In this article, we’ll dive deep into the features, benefits, eligibility criteria, and why this plan might be the right choice for you.

What is LIC Digi Credit Life Insurance For (Plan 878)?

LIC’s Digi Credit Life is a decreasing Term Assurance plan wherein the death benefit will be reduced over the policy term. It is a non-ULIP, non-participating*, term insurance plan.

 It is designed specifically for borrowers who want to cover their outstanding loans in case of unforeseen circumstances. 

The plan ensures that in case of the policyholder’s death, the burden of loan repayment doesn’t fall on their loved ones.

The LIC Digi credit life plan is available online only and can be purchased directly from the website www.licindia.in.

This is a Non-Par Product where policies are not entitled for any share in surplus (profits) during the term of the policy.

LIC Digi Credit Life Benefits

1. Loan Protection– The LIC Digi Credit plan covers the outstanding loan amount, making it a great choice for home loans, personal loans, and other financial liabilities.

2. Term Insurance– It provides pure risk cover which also means, there is no maturity benefit. The sum assured is paid only in the event of death during the policy term.

3. Digital Application Process– As the name suggests, LIC Digi Credit Life is a fully digital plan, ensuring a hassle-free and paperless process from application to policy issuance.

4. Affordable Premiums– The premiums are relatively lower than traditional life insurance plans, making it an affordable option for borrowers.

5. Flexible Tenure- The policy term can be customized according to the loan tenure, allowing flexibility in planning your financial coverage.

6. Single and Joint Life Options- The plan can be taken in single and joint life name, making it suitable for co-borrowers.

7. Peace of Mind- Borrowers can enjoy peace of mind knowing that their financial obligations are covered, securing their family’s future.

Eligibility Criteria for LIC Digi Credit Life (Plan 878)

LIC Digi Credit Life – Maturity, Death Claim

Maturity Benefit

No maturity benefit is payable on successful completion of policy.

Death Claim (For Limited premium payment policy)

In case of unfortunate death of assured, the nominee will get the higher of the below mentioned amounts:

• 105% of “Total Premiums Paid” up to the date of death
• Absolute amount assured to be paid on death

Death Claim (For Single premium policy)

Sum Assured is paid.

Who Should Consider LIC Digi Credit Life (Plan 878)?

1. Loan Borrowers– If you have taken out a significant loan (e.g., a home loan, car loan, or business loan), this plan offers vital protection for your family and loved ones.

2. First-Time Loan Takers– New borrowers can benefit from this plan by ensuring their loan is protected from the outset.

3. Joint Loan Applicants– If you’re applying for a loan with a co-borrower, LIC Digi Credit Life offers joint coverage, securing both individuals.

4.Individuals Seeking Simple Term Insurance- This plan is suitable for those looking for a straightforward term insurance plan specifically linked to their loan.

How to Apply for LIC Digi Credit Life?

• Visit the LIC Website & Navigate to the LIC Digi Credit Life section ( https://esales.licindia.in/CustomerQuote?plan=878)
• Keep ready your documents such as Income/ investment proof, self cancelled Cheque, Address Proof, photograph, online ekyc.
• Fill in your basic details
• Submit your loan details – such as loan amount, tenure, and co-borrower details (if applicable).
• Click on Calculate premium
• Proceed with the paperless application, upload the required documents, and make the payment.
• Once approved, the policy will be issued digitally.

LIC Digi Credit Life (Plan 878)- Review

This plan is a pure decreasing Term Assurance plan wherein the death benefit decreases over the policy term. The Policyholder shall choose the Basic Sum Assured depending on the loan amount.

LIC Digi Credit Life (Plan 878) is a smart choice for borrowers seeking loan protection. Its affordability, ease of application, and coverage make it ideal for individuals with loans. Whether you’re a first-time borrower or someone with multiple financial obligations, this plan ensures that your loved ones are not burdened with loan repayments in your absence.

If you’re looking for financial security with a focus on loan repayment, this policy can serve as a reliable safety net. By opting for LIC Digi Credit Life, you’re not only securing your financial future but also providing peace of mind for your family.

Frequently Asked Questions (FAQs)

Can I apply for LIC Digi Credit Life (Plan 878) if I have an existing loan?

Yes, you can apply for this plan even if you have an existing loan. The plan will cover your remaining loan balance.

Is there any maturity benefit with LIC Digi Credit Life?

No, LIC Digi credit life plan is a pure term insurance plan, meaning there is no maturity benefit. It provides financial protection only in case of the policyholder’s death.

Can I cover multiple loans under a single policy?

No, the plan covers one loan at a time. However, you can purchase multiple policies to cover different loans.

Can I apply for LIC Digi Credit Life (Plan 878) if I have an existing term insurance from LIC/ other company?

Yes, life-proposed (LP) may buy multiple online policy(ies) if the LP needs more life-insurance cover subject to your financial eligibility.

Life-proposed has to disclose their income details & existing life-insurance cover details in corresponding sections while applying for cover under this plan.

Existing insurance coverage, if any, will be added to the current proposed Sum Assured to arrive at your overall eligibility.

Based on the income and overall eligibility, online proposal for risk-cover will be decided by LIC as per its rules.

As a revolutionary product, granting you the power to customise your protection and express your infinite care in ways never possible before.

Multiple add-on benefits enhance the beauty of the product. Just add customised benefits (as per your requirements).

