LIC Jeevan Utsav (Plan No. 771): A Comprehensive Guide to Lifetime Income & Savings

LIC Jeevan Utsav (Plan No. 871) is a revolutionary limited premium, whole-life insurance plan designed to provide lifetime guaranteed income benefits while ensuring financial security for policyholders and their families. Whether you’re planning for retirement, your child’s future, or long-term wealth accumulation, this plan offers unmatched flexibility and returns. In this guide, we’ll explore the features, benefits, and unique advantages of the LIC Jeevan Utsav Plan .

Why LIC Jeevan Utsav Stands Out

1. Lifetime Income Benefits : Earn 10% of your basic sum assured annually for life after the premium-paying term.

2. Flexibility : Choose between Regular Income Benefit (yearly payouts) or Flexi Income Benefit (accumulate at 5.5% interest).

3. Guaranteed Additions : Earn ₹40 per ₹1,000 sum assured during the premium-paying term.

4. Tax Benefits : Eligible for deductions under Section 80C and tax-free income benefits under certain conditions.

5. Riders : Enhance coverage with ADDB, Term Rider, Critical Illness Rider, and Premium Waiver Benefit Rider.

Key Features of LIC Jeevan Utsav Plan

1. Plan Parameters

• Eligibility :

  • Minimum Entry Age: 90 days

  • Maximum Entry Age: 65 years

  • Premium Paying Term: 5–16 years

  • Maximum Premium Ceasing Age: 75 years

• Sum Assured :

  • Minimum: ₹5 lakh

  • No upper limit

2. Premium Rebates

• Discounts on premiums for higher sum assured (e.g., 5.75% rebate for sums above ₹50 lakh with a 5-year premium term).

3. Income Benefit Options

• Regular Income Benefit : Receive 10% of the sum assured yearly for life.
• Flexi Income Benefit : Let the 10% income accumulate at 5.5% compounded interest , allowing withdrawals up to 75% of the corpus as needed.

How Does LIC Jeevan Utsav Work?

Income Benefit Start Dates

Example : If you choose a 10-year premium term, income benefits begin in the 13th year and continue for life.

Death Benefit

• Highest of :

  • 7x annual premium

  • 105% of total premiums paid

  • Basic sum assured

• Includes guaranteed additions and unwithdrawn flexi income (if applicable).

Tax Implications & Exemptions

• Section 80C : Premiums qualify for tax deductions.

• Section 10(10D) : Income benefits are tax-free if:

  • Annual premium ≤ 10% of death sum assured

  • Total premiums across policies ≤ ₹5 lakh

Pro Tip : Add a Term Rider to optimize tax benefits further.

Underwriting & Eligibility

• Special Benefits for NRIs/FNIOs : Simplified processes for Group V countries.

• Minors : Coverage up to ₹50 lakh with premium waiver benefits.

• Students & Housewives : Tailored underwriting rules for higher eligibility.

Marketing the Plan: Who Is It For?

• Parents/Grandparents : Secure your child’s future with guaranteed income starting as early as age 19.

• Retirees : Create a lifelong pension fund with the Flexi Option.

• Investors : Leverage 5.5% guaranteed compounding interest to outpace inflation.