LIC Jeevan Utsav Plan No 871 – Introduction
LIC lately launched Jeevan Utsav Plan No. 871. Jeevan Utsav from LIC is an entire life insurance coverage plan that guarantees lifetime assured returns. It gives versatile cost choices and assured additions in the course of the premium cost time period. The query is, are these returns really assured? On this article, we are going to analyze LIC Jeevan Utsav Plan No. 871, analyzing its options, advantages, pattern premium, calculators for varied advantages, optimistic facets, destructive elements, and supply a complete assessment.
About LIC Jeevan Utsav Plan No 871
LIC launched Jeevan Utsav on November 29, 2023. LIC’s Jeevan Utsav is a Non-Linked, Non-Collaborating, Particular person, Financial savings, Complete Life Insurance coverage plan. This plan supplies monetary assist to the household within the occasion of the unlucky loss of life of the Life Assured and survival advantages within the type of Common Revenue Profit or Flexi Revenue Profit, relying on the choice chosen by the surviving policyholder.
The plan is on the market for buy each offline (via licensed brokers, company brokers, brokers, and insurance coverage advertising companies) and on-line instantly via the web site.
LIC Jeevan Utsav – Key Options
- It is a complete life insurance coverage plan with a restricted premium cost.
- Out there in two choices at inception, you possibly can select the profit beneath the plan: Possibility I – Common Revenue Profit and Possibility II – Flexi Revenue Profit.
- Assured Additions are supplied all through the Premium Paying Time period.
- It supplies flexibility to decide on the Premium Paying Time period, starting from 5 years to 16 years.
- The plan gives the advantage of a horny Excessive Sum Assured Rebate.
- It additionally supplies the choice to boost protection by choosing riders with an extra premium cost.
- The coverage permits for availing a mortgage, offering a type of liquidity.
LIC Jeevan Utsav – Eligibility
| i | Premium Paying Time period | 5 to 16 Years | ||
| II | Minimal and Most Age at Entry | Prem paying Time period | Min age | Max Age |
| 5 | 8 | 65 | ||
| 6 | 8 | 65 | ||
| 7 | 8 | 65 | ||
| 8 | 8 | 65 | ||
| 9 | 7 | 65 | ||
| 10 | 6 | 65 | ||
| 11 | 5 | 64 | ||
| 12 | 4 | 63 | ||
| 13 | 3 | 62 | ||
| 14 | 2 | 61 | ||
| 15 | 1 | 60 | ||
| 16 | 90 days | 59 | ||
| iii | Most Premium ceasing age | 75 years | ||
| Min Age | 18 years | |||
| Min Fundamental Sum Assured | 5,00,000 | |||
| Max Fundamental Sum Assured | No Restrict |
LIC Jeevan Utsav – Advantages on this plan
This plan gives varied advantages, together with loss of life profit, survival profit and assured additions.
#1 – Demise Profit
- Within the occasion of the Life Assured’s loss of life after the date of graduation of threat, the Demise Profit is the same as the ‘Sum Assured on Demise’ together with accrued Assured Additions.
- This Demise Profit won’t be lower than 105% of the full premiums paid as much as the date of loss of life.
- ‘Sum Assured on Demise’ is outlined as the upper of the ‘Fundamental Sum Assured’ or ‘7 instances the Annualized Premium’.”
#2 – Survival Profit
#3 – Maturity Profit
No maturity profit out there on this plan.
#4 – Assured Additions
- Assured Additions will accumulate on the fee of Rs. 40 per thousand Fundamental Sum Assured on the finish of every coverage 12 months in the course of the Premium Paying Time period. There will probably be no additional accrual of Assured Additions after the Premium Paying Time period.
- If premiums should not paid on time, the accrual of Assured Additions will stop beneath the coverage.
LIC Jeevan Utsav – Numerous Choices out there
#1 – Rider Possibility
There are 5 rider choices out there:
- LIC’s Unintended Demise and Incapacity Profit Rider
- LIC’s Accident Profit Rider
- LIC’s New Time period Assurance Rider
- LIC’s New Important Sickness Profit Rider
- LIC’s Premium Waiver Profit Rider
#2 – Choice to Obtain Demise Profit in Installments
LIC Jeevan Utsav – Premium Choices
Premiums could be paid usually at yearly, half-yearly, quarterly or month-to-month intervals (month-to-month premiums via NACH solely) or via wage deductions.
LIC Jeevan Utsav Pattern Premium Chart
The pattern illustrative yearly premiums for Normal lives for Sum Assured of Rs 5,00,000 for insurance policies to be offered via Offline are:
LIC Jeevan Utsav Calculator – Defined with an instance
As a result of measurement of the desk, it’s offered in PDF format. Please verify the hyperlink right here.