ICICI Lombard Elevate Plan: Key Highlights

ICICI Lombard Elevate Plan Eligibility Criteria

The Eligibility criteria for ICICI Lombard Elevate plan are given below:

What is Covered in ICICI Lombard Elevate Plan

Check out some of the ICICI Lombard Elevate plan benefits below:

Benefits of ICICI Lombard Elevate Plan

Optional Add-on Covers

• Infinite Care – Infinite care offer unlimited claim coverage ( once in policy lifetime) for in-patient hospitalization, daycare procedures and in-patient AYUSH treatment. Drawback– Infinite care can be taken only once in the policy lifetime.
• Power Booster -Buy Power Booster  If you want a 100% cumulative bonus to add in your sum assured. The sum assured can be accumulated for up to an unlimited sum insured amount( if no claims have been filed in the previous policy year).
• JumpStart – If you need a reduced waiting period of 30 days to cover pre-existing diseases such as asthma, diabetes, hypertension, obesity, hyperlipidemia and coronary artery disease, Buy Jumpstart benefit.
• Chronic Disease Management Program –Chronic Disease Management requires Multiple counseling. Buy this program to avail health assistance, dietician & nutrition counseling, lifestyle modification counseling,  two annual health check-ups in case of pre-existing hypertension, asthma, obesity, coronary artery disease, diabetes and hyperlipidemia.
• Maternity Benefit – To cover maternity-related expenses during pregnancy, delivery, pre-natal and post-natal expenses coverage, opt for Maternity Benefit cover. ( expenses will be covered within the 10% of Annual Sum Insured subject to a maximum of INR 1 Lakhs).
• Newborn Baby Cover – It pays for the hospitalization expenses incurred on the treatment of the newborn baby.
• Vaccinations for Newborn Baby in the First Year – Opt For medical expenses incurred on the vaccinations of the newborn baby until the age of one year
• BeFit Benefit – It provides coverage for physical consultations, pharmacy costs, e-counselling, routine diagnostic & minor procedures, diet & nutrition e-consultation and physiotherapy sessions on a cashless basis.
• Worldwide Cover -If you need  global coverage for planned or emergency hospitalization,(including the USA and Canada.)
• Claim Protector – Claim Protector  pays for non-payable items or consumables used during hospitalization ( Please Note these expenses are not covered under most health insurance plans).
• Inflation Protector – It increases the sum insured amount at each renewal based on the previous year’s inflation rate.
• Domestic Air Ambulance Cover – This covers the cost of air ambulance services for transportation of the insured to the nearest hospital for emergency care.
• Convalescence Benefit – In case of continuous hospitalization above 10 days, a fixed allowance is paid to the insured.
• Nursing at Home – A maximum of 10 days qualified nurse allowance is paid after hospital discharge ( if required).
• Compassionate Visit – It covers economy class airfare or train ticket for a round trip of an immediate family member to the place where the insured is hospitalized for more 5 days.
• Annual Health Check-Up – A preventive health check-up facility at an empanelled or network provider of the insurance company is given once in a policy year
• Critical Illness Cover – It pays a lump sum benefit to the policyholder on a diagnosis of any of the 20 listed critical illnesses.
• Personal Accident Cover – A fixed amount is paid as compensation in case of permanent total/partial disablement or death due to an accidental injury.
• Voluntary Co-Payment – if the policyholder agrees to pay a co-payment on all claims, get a discount on renewal premiums
• Voluntary Deductible – It offers a renewal premium discount in case the policyholder decides to pay a deductible during claim settlement.
• Dependent Accommodation Benefit – A daily allowance is given for the dependent accommodation if the insured is hospitalized for at least 3 consecutive days.
• Durable Medical Equipment Cover – It covers the cost of buying 9 listed durable medical equipment, such as wheelchair, ventilator, suction machine, etc., as prescribed by the treating doctor.
• Teleconsultations – It arranges teleconsultations for routine health issues by a qualified medical practitioner through audio, chat, online portal, video or mobile application.
• Waiting Period Reduction Option – It reduces the pre-existing disease waiting period from 3 years to 2 years or 1 year.
• Maternity Waiting Period Reduction Option – It shortens the waiting period for maternity coverage from 2 years to 1 year.
• Specific Illness Waiting Period Reduction Option – It reduces the specific illness or procedure waiting period from 2 years to 1 year.
• Worldwide Cover Waiting Period Reduction Option – It shortens the waiting period for worldwide cover from 2 years to 1 year.
• Room Modifier – It modifies room category with no restrictions
• Network Advantage – It provides a 10% discount on premium if the insured agrees to avail treatment only at a hospital under the Preferred Provider Network (PPN) list.
• NRI Advantage – Accidental Emergencies Cover for NRI – It provides a 25% discount on premiums to NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) if they limit their coverage to accidental emergencies only.

Exclusions of ICICI Lombard Elevate Plan

The following expenses are excluded from the ICICI Lombard Elevate plan:

• Sterility and infertility treatments
• Intentional self-injury
• Plastic surgery or cosmetic surgery
• Injuries due to adventure sports or hazardous sports
• Treatment for alcohol or drug addiction
• External congenital treatments
• Sexually transmitted diseases

ICICI Lombard Elevate Plan Waiting Periods

Here are the waiting periods that apply to the ICICI Lombard Elevate plan:

 What is SBI Life Smart Scholar Plan?

SBI Life Smart Scholar Plan is a Unit Linked Life Insurance plan where a parent’s Life is insured. Parents having a child aged between 0 – 17 years can purchase the plan.

You can pay premiums for a limited period, whereas the policy benefits would continue till your child becomes an adult.

Invest in policy ( choose from 9 Fund options) and take accumulated funds at the end of the term. You can use accumulated fund value for your child’s higher education, marriage, financial security or anything else.

In between withdrawals are also allowed to meet unplanned expenses.

SBI Smart Scholar Plan Details

Maturity benefit

On completion of the policy term, maturity benefit i.e. the fund value shall be paid to the policyholder in a lump sum payment.

What if you are not around ( Death Claim)

In the unfortunate event of parent’s ( insured) death, the SBI smart scholar policy will give either or

• Basic Sum Assured or 105% of the total premiums received upto the date of death
• SBI continues to pay your future premium(s) on your behalf (inbuilt Premium Payor Waiver Benefit) and the accumulated fund value will be paid at maturity.
• In case of accidental death or accidental total and permanent disability, an Additional benefit equal to the Accident benefit Sum Assured is also paid The Accident Benefit and Premium Payor Waiver benefits are not available in the Single Premium policies.
• Loyalty additions will also be added.

SBI Life – Smart Scholar Eligibility

SBI  Smart Scholar – Investment Fund Options

SBI Life Smart Scholar Plan Benefits

• Dual protection for your child’s future- in case of any eventuality with the insured parent
  o lumpsum payment is given to the child, but the policy continues
  o Inbuilt Premium Payor Waiver benefit get activated and future premiums are paid by the company
• o Maturity Benefit is given again as it was intended previously.
• Accident Claim– In case of accidental death, Accidental Death benefit and Accidental Total and Permanent Disability (Accidental TPD) claim, are given to the family.
• Loyalty Additions – Additional allocation of units by way of regular Loyalty Additions, giving periodic boosts to your investments for in-force policies.
• Enhanced investment opportunity through 9 varied fund options
• Twin benefit of insurance cover and market linked returns.
• Flexible options to meet your changing requirement.
• Liquidity through partial withdrawal(s)
• Switching between funds are allowed.
• Partial withdrawals are available from the 6th policy year onwards.One free partial withdrawal in a policy year is allowed.

