LIC Jeevan Utsav 771
LIC Jeevan Utsav 771 (LIC Table no. 771) is a non-linked insurance product that provides financial support to families in the event of a life assured’s death, as well as survival benefits in the form of regular income or flexible income based on the policyholder’s choice. The benefits payable under this plan are guaranteed and fixed, meaning they will not change regardless of how well or poorly the company performs financially.The unique Identification of Jeevan Utsav 771 is 512N363V02.
Key Features and Eligibility of LIC Jeevan Utsav 771
| Feature | Details |
|---|---|
| Plan Type | Individual Life Savings Whole Life Insurance Plan |
| Minimum Entry Age | 30 days (Completed) |
| Maximum Entry Age | 65 years |
| Premium Payment Term | 5 to 16 Years |
| Minimum Basic Sum Assured | ₹5,00,000 |
| Maximum Basic Sum Assured | No Limit (subject to underwriting) |
| Sum Assured Multiples | ₹25,000 for ₹5,00,000 to ₹24,00,000; ₹1,00,000 for above ₹24,00,000 |
| Premium Payment Mode | Yearly, Half-Yearly, Quarterly, Monthly |
| Loan Facility | Available after one full policy year |
| Surrender Option | Available after the first full premium year |
| Paid-up Value | Achieved after paying one full year’s premium |
| Revival Benefit | Can revive within 5 years from the first unpaid premium |
| Death Benefit | Sum Assured on Death or 7x Annualized Premium, whichever is higher, subject to minimum 105% of all premiums paid |
| Income Benefit | Choice of Regular or Flexi Income Benefit after Premium Payment Term |
| Grace Period | 30 days for Yearly, Half-Yearly, and Quarterly premiums; 15 days for Monthly premiums |
| Free Look Period | 30 days |
| Tax Benefits | Eligible under Section 80C and Section 10(10D) of the Income Tax Act |
| Rider Options | Accidental Death & Disability Benefit Rider, Accident Benefit Rider, New Term Assurance Rider, Premium Waiver Benefit Rider |
LIC Jeevan Utsav 771 Plan Survival Benefits
This plan provides two income options to support financial goals:
- Regular Income Benefit
Provides 10% of the Basic Sum Assured annually, beginning in a policy year based on the premium paying term chosen by policy holder - Flexi Income Benefit
Offers flexibility by allowing policyholders to defer and accumulate income benefits at 5.5% compound interest per annum, with options to withdraw annually up to 75% of accumulated benefits.
Rebates and Discounts in LIC Jeevan Utsav Plan 771
Premium Paying Mode Rebates:
- Yearly Mode: Nil
- Half-Yearly Mode: 1.75%
- Quarterly Mode: 2.5%
- Monthly Mode: 3.25%
High Basic Sum Assured Rebate: High Sum Assured rebates reduce the total premium paid and are as follows:
| Basic Sum Assured (BSA) | Rebate |
|---|---|
| ₹10,00,000 to ₹24,00,000 | 1.5% of BSA |
| ₹25,00,000 to ₹49,00,000 | 2.0% of BSA |
| ₹50,00,000 and above | 3.0% of BSA |
Example of Policyholder Scenario: LIC Jeevan Utsav 771
Policy Details:
- Policyholder: Ramesh
- Basic Sum Assured: ₹14,00,000
- Premium Paying Term: 10 Years
- Policy Purchase Year: 2024
- Policyholder Age at Purchase: 40 Years
Premium and Benefit Calculations for LIC Jeevan Utsav 771
1. First-Year Premium Calculation (Including GST)
- Base Premium: ₹1,55,470 (after rebates)
- GST @ 4.5% (First Year): ₹6,996
- Total First-Year Premium: ₹1,62,466
2. Second Year Onwards Premium Calculation (Including GST)
- Annual Premium: ₹1,55,470
- GST @ 2.25%: ₹3,498
- Total Premium for Following Years: ₹1,58,968 annually
NOTE: Remember this premium is calculated after rebate.
