LIC has launched Jeevan Utsav in two variants, an instalment-based plan for gradual premium payments and a single-premium option for upfront payment, catering to diverse financial needs while providing guaranteed benefits and optional riders.
LIC’s Jeevan Utsav comes in two forms, and the main difference is how the policyholder pays. The regular version lets customers spread premiums over five to 16 years, while the single-premium version requires one upfront payment. Both are non-participating plans, which means LIC fixes the benefits in advance and does not attach any bonus linked to the insurer’s investment performance. That makes the plans more predictable than market-linked insurance, but also less flexible than products tied to fund returns.
The instalment-based version is aimed at people who want lifelong cover but prefer to budget for it over time. According to LIC’s plan details, premiums can begin as early as 30 days after birth and run until age 65, depending on the term chosen, with payments stopping by age 75 at the latest. The policy builds guaranteed additions of ₹40 for every ₹1,000 of sum assured each year premiums are paid, and it offers a choice between regular income and a flexi-income option. Under the flexi-income route, unpaid income can accumulate at 5.5% annually, with annual withdrawals capped at 75% of the amount built up.
The single-premium version, by contrast, is meant for people with cash available at the start. LIC launched the plan in January 2026, with sales beginning on January 12, and positioned it as a one-time premium policy with guaranteed additions during a chosen period of seven to 17 years. It is open to applicants from 30 days old to age 65, with a minimum basic sum assured of ₹5 lakh and no stated absolute upper ceiling, subject to underwriting. Like the regular version, it offers regular income or flexi income, but it also adds a maturity payout if the policyholder survives to the end of the term.
The two plans also differ on death benefits, surrender value and entry cost. Under the instalment plan, the nominee receives the higher of the basic sum assured or seven times the annual premium, plus accrued guaranteed additions, with LIC saying the payout will not fall below 105% of premiums paid. In the single-premium version, the death benefit is the higher of the basic sum assured or 1.25 times the single premium, plus additions, and any unused flexi-income balance. LIC also allows riders such as accidental death and disability cover, term assurance and premium waiver, though the combined rider cost cannot exceed 30% of the base premium. For households with steady salaries, the limited-pay version may be easier to manage; for those with surplus funds seeking locked-in long-term income, the single-premium option is the cleaner fit.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