Fund Switch

You can switch your investments among the available 9 funds to suit your changing investment needs during the policy term.

The minimum switch amount is Rs.5,000. Two switches are allowed free of charge in a policy year.

A charge of Rs.100 will be levied per switch more than free switches in the same policy year.

Unused free switches cannot be carried forward.

Partial withdrawals

A maximum of 2 partial withdrawals can be made in one policy year. For a policy term of 10 years or below maximum number of switches are 5 partial withdrawals in the entire policy term.

While it is 10 partial withdrawals are allowed for policy terms above 10.

IS SBI Smart Scholar Tax Free?

You are eligible for Income Tax benefits u/s 80C for up to 1,50,000 in a Financial year.The maturity amount is tax-free under section 10(10)D of the Income Tax Act( if the sum insured is at least 10 times the annual premium).

Can I surrender Before 5 Year Completion?

The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

What Charges you pay

Premium Allocation Charge : 

The Premium Allocation Charge are deducted first, before investing your money, The leftover money is invested.

Let’s take a rough example to understand it.

SLet’s say Bestii singh purchased this policy and paid a premium of Rs 1 lac.

He will pay Rs 6000 as Premium Allocation Charges. After that, Rs. 94000 will be invested in the first year.

 For the Second year 95500 will be invested. And so on.

Policy Administration Charge:

A monthly Policy Administration Charges of Rs 50 per month will  be deducted by cancelling units at the prevailing unit price

Let’s take a rough example to understand it.

Let’s say Bestii singh purchased this policy and paid a premium of Rs 1 lac.

So after 91000 nothing will be deducted on the name of Admin charges for the first 5 years. After 5 year of completion every year 50 rupees will be deducted.

Policy Administration Charges are deducted on the first business day of each policy month. ( whether you make a profit or loss, the company will deduct the money).

Policy Administration charges will be recovered by cancellation of units (at the prevailing unit price) on the first business day of each policy month.

The Policy Administration Charges would be subject to a cap of Rs.500 per month. However, the revision of charges would be subject to prior approval from IRDAI.

Fund Management Charges:

A certain fixed percentage of the relevant fund before calculating the NAV on a daily basis will be charged as per the rates below:

Let’s take a rough example to understand it.

1.35% of remaining money ( Above example 94000) will be deducted.

Mortality Charges

Mortality charges will be based on your age and Sum at Risk at the time of charge deduction

Discontinuance Charge: 

In case you decide to discontinue the policy. discontinuance charges will be applicable.

It is expressed as a percentage of a Single Premium / Annualized Premium or Fund Value. The year of discontinuance is the policy year in which the date of discontinuance falls.

For Single Premium Policies:

SBI Smart Scholar plan returns

Calculating returns and gauging returns from a ULIP is a pretty difficult task. Still to find out SBI Smart Scholar interest rate, please follow the procedure.

• Go to the browser
• type SBI Smart Scholar plan – Equity Fund/ ….. or other fund name.
• Check annualized return of last 1/2/5 years and so on.

To get your benefits or your fund value…

Just check your alloted no of units and multiply it with NAV of your Fund ( written on top left side under fund name)

Suppose Your Fund units are 100 and NAV is 51.069

So your accumulated fund amount will be 100*51.069 = Rs.5106.9

SBI Smart Scholar plan – Review

Whether you should buy Smart Scholar SBI is a big question, which you need to answer yourself. How?

I will give the inputs, you derive SBI Smart Scholar plan good or bad yourself.

Ready?

What do you get from the policy?

• You get pretty good maturity amount
• Life insurance cover
• tax benefit
• tax-free maturity

SBI Smart Scholar Disadvantages

• Low returns as compared to mutual funds
• No knowledge of where money is invested- Less transparency
• Very Low Life insurance cover, You can buy much higher coverage with term insurance
• High charges
• Low Liquidity
• No liquidity in the first 5 years

SBI Life – Smart Wealth Builder Features & Eligibility

SBI Life- Wealth Builder – Policy Term

SBI Life Smart Wealth Builder – Policy term

How does SBI smart Wealth Builder plan  work?

• Choose policy term
• Choose premium ( money) you wish to pay
• Decide your premium payment term
• Decide your fund choice
• Your monies invested in your chosen fund ( after deduction of premium allocation charges)
• Guaranteed Additions will be added in the policy
• You get fund value at maturity

You cannot surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

What will you get from SBI Smart Wealth Builder?

1. Guaranteed Additions 
2. Maturity Benefit -Fund Value
3. Life Cover 

What are the Guaranteed Additions

For regular premium and limited premium payment the below mentioned guaranteed addition will be given. The GA is calculated on basic one annual premium. Similarly, for single premium policy GA is fixed percentage of one time premium.

What are the Fund Options Available

The Various Fund Options are available to choose from

What Charges you pay

Premium Allocation Charge :

The Premium Allocation Charge are deducted first, before investing your money, The leftover money is invested.

Let’s take a rough example to understand it.

Let’s say Bestii singh purchased this policy and paid a premium of Rs 1 lac.

He will pay Rs 9000 as Premium Allocation Charges. After that Rs. 91000 will be invested in the first year.

 For the Second year 93500 will be invested. And so on.

Policy Administration Charge:

A monthly Policy Administration Charges as stated below, shall be deducted by cancelling units at the prevailing unit price

Let’s take a rough example to understand it.

Let’s say Bestii singh purchased this policy and paid a premium of Rs 1 lac.

So after 91000 nothing will be deducted on the name of Admin charges for the first 5 years. After 5 year of completion every year 50 or 60 rupees will be deducted.

Policy Administration Charges are deducted on the first business day of each policy month.( whether you make a profit or loss, the company will deduct the money).

Policy Administration charges will be recovered by cancellation of units (at the prevailing unit price) on the first business day of each policy month.

