Life Insurance Corporation of India, or LIC, has launched a new individual, savings, and Whole Life Insurance plan. The Plan is a Non-Linked, Non-Participating Plan. This is a comprehensive form of life insurance providing lifetime coverage. Unlike term insurance plans that cover a person for a specified term, whole life insurance, as the name implies, provides coverage for the entire lifetime of the insured individual. This insurance plan not only grants death benefits to the beneficiaries after the policyholder’s demise but also has a savings component where cash values accumulate over time.
LIC’s Jeevan Utsav is effective from November 29, 2023. According to the LIC press release, consider the following points before opting for the policy.
v This plan is available for age starting from 90 days to 65 years. It gives guaranteed lifelong income and lifelong risk cover.
v The minimum premium paying term is 5 years and the maximum premium paying term is 16 years
v For each policy year for which premium is paid, the Guaranteed Additions @ Rs 40 per thousand Basic Sum Assured shall accrue at the end of each policy year during the premium paying term.
v On survival of the life assured after the Premium Paying Term, the Policyholder can choose from:
Option I — Regular Income Benefit – 10 per cent of the Basic Sum Assured, payable at the end of each policy year, starting after 3 to 6 years of the deferment period.
Option II- Flexi Income Benefit – Policyholders can opt for a Flexi Income Benefit under which 10 per cent of the Basic Sum Assured payable can be accumulated and withdrawn later, subject to the terms and conditions of the policy. LIC shall pay interest on such Deferred Flexi Income payments @ 5.5 per cent p.a., compounding yearly.
As the Policyholder is offered life cover for the whole life, the Death Benefit will be payable as follows:
v 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 per cent of total premiums paid up to the date of death. “Sum Assured on Death” is ‘Basic Sum Assured’ or ‘7 times of Annualized Premium, whichever is higher
v Maturity benefit is not available under this plan as Regular/Flexi Income Benefits are continued for life as peer option exercised
v Additional liquidity is available through loan
v An Attractive High Sum Assured rebate is available.
v This product satisfies the long pending demand for a lower, flexible Premium Paying Term.
v Five optional riders are available under this plan. The policyholder can opt for either LIC’s Accidental Death and
Disability Benefit Rider or LIC’s Accident Benefit Rider and the remaining three riders, i.e. LIC’s New Term Assurance Rider, LIC’s New Critical Illness Benefit Rider and LIC’s Premium Waiver Benefit Rider are also available by paying additional premium subject to the eligibility conditions, per the release.
You can purchase this plan offline through licensed agents, corporate agents, brokers, and insurance marketing firms. You can also buy it online by visiting the LIC website.
In conclusion, whole life insurance is a comprehensive insurance-cum-investment plan that assists estate planning and provides a financial safety net for the policyholder’s family. Its key highlights are consistent premiums, lifetime coverage, cash value accumulation, and possible dividends. Individuals considering life insurance should weigh the cost and benefits of whole life insurance to ascertain if it aligns with their financial goals.
