Google trend - LIC Jeevan Utsav

LIC Jeevan Utsav is a popular savings plan offered by Life Insurance Corporation of India (LIC). It is a non-linked, non-participating, single premium plan that provides both life insurance coverage and attractive returns on investment. This plan is designed to cater to the needs of individuals looking for a short-term savings option with guaranteed returns.

Under LIC Jeevan Utsav, the policyholder needs to pay a lump sum premium at the beginning of the policy term. The minimum premium amount is Rs. 75,000, and there is no maximum limit. The policy term ranges from 5 to 10 years, and the policyholder can choose the term according to their financial goals and requirements.

The plan offers a guaranteed maturity benefit, which is a percentage of the premium paid, depending on the policy term. For a policy term of 5 years, the maturity benefit is 112% of the premium paid, for 6 years it is 115%, for 7 years it is 118%, for 8 years it is 121%, for 9 years it is 124%, and for 10 years it is 127%. This guaranteed maturity benefit ensures that the policyholder receives a substantial return on their investment at the end of the policy term.

In the unfortunate event of the policyholder's demise during the policy term, the plan also provides a death benefit. The death benefit is higher of 10 times the annual premium or 125% of the premium paid. This ensures that the nominee receives a significant amount to financially secure their future.

One of the key features of LIC Jeevan Utsav is that it offers a liquidity option. After the completion of the third policy year, the policyholder can surrender the policy and receive the surrender value. The surrender value is a percentage of the premium paid, depending on the policy term. For a policy term of 5 years, the surrender value is 70% of the premium paid, for 6 years it is 90%, for 7 years it is 100%, for 8 years it is 110%, for 9 years it is 120%, and for 10 years it is 130%. This feature provides flexibility to the policyholder in case of any financial emergencies or unforeseen circumstances.

LIC Jeevan Utsav also offers a loan facility. After the completion of the third policy year, the policyholder can avail a loan against the policy. The loan amount can be up to 70% of the surrender value. This loan facility can be beneficial for the policyholder to meet any financial requirements without disturbing the policy.

This savings plan also provides tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, The premium paid towards the policy is eligible for tax deduction under Section 80C, and the maturity amount or death benefit received is tax-free under Section 10(10D). These tax benefits make LIC Jeevan Utsav an attractive investment option for individuals looking to save on taxes.

In conclusion, LIC Jeevan Utsav is a savings plan offered by LIC that provides both life insurance coverage and guaranteed returns on investment. With its attractive maturity benefits, death benefits, liquidity options, loan facility, and tax benefits, it is a popular choice among individuals looking for a short-term savings option. However, it is important for individuals to carefully assess their financial goals and requirements before investing in this plan.