LIC Jeevan Utsav Plan particulars in Hindi
Refer this hyperlink for Jeevan Utsav Plan of LIC in Hindi
LIC Jeevan Utsav – Optimistic Features on this plan
Optimistic Features of LIC Jeevan Utsav Plan No 871. These are thought of from LIC Jeevan Utsav Coverage Brochure.
- Complete Life Protection with Restricted Premium Cost: The plan supplies complete life insurance coverage protection, making certain monetary assist for the household in case of the life assured’s unlucky demise. The restricted premium cost choice provides flexibility for policyholders.
- Versatile Cost Choices: Policyholders can select premium cost phrases starting from 5 to 16 years, permitting them to tailor the plan to their monetary preferences.
- Assured Additions: The plan gives assured additions all through the premium-paying time period, offering an extra layer of assured returns.
- Excessive Sum Assured Rebate: Policyholders profit from a horny excessive sum assured rebate, probably rising the general protection.
- Rider Choices: The plan gives varied rider choices, reminiscent of Unintended Demise and Incapacity Profit Rider, Accident Profit Rider, New Time period Assurance Rider, New Important Sickness Profit Rider, and Premium Waiver Profit Rider, enabling customization primarily based on particular person wants.
- Mortgage Facility: The coverage permits for loans, offering a supply of liquidity for policyholders when wanted.
- Demise Profit: Within the occasion of the life assured’s loss of life, the plan ensures a loss of life profit equal to the “Sum Assured on Demise,” together with accrued assured additions. This profit shouldn’t be lower than 105% of the full premiums paid.
- Choice to Take Demise Profit in Instalments: The plan supplies the choice to obtain the loss of life profit in installments, providing flexibility in managing the monetary payout.
- Premium Cost Flexibility: Premiums could be paid at varied intervals, together with yearly, half-yearly, quarterly, month-to-month (via NACH solely), or through wage deductions, making it handy for policyholders.
- Number of Rider Choices: The inclusion of rider choices enhances the plan’s protection, permitting policyholders to tailor their insurance coverage to particular wants.
LIC Jeevan Utsav – Hidden or destructive facets
- Product Misrepresentation: This plan is being marketed that it supplies life time guarantied returns, protected returns and 10% assured returns and many others., Whereas 10% indicated is appropriate, nevertheless it’s 10% of fundamental sum assured paid yearly and never returns. This might result in confusion and misinterpretation amongst potential policyholders.
- Goal for people in search of 12 months finish tax financial savings: LIC typically launches new merchandise, together with Jeevan Utsav, in the direction of the top of the 12 months to capitalize on the tax-saving mindset of people, particularly the salaried class. Don’t simply go for tax financial savings. First perceive the plan and if appropriate, contemplate such plans.
- Restricted Maturity Profit: The plan lacks a maturity profit since it’s a whole-life insurance coverage coverage. This can be a disadvantage for people looking for each safety and a monetary return upon reaching a sure age.
- Low Return on Funding: Even when a policyholder lives as much as 100 years, the return on funding is lower than 6%. As rightly identified by Basu Nivesh, SEBI Registered Funding Advisor, the returns for a 30 12 months previous is merely 5.88% from LIC Jeevan Utsav.
- Advanced Survival Profit Choices: The plan gives two survival profit choices, Common Revenue Profit and Flexi Revenue Profit, with deferred and gathered advantages. The complexity of those choices, together with the power to defer and accumulate advantages with curiosity, could make it difficult for some policyholders to totally perceive and make the most of the options.
- Assured Addition Limitations: Whereas the plan mentions assured additions, these additions stop after the premium paying time period. This limitation would possibly disappoint policyholders anticipating steady assured additions all through the coverage’s lifetime.
LIC Jeevan Utsav (Plan No 871) – Do you have to Make investments?
- LIC Jeevan Utsav Plan No. 871 gives a number of optimistic options, together with complete life protection with restricted premium cost, versatile cost choices, assured additions, excessive sum assured rebate, varied rider choices, a mortgage facility, and a spread of loss of life advantages. Moreover, the plan supplies choices for premium cost intervals, making it handy for policyholders.
- Nevertheless, potential drawbacks embrace considerations about misrepresentation, as some could understand it as a assured 10% return product. The timing of the plan’s launch close to the top of the 12 months for tax-saving functions raises questions on its long-term funding advantages. The dearth of a maturity profit, low return on funding, advanced survival profit choices, limitations on assured additions, and dependency on the policyholder’s lifespan are additionally main drawbacks.
People who’re comfy with lower than 6% returns proudly owning to LIC model can nonetheless go forward and contemplate this plan. Whoever is in search of return on investments past 6% can contemplate a number of funding choices like mutual funds or easy financial institution FD whereas there are many funding choices as effectively.
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