LIC’s Jeevan Utkarsh (Plan 846) – All details, calculators and illustrations
LIC’s Jeevan Utkarsh (Plan 846) – All details, calculators and illustrations. LIC’s Jeevan Utkarsh is a single premium, non-linked, with-profits, savings cum protection plan. As it is a non linked plan amount is not invested in the equity or share market. The risk cover of the plan is ten times of Tabular Single premium.
LIC’s Jeevan Utkarsh (Plan 846) – Important features of the plan.
- Premium: LIC’s Jeevan Utkarsh is a single premium plan.
- Maturity benefit: On the Life Assured surviving to the end of the policy term, “Sum Assured on Maturity”(Basic Sum Assured) along with Loyalty Addition, if any, shall be payable.
- Death Benefit: Insurance coverage will start from policy anniversary coinciding or immediately following the completion of age 8. If death occurs, higher of the 125% of the single premium or Basic Sum Assured or 10 times of Tabular Single Premium along with the loyalty addition shall become payable.
- LIC’s Accidental Death and Disability Benefit Rider shall be available under this plan as an optional benefit.
- Term of the policy is 12 years.
- Loans: Policy Loan up to 90% of surrender value the can be availed under this policy at any time after three months from completion of the policy.
LIC’s Jeevan Utkarsh – Premium and Benefit calculator
Premium And Benefit calculator of Jeevan Utkarsh Plan can give you a clear idea of the premium of the plan with riders. It will also give you a clear idea on the insurance coverage and other benefit of the plan based on the values supplied by you.
| LIC’s Jeevan Utkarsh (Plan 846) – Eligibilty conditions and restrictions | ||
|---|---|---|
| No: | Condition | Minimum |
| 1 | Age at entry | 6 years (completed) |
| 2 | Basic Sum Assured | Rs.75,000/- |
| High Basic Sum Assured Rebate: | ||
| 3 | Basic Sum Assured (B.S.A) chosen under the policy | Reduction in Tabular premium (per Rs. 1000/- Basic Sum Assured) |
| Rs.75,000 to Rs.1,45,000 | Rs. Nil | |
| Rs.1,50,000 to Rs. 2,95,000 | Rs. 15 | |
| Rs.3,00,000 to Rs. 4,80,000 | Rs. 20 | |
| Rs.5,00,000 and above | Rs. 25 | |
| www.insurancefunda.in | ||
LIC’s Jeevan Utkarsh – Example of Benefits
Let us consider an example of a person taking a Jeevan Utkarsh plan. Let his age be 35 Years and the Sum Assured considered for example be 500000. The premium and the benefit of the plan will be as shown below.
LIC’s Jeevan Utkarsh (Plan 846) – Sum Assured multiples
If the Basic Sum Assured under a policy is below Rs. 3,00,000, the Basic Sum Assured shall be in multiples of Rs. 5,000. On the other hand if Basic Sum Assured under the policy is Rs. 3,00,000 and above, the sum Assured has to be in multiples of Rs. 20,000.
LIC’s Jeevan Utkarsh (Plan 846) – Date of commencement of risk.
In case the age at entry of the Life assured is less than 8 years, the risk under this plan will commence from one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age. For those aged 8 years or more, risk will commence immediately.
LIC’s Jeevan Utkarsh (Plan 846) – Settlement Option
Settlement Option is an option to receive claim amount (i.e. Maturity Benefit or Death Benefit) in installments over the chosen period of 5 or 10 or 15 years instead of lump sum amount. This option can be exercised only by the Life Assured aged 18 years or above at the time of exercising this option.
The installments shall be made in advance at yearly, half-yearly, quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments as given below.
| No: | Mode of Installment payment | Minimum installment amount |
|---|---|---|
| 1 | Monthly | Rs. 5000 |
| 2 | Quarterly | Rs.15000 |
| 3 | Half Yearly | Rs. 25000 |
| 4 | Yearly | Rs. 50000 |
LIC’s Accidental Death and Disability Benefit Rider for LIC’s Jeevan Utkarsh (Plan 846)
LIC’s Accidental Death and Disability Benefit Rider shall be available as an optional rider by payment of additional premium. This rider can be opted for at inception only. The benefit cover under this rider shall be available during the policy term of the base plan.
