- About Coverfox
LIC Jeevan Utkarsh is a combination of savings and protection plan under which a policyholder can cover the risk up to ten times of the single premium. It is a non-linked, with-profit life insurance plan. The life insured will have an option to choose the basic sum assured. The single premium amount shall depend on the basic sum assured and age at the time of the life insured at the time of entering into the plan. LIC Jeevan Utkarsh plan also takes care of the liquidity requirement, as it offers loan facility.
Death benefit: If the death of the policyholder occurs during the first five years of the policy term before the risk commencement date, the beneficiary will receive the single premium paid without any interest. In case of death of the policyholder after the risk commencement date, the nominee will receive higher of the following:
In case of death of the life insured after the first five years of the policy term, the nominee will also be paid loyalty additions. The nominee would be paid the higher of the following:
Maturity benefit: On maturity of the plan, the sum assured on maturity, along with the loyalty addition, if any is payable to the policyholder. The sum insured on maturity is equal to the basic sum assured.
Loyalty additions: Policyholders are eligible for loyalty additions at the time of exit after completion of five years in case of death during the policy term or maturity. Loyalty additions are also considered in case of policy surrender during the term, provided the policy has completed five years.
Optional benefit: The policy offers optional benefits such as Accidental Death benefit and Disability benefit Rider. They are available as optional riders and can be availed by paying additional premium. This rider can be attached to the base plan at the time of policy commencement. An additional amount which is equal to the accidental benefit sum assured is payable upon the death of the policyholder due to an accident, provided the rider is in force at the time of the accident. In case the life insured becomes permanently disabled due to an accident, an amount equal to disability benefit sum assured is usually paid in the form of monthly instalments spread over a span of 10 years. If the policyholder dies before completing ten policy years, the disability benefit instalments are paid along with the sum assured.
|Minimum age at entry||6 years|
|Maximum age at entry||47 years|
|Minimum basic sum assured||Rs. 75,000|
|Maximum basic sum assured||No limit|
|Policy term||12 years|
|Premium payment mode||Single premium only|
|Basic sum assured shall be payable in multiples of:|
Rs. 5,000 – If the basic sum assured is below Rs. 3 lakhs
Rs. 20,000 – If the basic sum assured is Rs. 3 lakhs and above
The table below illustrates the rates of the single premium for Rs. 1000 as the basic sum assured.
|Age at policy commencement||Single premium rate|
Tax benefits: The single premium paid towards LIC Jeevan Utkarsh plan is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. As per this Section, a tax deduction is allowed against the premium of life insurance policies where the premium does not exceed 10% of the basic sum assured.
Surrender value: The policyholder can surrender the plan at any time during the policy term. The guaranteed surrender value payable is as follows:
The first year: 70% of the single premium paid
Post that: 90% of the single premium paid
The surrender benefit does not include any form of taxes, or extra amount paid due to the underwriting policy of the company. The company will pay special surrender value as applicable on the date of policy surrender. The special surrender value is reviewable and will be revised from time to time after getting approval from IRDAI. It is advisable that one reads the policy terms before surrendering the policy.
Loan against policy: Policyholders can avail loan against LIC Jeevan Utkarsh plan after three months from the date of issuance of the policy. The maximum loan that can be granted against the plan is around 90% of the policy surrender value. The interest on such a loan will be 10% per annum compounded on a half-yearly basis. The rate is subject to change.
Policy rebate: The Company offers a premium rebate for higher sum assured. The table below illustrates the rebate offered against higher sum assured.
|Basic sum assured||Rebate on every Rs. 1000 as the basic sum assured|
|Rs. 75,000 to Rs. 1,45,000||NA|
|Rs. 1,50,000 to Rs. 2,95,000||Rs. 15|
|Rs. 3,00,000 to Rs. 4,80,000||Rs. 20|
|Rs. 5 lakhs and above||Rs. 25|
Free-look period: If the policyholder is not satisfied with the policy terms, he/she can return the policy to the company within 15 days from the receipt of the plan stating the reason for such cancellation. On receipt of the policy document, the company will cancel the plan and return the amount of single premium paid after deducting the proportionate risk amount for the period on cover, medical examination expenses, and stamp duty charges.
Settlement option: It is an option to receive the claim amount, i.e. maturity benefit or death benefit in a few instalments over the specified period that could be 5, 10 or 15 years instead of receiving a lump sum amount as a benefit. The policyholder has an option to receive a full or partial benefit in equal instalments. The amount that is opted by the policyholder or nominee can either be an absolute value or a percentage of the total claim amount. The company will invest in yearly, half-yearly, quarterly or monthly intervals as opted by the beneficiary. This instalment amount is subject to a minimum amount specified by the company in the policy document.
Settlement option can be exercised only by the life insured above the age of 18 years. However, in case of maturity benefit instalments, the insured has an option to commute the outstanding instalments.
Following documents are required to process the LIC Jeevan Utkarsh plan.
Age proof: Driving license, School/college certificate, Passport, PAN card, Birth Certificate - any of these can be presented as a valid age proof.
Identity proof: Voter ID, driving license, PAN card or Aadhaar card can be used an identity proof.
Address proof: Electricity bill, Bank account statement and utility bills can be used as the proof of address.
Apart from the documents mentioned above, the customer has to fill up an application or proposal form along with self-attested copies of KYC documents.
The company is not liable to pay any benefits, and the policy will get void in case the life insured commits suicide within the first year from the date of policy commencement. 90% of the single premium paid, or the surrender value, whichever is higher shall be payable to the beneficiary. This clause is not applicable in case the life assured whose age is below 8 years has committed suicide. The company will pay a single premium without interest.
The amount of single premium depends on the basic cum assured chosen by the policyholder. The sum assured is payable on maturity. The minimum sum assured is Rs. 75,000 and the premium differs depending on the age of the policyholder. In case of the untimely death of the policyholder before the maturity of the policy, the death benefit is given to the beneficiary. The maturity benefit is basic sum assured, in addition to the loyalty benefit (if any). In case of survival, the policyholder receives the sum assured together with loyalty benefit, on the maturity of the policy.
LIC Jeevan Utkarsh is a non-linked, with profits life insurance plan that aims to provide maximum coverage to the life insured against a single premium. The policy also offers optional riders such as accidental death benefit and disability rider to enhance the coverage. The plan gives flexibility to the beneficiary to receive the claim amount in instalments as per his requirements. Moreover, the plan comes with a free-look period of 15 days within which the policy can be returned if the customer is not satisfied with the terms and conditions of the plan. In case the life insured commits suicide within one year from the date of policy commencement, the nominee is eligible to receive 90% of the single premium paid. The company offers a premium rebate on the higher sum assured.
The single premium paid towards LIC Jeevan Utkarsh plan is eligible to receive tax benefits under Section 80C of the Income Tax Act, 1961.