The Policy Administration Charges would be subject to a cap of Rs.500 per month. However, the revision of charges would be subject to prior approval from IRDAI.

Fund Management Charges:

A certain fixed percentage of the relevant fund before calculating the NAV on a daily basis will be charged as per the rates below:

Let’s take a rough example to understand it.

1.35% of remaining money ( Above example 91000) will be deducted. So approximately Rs 1228 in first year and this will increase every year.

Mortality Charges

Mortality charges will be based on your age and Sum at Risk at the time of charge deduction

Discontinuance Charge:

In case you decide to discontinue the policy. discontinuance charges will be applicable.

It is expressed as a percentage of a Single Premium / Annualized Premium or Fund Value. The year of discontinuance is the policy year in which the date of discontinuance falls.

For Single Premium Policies:

Death Benefit (For In-force policies)

The death benefit is paid higher of below options:

• Basic Sum Assured = 10 times of annualized premium
• Fund Value as on the date of death intimation
• 105% of the total Premiums received upto the date of death 
• ( If any partial withdrawals done so far, will be deducted )

Settlement Option for Death Claims

Here the death benefit payout can be taken in instalments.

• The Settlement Period can be for a period of 2 to 5 years from the date of death.
• Payments will be made in the form of yearly, half-yearly, quarterly or monthly instalments, as chosen by the beneficiary.
• The company will make the first instalment payment under settlement option on the date of death claim acceptance
• and further payments will be made on the first day of each year, half-year, quarter or month depending on the chosen settlement frequency from the date of death.

During the settlement period, the investment risk is borne by the beneficiary.SBI Smart Platina Plus Review

Let’s first evaluate SBI Smart Wealth insurance plan benefits and disadvantages

Benefits of SBI Life Smart Wealth Builder

• Life cover
• Guaranteed additions for certain duration
• Income tax benefit U/S 80C
• Yearly payment options
• Limited premium payment options are available
• Market linked returns
• Partial withdrawals are allowed from the 6th policy year onwards or on attainment of age 18 by the life assured whichever is later

Disadvantages of SBI Smart Wealth Builder policy

• Low returns as compared to other investment options
• Long payment duration-
• High Premium allocation charges
• Other Charges makes lower investible premium

If we compare the return and benefits of the policy with PPF + Term insurance or ELSS MF + term insurance, you will be better off with the latter options.

Additionally, you get FD kind of return from SBI wealth builder policy. which also means you won’t be able to get inflation-adjusted returns.

Even if the return of 7-8 %, it is much lower than the inflation rate.

Thus even in the long run, you will lose money rather than building wealth. You will get Low inflation-adjusted returns.

Final thoughts

SBI Life Smart Wealth scheme is a ULIP plan but if we compare the return part of the policy with other options such as PPF plus term insurance or ELSS or term insurance, then the return and life cover are comparatively much lower. I

In addition, one has to make compulsory payments for the entire duration. 

The high premium allocation and other charges will reduce the investible amount therefore investment purpose ( wealth building) won’t be served.

So, if your purpose to buy the plan, is investment, then strict NO for the SBI wealth plan.

But if you are good to go with saving only, and happy with FD kind of returns then go for it.

Plans to Build Wealth

You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.

If you have learned something new and found the article informative, Then please share & Comment. This will help me reach more readers and spread financial awareness.

If you are serious about wealth building, it’s better to take professional help.

Why You need to deposit Maturity Form of LIC

LIC provides a wide range of client-centric products. These policies are usually long-term plans of 10-15-20 or more years.

In such a long time, many aspects including some basic things such as bank details, and contact details or other details might change.

To get maturity claims, one must deposit an LIC maturity form.

How to take LIC’s maturity Claim

What happens near Policy Maturity

• The Branch Office sends out a letter informing the date of money payable
• The letter is sent at least two months prior to the maturity date.

What policyholder need to do in such case:

• Deposit the  Discharge Form duly completed along with the Policy Document, NEFT Mandate Form (Bank A/c Particulars with supporting proof)
• KYC requirements

LIC’s Obligation

•  On receipt of these documents, payment is processed in advance. The maturity amount gets credited to the policyholder’s bank A/C on the due date.

Maturity Claim Procedure Money back Plan

If the amount payable is up to Rs.500,000/-

In case the maturity amount us up to Rs 5 lac, there is no need to submit a discharge Receipt or policy document.

Even Survival Benefit under Jeevan Anand policies up to Sum assured Rs. 200000/- is also released without calling for policy bond or discharge form

If the amount payable is more than  Rs.500,000/-

Follow the procedure as in the case of Endowment insurance plan.

Documents required

Filing a maturity claim requires various documents from the insured along with policy discharge form. The list of documents are given as follows:

• Original policy documents
• Photocopy of identity proof
• Photocopy of address proof
• Photocopy of age proof (if not previously submitted)
• NEFT mandate with the bank details
• A cancelled cheque leaf or a copy of the policyholder’s bank passbook
• Details regarding any assignment or reassignment

For a smooth process, all the documents must be sent to LIC, no later than 5 to 7 business days before the policy’s maturity date.

The LIC will settle the policy claim only once all the documents have been verified.

Conclusion

Taking maturity claim is quite easy. Deposit the above-mentioned documents and get the maturity amount transferred to your bank account.

LIC Maturity Claim Form

If the policyholder does not receive the settlement amount even after two months of filing the claim, he/she can visit the branch office and enquire about the settlement.

LIC AmritBaal (874) – Eligibility & features

The Key features of AmritBaal Plan are

• Guaranteed Addition -Rs. 80 per thousand Basic Sum Assured throughout the Policy Term.
• Option to choose Life Insurance coverage for your child as per the needs.
• Flexibility to
• Choose from Single Premium and Limited Premium Payment.
• Choose the maturity age from 18 to 25 years for the various needs of your child
• Opt for payment of benefit in instalments.
• Option to choose Premium Waiver Benefit rider on payment of additional premium.
• Benefit of attractive High Sum Assured Rebate.
• Takes care of liquidity needs through loan facility.

Other features such as premium payment frequency, choose your sum assured, settlement options of claim, partial withdrawal and accident benefit rider, enhance the features of the plan.

Benefits under LIC AmritBaal ( table no 874)

Maturity Benefit

On maturity, the basic Sum assured along with accrued Guaranteed Additions is payable.

