantee of the benefit you have received up to that point, in addition to a benefit upon death equal to the amount promised. During the premium payment period, LIC will pay Guarantee Extra at the rate of Rs 40 per thousand of Basic Sum Assured at the end of each policy year. The insurance regulator’s order states that the death benefit will be equivalent to 105% of the total premium paid, and the sum assured upon death will be at least seven times the annual premium.