Calculating Jeevan Utsav Premium: A Step-by-Step Guide

Introduction

Jeevan Utsav is a popular life insurance plan offered by Life Insurance Corporation of India (LIC). It provides a combination of protection and savings to policyholders. One of the key aspects of this plan is calculating the premium amount, which depends on various factors such as age, sum assured, and policy term. In this comprehensive guide, we will break down the process of calculating Jeevan Utsav premium step by step.

Understanding Jeevan Utsav Plan

Before delving into premium calculation, let’s have a brief overview of the Jeevan Utsav plan. It is a non-linked, with-profits, single premium plan that offers a lump-sum amount at the end of the policy term along with life cover. The policy term usually ranges from 5 to 10 years, and the minimum entry age is 18 years.

Factors Affecting Premium Calculation

The premium amount for Jeevan Utsav plan is determined based on several key factors:

1. Age: The age of the policyholder plays a crucial role in premium calculation. Younger individuals typically pay lower premiums compared to older ones.

2. Sum Assured: The sum assured refers to the guaranteed amount that the policyholder’s nominee will receive in case of the policyholder’s demise. A higher sum assured usually leads to a higher premium.

3. Policy Term: The duration for which the policy is taken also impacts the premium amount. Longer policy terms often result in higher premiums.

4. Rider Options: If the policyholder opts for additional riders such as accidental death benefit or critical illness benefit, the premium will increase accordingly.

Steps to Calculate Jeevan Utsav Premium

Now, let’s walk through the step-by-step process of calculating the premium for Jeevan Utsav plan:

1. Gather Information: Start by collecting all the necessary details such as age, sum assured, policy term, and any rider options chosen.

2. Access Premium Calculator: LIC provides an online premium calculator on its official website. Visit the LIC website and navigate to the Jeevan Utsav premium calculator.

3. Enter Details: Input the required information into the premium calculator. This includes your age, sum assured amount, policy term, and any selected riders.

4. Generate Premium Quote: After entering the details, the premium calculator will generate an estimated premium amount for the Jeevan Utsav plan based on the information provided.

5. Review and Adjust: Take a close look at the premium quote generated. If you want to explore different coverage options or adjust the sum assured, you can modify the details in the calculator to see how it impacts the premium.

6. Consult an Agent: If you have specific questions or need clarification on certain aspects of the plan or premium calculation, it’s recommended to consult an LIC agent who can provide personalized assistance.

FAQs – Frequently Asked Questions

1. Q: Can I pay the premium for Jeevan Utsav plan in installments?
   A: No, Jeevan Utsav is a single premium plan where the premium is paid in a lump sum at the beginning of the policy term.

2. Q: Is the premium amount fixed throughout the policy term?
   A: Yes, the premium amount for Jeevan Utsav plan remains fixed for the entire duration of the policy.

3. Q: Are there any tax benefits available with Jeevan Utsav plan?
   A: Yes, policyholders can avail tax benefits on the premium paid as well as the maturity amount under prevailing tax laws.

4. Q: What happens if I miss paying the premium for Jeevan Utsav plan?
   A: Missing the premium payment can lead to policy lapse. However, most insurance companies provide a grace period during which the premium can be paid without any penalties.

5. Q: Can I surrender my Jeevan Utsav policy before the completion of the policy term?
   A: Yes, policyholders have the option to surrender their policy before maturity, but it may have implications on the surrender value and benefits received.

In conclusion, calculating the premium for Jeevan Utsav plan involves considering various factors and using LIC’s online premium calculator for an accurate estimation. It’s important to understand the terms and conditions of the policy before making a decision, and seeking advice from an LIC agent can help in making an informed choice regarding this insurance plan.