LIC Jeevan Utsav Plan 871, Benefits, Features, parameter and Review
Introducing LIC of India new plan launched on 29th. November 2023 which name is LIC Jeevan Utsav Plan 871 (LIC Table no. 871) is a combination of insurance, savings and pension.
LIC Jeevan Utsav insurance plan 871 will provide assured returns and after maturity, the policyholder will get 10 percent of the sum assured for life long.
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 policy 871 provides financial protection to 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 benefit
- Option of premium payment term from 5 years to 16 years onl
- Policy can be taken for 90 days child to 65 years older person.
Multiple rider options are available.
- LIC’s Accident Benefit Rider (UIN: 512B203V03)
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
- LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)
- LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
LIC Jeevan Utsav Plan 871 Parameter
| Minimum Age at Entry | 90 Days (Completed) |
| Maximum Age at Entry | 65 Years |
| Maximum premium ceasing age | 75 Years |
| Premium Paying Mode | Yearly, half-yearly, quarterly, and monthly (through NACH only) or (SSS) |
| Policy Term | 100 years – Current age |
| Premium Payment Term | 5 years to 16 years |
| Basic Sum Assured | 5,00,000 and above (in multiple of 25,000 and 1,00,000) |
| Loan | After 2 years |
| Surrender | After 2 years of premium payment |
Also Read this : LIC’s Best Lifetime Money Back plan
Rebates/Loadings
The following rebates/loadings shall be applicable:
(1) High Sum Assured Rebate
(1) Premium Payment Mode Rebate
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.
| Premium Payment Mode | Loading as a % of Tabular annual premium |
|---|---|
| Yearly Mode | Nil |
| Half yearly Mode | 1.75% |
| Quarterly | 2.50% |
| Monthly | 3.25% |
High Basic Sum Assured Rebate: High Sum assured Rebate Based on Sum assured means Policy Value.
The rebate for high Basic Sum Assured (BSA) as a % of Tabular Annual Premium is as under:
| Rebate on tabular premium per Rs 1000 Basic Sum Assured | |||
|---|---|---|---|
| Premium Paying Term (PPT) |
Basic Sum Assured (in Rs) | ||
| 10,00,000 to 24,00,000 | 25,00,000 to 49,00,000 | 50,00,000 and above | |
| 5 | 2.5 | 4.5 | 5.75 |
| 6 | 2.3 | 4.25 | 5.5 |
| 7 | 2.2 | 4 | 5.25 |
| 8 | 2.1 | 3.75 | 5 |
| 9 | 2 | 3.6 | 4.75 |
| 10 | 1.9 | 3.5 | 4.5 |
| 11 | 1.8 | 3.4 | 4.25 |
| 12 | 1.7 | 3.3 | 4 |
| 13 | 1.6 | 3.2 | 3.75 |
| 14 | 1.5 | 3.1 | 3.5 |
| 15 | 1.4 | 3 | 3.25 |
| 16 | 1.3 | 2.9 | 3 |
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 policy holder (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 rate, 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.
| Table 1 | |
|---|---|
| Premium Paying Term | Regular Income Benefit / Flexi Income Benefit Start Year |
| 5 years | 11th policy year |
| 6 years | 11th policy year |
| 7 years | 11th policy year |
| 8 years | 11th policy year |
| 9 years | 12th policy year |
| 10 years | 13th policy year |
| 11 years | 14th policy year |
| 12 years | 15th policy year |
| 13 years | 16th policy year |
| 14 years | 17th policy year |
| 15 years | 18th policy year |
| 16 years | 19th policy year |
Read also : LIC new Jeevan Anand plan 915 lifetime plan
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
| Paid-up value = Sum Assured * Total number of premiums paid/Total number of premiums to be paid |
LIC Jeevan Utsav Plan 871 with an example
An example of Mr. Sohan who is purchasing “LIC jeevan Utsav plan 871 buy online” with following details.
| Sum Assured (Rs.) | 10,00,000 |
| Age (Years) | 25 |
| Policy Term (Years) | 75 years (100 – current age) |
| Premium Paying Term | 12 |
| Deferment period | 3 years |
| Purchase Year | 2023 |
| Yearly Premium | 1st. yrs 92,796/- 2nd yrs. 90,798/- onward |
As per above example, policy holder 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 (Policy Term with 3 years differed period).
