LIC Jeevan Utkarsh

About LIC Jeevan Utkarsh

LIC’s Jeevan Utkarsh is a participating endowment plan that offers life cover alongside loyalty additions that are payable on maturity. This is a single premium policy where the life cover is 10 times the single premium.

Please note that Jeevan Utkarsh was launched on Sept 6, 2018, and was up for purchase for only 270 days from the date of launch, that is, till Mar 31, 2018.

How does this plan work?

Jeevan Utkarsh has a 12-year policy term. Individuals falling within the age bracket of 6 to 47 years were eligible to buy this plan. While the minimum sum assured under this plan was INR 75,000, there was no maximum amount.

Now let’s understand how the benefits are paid.

Before we get into further details of this plan, we must understand what Risk Commencement Date is. Let’s understand this with the help of an illustration.

Notes:

(a) In case the policyholder is less than 8 years old while purchasing the policy, then the risk cover will begin one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age.

(b) In case the policyholder is 8 years or more while purchasing the policy, then the risk cover will begin immediately.

Illustration 1

Policy start date = Oct 19, 2017

Age of policyholder = 6 years (birth date Apr29, 2011)

The policyholder will turn 8 on Apr 29, 2019

Here, the risk commencement date, which means, the risk cover will begin from Oct 18, 2019, that is, one day before the policy anniversary.

Illustration 2

Policy start date = Oct 19, 2017

Age of policyholder = 7 years (birth date Apr 29, 2010)

The policyholder will turn 8 on Apr 29, 2018.

Here, the risk commencement date, which means, the risk cover will begin from Oct 18, 2018, that is, one day before the policy anniversary.

Illustration 3

Policy start date = Oct 19, 2017

Age of policyholder = 8 years (birth date Apr 29, 2009)

Here, the risk commencement date, which means, the risk cover will begin from Oct 19, 2017, that is, immediately.

Death Benefit

Scenario 1: If death occurs during the first 5 policy years

A) If death occurs before the Risk Commencement Date, then the nominee will get back the single premium that was paid, without any interest

B) If death occurs after the Risk Commencement Date, then the nominee will receive the highest of the following:

• 125% of the single premium amount
• Basic sum assured amount
• 10 times the tabulated single premium amount

Scenario 2: If death occurs after 5 years of the commencement of the policy

If death occurs after 5 years of the commencement of the policy, then the nominee will receive the highest of the following:

• 125% of the single premium amount + loyalty additions
• Basic sum assured amount + loyalty additions
• 10 times the tabulated single premium amount + loyalty additions

Maturity Benefit

If the policyholder outlives the policy period, then s/he will receive basic sum assured + loyalty additions on maturity.

Now let’s understand the plan with the help of an example.

Mr. X purchases the Jeevan Utkarsh plan,and these are some relevant details:

Age – 30 years

Basic sum assured – INR 3,00,000

Policy term – 12 years

The amount of single premium will be equal to INR 1,62,405 + taxes

Scenario 1: Mr. X dies after 3 years of buying the policy

The death benefit to the nominee under this scenario would be the highest of:

• 125% of the single premium = INR 2,03,006
• Basic sum assured = INR 3,00,000
• 10 times the tabulated single premium = INR 16,24,050

Here, since INR 16,24,050 is the highest, it is the amount that the nominee would receive as the death benefit. After this, the policy will stand terminated.

Scenario 2: Mr. X dies after 7 years of buying the policy

Here, as the life insured dies after 5 years of buying the plan. The nominee stands to receive the highest of:

• 125% of the single premium = INR 2,03,006 + loyalty additions
• Basic sum assured = INR 3,00,000 + loyalty additions
• 10 times the tabulated single premium = INR 16,24,050 + loyalty additions

Here, since INR 16,24,050 + loyalty additions is the highest, it is the amount that the nominee would receive as the death benefit. After this, the policy will stand terminated.

Scenario 3: The life insured survives through the policy period

Here, since Mr. X outlived the policy period, he stands to receive the maturity benefit, which will be: basic sum assured + loyalty additions = INR 3,00,000 + loyalty additions.

Why should you buy LIC Jeevan Utkarsh Plan?

[Note that the policy is no longer available for purchase]

The plan offers maturity benefit plus loyalty additions to take care of future financial needs. Additionally, the plan provides a life cover to the nominee in the event of an untimely death of the life insured. In this way, the Jeevan Utkarshplan not only provides a decent amount to pay for immediate financial needs but also ensures that the life insured’s family stays financially protected against unforeseen, undesirable events like death.

Who should buy LIC Jeevan Utkarsh Plan?

[Note that the policy is no longer available for purchase]

Individuals looking to receive decent returns over a period of 12 years with an investment of a small lump sum amount alongside life cover can opt for this plan. Besides, the life insured is also eligible to avail a loan against this plan after 3 months of issuance of the policy.

Understand Bonus Declared

A percentage of surpluses (profit) are declared by the insurer in the form of Loyalty Additions depending upon the number of years the insured has been with the company. It is accrued at the end of every fifth year and paid to the nominee on death during policy term or to the insured on maturity

For this plan Loyalty rate is assumed to be calculated at Rs 9.29 per thousand of Sum Assured.

Riders and Add-on

The following rider is available under this plan:

Accidental Death and Disability Rider: In this rider the nominee/ family receives the sum assured after the insured’s accidental death or dismemberment or permanent disability.

Claim Process

Know Claim Process of LIC Jeevan Utkarsh

Claim Process