The Life Insurance Corporation of India (LIC), a cornerstone in the Indian insurance sector, has recently unveiled its latest offering – the LIC Jeevan Utsav scheme. This innovative scheme is set to redefine the landscape of life insurance and savings, promising a blend of lifetime returns and robust insurance cover.
LIC Jeevan Utsav stands out as a non-linked, non-participating, individual savings, and whole life insurance scheme. This distinctive nature ensures that the policy is not affected by market fluctuations, providing a stable and reliable investment avenue. The scheme is designed to cater to a broad demographic with a minimum entry age of 18 years and a maximum age for premium cessation at 75 years, making it accessible to a wide range of policyholders.
One of the most notable aspects of this scheme is its flexible premium payment period, ranging from 5 to 16 years, while offering lifetime returns. This feature provides policyholders with the convenience of choosing a payment term that best suits their financial planning. In addition, the scheme offers an attractive return of 10% of the insurance amount annually after specified years, depending on the chosen premium payment period. This could either be in the form of regular income or flexible income, giving policyholders the liberty to choose as per their income flow and financial goals.
LIC Jeevan Utsav also addresses the need for liquidity in life insurance. Policyholders can withdraw up to 75% of the amount, including accrued interest, upon providing a written request. This flexibility is a significant boon, especially in times of financial emergencies. It’s worth noting that the scheme does not include a maturity benefit, focusing instead on providing continuous financial support throughout the policyholder’s life.
Regarding interest payments, LIC commits to paying interest on delayed and cumulative flexible income benefits at an annual rate of 5.5%. This interest is calculated on an annual basis for the entire months until the occurrence of withdrawal, surrender, or the policyholder’s demise, whichever is first. This approach ensures that policyholders are compensated fairly for their investment over time.
The scheme presents two distinct options at the onset of the cover – Option I offering Regular Income Benefit and Option II offering Flexible Income Benefit. Each option is tailored to meet different financial needs and goals, giving policyholders the freedom to choose a plan that aligns with their individual circumstances.
LIC announced LIC Jeevan Utsav on social media, emphasizing the scheme’s lifetime guaranteed returns and comprehensive life insurance coverage. With no maximum limit set for the basic sum assured, the minimum being ₹5 lakh, the scheme is poised to attract a diverse group of investors, from young professionals to senior citizens, seeking both security and growth in their investments.
