India's largest insurance provider, Life Insurance Corporation of India (LIC), has recently introduced a lifetime income pension plan that's quickly gaining attention - the LIC Jeevan Utsav Plan. It's designed for individuals who want a guaranteed lifelong income with a short premium payment term.
Imagine this: you pay premiums for just 5 years, and in return, you receive monthly income for the rest of your life - even up to 100 years of age!
Let's explore how this plan works, how much you need to invest, who can benefit, and how you can ensure a monthly payout of up to ₹15,000 for life.
|
Feature |
Details |
|
Policy Type |
Non-linked, non-participating, individual savings life insurance plan |
|
Entry Age |
90 days to 65 years |
|
Minimum Sum Assured |
₹5 Lakhs |
|
Premium Payment Term |
5 to 16 years |
|
Survival Benefit Start |
After a waiting period (2 to 5 years based on chosen premium term) |
|
Lifetime Monthly Income |
Guaranteed 10% of Sum Assured annually |
|
Death Benefit |
Minimum ₹15 Lakhs; Accidental Benefit up to ₹20 Lakhs (optional rider) |
|
Loan Facility |
Available after two years |
|
Tax Benefits |
Under Section 80C and 10(10D) |
This plan is tailored for individuals seeking guaranteed pension-like income without having to pay premiums for decades. It's ideal for:
Salaried professionals nearing retirement
Parents planning secured future income
Businessmen wanting predictable returns
Here's a practical example:
You choose a Sum Assured of ₹18 Lakhs
Pay premiums for 5 years
Premium per year: Approximately ₹4.16 Lakhs
After a 5-year waiting period, LIC starts paying you 10% of Sum Assured every year
So:
₹18 Lakhs × 10% = ₹1.8 Lakhs per year
That's ₹15,000/month for LIFE - guaranteed
💡 Even if you live up to 100 years, LIC continues the payouts.
|
Premium Payment Term |
Waiting Period |
|
5 years |
5 years |
|
6 years |
4 years |
|
7 years |
3 years |
|
8+ years |
2 years |
Example: If you pay premiums for 5 years, income starts after 10 years (5 + 5). For 8-year premiums, income starts in 10 years (8 + 2).
In case of the policyholder's natural death, the nominee receives a minimum of ₹15 Lakhs.
If the Accidental Benefit Rider is opted:
Additional ₹5 Lakhs is added
Total payout: ₹20 Lakhs
You can avail loans against the policy after two full years of premium payment. LIC determines the eligible amount based on the surrender value.
Under Indian Income Tax laws:
Premiums paid qualify for deduction under Section 80C
Maturity and survival benefits are tax-free under Section 10(10D), subject to conditions.
LIC Jeevan Utsav is ideal if:
You want secure, tax-free monthly income
You're okay with investing upfront for a few years only
You want a guaranteed return till age 100
You're looking to financially safeguard your spouse/children after your lifetime
If you're looking for peace of mind, stable monthly income, and minimal premium commitment, LIC's Jeevan Utsav Plan is a solid choice. With a minimum sum assured of ₹5 Lakhs and customizable options to increase benefits, this policy turns your short-term commitment into lifetime returns.
For more details, visit the official LIC website or reach out to your nearest LIC branch.