LIC Jeevan Utsav Policy: This insurance plan is especially for those who want long term financial security along with flexibility in premium payment. Before investing in this scheme, you should know about 5 special things about this scheme:
LIC Jeevan Utsav Plan: The country’s largest insurance company, Life Insurance Corporation of India (LIC), offers various plans according to the needs of the people. LIC has a special life insurance scheme for every category. One such scheme is LIC Jeevan Utsav which gives guaranteed returns. Jeevan Utsav plan is a non-linked, non-participating life insurance policy. The special thing about this policy is that it is designed to provide lifetime income and risk coverage.
This insurance plan is especially for those who want long term financial security along with flexibility in premium payment. Before investing in this scheme, you should know about 5 special things about this scheme.
You can choose the premium term as per your requirement
Jeevan Utsav scheme comes with the option of premium payment terms from 5 to 16 years. That is, you can choose your premium period from 5 to 16 years. This means that you will have to pay the premium of the policy for a limited period only. Apart from this, this scheme is available for people aged between 90 days to 65 years. The minimum sum assured in this scheme is Rs 5 lakh, which has no upper limit.
Guaranteed growth of Rs 40 on every Rs 1,000 invested every year
In Jeevan Utsav plan, the individual policy holder gets a guaranteed increase of Rs 40 per Rs 1,000 on the basic sum assured at the end of every policy year during the premium paying term. Thus, the value of the policy increases over time.
Lifetime Income: Steady or Flexi Option
After completion of the premium paying term, the policy holder can choose one of these two options:
Steady Income Benefit: In this, 10% of the basic sum assured is paid annually. This payment starts after the deferment period ends.
Flexi Income Benefit: Under the Flexi Income Benefit, policy holders can defer income withdrawal and earn 5.5% annual interest on it.
Death benefit for family protection
In case of death of the policy holder, the nominee is given the sum assured. This amount includes the basic sum assured and the guaranteed additional amount. Apart from this, this amount is not less than 105% of the total premiums paid, which provides adequate financial support to the beneficiary in this difficult situation.
Facility of loan, rider and tax benefit also
Jeevan Utsav Scheme offers several additional features to enhance the convenience of the policy holder, which include:
Facility of loan: After paying premiums for two years, the policy holder can take a loan against this policy to meet his emergency needs.
Optional riders: Policyholders can avail the benefits of the available riders on this. Which includes benefits like accidental death, disability benefit, accident benefit as well as new term insurance, new critical illness benefit and premium waiver.
Benefits in taxation: The life insurance premium paid is eligible for a maximum deduction of Rs 1.5 lakh under Section 80C of the Income Tax Act. Section 10 (10D) provides tax exemption on insurance claims, which include maturity and death benefits as well as all other bonuses accrued under the scheme.