Yearly Breakdown of Benefits for Ramesh’s Policy (₹14 Lakh Sum Assured)
This table summarizes the guaranteed additions, cumulative premiums, death benefits, and surrender values year by year:
| Policy Year | Annual Premium (₹) | Cumulative Premiums Paid (₹) | Guaranteed Addition (₹) | Death Benefit (₹) | Regular Income Benefit (₹) | Minimum Guaranteed Surrender Value (₹) | Special Surrender Value (₹) |
|---|---|---|---|---|---|---|---|
| 1 | 1,55,470 | 1,55,470 | 56,000 | 14,56,000 | - | 0 | 14,935 |
| 2 | 1,55,470 | 3,10,940 | 1,12,000 | 15,12,000 | - | 93,282 | 1,03,477 |
| 3 | 1,55,470 | 4,66,410 | 1,68,000 | 15,68,000 | - | 1,66,462 | 1,89,727 |
| 4 | 1,55,470 | 6,21,880 | 2,24,000 | 16,24,000 | - | 3,17,727 | 3,04,069 |
| 5 | 1,55,470 | 7,77,350 | 2,80,000 | 16,80,000 | - | 3,99,965 | 5,43,022 |
| 6 | 1,55,470 | 9,32,820 | 3,36,000 | 17,36,000 | - | 4,84,572 | 6,89,072 |
| 7 | 1,55,470 | 10,88,290 | 3,92,000 | 17,92,000 | - | 5,71,677 | 8,63,479 |
| 8 | 1,55,470 | 12,43,760 | 4,48,000 | 18,48,000 | - | 6,76,000 | 1,06,57,890 |
| 9 | 1,55,470 | 13,99,230 | 5,04,000 | 19,04,000 | - | 7,88,351 | 1,28,18,397 |
| 10 | 1,55,470 | 15,54,700 | 5,60,000 | 19,60,000 | - | 9,06,080 | 1,51,90,924 |
| 11 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 9,35,153 | 1,72,87,421 |
| 12 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 9,64,226 | 1,95,10,769 |
| 13 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 9,93,298 | 1,99,67,120 |
| 14 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 10,22,371 | 2,04,23,970 |
| 15 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 10,51,444 | 2,09,20,720 |
| 16 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 10,80,517 | 2,14,17,170 |
| 17 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 11,09,589 | 2,19,12,320 |
| 18 | - | 15,54,700 | 5,60,000 | 19,60,000 | 1,40,000 | 11,38,662 | 2,24,07,170 |
Ramesh has opted for LIC Jeevan Utsav 771 with a ₹14 lakh sum assured and a 10-year premium term. Here’s a summary of what he will receive each year and his policy benefits:
- Guaranteed Additions: ₹56,000 per year during the 10-year premium-paying term, which builds the value of his policy.
- Regular Income Benefit (if he chooses Option I): Starting in the 11th year, he’ll receive ₹1,40,000 annually, which is 10% of his Basic Sum Assured, as long as he holds the policy.
- Flexi Income Benefit (if he chooses Option II): Starting in the 11th year, Ramesh can receive ₹1,40,000 each year or accumulate it with 5.5% annual interest, choosing to withdraw it as needed.
If Ramesh survives and holds the policy, he will continue receiving these benefits yearly according to the option he selects. The Flexi Income Benefit offers more flexibility to defer or withdraw his income, while the Regular Income Benefit provides fixed yearly payments for life.
Death Benefit Calculations with and without Riders
Without Rider: If Ramesh passes away during the policy term (before premiums are fully paid), his Death Benefit will include the Sum Assured on Death (125% of Basic Sum Assured or 7 times the annualized premium, whichever is higher) and any accrued Guaranteed Additions.
