Launched on November 29, 2023, the LIC Jeevan Utsav (Plan 871) is a Non-Linked, Non-Participating plan. This means your money is safe from market risk and the returns are guaranteed and fixed from day one. It’s an ideal savings plan, providing financial stability through periodic income and coverage that lasts until age 100.
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Eligibility: Anyone from 90 days old to age 65 can invest.
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Premium Term: You only pay premiums for a limited period of 5 to 16 years.
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Minimum Sum Assured: ₹5 lakh (no maximum limit).
How the Policy Actually Works
The policy is split into three phases:
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Premium Payment Term (PPT): You pay your premiums for the chosen $5-16$ years. During this time, the policy value grows through Guaranteed Additions (GAs).
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Guaranteed Additions: The policy accrues GAs at a rate of ₹40 per ₹1,000 of Basic Sum Assured annually, throughout the PPT.
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Deferment Period: After the PPT ends, there is a short waiting period before the income starts.
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If you choose a $5$–$8$ year PPT, income starts from the 11 policy year.
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If you choose a longer PPT, the start year is later (e.g, 16-year PPT starts from the 19 policy year.
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Income Period (For Life): Once the waiting period is over, you start receiving income that continues for your entire life (till age 100).
Survival Benefit Options
Once the income starts, you choose one of two options:
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Option 1: Regular Income Benefit
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You receive a fixed 10% of the Basic Sum Assured every year, paid out annually. This is a stable, reliable income source for life.
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Option 2: Flexi Income Benefit
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You can choose to defer (not withdraw) the annual $10\%$ income.
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LIC pays 5.5% p.a. interest (compounding yearly) on the deferred and accumulated amount.
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You can withdraw up to 75% of the accumulated balance once per year when you need the cash. This gives you income that grows until you decide to pull it out.
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The Death Benefit (The Real Security)
The death benefit is considered attractive. If the policyholder dies while the policy is in force, the nominee receives:
The “Sum Assured on Death” + Accrued Guaranteed Additions.
The Sum Assured on Death is the higher of:
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Basic Sum Assured (₹5 lakh minimum).
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7 times the Annualized Premium.
The benefit is also guaranteed to be at least 105% of all total premiums paid up to the date of death. This means the family is financially secured, no matter what.
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