The LIC Jeevan Utsav Plan 871 is a unique savings and protection-oriented life insurance plan launched by the Life Insurance Corporation of India on November 29, 2023. This plan is specially designed to combine long-term savings with life-long income and insurance protection in a simple, guaranteed way. It aims to provide financial security to families while ensuring a steady income stream to policyholders for life.

The policy is non-linked and non-participating, meaning it is not connected to stock market fluctuations, and offers guaranteed benefits. It is suitable for those looking for a blend of protection and regular income with the option to choose payment terms and income options.​

Launch and Withdrawal Dates

• Launch Date: November 29, 2023
• Withdraw Date: 01 October 2024

Key Features of LIC Jeevan Utsav Plan 871

Type of Plan

• Non-linked, Non-Participating, Individual, Savings, Whole Life Insurance Plan.
• Traditional and simple, with no market risk involved.​

Entry Age and Policy Term

• Minimum entry age: 90 days
• Maximum entry age: 65 years
• Policy term: Whole life, up to 100 years of age.​

Premium Payment Term (PPT)

• Choose to pay premiums for 5 to 16 years based on your convenience and budget.​

Guaranteed Additions

• An assured addition of ₹40 per ₹1,000 sum assured is credited at the end of each policy year during the premium paying term. This boosts the policy’s value every year.​

Income Options After PPT

Policyholders can choose between two types of income benefits after the premium payment term is over:

• Regular Income Benefit: 10% of the Basic Sum Assured is paid at the end of each policy year as lifelong income.
• Flexi Income Benefit: Allows the income to be accumulated with 5.5% interest compounded annually and withdrawn later as per the policy terms.​

Death Benefit

• In case of the insured’s death during the policy term, the nominee gets the “Sum Assured on Death” along with the guaranteed additions accrued.
• The death benefit is at least 105% of total premiums paid up to the date of death, whichever is higher.
• This ensures your family’s financial security even after you are gone.​

Loan Facility

• Loans are available after paying premiums for at least two full years, providing liquidity in times of need.​

Riders (Optional Benefits)

• Optional riders such as Accidental Benefit, Critical Illness, Term Assurance, and Premium Waiver are available to enhance your policy’s protection.​

Tax Benefits

• Premiums paid and benefits received are eligible for tax benefits under the Indian Income Tax Act, Section 80C and Section 10(10D) respectively.​

How Does the LIC Jeevan Utsav Plan 871 Calculator Work?

The LIC Jeevan Utsav Plan 871 calculator is a handy tool to estimate premiums, benefits, income, and the death benefits based on the user’s inputs. The calculator requires these details:

• Age of the insured
• Premium Paying Term (between 5 and 16 years)
• Sum Assured (minimum ₹5 Lakhs)
• Income option chosen (Regular or Flexi)

The calculator uses the official insurance formulae with guaranteed yearly additions and interest rates for flexi income to estimate:

• The yearly premium amount that you will need to pay
• Death benefit payable to your nominee
• Guaranteed income you will receive after the premium payment term is over
• Maturity benefits projection for your financial planning

This simple tool helps you make an informed decision before buying the plan and tailor it to your financial goals.​

Benefits of Using the LIC Jeevan Utsav Plan 871 Calculator

• Helps you decide the optimal premium paying term and sum assured based on your budget.
• Provides clear projections of lifelong income and death benefits.
• Allows comparison between regular income and flexi income options.
• Enables better planning for long term financial and retirement goals.
• Ensures transparency by giving you a clear estimate of expected returns.​

Step-by-Step Guide to Using the Calculator

1. Visit the LIC official website or using reliable insurance portals like Policybazaar.
2. Enter your age, preferred premium paying term, and sum assured.
3. Choose between Regular Income and Flexi Income options.
4. The calculator will generate:
   • Premium amount you need to pay yearly, half-yearly, quarterly, or monthly.
   • Guaranteed additions and total benefits.
   • Death benefits amount for your nominee.
   • Life-long guaranteed income projections starting after the premium paying term.
5. Use this estimate to decide on your policy and discuss with your LIC agent or advisor for further customization.​

Detailed Explanation of Income Options

Regular Income Option

After you complete your premium payments, LIC will pay you 10% of the Basic Sum Assured as an annual income every year till age 100. For example, if your basic sum assured is ₹10 Lakhs, you will get ₹1 Lakh as yearly income for life.

This option suits those who want a steady, guaranteed income after their premium term ends.​

Flexi Income Option

This option allows you to accumulate your income with an interest rate of 5.5% per annum, compounded yearly. You can withdraw this accumulated amount later in a lump sum or parts, giving flexibility in managing your returns.

This option is for those who want to grow their income over time and withdraw as per their convenience.​

Eligibility and Premium Payment Terms

• Anyone aged between 90 days to 65 years can buy this policy.
• Premium payment terms are flexible, from 5 to 16 years, so you can choose what fits your financial plan.
• Policy term is whole life, ensuring protection and income till 100 years of age.​

What Happens on Death?

If the insured dies during the policy term, LIC pays the nominee the sum assured on death plus any accumulated guaranteed additions. This is at least 105% of the total premiums paid, ensuring that the family receives a secured amount.

This feature makes the plan not just a savings tool but also a robust protection plan for your loved ones.​

Why Choose LIC Jeevan Utsav Plan 871?

• Guaranteed lifelong income and death benefits.
• Flexibility in premium paying terms and income options.
• Guaranteed additions increase your policy value.
• Loan availability after 2 years of premiums adds liquidity.
• Tax benefits on premiums and returns.
• A well-recognized, trusted product from LIC, backed by decades of insurance expertise.​

Important Considerations

• The plan does not offer maturity benefits in a lump sum because income benefits continue for life.
• Regular or Flexi income options should be chosen based on individual financial goals.
• The death benefit is guaranteed and ensures family protection.
• Riders enhance the protection but come with additional premium costs.​

Frequently Asked Questions

Conclusion

The LIC Jeevan Utsav Plan 871 is a thoughtfully designed whole life savings and protection plan launched on November 29, 2023, offering guaranteed lifelong income and financial security. It stands out due to its flexible premium payment terms, guaranteed additions, and choice between regular or flexi income options, making it suitable for individuals looking for steady post-retirement income or long-term financial planning.