LIC Jeevan Utkarsh Plan 846 is going to launch on 6th September 2017. This policy will be available to purchase for 270 days from the date of launch. Let us see its features, benefits and review it.
LIC Jeevan Utkarsh Plan 846 is a single premium, non-linked, with-profits, savings cum protection plan wherein the risk cover is ten times of Tabular Single Premium.
Eligibility of LIC Jeevan Utkarsh Plan 846
I will explain you about the eligibility from below the table.
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, the risk will commence immediately.
Features of LIC Jeevan Utkarsh Plan 846
# It is a single premium close ended plan.
# It is a typical endowment plan.
# You can avail riders like LIC’s Accidental and Disability rider.
# This plan offers unique settlement feature (explained below in detail).
# You can surrender the policy at any point of time during policy period (as per some conditions).
# Loan facility is available after 3 months from the policy start period.
Benefits of LIC Jeevan Utkarsh Plan 846
There are two types of benefits in LIC Jeevan Utkarsh Plan 846.
# Maturity benefits of LIC Jeevan Utkarsh Plan 846
If the Life Assured surviving to the end of the policy term, “Sum Assured on Maturity” along with Loyalty Addition (LA), if any, will be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
# Death Benefits of LIC Jeevan Utkarsh Plan 846
a) If death occurs within the first 5 years of policy
If death occurred before the commencement of risk, then LIC will refund the single premium without any interest on it. Also, this refund of single premium will not include any taxes, extra premium chargeable under the policy due to underwriting decision and rider premium, if any.
If death occurred after the commencement of risk, Sum Assured will be payable to nominee without any additional benefits.
b) If death occurs after the 5th years of policy and before maturity
Sum assured which is equal to 10 times of your single premium and Loyalty Addition will be payable to the nominee.
Sum Assured at death will be highest of the below
-125% of the single premium; or
-Guaranteed Sum Assured on Maturity i.e. Basic Sum Assured; or
-10 times of Single Premium
Loyalty Addition of LIC Jeevan Utkarsh Plan 846
Along with Sum Assured, this plan offers you the benefit of Loyalty Addition or LA. You will be eligible for LA after the completion of five policy years in the form of Death during the policy term or Maturity.
Settlement option of LIC Jeevan Utkarsh Plan 846
This feature I think first time introduced by LIC. You can receive the settlement amount (death or maturity) in installments over the chosen periods like 5 Yrs, 10 Yrs or 15 Yrs instead of a lump sum one-time settlement.
The policy holder has to choose this option but not the nominee. You can receive this maturity installment settlement either in monthly (Minimum Rs..5,000), Quarterly (Minimum Rs.15,000), Half-Yearly (Rs.25,000) or yearly (Minimum Rs.50,000).
If your chosen option is below the above-said minimum limits, then you will receive it as a lump sum settlement only.
For death claim settlement option-During the policy period, the policy holder has to select this option either of the one-time lump sum or the settlement option explained above.
For maturity claim settlement option-Policyholder has to inform to LIC 3 months before the policy maturity.
The policyholder can change the option of receiving it as a lump sum after the maturity period and the start of settlement frequency also. In that case, LIC will calculate the remaining amount to be payable to him based on the calculation.
If policyholder option settlement option which is not a lump sum, and if death occurs during this settlement period, then the future settlement installments will be payable to his nominee. In this case, nominee can’t alter the settlement rules.
Review of LIC Jeevan Utkarsh Plan 846
# This is a typical endowment plan where insurance and investments are mixed. Hence, you can’t expect around 5% to 6% returns.
# If you are very much eager to go for lump sum investments, then you have many many options available. Then why one must lock money here?
# LIC first time instroduced the settlement option. This I think is the first of it’s kind from LIC. However, do remember that each facility you get will comes with cost.
# In case of settlement option, the policyholder dies means the nominee can’t alter the settlement feature. This I think a bit rigid feature.
# I think this plan is made for thos who are eager to save the tax under Sec.80C benefits.
Note-This is the limited information which I am having right now. I will update the blog post as and when I get the updates regarding this plan.