LIC Jeevan Utsav: Planning your child's financial future can begin with small daily savings. LIC's Jeevan Utsav policy allows parents to create a guaranteed lifelong annual income stream after the policy matures. The plan is also suitable for adults looking to secure a fixed income during later years.

What Makes LIC Jeevan Utsav Different?

The Life Insurance Corporation of India (LIC) offers several insurance-cum-investment products, and Jeevan Utsav is designed for people who want long-term financial security along with life cover. One of its biggest attractions is the guaranteed annual income that starts after a specified waiting period and continues for life.

Unlike market-linked investment products, the benefits under this policy are not affected by stock market volatility. This makes it an attractive option for individuals seeking predictable returns and stable income.

For parents, the plan can serve as a long-term financial gift for their children. With disciplined savings of approximately ₹160 per day during the premium-paying period, it is possible to arrange an annual income of ₹1 lakh after the policy enters its payout phase, subject to the policy terms and chosen sum assured.

Who Can Buy the Policy?

LIC Jeevan Utsav is available for a wide range of age groups.

• Minimum entry age: 30 days

• Maximum entry age: 65 years

• Minimum Sum Assured: ₹5 lakh

• No upper limit on the maximum Sum Assured

The premium payment term depends on the age at which the policy is purchased. For infants and young children, premiums may be payable for up to 16 years, while older individuals generally have shorter premium payment options ranging between 5 and 10 years.

How Does the Lifetime Income Feature Work?

Once the premium payment period ends, the policy enters a waiting period. After this, the annual income begins under the Regular Income Benefit option.

The policy pays 10% of the Basic Sum Assured every year as guaranteed income. These annual payouts continue throughout the policyholder's lifetime, up to the age of 100 years. After the policy ends, the applicable maturity value is paid according to the policy conditions.

For example, if the Basic Sum Assured is ₹10 lakh, the policyholder becomes eligible to receive ₹1 lakh every year once the income phase begins.

Life Insurance Protection and Death Benefits

Apart from guaranteed income, Jeevan Utsav also provides financial protection for the family.

In the unfortunate event of the policyholder's death, the nominee receives the applicable death benefit, including the Sum Assured along with the Guaranteed Additions accumulated under the policy, subject to LIC's policy terms.

This feature ensures that the family remains financially protected even if the policyholder is no longer alive.

Additional Rider Benefits

Policyholders can enhance their insurance protection by choosing optional riders available at an additional premium.

Some of the rider options include:

• Accidental Death and Disability Benefit (ADDB)

• Accident Benefit (AB)

• Enhanced Accident Benefit options

• Term Rider

• Premium Waiver Benefit (PWB)

The ADDB Rider provides additional financial assistance in case of accidental death or permanent disability. The Premium Waiver Benefit can waive future premiums under specified conditions.

For child policies, the Premium Waiver Benefit becomes particularly useful. If the parent or proposer passes away during the policy term, future premiums may be waived until the child reaches the specified age, depending on the rider conditions.

Important Risk Cover Rules

The commencement of risk cover depends on the child's age when the policy is purchased.

• For children below 8 years, risk cover starts either two years after policy commencement or when the child turns 8 years old, whichever occurs earlier.

• For children aged 8 years or above, life risk coverage begins immediately from the date the policy starts.

Another noteworthy feature is that once the child becomes 18 years old, the policy ownership is automatically transferred to the child.

Example of Annual Income

Suppose a 36-year-old purchases a ₹10 lakh Jeevan Utsav policy with a 15-year premium payment term. The policyholder pays the premium regularly for 15 years and then waits for the specified deferment period.

After the waiting period, the policy begins paying ₹1 lakh every year, which is equivalent to 10% of the Basic Sum Assured, and the income continues throughout the eligible payout period as per the policy conditions.

Things to Consider Before Investing

LIC Jeevan Utsav may suit individuals looking for guaranteed long-term income and insurance protection without exposure to market fluctuations. However, buyers should carefully evaluate the premium commitment, payout structure, policy terms, and personal financial goals before investing.

Reading the official policy brochure and consulting a qualified financial advisor can help ensure that the plan matches your long-term financial objectives.

Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Prospective buyers should carefully review the official policy documents and seek professional advice before purchasing any insurance product.