LIC India has launched another insurance plan Jeevan Utkarsh in 2017. Like most of the insurance policies of LIC, this policy is a mix of investment and insurance. The LIC Jeevan Utkarsh is a relatively short term policy and also open for the limited period. Like all other insurance policies, it also gives tax benefit and riders. In this post, I would tell you about the features of Jeevan Utkarsh. If you want to know whether this policy is suitable to you are not, you should read the review of LIC Jeevan Utkarsh.
Main Features of LIC Jeevan Utkarsh
You may have noticed that LIC launches 2-3 insurance plans every year. Most of these plans are from the same group with little difference. Since there would be hard pitching by the LIC agents, it is better to understand LIC plan yourself. You must know all the important features of LIC Jeevan Utkarsh.
Traditional Endowment Insurance Plan
It is an endowment insurance plan. Thus, It is a mix of investment and insurance. Because of the investment part, you also get maturity value at the end of the policy. Whereas Insurance part gives you death benefit. In better words (As insurer says), it gives you money in death and life both. However, You must know that maturity benefit of endowment insurance plan comes with a cost. The premium of such policies is higher. On the other hand, term assurance gives you only death benefit at a very low cost.
Open for Limited Time
Nowadays, LIC often comes with limited period policies. It helps to sell more because of the deadline. Those policies which are available for a limited period are called as the close ended plans. The LIC Jeevan Utkarsh is also a Close Ended Policy. However, Open ended policies are also not open forever. LIC used to close these policies as well but after a longer period.
One Time Payment
The LIC Jeevan Utkarsh is one-time payment policy. It means you have not to pay the premium every year. A one-time payment would be enough for the policy. Let me tell you that, one-time payment policies are costlier. You would learn about it later.
Short Term Plan
It is short term plan. The LIC Jeevan Utkarsh has fixed policy period of 12 years. This period is fixed irrespective of your age. Your age can be between 6 years to 47 years. But the policy period would be only 12 years. If you want to take back your money before the 12 years, you would get a lesser amount.
The Jeevan Utkarsh Plan of LIC gives you the settlement option. In this option, you can take your claim amount in installments instead of lump sum. The installments can be monthly, quarterly, half yearly or yearly.
You can choose 3 periods for the settlement option. Your installment payment can be for 5, 10 or 15 years.
Since you get deferred claim amount, the remaining amount with the LIC earns interest. The interest rate on this deferred amount would be decided by the LIC. It is not announced yet.
There is a minimum installment amount for each type of payments.
|Frequency of Payment||Minimum Instalment amount|
Comparable to FD
The LIC Jeevan Utkarsh seems like a Fixed deposit with Insurance cover. You can deposit in a fixed deposit account maximum for 10 years. In fact, you should compare it with tax saving fixed deposit.
Low Life Cover
The primary focus of all endowment policies is the investment. Agents sell such plan as an investment product which gives tax benefit. The life cover of such plans used to be very low. As High life cover would make the endowment plans unaffordable.
In the Jeevan Utkarsh, you would get minimum necessary death cover. It is the 10 times of the premium (excluding taxes and riders).
There are insurance policies which invest your money in share market. The maturity value of such policies is dependant upon the performance of share market. When the maturity value of the insurance policy is linked to the market condition, it is called as the Linked policy.
However, the Jeevan Utkarsh is a Non-Linked Insurance policy. The share market would not affect the maturity value of Jeevan Utkarsh.
Many Endowment policies also give a bonus. This bonus is dependent upon the profit of the life insurance corporation. The insurance policies which gives bonus are called as the participating policies.
The LIC Jeevan Utkarsh is Non-participating Policy. It would not give any bonus.
Along with the bonus, LIC also gives Loyalty additions. It is also dependent upon the performance of LIC Fund, but it is not regular like a bonus. LIC announces Loyalty Addition (LA) time to time.
Riders are the accessories of the insurance scheme. It gives you extra features at a cost. There are several types of riders such as accident benefit, critical illness, disability benefit etc.