What is Guaranteed Additions for In-force policy?

The Guaranteed Additions is accrued at the rate of Rs.80 per thousand Basic Sum Assured at the end of each policy year from the inception till the end of Policy Term.

Suppose the Basic sum assured is Rs. 1 lac then Guaranteed Additions will be calculated as follows;

100000/1000*80 = Rs.8000

This Guaranteed Additions will be added every year till maturity.

Death benefit

The options should be chosen carefully depending on your child’s specific needs, as the premium & benefits under the plan shall vary as per the option chosen and the same shall not be altered later.

It is important to note here:

In case, the age at entry of the Life Assured is less than 8 years, the risk will commence either 2 years from the date of commencement of the policy or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier.

For those aged 8 years or more at entry, risk will commence immediately i.e. from the Date of issuance of policy.

Explanation:

For instance, Suppose Bestii Singh aged 5 years, is life assured buy LIC AmritBaal on 30/3/2024. 

the Since age is less than 8 years. The risk coverage will start after 30/3/2026 or at the age of 8 years. Here, the period of 2 years is completed in 2026 i.e. at the age of 7.

So, risk coverage will start from age 7 years only.

RIDER – In case LIC’s Premium Waiver Benefit Rider is opted for, in the event of the death of the Proposer ( may be a guardian), any subsequent Premiums which are waived shall be deemed to have been received and be included in the Total Premiums Paid. 

Settlement Option ( For Maturity Benefits/Death Claims)

One can choose to receive Maturity benefits in instalments over the chosen period of 5/10/15 years instead of a lump sum amount.

The instalments shall be paid in advance at yearly,half-yearly, quarterly or monthly intervals, as opted for, subject to minimum instalment amount for in force or paid policies.

LIC AmritBaal policy- Premium Illustration

The sample illustrative premiums for Basic Sum Assured of Rs 5 Lakh, for Standard lives aged 5 years and for policy term 20 years under Limited and Single Premium payment options for policies to be sold through Offline sales are as under:

Before investing, it is better to explore other Pure investment and pure risk coverage Options too.

You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.

If you have learned something new and found the article informative, Then please share & Comment. This will help me reach more readers and spread financial awareness.

other LIC plans

Read more –LIC New tech term plan

Which LIC Term Plan scores over a better bet?

Here, in this blog post, we will figure out LIC pension plan schemes. From this retirement plan of LIC, you can easily judge the best LIC Pension for you.

Types of Pension Plans

Although Agents can turn any LIC Plan into a pension plan. But officially there are two basic categories of plans to suit clients’ different needs.

The available pension plans are of two types

LIC Pension Plans Details

Based on the above two parameters LIC Pension plan can be divided into the following categories:

This categorisation makes the choice simpler for you. So, if you wish to accumulate money in a few years – you can choose Deferred Annuity plans otherwise go for an Immediate Annuity Plan.

LIC New Jeevan Shanti (table number 858)

LIC New Jeevan Shanti is a single premium LIC pension plan. It is a deferred annuity plan where after payment of the lumpsum amount one has to wait for at least a year, to get pension.

The minimum Deferment period is 1 year. However, the policyholder can choose to defer the annuity for 1 to 12 years.

Key Features

• Two Annuity Options: The plan provides 2 different annuity options to choose from.
• Deferred annuity for Single life and Deferred annuity for Joint life
• Lifetime Income: Pay – Once – Enjoy – Forever
• Deferment Period – Minimum 1 year and Maximum 12 years.
• Guaranteed Additional Benefit: During the period of deferment, this policy offers guaranteed additional benefits to the policyholder.
• Death Benefits shall be higher of:
• → “Purchase Price” plus accrued “Additional Benefit on Death” minus Total annuity amount payable till date of death
• OR
• →105% of Purchase Price.

LIC Jeevan Akshay VII

LIC Jeevan Akshay VII is an Immediate Annuity plan. This plan can be purchased by paying a lump sum amount. You can choose from the 10 different annuity options. Mode of payment such as monthly, quarterly, half-yearly or yearly options are available.

Key Features

• 10 Annuity Options to choose from
• Different Annuity modes are available- monthly, quarterly, half-yearly or yearly options

Annuity Options LIC Jeevan Akshay VII

• Option A: Immediate Annuity for life.
• Option B: Immediate Annuity with a guaranteed period of 5 years and life thereafter.
• Option C: Immediate Annuity with a guaranteed period of 10 years and life thereafter.
• Option D: Immediate Annuity with a guaranteed period of 15 years and life thereafter
• Option E: Immediate Annuity with a guaranteed period of 20 years and life thereafter
• Option F: Annuity for life with return of purchase price on death of the annuitant.
• Option G: Annuity payable for life increasing at a simple rate of 3% p.a.
• Option H: Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Option I: Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
• Option J: Annuity for life with a provision of 100% of the annuity payable to spouse during his/ her life time on death of annuitant. The purchase price will be returned on the death of survivor.

LIC Saral pension Plan

LIC Saral pension Plan is an Individual Immediate Annuity plan. Make a  lump sum payment and enjoy a life-long pension. You can choose from the 2 annuity options. Mode of payment such as monthly, quarterly, half-yearly or yearly options are available.

Key Features

• On payment of a lump sum amount, the policyholder has the option of choosing between two types of annuities: Option 1 and Option 2.
• Mode Of Annuity Payments: Annual, half-yearly, quarterly, and monthly are the modes of annuities available under the plan.
• Loan Facility: The policy loan can be taken out at any moment after six months from the policy’s start date.
• Annuity Starts as early as next month.

LIC New Pension Plus (Table number 867) 

LIC’s New Pension Plus is a Non-Participating, Unit Linked, Individual Pension plan. One can pay systematically and take regular income in later years.

This plan can be purchased either as Single Premium or Regular Premium payment frequency.

LIC New Pension Plus Features

• Flexibility to choose your premium amount and policy term
• Choose from Single Premium/ Regular premium
• Four funds investment Option
• Guaranteed Addition at a prespecified duration
• Option to select Annuity Option – One can choose to take immediate annuity or defer the payments

LIC Jeevan Dhara II

LIC Jeevan Dhara-II plan is a Non-Linked, Deferred Annuity plan, where you pay for a certain duration of 5 to 15 years or more and enjoy regular annuities. 

