LIC of India new plan launched on 29th. November 2023 which name is LIC Jeevan Utsav Plan 871 (LIC Table no. 871) is a traditional plan which means not related to market. Jeevan Utsav 871 is a combination of insurance, savings and pension.

LIC’s Jeevan Utsav Plan 871 is a Non-Linked, Non-Participating, Individual, Savings, Whole Life Insurance plan. It is a Limited Premium plan with Guaranteed Additions throughout Premium Paying Term.

LIC Jeevan Utsav 871 provides financial protection for the family of the deceased policyholder any time before maturity. The main benefit of this plan is it has the limited premium payment option. Premium paying term is 5 years to 16 years for whole life policy terms. The unique Identification of 'Jeevan Utsav Plan 871' is 512N363V01.

The proposer shall have following two options to choose at inception of the policy. The benefits shall vary as per the option chosen.

• Option I - Regular Income Benefit
• Option II – Flexi Income Benefit

However, the policyholder can change the option exercised by him at the inception of the
policy at any time up to six months before the beginning of the policy year in which the first
Regular Income Benefit or Flexi Income Benefit becomes due.

This LIC Plan 871 can be purchased Offline through Licensed agents, Corporate agents, Brokers, Insurance Marketing Firms as well as Online directly through LIC website www.licindia.in.

Key Features

• Guaranteed Income for Lifetime starting from age 18 till 100 years.
• Option to choose regular income benefit or flexi income benefit.
• All the benefits will be guaranteed at the time of inception of the policy.
• Guaranteed Additions at the rate of Rs. 40 per thousand sum assured till the premium paying term.
• Option to defer and accumulate the income at an attractive investment rate of Rs 5.5% per yearly and compounding annually.
• You can change type of income benefit six months before the payment of benefits.
• Option of premium payment term from 5 years to 16 years only.
• Policy can be taken for 90 days child to 65 years older person.
•  

Multiple rider options are available:

1. LIC’s Accident Benefit Rider (UIN: 512B203V03)
2. LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
3. LIC’s New Term Assurance Rider (UIN: 512B210V01)
4. LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
5. LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)

LIC Jeevan Utsav Plan 871 Parameter

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Rebates/Loadings

The following rebates/loadings shall be applicable:

(1) High Sum Assured Rebate

(1) Mode Rebate

The rebate for high Basic Sum Assured (BSA) as a % of Tabular Annual Premium is as under:

Rebate means discount on premium. Two rebates in this policy one is Mode Rebate and another is Sum Assured Rebate.

Mode Rebate: Rebate given based on premium payment mode chosen.

High Basic Sum Assured Rebate: High Sum assured Rebate Based on Sum assured means Policy Value.

The High Sum Assured rebates are as under:

Benefits

Maturity Benefits

LIC Jeevan Utsav Plan 871 Maturity Benefit = Maturity Benefit is not available under this plan.

Death Benefits

LIC Jeevan Utsav Plan 871 Death Benefit = On death of the Life Assured after the date of commencement of risk, Death Benefit equal to “Sum Assured on Death” along with accrued Guaranteed Additions shall be payable, provided the policy is in-force.

• This Death Benefit shall not be less than 105% of total premiums paid up to the date of death.
• “Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’.

Where,
1. “Annualized Premium” shall be the premium amount payable in a year chosen by the policyholder, excluding the taxes, rider premiums, underwriting extra premiums, loadings for modal premiums, High Sum Assured Rebate and Rebate for CIS/ Online sale, if any.

2. “Total Premiums Paid” means total of all the premiums received, excluding any extra premium, any rider premium and taxes.

However, in case of minor Life Assured, whose age at entry is below 8 years on death before the commencement of Risk, the death benefit shall be refund of premium(s) paid (excluding taxes, any extra premium, rider premium(s), if any), without interest.

Survival Benefit

Survival Benefit in form of Regular Income Benefit or Flexi Income Benefit as per the
option chosen shall be as under:

• Option I - Regular Income Benefit:

On survival of Life Assured, Regular Income Benefit equal to 10% of Basic Sum
Assured shall be payable at the end of each policy year starting from the year as provided all due premium have been paid.

• Option II - Flexi Income Benefit:

On survival of Life Assured, the policyholder shall be eligible for Flexi Income Benefit equal to 10% of Basic Sum Assured at the end of each policy year starting from the year as specified in Table 1 below, provided all due premium have been paid. Policyholder shall have the flexibility to defer and accumulate such Flexi Income Benefits.

The Corporation shall pay interest on the deferred and accumulated Flexi Income
Benefits at the rate of 5.5% p.a. compounding yearly for completed months from its due date till the date of withdrawal or surrender or death, whichever is earlier. Fraction of months will be ignored for the purpose of calculation of interest.

Policyholder on written request can withdraw once in a policy year, a maximum of 75% of balance accumulated Flexi Income Benefit(s) including interest, if any, which has not already been withdrawn and the net amount after withdrawal will continue to accumulate as mentioned above.

