Outlook Money
Life Insurance Corporation of India (LIC) introduced a guaranteed income policy for life called the ‘Jeevan Utsav’ on November 29, 2023.
Individual aged between 90 days and 65 years can open the policy; the maximum premium-paying age is 75 or the nearest birthday.
The policy offers lifetime coverage and fixed returns without additional benefits like bonuses.
This policy provides guaranteed income for senior citizens for life.
The death benefit is the total premium paid until death, minus rider, extra premiums, and taxes, and the sum assured, which is higher than the basic or seven times the annualised premium
Beneficiaries can receive the death benefits in monthly, quarterly, half-yearly, and yearly instalments instead of a lump sum.
The policyholder receives 10% of the basic sum assured annually, starting from the 19th policy year.
The flexible option offers 10% of the basic sum assured annually, with deferment and interest compounding annually. It also allows withdrawals up to 75% of the accumulated balance once a policy year.
Compiled By Himani Verma