The LIC Jeevan Utkarsh also gives you Accidental Death and Disability Benefit riders. You can opt these riders along with the policy. Your premium would increase accordingly.
Features At A Glance
I am also presenting the basic features of LIC Jeevan Utkarsh policy in tabular form. It would help to those who understand insurance well.
|Minimum Age at entry||6 years (completed)|
|Maximum Age at entry||47 years (nearest birthday)|
|Minimum Basic Sum Assured||75,000/-|
|Maximum Basic Sum Assured||No Limit|
|Death Benefit||10 times of premium+Loyalty Addition, if any|
|Premium Frequency||Single Premium, at the time of buying policy|
|Policy Term||12 years|
|Loyalty Addition||Possible, after 5 years|
|Surrender Value||70% of Premium in 1st Policy Year
90% ofPremium from 2nd Policy Year
|last Date to Purchase||31st March 2018|
Common features of LIC Policies
LIC policies give some common facilities to all of its life insurance policies. These features are almost similar and rarely differs.
You can stop paying the premium of LIC policy anytime. Deliberately stopping of LIC policy is called as the surrender of the policy. Once, you surrender the policy all the benefits end. If your policy has a maturity value, you would also get back some money after the surrender of policy. The LIC uses a formula to fix the surrender value of a policy. One thing is for sure, It would be a far less amount. Also, You get this surrender value only after completing the policy at least for 3 years. Surrender value is very low in initial years.
You can also take a loan against the LIC policy. In the LIC Jeevan Utkarsh, the loan is available after the 3 months of policy purchase. To take a loan, you have to mortgage the policy. The loan amount is decided on the basis of surrender value. The loan amount can’t exceed the 90% of the surrender value.
The interest rate on the loan is fixed by LIC. It changes time to time according to market condition. For the financial year 2017-18, the applicable interest rate is 10% per year compounding half yearly. If can’t repay loan amount, the outstanding would be recovered from your claim amount.
Free Look Period
You can return insurance policy within 15 days of getting policy document. This concession of 15 days is called as the free look period. if you return the policy, you would get back paid premium minus expense of 15 days.
Following are some of the sample tabular annual premium rates (in Rs.) (exclusive of service tax) per ₹1000/- Basic Sum Assured:
|Age at entry(Nearest Birthday)||Tabular Single Premium Rate(Rs.)|
High Sum Assured Rebate
You get a rebate in premium for a high sum assured amount. In case of Jeevan Utkarsh, this rebate starts from 1.5 lakh. The table of Sum assured rebate is given below.
|Sum Assured Amount||Rebate per thousand sum assured|
|₹75000 to ₹1,45,000||Nil|
|₹1,50,000 to ₹2,95,000||₹15|
|₹3,00,000 to ₹4,80,000||₹20|
|₹5,00,000 and above||₹25|
Rider Available With Jeevan Utkarsh
You can take one rider along with the LIC Jeevan Utkarsh. This rider is LIC’s Accidental Death and Disability Benefit Rider. The premium of this rider can’t be more than the 30% of the policy premium. The sum assured amount of the rider can’t exceed the sum assured amount of the Jeevan Utkarsh policy.
In this post I have told you the complete features of LIC jeevan Utkarsh. You must read review of LIC Jeevan Utkarsh before makin any decision.
Other insurance plans of LIC
LIC Jeevan Umang Policy – LIC Jeevan Umang is the Whole life endowment insurance plan. It is a limited premium policy and covers you till the death.
LIC Online Term Plan e-Term – It is a basic term plan which gives only death benefit. Premium is very low.
LIC Bima Diamond Plan – It is traditional money back insurance plan launched for diamond jubilee year of the LIC.
LIC New Jeevan Anand Policy (Plan No 815) Features – It is whole life endowment insurance plan
LIC Aadhaar Stambh and LIC Aadhaar Shila – It is common endowment insurance plan with a low basic sum assured.
LIC Jeevan Labh Policy (Table 836): Features, Benefit, and Terms – It is a fixed tenure traditional endowment insurance plan