Moreover, Jeevan Utkarsh plan by LIC also takes care of the liquidity requirements via loan facility.
Life Insurance Corporation’s Jeevan Utkarsh was introduced in September 2017 and is available for investments until March 31, 2018. This scheme is open for sale for a maximum tenure of 270 days from the date of its launch. It offers an option of disability benefit riders, and accidental death in its basic scheme.
How LIC Jeevan Utkarsh Works?
The sum of a single premium depends on the basic sum assured selected by you, that is payable on the maturity of scheme. Rs. 75, 000 is the minimal basic sum assured and the premium differs depending on the age of the insured.
In case of an untimely death of the policy holder before the maturity of the policy, the beneficiary will receive the death benefit, ten times that of the single premium, together with the loyalty addition (if any). On the insured’s survival, the policy holder receives the sum assured together with the loyalty additions (if any), on the maturity of the policy.
When will you receive the Loyalty Additions?
Usually, with-profit insurance plans are eligible to earn bonuses. LIC’s Jeevan Utkarsh scheme does not offer any bonus on top of the element of loyalty addition. As per LIC, “The plans under the Jeevan Utkarsh policy shall partake in the profits, in form of loyalty addition that shall be paid at the time of exiting after the policy completes its 5 years.” This means the scheme will qualify for the loyalty addition only after the 5 policy years, either on the surrender of the policy, or on the death of the insured.
Based on the profitability of the insurer, and therefore without guarantee, the stated loyalty addition will be combined with the paid-on maturity and the sum assured. It is a one-time addition to the plan, unlike the bonus that is added every year while profits are made by the insurance companies.
Key Benefits of LIC Jeevan Utkarsh Policy:

Death Benefits:
In case of the event of the death of the insured during the first five years of the policy:
Before the date of inception of the risk:
Reimbursement of the single premium with no added interest.
After the date of inception of the risk:
The policyholder will be paid the ‘Sum Assured on the Death’.
The aforementioned single premiums shall not comprise of any extra premium, taxes chargeable under this plan due to rider premium, or underwriting decision.
In case of the event of the demise of the policyholder after completing the five years of policy but before the promised maturity date:
The policy holder will be paid ‘Sum Assured on the Death’ together with the Loyalty Addition (if any). Here the ‘Sum Assured on the Death’ is the highest of either the single premium’s 125 percent or the Guaranteed Sum Assured on the Maturity that is Basic Sum Assured, or the Absolute amount assured that is to be paid on the demise, which is 10 times of the Tabular Single Premium.
Maturity Benefits:
The policyholder will be paid the ‘Sum Assured on Maturity’ together with the Loyalty Addition (if any). This sum assured on maturity is equivalent to the Basic Sum Assured.
Loyalty Additions:
Based on the experience of the Corporation, the schemes under this plan might be eligible for the Loyalty Addition while exiting, after completing five years of policy - in the form of the insured’s untimely demise in the course of the policy term or in the form of Maturity, at the rate and on the terms as declared by LIC.
Moreover, Loyalty Addition (if any) must be taken into consideration in Special Surrender Value computation on surrendering the plan during the term of the policy, provided it’s after the completion of five years of the policy.
Tax Benefits:
The sum of the single premium put into the policy is eligible for tax benefits under the Section 80C. According to Section 80C of the Income Tax 1961, for all the insurance plans, the rebate allowed from the income for payment of the premiums of insurance must apply only to those schemes where the premium is not more than 10 percent of actual capital assured sum. Under this scheme, the single premium does not exceed 10 percent of the actual capital sum assured, i.e. the death sum assured after the inception of risks.
Eligibility Criteria and Other Restrictions:
|
Minimum
|
Maximum
|
Age at Policy Inception
|
6 years completed
|
47 years most recent birthday
|
Basic Sum Assured
|
Rs. 75, 000
|
No limit
|
Basic Sum Assured must be in multiples of:
Rs. 5, 000-In case the Basic Sum Assured is less than Rs. 3 lakhs
Rs. 20, 000- In case the Basic Sum Assured is Rs. 3 lakhs and more
|
Term of the Policy
|
12 years
|
Mode of Premium Payment
|
Single Premium only
|
Date of Inception of Risk:
If the age at Policy Inception of the life assured in not more than 8 years, the risk under LIC Jeevan Utkarsh will begin from one day before the scheme anniversary corresponding with or followed by the completion of an age of 8 years immediately.
For the individuals who have attained 8 years of age or more, the risk will begin immediately.
Sample of Premium Rates:
The illustration below shows the rates of tabular single premium for Rs. 1000 as the Basic Sum Assured:
Age at Policy Inception (Most recent Birthday)
|
Tabular Single Premium Rate (in Rs.)
|
10
|
528.60
|
20
|
544.95
|
30
|
561.35
|
40
|
657.90
|
Rebate for Higher Basic Sum Assured:
Basic Sum Assured
|
Decline in the Tabular Single Premium on every Rs. 1000 as the Basic Sum Assured
|
Rs. 75, 000 to Rs. 1, 45, 000
|
-
|
Rs. 1, 50, 000 to Rs. 2, 95, 000
|
Rs. 15
|
Rs. 3, 00, 000 to Rs. 4, 80, 000
|
Rs. 20
|
Rs. 5, 00, 000 and above
|
Rs. 25
|
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