Lifetime Income with Guaranteed Benefits
Launched by the Life Insurance Corporation of India (LIC) on 1st October 2024, the LIC Jeevan Utsav Plan 771 is a powerful mix of lifetime insurance protection, guaranteed annual income, and wealth creation, tailored to meet long-term financial goals. Whether you’re planning for your child’s future, retirement, or lifetime savings with protection, this plan brings flexibility and certainty under one umbrella.
✅ Plan Overview:
- Type of Plan: Non-Linked, Non-Participating, Individual, Whole Life Savings Plan
- Plan No.: 771 (Modified version of Plan 871)
- UIN: 512N363V02
- Launch Date: 1st October 2024
- Premium Paying Term (PPT): 5 to 16 years
- Policy Term: Whole life (up to age 100)
- Guaranteed Additions: Rs. 40 per ₹1,000 Sum Assured annually during PPT
- Income Options: Two – Regular Income or Flexi Income
🔑 Key Features:
- Guaranteed Lifetime Income starting from the chosen benefit year.
- Limited Premium Payment—pay for 5 to 16 years, enjoy lifelong benefits.
- Guaranteed Additions accrue every year during the PPT.
- Choice of Income Option:
- Option I: Regular Income
- Option II: Flexi Income
- Option to switch Income Type up to 6 months before first payout begins.
- Loan Facility and Surrender Option after just 1 year of premium payment.
- Tax-Free Maturity & Income Benefits under Section 10(10D) and 80C.
- Entry Age: As young as 30 days and up to 65 years.
- Premium payment via Credit Card, Net Banking, UPI, and LIC agents/website.
📘 Eligibility Criteria at a Glance:
| Parameter | Details |
|---|---|
| Minimum Entry Age | 30 Days (Completed) |
| Maximum Entry Age | 65 Years |
| Premium Payment Term | 5 to 16 years |
| Policy Term | 100 – Entry Age |
| Minimum Sum Assured | ₹5,00,000 (in multiples of ₹25,000) |
| Maximum Premium Ceasing Age | 75 Years |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly (NACH/SSS) |
💸 Income Benefit Options Explained:
🔹 Option I – Regular Income Benefit
- Starts after PPT + Deferment period (e.g., 11th year for 5–8 year PPT).
- Pays 10% of Basic Sum Assured as annual income every year for life (up to 100 years).
- No interest or accumulation facility.
🔹 Option II – Flexi Income Benefit
- Same benefit start years as above.
- Policyholder may accumulate the income instead of withdrawing it.
- Accumulated amount earns 5.5% p.a. compound interest.
- Can withdraw once per year, up to 75% of accumulated value.
- Remaining 25% continues to accumulate.
📈 Guaranteed Additions:
For each policy year during the premium paying term, LIC will add:
Rs. 40 per ₹1,000 of Sum Assured at the end of each policy year.
If the Basic Sum Assured is ₹10,00,000 and PPT is 12 years, the total guaranteed additions will be:
₹10,00,000 ÷ 1,000 × ₹40 × 12 = ₹4,80,000
🧾 Rebates and Loadings:
1. High Sum Assured Rebate (as % of annual premium)
| PPT | ₹10L–24L | ₹25L–49L | ₹50L+ |
|---|---|---|---|
| 5 | 2.5% | 4.5% | 5.75% |
| 10 | 1.9% | 3.5% | 4.5% |
| 16 | 1.3% | 2.9% | 3% |
2. Mode Loading on Premiums
| Mode | Loading % of Annual Premium |
|---|---|
| Yearly | Nil |
| Half-Yearly | 1.75% |
| Quarterly | 2.5% |
| Monthly | 3.25% |
⚰️ Death Benefit:
On death of the life assured after commencement of risk, the nominee gets:
- Sum Assured on Death = Higher of:
- Basic Sum Assured OR
- 7 × Annualized Premium
- + Accrued Guaranteed Additions
- Minimum: Not less than 105% of total premiums paid (excluding tax/rider/extra)
For minors (<8 years):
If death occurs before risk starts, only the premiums paid are refunded (excluding tax/riders).
💡 Example: LIC Jeevan Utsav Plan 771 Explained
Let’s understand this with a practical case study:
👤 Mr. Vinod (Age: 25) buys LIC Jeevan Utsav in 2023
| Details | Value |
|---|---|
| Sum Assured | ₹10,00,000 |
| PPT | 12 years |
| Premium (1st Year) | ₹92,796 |
| Premium (2nd Year onward) | ₹90,798/year |
| Total Premium Paid | ₹10,89,574 (approx.) |
| Deferment Period | 3 years |
| Income Starts From | Policy Year 15 (Age 40) |
🎯 Regular Income Option:
From age 40 to 100, Vinod will receive:
₹1,00,000/year (10% of ₹10L) for life = ₹60,00,000 total over 60 years
🎯 Flexi Income Option:
If income is not withdrawn and allowed to accumulate at 5.5% p.a. compounding annually:
| Age | Yearly Income | Total Accumulated Value |
|---|---|---|
| 40 | ₹1,00,000 | ₹2,16,803 |
| 45 | ₹1,00,000/year | ₹8,72,157 |
| 50 | ₹1,00,000/year | ₹17,28,680 |
| 60 | ₹1,00,000/year | ₹43,11,185 |
Vinod can withdraw up to 75% = ₹32,33,389 in 2058 (age 60) and leave the rest to continue accumulating.
🚨 Death Benefit Example (Year 2058, Age 60):
If Mr. Vinod dies at age 60 (in 2058), his nominee gets:
- Normal Death Claim: ₹15,74,310
- Flexi Income Corpus: ₹43,11,185
- Total Payout: ₹58,85,495
If the death is accidental, an additional ₹10,00,000 is paid, raising total to:
₹68,85,495
💼 Policy Administration Info:
| Feature | Detail |
|---|---|
| Loan Facility | Available after 1 full year premium paid |
| Surrender Value | Available after 1 full year premium paid |
| Paid-up Policy | Available after 1 year premium paid |
| Riders | Accident Benefit, Accidental Death & Disability, Term Assurance, PWB |
| Tax Benefits | 80C for premiums, 10(10D) for benefits |
| Nomination | Allowed under Section 39 of Insurance Act |
| Assignment | Allowed under Section 38 of Insurance Act |
| Free Look Period | 30 days to cancel the policy |
| Backdating | Allowed within financial year |
📌 Conclusion: Is LIC Jeevan Utsav 771 Right for You?
If you’re looking for:
- Guaranteed lifelong income
- Limited premium liability
- Tax-free returns
- Whole life coverage
- Flexibility to accumulate or withdraw income
Then LIC Jeevan Utsav 771 is a top contender among LIC’s whole life insurance plans. Its dual income options, guaranteed additions, and customizable riders make it suitable for both young individuals starting early and mature investors planning for retirement.