The accumulated Flexi Income Benefit(s) due and not withdrawn along with interest (if any) shall be payable on death or surrender, whichever is earlier.

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Guaranteed Additions

Under an inforce policy, the Guaranteed Additions shall accrue at the rate of Rs. 40 per thousand Basic Sum Assured at the end of each policy year during the Premium Paying Term. There shall be no further accrual of Guaranteed Additions after Premium Paying Term.

In case the premiums are not duly paid, the Guaranteed Additions shall cease to accrue under a policy.

Under an inforce policy on death of Life Assured during the Premium Paying Term, the Guaranteed Addition in the year of death shall be payable for full policy year.

In case of surrender of an inforce policy during the Premium Paying Term, the Guaranteed Additions for the policy year in which the policy is surrendered will be added on proportionate basis in proportion to the completed months for the Policy Year in which policy is surrendered.

LIC Jeevan Utsav Plan 871 Surrender, Loan and Paid-up value.

LIC Jeevan Utsav Plan 871 Surrender, Loan and Paid-up value details is given below.

Surrender period : Policy can be surrender after 2 years at least 2 full years payment of premiums.

Loan Facility : Loan facility is available under LIC Jeevan Utsav plan 871, after at least 2 full years of premium paid.

Paid-up value : Once a LIC Jeevan Utsav Plan 871 policy has completed minimum 2 full years and more premiums paid, and policyholder chooses to stop paying further premiums, it automatically becomes eligible for paid-up value.

Paid-up value formula

LIC Jeevan Utsav Plan 871 with an example

An example of Mr.Vinod who is purchasing "LIC jeevan Utsav plan 871 buy online" with following details.

As per above example, policy holder Mr. Vinod needs to pay the premium of Rs. 92,796/- 1st. year and Rs. 90,798/- 2nd year onward every year for 12 years (Premium Paying Term) and after completion of 15 years (Premium paying Term + 3 years deffered period).

The income benefits of Rs.1,00,000/- will be start at the age 40 years to the policy holder for life time.

(income benefits & Year-wise death claims) related details for this plan is given below.

If policy holder Mr. Vinod choose flexi income benefit option at the time of policy taken, after some years later, ​​If Mr. Vinod want to withdraw total deposit value of Cumulative flexi income in year 2058 at the age 60 years than he will receive Rs. 32,33,389/- (75% of total cumulative flexi income benefit fund can withdraw only) at the time of withdrawal total deposit value of Cumulative flexi income once in a year and rest 25% Cumulative flexi income fund and flexi income benefit accumulates continue till the Age of 100 years.

Suppose if, unfortunate death of policy holder Mr. Vinod happens in year 2058 at the age 60 years, then nominee will get death claim as Rs. 15,74,310/- in case of normal death or Rs. 25,74,310/- as accidental death claim in case of death due to accident + Rs. 43,11,185/- as Total deposit Cumulative flexi income.

Total benefits to nominee will be Rs. 58,85,495/- as a Normal death, Rs. 68,85,495/- as a Accidental death at tha time of policy holder death and  policy will be stop.

Additional information

Revival : Policy should be revived before 5 years from last unpaid premiums.

Riders availablity : LIC’s Accidental Death and Disability Benefit Rider LIC’s Accident Benefit Rider LIC’s New Term Assurance Rider LIC’s New Critical Illness Benefit Rider and LIC’s Premium Waiver Benefit Rider

Surrender: Jeevan Utsav can be surrendered during the policy term if the entire first two years of premium are paid.

Loan: A loan facility is available after paying the entire first two years of premiums in Jeevan Utsav. The maximum loan permissible as a percentage of surrender value under both options will be as follows: For in-force policies- upto 75%; for paid-up policies- upto 50%

Tax Benefits: Paid premiums are exempted from income tax under section 80C, and Maturity, income  benefits (servival benefits) and death claim amount is tax free under 10 (10D).

Suicide Clause: If The Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk. In that case, the nominee or beneficiary of the Life Assured shall be entitled to 80% of the total premiums paid, excluding any taxes, extra premiums and rider premiums, if any, provided the policy is in force. This clause shall not be applicable if the age at entry of the Life Assured is below 8 years.

Nomination: Nomination by the holder of the Jeevan Utsav policy on his/her own life is required as per Section 39 of the Insurance Act, 1938, as amended from time to time.

Assignment: An assignment is allowed under the plan as per Section 38 of the Insurance Act, 1938, as amended from time to time.

Free Look Period: If a Policyholder is not satisfied with the “Terms and Conditions” of the Jeevan Utsav policy, he/she may return the policy to the LIC of India, stating the reasons for objections, within 30 days from the date of receipt of the electronic or physical mode of the Policy Document, whichever is earlier.

Backdating of the policy: The LIC Jeevan Utsav policy 871 can be dated back within the same financial year but not before the Date of Introduction of this Plan.

Proposal Form : Form No. 300 and 340.