LIC Jeevan Utkarsh Policy – Features and Benefits

LIC Jeevan Utkarsh Policy – Features and Benefits

LIC (Life Insurance Corporation of India) has launched a new policy called as “LIC Jeevan Utkarsh” on 6th September 2017. LIC Jeevan Utkarsh policy is a non-linked, with-profit, single premium life insurance plan. LIC Jeevan Utkarsh is a combination of protection and savings. Under LIC Jeevan Utkarsh policy, the risk cover is ten times of the Tabular Single premium. You will have an option to choose the Basic Sum Assured.

LIC Jeevan Utkarsh is a traditional close ended plan. It is available for sale for a maximum period of 270 days from the launch date. Let us see LIC Jeevan Utkarsh policy’s features and benefits.

Eligibility conditions for LIC Jeevan Utkarsh Policy

Following are the eligibility conditions to buy LIC Jeevan Utkarsh policy.

* Minimum Age at entry – 6 years (completed).

* Maximum Age at entry – 47 years (nearest birthday)

* Minimum Basic Sum Assured – Rs. 75,000

* Maximum Basic Sum Assured – No Limit

(Basic Sum Assured under LIC Jeevan Utkarsh policy shall be in multiples of Rs. 5,000 – if Basic Sum Assured under a policy is below Rs. 3,00,000 and Rs. 20,000 – if Basic Sum Assured under a policy is Rs. 3,00,000 and above)

* Premium payment mode – Single Premium (one-time lump sum payment only)

*Policy Term – 12 years

* In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence from one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age.

In case the age at entry of the Life Assured is 8 years or more, the risk will commence immediately.

* The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.

Features of LIC Jeevan Utkarsh Policy

Following are the key features of LIC Jeevan Utkarsh policy

1. Jeevan Utkarsh policy is an endowment plan.

2. It is a close-ended single premium policy.

3. The policy term is 12 years.

4. The policy offers options of availing LIC’s Accidental and Disability Benefit Rider.

5. The loan can be availed under this policy after three months from the policy start period.

6. Policy can be surrendered at any time during the policy period.

7. The policy offers the option to receive claim settlement in installment.

8. Risk cover is ten times of the Tabular Single premium.

Sample Premium Rates:

The specimen tabular single premium rates for some of the ages per Rs.1000/- Basic Sum Assured are as under:

Age at entry(Nearest Birthday)	Tabular Single Premium Rate(Rs.)
10	528.60
20	544.95
30	561.35
40	657.90

Benefits under LIC Jeevan Utkarsh policy

There are two types of benefits under LIC Jeevan Utkarsh policy

1. Maturity Benefits

2. Death Benefits

1. Maturity benefits under LIC Jeevan Utkarsh policy

“Sum Assured on Maturity” along with LA (Loyalty Addition), if any, will be payable if the life assured surviving to the end of the policy. “Sum Assured on Maturity” is equal to Basic Sum Assured.

2. Death benefits under LIC Jeevan Utkarsh policy

a) On death during first five years of policy

If death occurred before the date of commencement of risk, then the LIC will refund the single premium without interest. (Single premium shall not include any taxes, extra premium chargeable under the policy due to underwriting decision and rider premium if any).

If death occurred after the date of commencement of risk, then the Sum Assured will be payable.

b) On death after completion of five years of policy but before date of maturity

“Sum Assured on Death” along with LA (Loyalty Addition), if any, will be payable. Where “Sum Assured on Death” is defined as the highest of

-125% of the single premium; or

-Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured; or

-Absolute amount assured to be paid on death i.e. 10 times of Tabular Single Premium.

Loyalty Addition under LIC Jeevan Utkarsh policy

The policies under this plan will be eligible for Loyalty Addition along with Sum Assured at the time of exit after completion of five policy years in the form of Death during the policy term or Maturity depending upon the Corporation’s experience.

Surrender value under LIC Jeevan Utkarsh policy

LIC Jeevan Utkarsh policy can be surrendered at any time during the policy year. The Guaranteed Surrender Value shall be as under

1. First year: 70% of the Single premium paid.

2. Thereafter: 90% of the Single premium paid.

(Single premium shall not include any taxes, extra premium chargeable under the policy due to underwriting decision and rider premium if any).

LIC Jeevan Utkarsh is a typical endowment plan with a combination of protection and saving. It is for a fixed term of 12 years only and there is no option to choose the tenure of your choice. LIC Jeevan Utkarsh provides tax benefits under section 80C and insurance coverage up to 10 times single premium. LIC Jeevan Utkarsh policy does not provide coverage during first five years of the policy.

Also read: How to apply for loan against LIC policy online?
Also read: LIC Mobile App - A useful app for LIC policyholders

Also read: What is term insurance, how to choose term insurance?
Also read: PPF (Public Provident Fund) - A popular saving scheme

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