LIC unveils limited premium, guaranteed additions plan Jeevan Utsav 

LIC's Jeevan Utsav offers life-long income, risk cover & optional riders. It has flexible premium paying term (min 5 yrs, max 16 yrs) & guaranteed additions of ₹40/thousand basic sum assured each policy year. On death, 105% of total premiums paid & sum assured on death are payable. No maturity benefit.

The Life Insurance Corporation of India (LIC) has introduced Jeevan Utsav, a non-linked, non-participating, individual, savings, whole life insurance plan.

A limited premium plan with guaranteed additions throughout the premium paying term, the product is available for age starting 90 days to 65 years. It gives guaranteed life long income and risk cover. The minimum premium paying term is five years and the maximum 16 years, LIC said after Chairperson Siddhartha Mohanty unveiled Jeevan Utsav.

In a release, LIC said the product satisfied the long-pending demand for lower and flexible premium paying term. Each policy year for which the premium is paid, under the plan, guaranteed additions at ₹40 per thousand basic sum assured would accrue at the end of each policy year during the premium paying term. Regular income benefit and flexi income benefit are the options available to the policyholder, on survival of the life assured, after premium paying term.

The policyholder will be offered life cover for the whole life. On death of the life assured after the date of commencement of risk, death benefit equal to sum assured on death along with accrued guaranteed additions will be payable, provided the policy is in-force. The death benefit will not be less than 105% of total premiums paid up to the date of death. The sum assured on death is basic sum assured or seven times of annualized premium, whichever is higher, LIC said.

However, maturity benefit is not available under the plan as regular/flexi income benefits are continued for life as peer option exercised. Five optional riders are available under this plan.