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LIC's Jeevan Utsav (Plan 771) is a non-par, non-linked, individual savings whole life insurance plan from Life Insurance Corporation of India. You pay premiums for a limited term of 5 to 16 years and get life cover for your whole life. Guaranteed Additions of ₹40 per ₹1,000 of Basic Sum Assured build up every year during the premium paying term. After a waiting period that runs from the 11th to the 19th policy year, depending on the premium paying term, the plan pays an income of 10% of the Basic Sum Assured every year. You choose at the start between Regular Income Benefit, paid out every year, and Flexi Income Benefit, which you can defer and accumulate at 5.5% interest. There is no maturity benefit. On death, the nominee gets the higher of the Basic Sum Assured or 7 times the annualised premium, plus the accrued Guaranteed Additions, and never less than 105% of the premiums paid. Because the plan is non-par, every benefit is guaranteed and fixed, with no bonus or share in LIC's surplus. The minimum Basic Sum Assured is ₹5 lakh, and it can be bought offline or online.
Whole life plan that pays 10% of the Basic Sum Assured every year as guaranteed income, plus Guaranteed Additions during the premium paying term.
Jeevan Utsav suits someone who wants a guaranteed income that lasts for life and has no appetite for market risk. In LIC's own illustration (age 35, ₹10 lakh Basic Sum Assured, 10-year premium term), the total premium is ₹11.1 lakh, income of ₹1 lakh a year starts in the 13th policy year, and the income alone repays the premiums by the 24th year. Counting the income and the final death benefit of ₹14 lakh, our estimate of the return is about 5.6% to 5.8% a year before tax, depending on how long you live. That is steady and guaranteed, but modest, and the long wait before income starts is the price. The life cover is also small for the premium: the death benefit in that example is ₹14 lakh against ₹1.1 lakh paid every year, so this is not a substitute for a term plan. Early exit is costly, since nothing is paid back if you stop in the first year and the guaranteed surrender value starts at only 30% of premiums in the second year. Choose it only if you can pay premiums for the full term and wait for the income to start.
LIC
Key Insights
Founded
1956
LIC was established 70 years ago and has built strong credibility over time, backed by its long-standing presence in the market.
Claims Experience
98.5% CSR, calculated as a 3-year average
LIC settles 98.5% of all claims it receives, demonstrating strong credibility.
Contact Details
022-68276827
Headquarters: Jeevan Bima Marg, Nariman Point, P.O. Box No. 19953, Mumbai, Maharashtra 400021, India
A yearly income of 10% of the Basic Sum Assured is paid at the end of every policy year once it starts, and it continues for the rest of your life.
Paid only if all due premiums have been paid; income starts in the 11th to 19th policy year.
For every year of the premium paying term, ₹40 per ₹1,000 of Basic Sum Assured is added, so a 10-year term adds 40% of the Basic Sum Assured.
No additions accrue after the premium paying term, or if premiums are not paid.
The policy covers you for your whole life, with no maturity date, so a death benefit is always payable to your nominee.
The nominee gets the higher of the Basic Sum Assured or 7 times the annualised premium, plus all accrued Guaranteed Additions, and never less than 105% of the total premiums paid.
You can defer your yearly income and let it grow at 5.5% interest compounded yearly, and withdraw up to 75% of the accumulated balance once in a policy year.
You can switch between Regular and Flexi up to six months before the first income year starts.
If an accident causes death within 180 days, the rider sum assured is paid as a lump sum along with the death benefit. In case of accidental disability, it is paid over 10 years in equal monthly instalments and future premiums are waived for that amount.
Choose this or the Accident Benefit Rider, not both; cover runs up to age 70.
Pays the rider sum assured as a lump sum along with the death benefit if death is caused by an accident.
Conditions or treatments that the policy clearly says it will not cover.
Insurer
LIC plans and claim process
It is a non-par, non-linked, individual savings whole life insurance plan from LIC (Plan 771). You pay premiums for 5 to 16 years, get Guaranteed Additions every year during that term, and receive an income of 10% of the Basic Sum Assured every year after the waiting period, along with whole life cover.
