Last Updated: 11 Oct 2025 | By Keyur Tirgar, LIC Agent Code: 04699-102
Are you looking for a life insurance plan that offers guaranteed lifetime income along with comprehensive life coverage? LIC's Jeevan Utsav might be the perfect solution for your financial planning needs. In this comprehensive guide, we'll explore everything you need to know about this unique whole life insurance plan from India's most trusted insurer.
What is LIC Jeevan Utsav?
LIC's Jeevan Utsav is a non-linked, non-participating, individual, savings, whole life insurance plan that provides financial support to the family in case of the unfortunate death of the life assured and survival benefits in the form of regular income benefit or flexi income benefit as per the option chosen.
Plan Details:
- Plan Number: 871
- UIN: 512N363V02
- Plan Type: Whole Life Insurance with Guaranteed Additions
- Premium Type: Limited Premium Payment
- Nature: Non-Linked, Non-Participating
Unlike traditional endowment plans that mature at a specific age, Jeevan Utsav continues throughout your lifetime, making it an excellent option for those seeking lifelong protection combined with retirement income.
Key Features of LIC Jeevan Utsav
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1. Whole Life Coverage
The policy provides life insurance coverage until the age of 100 years, ensuring your family remains financially protected throughout your lifetime. This is particularly valuable for those who want to leave a legacy for their loved ones.
2. Guaranteed Additions
The policy offers additional benefits that accrue at the rate of ₹40 per thousand of the basic sum assured every year during the premium paying term, which means the policy value increases over time.
For example, if your basic sum assured is ₹10 lakhs and your premium paying term is 15 years, you'll receive guaranteed additions of:
- Annual Addition: ₹10,00,000 ÷ 1,000 × ₹40 = ₹40,000
- Total Guaranteed Additions (15 years): ₹40,000 × 15 = ₹6,00,000
3. Flexible Premium Payment Terms
Premium payment terms range from 5 to 16 years, providing flexibility based on your financial capacity. You can choose to pay premiums for a shorter duration while enjoying lifelong benefits.
4. Two Income Benefit Options
The policy offers two distinct options for receiving survival benefits:
Option 1: Regular Income Benefit
- Provides payment of 10% of the basic sum assured every year for the entire lifetime of the life assured after the premium payment period is over.
- Predictable, consistent income stream
- Ideal for retirement planning
Option 2: Flexi Income Benefit
- Offers flexibility in choosing when to receive income benefits
- Can be customized based on your financial needs
- Suitable for those who prefer control over benefit timing
5. Death Benefit Protection
The sum assured on death is determined as the basic sum assured or seven times the annualized premium, whichever amount is higher, with a minimum death benefit of 105% of the total premiums paid up to the date of death.
This ensures your family receives substantial financial protection regardless of when the unfortunate event occurs.
6. Loan Facility
Need liquidity? You can avail a policy loan after the policy has acquired a surrender value. This feature provides financial flexibility during emergencies while keeping your insurance coverage intact.
7. Tax Benefits
Enjoy tax advantages under the Income Tax Act:
- Section 80C: Premium payments qualify for deduction up to ₹1.5 lakh
- Section 10(10D): Death benefit and maturity proceeds are tax-free (subject to conditions)
Eligibility Criteria
Understanding whether you qualify for LIC Jeevan Utsav is crucial before applying:
| Parameter | Details |
|---|---|
| Minimum Entry Age | 90 days (for children) |
| Maximum Entry Age | 65 years |
| Minimum Sum Assured | ₹5 lakhs |
| Maximum Sum Assured | No limit |
| Premium Paying Term | 5, 7, 10, 12, 15, or 16 years |
| Policy Term | Whole life (till age 100) |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, Monthly |
Important Note: The maximum entry age may vary based on the premium paying term chosen. For shorter payment terms, the maximum age limit might be lower.
LIC Jeevan Utsav Premium Calculator: Understanding Costs
Let's look at sample premium illustrations to understand the cost structure:
Example 1: 30-Year-Old Male, Non-Smoker
- Sum Assured: ₹10 lakhs
- Premium Paying Term: 15 years
- Option: Regular Income Benefit
Approximate Annual Premium: ₹65,000 - ₹70,000*
Total Premium Paid: ₹65,000 × 15 = ₹9,75,000
Annual Income (from year 16 onwards till age 100):
- 10% of ₹10 lakhs = ₹1,00,000 per year
- For 54 years (age 31 to 85): ₹54,00,000
- Plus Guaranteed Additions and Death Benefit
Example 2: 40-Year-Old Female, Non-Smoker
- Sum Assured: ₹25 lakhs
- Premium Paying Term: 10 years
- Option: Regular Income Benefit
Approximate Annual Premium: ₹2,20,000 - ₹2,40,000*
Annual Income (from year 11 onwards):
- 10% of ₹25 lakhs = ₹2,50,000 per year
- Guaranteed lifetime income
*Note: Actual premiums depend on age, health, sum assured, and premium paying term. Use LIC's official calculator or contact an authorized agent for precise quotes.