The income benefits of Rs.1,00,000/- will be start at the age 38 years of policy holder for life time.
(income benefits & Year-wise death claims) related details for this plan is given below.
| Age | Regular Income Benefit | Flexi Income Benefit | Accured Interest @ 5.5% in flexi income benefit | Cumulative flexi income benefit |
|---|---|---|---|---|
| 38 | 1,00,000 | – | – | – |
| 39 | 1,00,000 | 1,00,000 | 5,500 | 1,05,500 |
| 40 | 1,00,000 | 2,00,000 | 11,303 | 2,16,803 |
| 41 | 1,00,000 | 3,00,000 | 17,424 | 3,34,227 |
| 42 | 1,00,000 | 4,00,000 | 23,882 | 4,58,109 |
| 43 | 1,00,000 | 5,00,000 | 30,696 | 5,88,805 |
| 44 | 1,00,000 | 6,00,000 | 37,884 | 7,26,689 |
| 45 | 1,00,000 | 7,00,000 | 45,468 | 8,72,157 |
| 46 | 1,00,000 | 8,00,000 | 53,469 | 10,25,626 |
| 47 | 1,00,000 | 9,00,000 | 61,909 | 11,87,535 |
| 48 | 1,00,000 | 10,00,000 | 70,814 | 13,58,350 |
| 49 | 1,00,000 | 11,00,000 | 80,209 | 15,38,559 |
| 50 | 1,00,000 | 12,00,000 | 90,121 | 17,28,680 |
| 51 | 1,00,000 | 13,00,000 | 1,00,577 | 19,29,257 |
| 52 | 1,00,000 | 14,00,000 | 1,11,609 | 21,40,866 |
| 53 | 1,00,000 | 15,00,000 | 1,23,248 | 23,64,114 |
| 54 | 1,00,000 | 16,00,000 | 1,35,526 | 25,99,640 |
| 55 | 1,00,000 | 17,00,000 | 1,48,480 | 28,48,120 |
| 56 | 1,00,000 | 18,00,000 | 1,62,147 | 31,10,267 |
| 57 | 1,00,000 | 19,00,000 | 1,76,565 | 33,86,832 |
| 58 | 1,00,000 | 20,00,000 | 1,91,776 | 36,78,608 |
| 59 | 1,00,000 | 21,00,000 | 2,07,823 | 39,86,431 |
| 60 | 1,00,000 | 22,00,000 | 2,24,754 | 43,11,185 |
| 61 | 1,00,000 | 23,00,000 | 59,278 | 12,37,079 |
| 62 | 1,00,000 | 24,00,000 | 1,27,319 | 14,05,118 |
| 63 | 1,00,000 | 25,00,000 | 2,04,600 | 15,82,399 |
| The fund accumulates continue till the Age of 100 Years. | ||||
If Mr. Sohan want to close/cancel/withdraw of this policy at the age 60 years than he will receive Rs. 12,48,112/- after surrender the policy.
Suppose if, unfortunate death of policy holder happens at age 62, then by that time total premium paid will be Rs. 5,95,505/- and 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 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
Suicide Clause : If Policy Holder Committed Suicide within 12 month from date of taking the policy 80% of paid premium will be returned back. If committed suicide after 1 year. Full Sum assured + Bonus will be paid by LIC to their nominee.
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%
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 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.
LIC others Endowment plans
| LIC new endowment 914 | LIC Jeevan Labh Plan 936 |
| LIC new jeevan anand plan 915 | LIC Jeevan Umang Plan 845 |
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