Jeevan Dhara provides the option to choose the mode of Premium Payment, Deferment Period, Annuity Option and mode of Annuity Payment too.

Key Features

• Guaranteed Annuity – You know the annuity amount in beginning itself
• Wide range of annuity options to suit your needs.
• Flexibility to choose from: Regular Premium and Single Premium & Single Life Annuity and Joint Life Annuity.
• Available Deferment Period from 5 years to 15 years (in case of Regular Premium) and from 1 year to 15 years (in case of Single Premium)] i.e. when to start annuity payments as per your requirements.
• Mode of Annuity payments (yearly, half-yearly, quarterly and monthly).
• High Premium Incentive.
• Incentive for existing Policyholders/Nominees/Beneficiaries of the Corporation.
• Top-up Annuity i.e. Option to increase the annuity by paying additional premium at any time during the Deferment Period.
• Option to take death benefit as Lump-sum, in the form of Annuitisation or in installments.
• Liquidity Option i.e. option to receive a lump-sum amount in return of a reduction in annuity payments and other benefits.
• Advanced Annuity Option in case of Joint Life Annuity Options with Return of Premium i.e. option to the surviving Annuitant [on the first death (of either of the covered lives)] to withdraw discounted cash value of annuity payable during the ‘Advance Annuity Period’ as a lump-sum

Why choose LIC Pension Plans

Choosing LIC (Life Insurance Corporation of India) pension plans can be advantageous for several reasons:

1. Trust and Reliability– LIC is one of the oldest and most trusted insurance companies in India. It has a long-standing reputation for providing reliable financial products and services.

2. Variety of Plans– LIC offers a variety of pension plans catering to different needs and preferences of individuals. Whether you’re looking for a deferred annuity plan, immediate annuity plan, or a combination of both, LIC likely has a product to suit your requirements.

3. Guaranteed Income– LIC pension plans often come with the option of receiving a guaranteed income for life, ensuring financial stability during retirement.

4. Tax Benefits- Contributions made towards LIC pension plans are eligible for tax benefits under Section 80CCC of the Income Tax Act, 1961. But , the annuity received is taxable under the head ‘Income from Other Sources.’

5. Flexibility-LIC pension plans typically offer flexibility in terms of premium payment options, annuity options, and the choice of riders to enhance coverage.

6. Bonus and Additions– Some LIC pension plans may offer bonuses or additions, which can further boost the accumulated corpus or annuity payouts.

7. Survivor Benefits– Many LIC pension plans come with survivor benefits, ensuring that the spouse or nominee continues to receive benefits in case of the policyholder’s demise.

8. Financial Security-Planning for retirement with LIC pension plans can provide peace of mind and financial security during your post-retirement years.

9. Customer Service– LIC has an extensive network of branches and customer service outlets, making it convenient for policyholders to manage their pension plans and address any queries or concerns.

10. Government Backing– LIC is a government-owned corporation, providing an additional layer of security and trust for policyholders.

Before choosing any pension plan, it’s essential to assess your financial goals, risk tolerance, and retirement needs to ensure that the plan aligns with your objectives. Additionally, consulting with a financial advisor can help you make an informed decision based on your circumstances.

How to purchase LIC pension Plan

As a customer one can purchase LIC Plans online or offline through LIC Agents or Bank branches.

Online Method

1. Visit LIC Website https://licindia.in/home
2. Click on Buy Online
3. Choose your Plan
4. Fill in your details such as name, age, gender, plan options etc.
5. Make Premium Payment
6. Policy details will be sent online to the registered email address.

Offline Method

Visit a local LIC branch or ask for an advisor’s help. This way you can purchase LIC policy offline.

You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.

If you have learned something new and found the article informative, Then please share & Comment. This will help me reach more readers and spread financial awareness.

Read more about Pension Plans

This LIC Index Plus Plan offers the advantage of Low premium, life cover, and investment of money in Nifty 100 or Nifty 50 selected stocks investment.

LIC Index Plus ( 873) -Life Cover with Market Investment – Eligibility & features

This tax season LIC has offered a new ULIP plan. Index Plus Plan offers benefits like – Life Cover, Refund of mortality charges and Guaranteed Additions.

Other features such as premium payment frequency, choose your sum assured, settlement options of claim, partial withdrawal and accident benefit rider, enhance the features of the plan.

LIC Index Plus – Fund Options

The policy holder gets two fund options to choose from.

Benefits under LIC Index Plus Policy ( 873)

Maturity Benefit

On maturity, the unit fund value will be given to the policyholder.

Death benefit

On death during the policy term BEFORE commencement of risk

An amount equal to the Unit Fund Value as on the date of intimation of death shall be payable.

On death during the policy term AFTER commencement of risk

The higher of the below three is paid

1. Basic Sum Assured is reduced by Partial Withdrawals, if any, made during the two years immediately preceding the date of death
2. Unit Fund Value as on date of intimation of death
3. 105% of the total premiums received up to the date of death reduced by Partial Withdrawals, if any, made during the two years immediately preceding the date of death.

Refund of Mortality Charges

At maturity, an amount equal to the total amount of mortality charges deducted shall be payable along with the Maturity Benefit. 

Date of Commencement of risk: In case the age of Life Assured at entry is less than 8 years, risk coverage will start either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

For instance, Suppose Bestii Singh aged 5 years, is life assured buy LIC single Premium Endowment plan on 30/1/2023.

the Since age is less than 8 years. The risk coverage will start after 30/1/2025 or at the age of 8 years. Here, the period of 2 years is completed in 2025 i.e. at the age of 7.

So, risk coverage will start from age 7 years only.

Guaranteed Additions

Guaranteed Additions as a percentage of one Annualized Premium, are added to the Unit fund on completion of a specific duration of policy years. ( if all due premiums have been paid and the policy is in force).

Partial Withdrawal

The policyholder may partially withdraw the units at any time after the 5 years lock-in period subject to the following:

1. In case of minors, partial withdrawals shall be allowed only after Life Assured is aged 18 years or above.
2. Partial withdrawals may be in the form of a fixed amount or the form of a fixed number of units.
3. The maximum amount of Partial Withdrawal as a percentage of funds during each policy year shall be as under:

The above Partial withdrawals are allowed subject to the minimum balance of not less than 4 Annualized Premiums for Annual Premium less than  Rs.48,000/- and in all other cases not less than 3 Annualized Premiums.

