LIC Plan: Looking to build a financial cushion for your retirement years? LIC’s Jeevan Utsav policy could be a great fit for you. This plan gives policyholders plenty of flexibility and choices. It’s structured as a non-linked and non-participating individual life insurance plan. That means your benefits won’t fluctuate based on how the stock market performs.
Flexible premium payment periods from 5 to 16 years
With LIC Jeevan Utsav, you can spread your premium payments over anywhere from 5 to 16 years. The starting basic sum assured is Rs 5 lakh. Let’s say you’re 30 years old and want a basic sum assured of Rs 5 lakh. If you go with the 5-year payment option, your annual premium would be Rs 1,10,150. Choose the 8-year option instead, and it drops to Rs 72,600. The 12-year option comes in at Rs 44,275 annually, while the 16-year option is just Rs 30,025 per year.
Basic sum assured starting at Rs 5 lakh
Under the Regular Income Benefit feature, you’ll receive annual income equal to 10% of your sum assured. For a basic sum assured of Rs 5 lakh, that’s Rs 50,000 yearly. With a 5-year premium payment term, your income kicks in during the 11th policy year and continues throughout your lifetime. Keep in mind that while the annual income is 10% of the basic sum assured, this doesn’t translate to a 10% investment return. Your actual returns depend on how much you’ve paid in premiums overall.
Guaranteed additions throughout your coverage period
LIC Jeevan Utsav includes guaranteed additions during the years you’re paying premiums, based on your policy details. You’ll receive Rs 40 in additions for every Rs 1,000 of basic sum assured each eligible year. With a basic sum assured of Rs 5 lakh, you’d get Rs 20,000 in guaranteed additions annually.
Flexibility to postpone your income
The plan also features a Flexi Income Benefit option. This gives you the power to delay when you start receiving income payments. Any amount you defer will keep earning interest at the policy’s set rate. Currently, this rate is 5.5% per annum. This option is beneficial for those who don’t need immediate income.
Death benefits to the nominee on the death of the policyholder
If the policyholder dies while the policy is in force, the nominee receives a death benefit as per the policy terms. LIC calculates this benefit based on established rules. This includes the applicable sum assured and guaranteed additions at the time of death. Details can be obtained from the LIC website.