Life Insurance of India (LIC) launched a unique insurance policy named 'LIC Jeevan Utsav' on 29 November 2023. This policy has attracted the attention of both people and media. This is one of those schemes of LIC, which has created a record of one lakh policyholders within a month. LIC claims to give guaranteed returns to the people through this policy. This scheme of LIC also gives the benefit of 10% income benefit to the people. Let us know about this policy in detail…
Who can get the benefit?
Investment in the LIC Jeevan Utsav Plan can be made from the age of eight to 65 years, while the premium of this plan will be paid only between the age of 5 to 16 years.
How much return you will get under this scheme will depend on how long you have invested in the scheme.
People investing in this policy will receive a sum assured of at least Rs 5 lakh.
People are given two types of options to invest in this policy: first according to regular income and second for flexi income.
In the LIC Jeevan Utsav Plan, people get the benefit of both term and life insurance.
Just as in term insurance, the policyholder gets the benefit of insurance coverage for the entire life, in the same way, in this policy, people get the benefit of insurance coverage not for a limited time but for the entire life.
How does this policy work?
According to the information received from LIC, the selected premium of 10 percent of the basic sum assured chosen by the customer taking the policy starts from the 11th year based on a fixed period.
Let us understand this with an example-
An individual policyholder who has initially decided to take a sum assured of Rs 16 lakh with a premium term of 16 years. Even if the policyholder can pay the premiums only for 5 years, the insured will still get all the risk and survival benefits. He will get all the benefits that are payable to a policyholder who had initially chosen a policy of Rs 5 lakh and paid for all 16 years of the premium term.
This is based on the principle that the sum assured paid will be calculated as the total premium to be paid multiplied by the amount of premium paid i.e. Rs 5 lakh i.e. (16*5/16). Even for sum-assured policies with payouts ranging from Rs 2 lakh to less than Rs 5 lakh, prorated benefits are provided on a lower scale based on the same feasibility calculation.
To understand with another example, if you have chosen to pay the premium for 5 to 8 years, then in this case your payment will start from the 11th year. However, if you have chosen a longer term i.e. 10 years, your income benefits will start from the 13th policy year.
Customers are getting interest in this percentage
By investing in LIC Jeevan Utsav Policy, investors get the benefit of an interest rate of 5.5 percent on an annual basis. They are getting this interest by postponing two payment options and on the remaining shares. Under this scheme, customers will not get the benefit of lump sum maturity. In such a situation, this policy works like a money-back plan, in which you will get money from time to time. In the case of the flexi income option, investors are getting the benefit of strong interest rates of up to 10 percent at the end of every year.
The families of the deceased are getting this special benefit
Under LIC Jeevan Utsav Policy, the family members of the policyholder are also getting the benefit of death benefit. For example, if a policyholder dies prematurely, then in this situation the nominee will also get the benefit of additional income in addition to the sum insured. This payment can be equal to Rs 40 thousand every year. Because of this, in case of a death benefit, the family of the policyholder can get up to seven times the return on the annual premium.
(PC: Freepik)