Suppose Bestii’s annual premium is 50K. He wants to make a partial withdrawal in 6th year. His fund value is 7 lac. Thus after withdrawal, his balance should not be less than 1.5 lac ( 3 Annualized Premiums for Annual Premium more than  Rs.48,000/- ) and 2 lac in case his premium is less than 48K.

Switching

You have an option to switch between the two fund types during the policy term. On switching, the entire Fund Value shall be switched to the new Fund opted for.

During a given policy year, four switches will be allowed free of charge.

Subsequent switches shall be subject to a switching charge of Rs.100 per switch.

Charges under the Plan

Since this is a ULIP plan. Policy administration charges are applicable. This premium is invested after the deduction of charges.

Premium Allocation Charge

This is the percentage of the premium used towards charges from the premium received. Please note that these charges are recurrent.

Mortality Charge

Mortality Charge is the cost of life insurance coverage, which is age-specific. Mortality Charges are deducted at the beginning of each policy month by cancelling an appropriate number of units out of the Unit Fund Value.

The monthly charge will be one-twelfth of the annual Mortality Charges.

How it works?

Lets take example of 45 Year Bestii. His sum assured is Rs 10- lac. Premium say 1 lac.

Premium Allocation Charge – 100000*8% = Rs 8000

Net investment = 1 lac – 8000= Rs 92000

Mortality charge – 1000000/1000*3.48 = Rs.3480

This amount is divided by 12 and thus Rs 290 will be charged each month beginning by cancelling the units.

The rate of Mortality Charge per annum per  1000/- Sum at Risk for some of the ages in respect of a healthy life are as under:

Fund Management Charge 

Fund Management Charge is levied as a percentage of the Fund value. FMClevied at the time of computation of NAV, which will be done daily. The NAV thus declared will be net of FMC.

Fund Management Charge (FMC) shall be as under:

• 1.35% p.a. of Unit Fund for both fund types available under an in-force policy i.e. Flexi Growth Fund and Flexi Smart Growth Fund.
• 0.50% p.a. of Unit Fund for “Discontinued Policy Fund” ( when you stop paying premium and policy is in “Discontinued Policy Fund.

This is a charge levied at the time of computation of NAV, which will be done on daily basis. The NAV thus declared will be net of FMC.

Policy Administration Charge: 

Policy Administration Charge shall be applicable from the 6th policy year till the end of the policy term as mentioned below at the beginning of each policy month

Policy Administration charges shall be subject to a maximum of Rs.500 per month (i.e  Rs.6000 p.a) from the Unit Fund Value by cancelling units for the equivalent amount.

Settlement Option ( for death Claim)

One can choose to receive death benefits in instalments over the chosen period of 5 years instead of a lump sum amount.

The instalments shall be paid in advance at yearly,half-yearly, quarterly or monthly intervals, as opted for, subject to minimum instalment amount for in force or paid policies.

LIC Index Plus- Should you buy?

LIC Index Plus Plan is a ULIP Plan. From the terms and conditions of the plan, it is evident that the plan is for the long term with high charges. You can say it is a costly insurance plan.

I am not fond of such plans. But still, if you want to purchase this plan then few points to ponder:

• Online purchase is better since Premium Allocation charges are lower.
• If at all you decide to buy, go for the long run to get some gain from the plan.
• Do not try to buy for five years. If it is in your mind then the Post office scheme will give you better returns.
• If buying insurance covers needs, term insurance is a better bet.
• If buying for investment purposes, mutual funds are a better choice.
• Safe options to invest in are our post office saving scheme.
• If Tax saving is needed – ELSS mutual funds are a good choice.
• Top 10 Tax Saving ELSS Mutual Funds 2024 -Invest To Be Wealthy
• Top 5 Post Office Tax Saving Scheme
• Latest Post Office Savings Interest Rates 2023- How Change Will Impact You?

But before investing, it is better to explore other Pure investment and pure risk coverage Options too.

You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.

If you have learned something new and found the article informative, Then please share & Comment. This will help me reach more readers and spread financial awareness.

other LIC plans

Read more –LIC New tech term plan

Which LIC Term Plan scores over a better bet?

ICICI Pru Guaranteed Pension Plan Flexi is a deferred annuity plan that allows creating guaranteed lifelong income with a stress-free regular investment of your choice. There are a total of 9 different annuity options that you can choose from. The option you select will decide what kind of lifelong regular income you will receive. 

ICICI Pru Guaranteed Pension Plan Flexi – Eligibility & Features

Annuity options – ICICI Prudential Guaranteed Pension Plan Flexi

Annuity will be payable in arrears/ at the end of every month, quarter, half-year or year, after completion of the deferment period, as chosen by you at the time of purchasing the annuity. The annuity amount chosen at policy inception is guaranteed for life.

Example: If your last annual premium is paid on Jan 15, 2031, and your deferment period ends on Jan 15, 2032, then Annuity is payable from –
For Annual mode: Jan 15, 2033; For Half-yearly mode: July 15, 2032; For Quarterly mode: April 15, 2032; For Monthly mode: Feb 15, 2032.

Annuity Option explanation

• Single Life without Return of Premium- Annuity starts from the end of deferment period for entire life
• Joint Life without Return of Premium
• Single Life with Return of Premium
• Joint Life with Return of Premium
• Single Life with Return of Premium (ROP) on Critical Illness (CI)
  or Permanent Disability due to Accident (PD) or Death
• Single Life with Booster Payouts
• Single Life with Accelerated Health Boosters

Key Features

1. Guaranteed Pension: The plan provides a predetermined pension amount, ensuring a fixed and stable income stream during your retirement years. This certainty can be crucial in planning and maintaining a comfortable lifestyle post-retirement.

2. Flexibility in Premium Payment: The plan allows policyholders the flexibility to choose their premium payment term. This feature is advantageous, enabling individuals to align their premium payments with their financial goals and capacity.

3. Policy Term Options: ICICI Prudential understands that every individual’s retirement needs are unique. The plan offers various policy term options, empowering policyholders to tailor their coverage period according to their specific requirements.

