LIC introduces a new plan named Jeevan Utsav; all you need to know

livemint.com:

LIC) has introduced a novel plan encompassing individual savings and whole life insurance. The plan is called LIC’s Jeevan Utsav with effect from November 29, 2023. This plan is non-linked and non-participating, offering extensive life insurance coverage throughout one’s lifetime.

Also, the plan allows scope to pay limited premiums featuring guaranteed additions throughout the premium-paying term. The major features that make up this plan include: Option I: Regular Income Benefit: This entails 10 per cent of the basic sum assured, paid at the end of each policy year, commencing three to six years after the deferment period. Option II: Flexi Income Benefit: Policyholders can choose the Flexi Income Benefit, wherein 10 per cent of the basic sum assured can be accumulated and withdrawn later, contingent upon the policy’s terms and conditions.

LIC will provide interest on these Deferred Flexi Income payments at a rate of 5.5 per cent per annum, compounded yearly. Since the policyholder is provided life coverage for their entire lifetime, the death benefit will be disbursed in the following manner: • In the event of the life assured’s demise after the commencement of risk, the Death Benefit, equivalent to the “Sum Assured on Death" along with accrued guaranteed additions, will be paid, provided the policy is active. This Death Benefit will not be less than 105 per cent of the total premiums paid up to the date of death.

The “Sum Assured on Death" is either the “Basic Sum Assured" or “7 times the Annualized Premium", whichever is higher. • Maturity benefits are not applicable under this plan, as regular/flexi income benefits continue for the lifetime based on the option selected. • Additional liquidity can be accessed through