Summary of LIC Jeevan Utkarsh Plan - Table No. 846
LIC Jeevan Utkarsh Plan is a Single Premium Endowment Policy which offers a life cover of 10 times the single premium paid. This is a traditional participating plan which offers Loyalty Additions which will be available on maturity.
LIC Jeevan Utkarsh Policy is available for purchase only till 270 days from the launch date. The plan was officially launched on 6th September, 2017.
Key Features of LIC Jeevan Utkarsh Plan
Single Premium Endowment Plan with a fixed tenure of 12 years
Loyalty Additions to be paid at the end of the policy term
Option of selecting Accidental Death and Disability Rider along with the plan
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS
LIC Jeevan Utkarsh Policy Parameters
Premium Payment Term
LIC Jeevan Utkarsh Plan Benefits
It is important to understand the concept of Risk Commencement Date in this plan as the life cover is only applicable after that date. In case, the policyholder is less than 8 years of at the time of buying the plan, it is important to understand that the life cover will start after this date. We have explained the Risk Commencement Date in LIC Jeevan Utkarsh Plan with examples
The Tabulated Single Premium in LIC Jeevan Utkarsh refers to the premium which is applicable without adding any premium increase due to underwriting reasons, riders, rebates for high sum assured or taxes.
1. If death occurs anytime during the first 5 policy years:
If the death of the policyholder happens before the Risk Commencement Date, nominee will receive the Single Premium paid without any interest.
In case of death of the Life Insured after the Risk Commencement Date, the Nominee would be paid the higher of the following:
125% of the Single Premium
Basic Sum Assured
10 times the Tabulated Single Premium
2. In case of Death of the policyholder after 5 policy years, the nominee will be paid Loyalty Additions also. The nominee would receive the higher of the following:
125% of the Single Premium + Loyalty Additions
Basic Sum Assured + Loyalty Additions
10 times the Tabulated Single Premium + Loyalty Additions
Loyalty Additions will be applicable after 5 policy years and will be as decided and declared by LIC.
On survival till the end of the policy term, the policyholder will get Basic Sum Assured + Loyalty Additions.
Income Tax Benefit - Very Important
As per the current income tax rules, Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C. However the premium paid has to be lower than or equal to 10% of the Sum Assured for this to be applicable. This does not happen in this Single Premium plan.
Also the Maturity proceeds will be taxable under the current rules.