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
If you liked this article, share it with your friends and colleagues through social media. Your opinion matters, please share your comments.
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
If you liked this article, share it with your friends and colleagues through social media. Your opinion matters, please share your comments.
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