Income Benefit Options Explained
Regular Income Benefit
This option is ideal if you want predictable, pension-like income for your entire lifetime.
How it works:
- You pay premiums for the chosen term (e.g., 15 years)
- After a small waiting period post-premium payment
- You receive 10% of sum assured annually for life
- Income continues till age 100
- Upon death, nominees receive sum assured + guaranteed additions
Best suited for:
- Retirement planning
- Creating a pension-like income stream
- Those who prefer simplicity and certainty
Flexi Income Benefit
This option provides flexibility in accessing your benefits according to your evolving needs.
How it works:
- You choose when to start receiving income benefits
- Can be deferred to accumulate higher benefits
- Customize payout schedules based on life goals
- Greater control over fund utilization
Best suited for:
- Those with irregular income needs
- Individuals planning for specific future expenses
- People who prefer financial flexibility
Returns Analysis: Is LIC Jeevan Utsav Worth It?
Returns are typically capped around 6-7% internal rate of return (IRR). While this may seem modest compared to equity investments, consider these factors:
Advantages:
- Guaranteed Returns: No market risk, assured income
- Lifetime Coverage: Protection till age 100
- Tax-Free Income: Benefits are tax-exempt
- Government Backing: LIC's credibility and claim settlement record
- Inflation Protection: Through guaranteed additions
Comparison with Other Options:
| Investment Option | Approx. Returns | Risk Level | Tax Treatment |
|---|---|---|---|
| LIC Jeevan Utsav | 6-7% | Very Low | Tax-Free |
| Bank FDs | 5-7% | Very Low | Taxable |
| Debt Mutual Funds | 7-9% | Low | Taxable (LTCG) |
| Equity Mutual Funds | 10-12%* | High | Taxable (LTCG) |
*Past performance doesn't guarantee future returns
The key advantage of Jeevan Utsav is the combination of life insurance + guaranteed income, which standalone investments don't provide.
Who Should Buy LIC Jeevan Utsav?
This plan is particularly suitable for:
1. Conservative Investors
If you prioritize safety over high returns and want guaranteed income, Jeevan Utsav aligns perfectly with your financial philosophy.
2. Retirement Planners
For those seeking a pension-like income in retirement, the regular income benefit option provides predictable monthly cash flow for life.
3. Parents Planning for Children
Buy this policy for your children early (minimum age 90 days), and they'll have lifelong protection with minimal premium burden.
4. Business Owners & Self-Employed
Without employer-provided pension plans, this offers a self-funded retirement solution with life cover.
5. Those Seeking Tax-Efficient Income
The tax-free nature of benefits makes this attractive for high-income individuals in higher tax brackets.
6. Risk-Averse Individuals
If market volatility keeps you awake at night, the guaranteed nature of this plan provides peace of mind.
How to Apply for LIC Jeevan Utsav
Applying for this policy is straightforward:
Online Application
- Visit the official LIC website (licindia.in)
- Navigate to "Buy Online" section
- Select "Jeevan Utsav" from the product list
- Fill in personal and nominee details
- Choose sum assured and premium paying term
- Calculate premium using the built-in calculator
- Upload required documents
- Complete medical examination (if required)
- Make premium payment online
- Receive policy document via email
Online Purchase Benefit: For proposals completed under online sale without any assistance of agents or intermediaries, there is eligibility for a rebate of 10% on tabular premium.
Through Insurance Adviser
Alternatively, contact an authorized LIC agent like Keyur Tirgar (Agent Code: 04699-102) for:
- Personalized consultation
- Premium comparison with other plans
- Documentation assistance
- Medical examination coordination
- Claims support throughout policy life
Contact Details:
- Phone/WhatsApp: +91 9784309640
- Email: tirgarkuriya@gmail.com
- Service Area: All Over Rajasthan
Documents Required
Keep these documents ready for smooth processing:
Identity Proof:
- Aadhaar Card
- PAN Card
- Passport
- Voter ID
Age Proof:
- Birth Certificate
- School Leaving Certificate
- Passport
Address Proof:
- Aadhaar Card
- Utility Bills
- Passport
- Bank Statement
Income Proof (for high sum assured):
- Latest 3 months salary slips
- ITR documents
- Form 16
- Bank statements
Medical Reports:
- May be required based on age and sum assured
- LIC arranges and pays for medical examination
Comparing LIC Jeevan Utsav with Similar Plans
LIC Jeevan Utsav vs. LIC Jeevan Umang
| Feature | Jeevan Utsav | Jeevan Umang |
|---|---|---|
| Plan Type | Whole Life | Whole Life |
| Income Start | After premium term | From year 31 |
| Income Frequency | Annual | Annual |
| Maturity Age | No maturity | 100 years |
| Guaranteed Additions | Yes | Yes |
| Best For | Immediate post-retirement income | Later-life income |
LIC Jeevan Utsav vs. LIC Jeevan Akshay
| Feature | Jeevan Utsav | Jeevan Akshay |
|---|---|---|
| Premium Type | Limited Pay | Single Premium |
| Income Start | After premium term | Immediate |
| Life Cover | High | Minimal |
| Flexibility | Two options | Multiple options |
| Investment Required | Distributed | Lump sum |
Verdict: Choose Jeevan Utsav if you want to build wealth gradually while ensuring high life coverage. Choose Jeevan Akshay if you have a lump sum and need immediate pension income.
