LIC Introduced a New Life Insurance Policy named ‘Jeevan Utsav’ that gives guaranteed returns if the premium is paid for five years. Those between 90 days and a maximum age of 65 years can join the scheme with a minimum basic sum assured of Rs. 5 lakhs.
The Life Insurance Corporation of India recently introduced Jeevan Utsav – a new policy that offers guaranteed lifetime returns if the premium is paid for five years. The policy provides monthly payments of over Rs. 4,000 until the policyholder passes away. It is available for purchase between 90 days and a maximum age of 65, with a minimum basic sum assured of Rs. 5 lakhs. The premium payment period can range from 5 to 16 years.
One unique facet of this policy is that it offers a 10% cashback on investments every year for the policyholder’s entire life. Cash flows will continue throughout their lifetime. If the policyholder lives to be 100 years old, the 10% cashback will continue every year.
The waiting period varies depending on the premium payment term chosen. If the policyholder opts for a 5-year term, they must wait an additional 5 years. If they select a 6-year term, then the waiting period will be 4 years. For those who choose a 7-year term, the waiting period is 3 years. If the premium payment term is between 9 and 16 years, the waiting period is two years.
If the basic sum assured is Rs. 5 lakhs and the policyholder chooses a 5-year premium term, they will pay approximately Rs. 1.16 lakhs (inclusive of GST) in annual premiums. After completing the premium payment term, they must wait another 5 years. From the age of 11, after taking the policy, LIC will pay 10% every year on the sum assured, which means they will receive Rs. 50,000 annually for a total of Rs. 5 lakhs. These payments will continue for as long as the policyholder lives, and they can expect to receive approximately Rs. 4,166 per month.
In case of the policyholder’s untimely death due to an unforeseen event, the insurance coverage is Rs. 5 lakhs, which will be given to their family. This applies only to natural death. For accidental and disability benefits, the premium must be paid a little higher. If the policyholder selects the accident benefit, they will receive a sum assured of Rs. 5 lakhs and an additional Rs. 5 lakhs under accidental benefit, totalling Rs. 10 lakhs that will be paid to their nominee.
