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 scheme of life insurance 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 according to your needs.

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 90 days to 65 years. The minimum sum assured in this scheme is Rs 5 lakh, which has no upper limit.

Guaranteed increase of Rs 40 per Rs 1,000 every year

In the Jeevan Utsav scheme, the individual policyholder 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 payment period. In this way, the value of the policy increases with time.

Lifetime Income: Steady or Flexi Option

After the premium-paying term is over, the policyholder can choose one of the 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, the policyholder can defer the income withdrawal and earn an annual interest of 5.5% on it.

Death benefit for family protection

In case of death of the policyholder, the insurance amount is given to the nominee. This amount includes the basic sum assured and the guaranteed additional amount received on it. Apart from this, this amount is not less than 105% of the total premium paid, which provides adequate financial support to the beneficiary in this difficult situation.

Facility of loan, rider, and tax benefits also
Jeevan Utsav Scheme offers several additional features to enhance the convenience of the policyholder, which include:

Facility of loan: By paying premiums for two years, policyholders can take a loan against this policy to meet their emergency needs.

Optional riders: Policyholders can take advantage of the available riders it. 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: A maximum deduction of Rs 1.5 lakh is available on the life insurance premium paid 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.

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