Advantages of LIC Jeevan Utsav
✅ Lifetime Protection: Coverage till age 100
✅ Guaranteed Income: No market-linked risk
✅ Flexible Payment: Choose 5-16 year premium terms
✅ Tax Benefits: Save tax under multiple sections
✅ Loan Facility: Access funds when needed
✅ LIC Credibility: Highest claim settlement ratio
✅ Guaranteed Additions: Policy value increases annually
✅ Two Income Options: Regular or Flexi benefit
✅ Online Purchase Rebate: Save 10% premium
✅ Nomination Facility: Easy wealth transfer
Limitations to Consider
⚠️ Moderate Returns: 6-7% IRR may not beat inflation long-term
⚠️ Long Lock-in: Surrender in early years has charges
⚠️ No Maturity Benefit: Being whole life, no defined maturity
⚠️ Premium Commitment: Must pay for chosen term
⚠️ Inflation Impact: Fixed 10% payout may lose purchasing power
Tips to Maximize Benefits
1. Start Early
The younger you are, the lower your premiums. A 25-year-old pays significantly less than a 45-year-old for the same coverage.
2. Choose Optimal Premium Term
Balance between affordability and faster wealth accumulation. A 10-12 year term often provides good balance.
3. Opt for Annual Payment
Pay annually instead of monthly/quarterly to save 2-4% on total premiums.
4. Buy Online
Save 10% on premium by purchasing directly without agent assistance.
5. Adequate Sum Assured
Choose sum assured that provides meaningful income. ₹50 lakhs gives ₹5 lakhs annual income—plan accordingly.
6. Add Riders if Needed
Consider critical illness or accidental death riders for comprehensive protection.
7. Review Regularly
Reassess coverage every 3-5 years as income and responsibilities change.
Frequently Asked Questions
Q1: Can I surrender the policy before the premium paying term?
Yes, but surrender charges apply. The policy acquires surrender value after 3 years. Early surrender results in significant loss.
Q2: Is medical examination mandatory?
Depends on age and sum assured. For higher coverage or older age, medical tests are required. LIC bears the cost.
Q3: Can I increase the sum assured later?
No, sum assured cannot be increased in existing policy. You can buy an additional policy for higher coverage.
Q4: What happens if I miss a premium payment?
Grace period of 30 days (annual/half-yearly/quarterly) or 15 days (monthly) is provided. Policy lapses after grace period but can be revived within specific period.
Q5: Is the income benefit taxable?
No, income benefits received are tax-free under Section 10(10D) subject to conditions.
Conclusion: Is LIC Jeevan Utsav Right for You?
LIC Jeevan Utsav is an excellent choice if you're looking for a conservative, guaranteed-income life insurance plan backed by India's most trusted insurer. While the returns may not match high-risk equity investments, the combination of lifelong protection, guaranteed income, tax benefits, and zero market risk makes it valuable for:
- Conservative investors prioritizing safety
- Individuals planning for retirement income
- Parents securing their children's financial future
- Those seeking tax-efficient income streams
- People wanting peace of mind with LIC's credibility
However, if you're young with high risk appetite and seeking maximum returns, you might consider term insurance for protection and separate equity investments for wealth creation.
The Bottom Line: LIC Jeevan Utsav delivers on its promise—a celebration (utsav) of financial security through guaranteed lifetime income and comprehensive life coverage.
Take Action Today
Ready to secure your financial future with LIC Jeevan Utsav?
Contact Keyur Tirgar - Your Trusted LIC Adviser
📞 Phone/WhatsApp: +91 9784309640
📧 Email: tirgarkuriya@gmail.com
🏢 Service Area: All Over Rajasthan
🆔 LIC Agent Code: 04699-102
Services Offered: ✓ Free consultation and needs analysis
✓ Premium calculation and comparison
✓ Documentation assistance
✓ Medical examination coordination
✓ Policy servicing support
✓ Claims assistance
Schedule your free consultation today and get personalized guidance on whether LIC Jeevan Utsav is right for you!
Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. LIC Jeevan Utsav is subject to terms and conditions of the policy document. Premium rates, features, and benefits mentioned are based on information available as of 2025 and may change. Please read the policy brochure and discuss with an authorized LIC agent before making any insurance purchase decision. Past performance and illustrated benefits do not guarantee future results.
About the Author: This comprehensive guide is brought to you by Keyur Tirgar, an IRDA certified insurance adviser with 5+ years of experience helping families across Rajasthan secure their financial future through LIC and other leading insurance providers.
Keywords naturally included: LIC Jeevan Utsav, Plan 871, whole life insurance, guaranteed income, LIC policy, retirement planning, life insurance India, premium calculator, tax benefits, lifetime coverage, LIC agent Rajasthan