4. Life Insurance Cover: In addition to the guaranteed pension, the plan provides a life insurance cover. This ensures that in the unfortunate event of the policyholder’s demise, their family receives a lump sum amount, providing financial protection and support.

5. Tax Benefits: Like many other insurance products, the ICICI Prudential Guaranteed Pension Plan Flexi offers tax benefits under prevailing tax laws. Policyholders can enjoy deductions on both premium payments and the pension received.

Is it Right for You?

Before considering any pension plan, it’s crucial to assess your financial goals, risk tolerance, and retirement expectations. The ICICI Prudential Guaranteed Pension Plan Flexi caters to those seeking a balance between a guaranteed pension income and the flexibility to adapt to changing circumstances.

Conclusion

The ICICI Prudential Guaranteed Pension Plan Flexi stands out as a reliable option for individuals who value the security of a guaranteed pension alongside the flexibility to mold financial future.

In the ever-changing landscape of personal finance, this pension plan serves as a beacon, providing a sense of stability and assurance as individuals transition from their working years to a well-deserved retirement.

Read more about Pension creating ways:

Jeevan Utsav is a non- participating product under which benefits payable on death or survival are guaranteed and fixed irrespective of actual experience.

LIC’s Jeevan Utsav ( 871) – Eligibility & features

LIC Jeevan Utsav Plan is a traditional insurance plan. Like other Endowment Plans, this LIC plan also provides Guaranteed money back from the vesting date.

Key features – LIC Jeevan Utsav

• Whole life insurance with limited premium payment
• Two options available at inception to choose the benefit under the plan

o Option I – Regular Income Benefit

o Option II – Flexi Income Benefit

• Guaranteed Additions throughout Premium Paying Term
• Flexibility to choose Premium Paying Term from 5 Years to 16 Years
• Benefit of attractive High Sum Assured Rebate
• Option to enhance coverage by opting for riders on payment of additional premium
• Takes care of liquidity needs through loan facility

Benefits under LIC Jeevan Utsav Policy ( 871)

Maturity Benefit

There is no maturity benefit in UTSAV Policy.

Guaranteed Additions

The Guaranteed Additions will accrue at the rate of Rs. 40 per thousand Basic Sum Assured at the end of each policy year during the Premium Paying Term. There shall be no further accrual of Guaranteed Additions after Premium Paying Term.

Suppose Bestii Singh have taken 5 lac sum assure policy for 10 years ( premium paying term) then he will get guaranteed additions of Rs 2 lac only.

(500000/1000)*Rs 40 * no of premium paying term

(500000/1000)*Rs 40 * 10 = 2 lac

Survival Benefit

Jeevan Utsav offer two options to take income after completion of policy premium payment term

• Regular Income Benefit
• Flexi Income Benefit

Regular/ Flexi Income Benefit – yearly Income ( 10% of basic Sum Assured )will start as specified in the table below.

In case of Flexi Income – Policyholder have the flexibility to defer( delay) and accumulate such Flexi Income Benefits. If policyholder defer the benefits, LIC shall pay interest on the deferred and accumulated Flexi Income Benefit at the rate of 5.5% p.a. compounding yearly for completed months from its due date till the date of withdrawal or surrender or death, whichever is earlier.

Death benefit

Higher of the below two is paid along with accrued guaranteed Additional

1. Basic Sum Assured on death and
2. 7 times of annualised premium

Death Benefit shall not be less than 105% of total premiums paid up to the date of death.

Date of Commencement of risk: In case the age of Life Assured at entry is less than 8 years, risk coverage will start either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.

For instance, Suppose Bestii Singh aged 5 years, is life assured buy LIC Jeevan Utsav on 30/12/2023.

Since age is less than 8 years. The risk coverage will start after 30/12/2025 or at the age of 8 years. Here, time period of 2 years is completing after 2025 i.e. at the age of 7.

So, risk coverage will start from age 7 years only.

Settlement Option ( for Maturity/death)

Under LIC settlement option, one can take maturity benefit or death claim in instalments over a period of 5 years instead of lump sum amount. This option can be exercised for in force or paid policies.

Settlement Option( Death Claim)

One can choose to receive death benefit in instalments over the chosen period of 5/10/15 years instead of lump sum amount.

The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for in force or paid policies.

Please refer above table.

Riders

The policyholder has an option of availing following Rider benefit(s):

1. LIC’s Accidental Death and Disability Benefit Rider
2. LIC’s Accident Benefit Rider
3. LIC’s New Term Assurance Rider
4. LIC’s New Critical Illness Benefit Rider 
5. LIC’s Premium Waiver Benefit Rider

Rider sum assured cannot exceed the Basic Sum Assured.

LIC Jeevan Utsav( 871)-Premium Chart

The sample illustrative premiums for Basic Sum Assured of Rs. 5 Lakh for Non-Smoker, Standard lives for Offline sales are as under:

LIC Jeevan Utsav Review ( 871) – 10% Guaranteed income What it means for you

Jeevan Utsav 871 is sold claiming 10% Guaranteed income but actually What it means for you? Is it really worth your hard earned money? or you should ignore the noise.

The LIC Jeevan Utsav policy wordings, says, the policyholder will get 10% sum assured income. But what are the actual returns ( IRR ).

Now suppose Bestii Singh age 35 buys Jeevan Utsav for Sum assured Rs 5 lac and opts to pay premium for 5 years then he will get income of Rs. 50000 every year till the age of 99 years. Here, as you can check from the below table, the Utsav policy can fetch you return of 5.9%.

I don’t say, it is good or bad but if you want to bring few points to notice:

Jeevan Utsav Benefits

Jeevan Utsav is a good saving plan which offers life insurance and tax benefit as well. You get life time guaranteed income from money deposited.

Other guaranteed investment options

Jeevan Utsav Disadvantages

• Although income is GUARANTEED but the return rate is quite low. ( other income option)
• In between withdrawal is not possible( difficult to withdraw). That is why low on liquidity.
• If you think to withdraw in between, huge loss.
• Very bad for investment perspective ( choose better investment options)
• Really bad for insurance purposes too. ( low life cover)- Buy high life cover

LIC Jeevan Utsav Return Illustration

Sum Assured Rs 5 lac

Premium Paying term – 5 years

IRR- 5.9%

other LIC plans

Read more –LIC New tech term plan

Which LIC Term Plan scores over a better bet?