Under Regular Income Benefit, 10% of the Basic Sum Assured is paid out at the end of every policy year. Under Flexi Income Benefit, the same amount becomes due, but you can defer it and let it accumulate at 5.5% interest compounded yearly, and withdraw up to 75% of the balance once in a policy year. You can change your option up to six months before the first income year.
The first income is due at the end of the 11th policy year for a premium paying term of 5 to 8 years, the 12th for 9 years, the 13th for 10 years, the 14th for 11 years, the 15th for 12 years, the 16th for 13 years, the 17th for 14 years, the 18th for 15 years and the 19th for 16 years. The life assured must have completed 18 years by then.
Disclaimer: Premium amounts are indicative and may vary based on age, health, and plan selected. Claim settlement ratios are from IRDAI Annual Reports. Finzony is not an insurance broker or agent. Verify all details on the official LIC website before purchasing.
Official Website
licindia.in
Visit the official LIC website for plan brochures, premium quotes and policy services.
The aforementioned ratios have been averaged over three years (FY24-FY26)
Available only during the premium paying term or up to age 70, whichever is earlier; the rider sum assured can be up to 3 times the sum assured on death.
Adds extra term cover, paid on death during the rider term.
Available at policy inception only, for a term of up to 35 years or until age 75, whichever is earlier.
If the proposer dies, the remaining base plan premiums are waived, which suits policies bought on a child's life.
Needs at least five years of premium paying term left; all rider premiums together cannot exceed 30% of the base premium.
Guaranteed Additions accrue at ₹40 per ₹1,000 of Basic Sum Assured at the end of each policy year during the premium paying term, as long as premiums are paid. They are added to the death benefit and the surrender value, but they are not paid out as income, and they stop after the premium paying term.
You can choose a premium paying term of 5 to 16 years. The minimum entry age is 8 years for 5 to 8 years of premium paying term, and it drops to 7, 6, 5, 4, 3, 2 and 1 years for 9 to 15 years, and 30 days for 16 years. The maximum entry age is 65 for 5 to 10 years of premium paying term, and it falls to 59 for 16 years. Premiums must end by age 75.
The minimum Basic Sum Assured is ₹5 lakh. It goes up in steps of ₹25,000 until ₹24 lakh and in steps of ₹1 lakh above that. There is no upper limit, but the final amount depends on LIC underwriting.
LIC's sample for a ₹5 lakh Basic Sum Assured at age 30, yearly premium, before taxes, shows about ₹1,10,150 for a 5-year premium term, ₹72,600 for 8 years, ₹44,275 for 12 years and ₹30,025 for 16 years. A proposal completed online without an agent gets a 10% rebate on the tabular premium, and the exact premium depends on your age, sum assured and premium paying term.
The nominee receives the higher of the Basic Sum Assured or 7 times the annualised premium, plus all accrued Guaranteed Additions, and never less than 105% of the total premiums paid. In LIC's example of a ₹10 lakh Basic Sum Assured with a 10-year premium term, the death benefit is ₹14 lakh once the premium paying term is over.
No. Jeevan Utsav is a whole life plan, so there is no maturity benefit. Cover continues for your whole life, and the yearly income continues once it starts.
If you stop before one full year of premiums is paid, the policy lapses and nothing is paid back. After one full year, it becomes a paid-up policy with a reduced sum assured, and the Guaranteed Additions already accrued stay attached. Income continues on a paid-up policy only if the paid-up Basic Sum Assured is ₹2 lakh or more, at 5% to 10% of that amount. A lapsed policy can be revived within five years.
You can surrender after the first policy year, but a guaranteed surrender value applies only after two full years of premiums, at 30% of premiums paid in the second year, 35% in the third and 50% from the fourth year, plus a small share of the Guaranteed Additions. LIC can also pay a higher special surrender value. A loan is available after the first policy year, up to 75% of the surrender value on an in-force policy, at an interest rate that LIC resets every year.
Yes. Four optional riders are available for an extra premium: the Accidental Death and Disability Benefit Rider, the Accident Benefit Rider, the New Term Assurance Rider and the Premium Waiver Benefit Rider. You can choose either the first or the second rider, and all rider premiums together cannot exceed 30% of the base premium.