- Example: If Ramesh passes away after 8 years, his death benefit will be:
- Sum Assured on Death: ₹14,00,000 × 1.25 = ₹17,50,000
- Accrued Guaranteed Additions: ₹4,48,000
- Total Death Benefit: ₹17,50,000 + ₹4,48,000 = ₹21,98,000
- Example: If Ramesh passes away after 8 years, his death benefit will be:
With Rider: By adding the Accidental Death and Disability Rider, Ramesh would receive an additional Sum Assured in the event of accidental death. If he opts for a rider amount matching his Basic Sum Assured (₹14,00,000), the death benefit in case of accidental death after 8 years will be:
- Sum Assured on Death: ₹17,50,000
- Accrued Guaranteed Additions: ₹4,48,000
- Accidental Rider Benefit: ₹14,00,000
- Total Death Benefit (With Rider): ₹17,50,000 + ₹4,48,000 + ₹14,00,000 = ₹35,98,000
This whole-life plan offers Ramesh financial security and guaranteed yearly income after the premium term, providing a strong legacy for his family.
Frequently Asked Questions on LIC Jeevan Utsav 771
Q1: What is the entry age for LIC Jeevan Utsav 771?
The entry age starts from 30 days, and the maximum is 65 years.
Q2: What is the income benefit provided under this plan?
It offers a Regular Income Benefit or a Flexi Income Benefit as per the policyholder’s choice, payable annually after the premium term ends.
Q3: What tax benefits apply to LIC Jeevan Utsav 771?
Premiums paid are deductible under Section 80C, and payouts are tax-free under Section 10(10D).
Q4: How is the Death Benefit calculated?
The Sum Assured on Death is the higher of 125% of the Basic Sum Assured or 7 times the annualized premium, subject to a minimum of 105% of the total premiums paid.
Q5: Are there any loan options?
Yes, loans are available after the first policy year if at least one full year’s premium is paid. The loan amount can go up to 75% of the surrender value for in-force policies and 50% for paid-up policies.
Q6: Can the policy be revived if it lapses?
Yes, a lapsed policy can be revived within five years of the first unpaid premium, subject to paying all arrears with interest and meeting other eligibility requirements.
Q7: Are riders available with this plan?
Yes, the policyholder can opt for riders to enhance coverage, including:
- Accidental Death & Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
- Premium Waiver Benefit Rider
Q8: How can I surrender this policy?
You can surrender after one full premium year, and you’ll receive the higher of Guaranteed or Special Surrender Values.
Q9: Is there a free look period?
Yes, the policyholder has a 30-day free look period. Within this period, the policy can be returned if the policyholder is dissatisfied, with a refund after deducting proportionate risk premium, stamp duty, and medical charges.
Q10: What happens if I fail to pay my premiums?
A grace period of 30 days (for yearly, half-yearly, and quarterly modes) or 15 days (for monthly mode) is allowed for premium payments. If premiums remain unpaid after the grace period, the policy may lapse.
Q11: Can the income benefit option be changed after policy inception?
Yes, the policyholder can change their income benefit option up to six months before the first income benefit payment is due.
Q12: Can the income benefit option be changed after policy inception?
Yes, the policyholder can change their income benefit option up to six months before the first income benefit payment is due.
Q13: When does the income benefit start?
Income benefits start from the 11th year in most cases, though the specific start year depends on the premium payment term selected.
Q14: Is there a maturity benefit in the LIC Jeevan Utsav 771 plan?
No, there is no specific maturity benefit under this plan. Instead, it offers lifelong income benefits after the premium payment term.
Q15: How is the Guaranteed Addition calculated?
The Guaranteed Addition is ₹40 per ₹1,000 of Basic Sum Assured, added annually during the premium payment term.
Q15: How can I apply for the LIC Jeevan Utsav 771 plan?
Applications can be made through LIC agents, brokers, LIC branch offices, or online through the LIC website. However, this plan is not available through Point of Sales Persons (POSP) or Common Public Service Centers (CPSC).