If this benefit is opted for, an additional amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the rider is in force at the time of accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years. If the policy becomes a claim by way of death before the expiry of the said period of 10 years, the disability benefit instalments which have not fallen due will be paid along with the claim amount.
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Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.
In G1Utkarsh, if Death Benefits starts after 5 yrs. then, is it A Life Insurance Product, I think it is just Faltoo.
Dear Devendra Saxena,
Please see the updations about Jeevan Utkarsh plan. Insurance coverage is 10 times of the premium paid.
Thanks and regards,
Anish
its a wrong presentation about risk cover. If age of the assured is above 8 years while taking the policy, risk cover starts immediately.
Hi Naresh Arora,
There was a mistake in the risk coverage calculation of the plan. Thank you for notifying it. I have made the necessary corrections. Thank you again.
In this plan (12 Years) if we invest Rs. 5 Lakh How much amount will receive after maturity . What are the terms and conditions and tax deduction ?
Hi Venugopal,
The maturity amount is exempted from income tax u/s 10(10D) of income tax act. The loyalty addition portion of the maturity benefit depends on the experiences of the corporation and cannot be calculated now. All other benefits you can calculate using the calculator provided.
Oh no Anish, you have read it wrong! Full insurance cover is available right from the first day in respect of insured of age 8 yrs & above. Only in respect of children aged 6 yrs & 7 yrs, risk cover begins after they reach 8 years. I can’t believe how you could go wrong!
Dear Bijumon,
Thank you for notifying the error. It was an error on my part. I have rectified the error in the post. Once again thanking you.
Anish
Thanks for your reply & Happy to note that income tax is exempted. (After six months Iam going to reach at the age of 60)
Please let me know rough calculation for the amount if i invested for Rs. 500000/- (Rupees Five Lakhs Only) one time investment for 12 years in LIC.
Can you please tell me if 10(10D) is applicable for a 6 years old ? Commencement of risk is only in the 8 years of age. That means first two policy year SA is NOT 10 times the annual premium which apparently breaks the 10(10D) clause. Does it make maturity proceeds taxable?
Section 10(10D) benefit will be available for the policy for the child. While reckoning the 10(10D) benefit what is considered is whether the policy is having SA to the tune of 10 times annual premium and not whether the child is covered or not.
Thanks for the reply. But how do they interpret for first two policy years for a six year old ? First 2 years there is no SA – except the premium paid will be refund. 10(10D) expects for ALL policy year SA should be 10 times the premium which is not the case for first two years for a 6 years old.
Normally Income Tax department will not ask you such questions..
A person takes Utkarsh policy, His 10 time insurance coverage whether immediately starts or not.
If the age of the person taking the policy is greater than 8 years the coverage starts immediately. Otherwise insurance coverage will start from policy anniversary coinciding or immediately following the completion of age 8
what type of medical tests are required for a SA of 10 Lacs for
a child of 6 Years when the risk cover starts at the age of 8 Years.
Medical is not required for 10 lakh SA if the age is less than 10 Years. Please check Underwriting calculator for more details.
Sir what is the conditions of surrender if i want to do it within 3 yrs
Hello sir I want to know what is loyalty addition and how much LIC has declared ? If not when will LIC of India declares loyalty addition for Jeevan utkarsh ???
Loyalty addition of Jeevan Utkarsh has not been declared yet. LIC will declare the rate only on completion of the term ie 12 Years from the inception of the plan. So it will take another 11 years as of now…
Sir, As per your experience how much will be the Loyalty addition for Jeevan Utkarsh..?
sir,i want to break policy in one year how many % i’ll get return
The surrender value of Jeevan Utkarsh plan is 70% of single premium in the first year and 90 % thereafter. (Please note that extra premiums and GST will be deducted).