LIC Jeevan Utsav Single Premium Plan: Good or Bad? A Detailed Review
Is LIC Jeevan Utsav Single Premium a suitable choice for your life insurance and investment needs?
Can LIC Jeevan Utsav Single Premium provide lifelong financial security for your family?
What are the key benefits, advantages, and disadvantages of LIC Jeevan Utsav Single Premium?
In this article, we review LIC Jeevan Utsav in terms of its key benefits, advantages and disadvantages, and assess whether it is a suitable choice for your life insurance and investment needs.
1. What is the LIC Jeevan Utsav Single Premium?
2. What are the features of the LIC Jeevan Utsav Single Premium?
3. Who is eligible for the LIC Jeevan Utsav Single Premium?
4. What are the benefits of the LIC Jeevan Utsav Single Premium?
5. Free Look Period for the LIC Jeevan Utsav Single Premium
6. Surrendering the LIC Jeevan Utsav Single Premium
7. What are the advantages of the LIC Jeevan Utsav Single Premium?
8. What are the disadvantages of the LIC Jeevan Utsav Single Premium?
9. Research Methodology of LIC Jeevan Utsav Single Premium
Benefit Illustration – IRR Analysis of LIC Jeevan Utsav Single Premium
10. LIC Jeevan Utsav Single Premium Vs. Other Investments
LIC Jeevan Utsav Single Premium Vs. Pure-term + Equity Mutual Fund
11. Final Verdict on LIC Jeevan Utsav Single Premium
LIC Jeevan Utsav Single Premium Plan is a Non-Par, Non-Linked, Individual, Savings, Whole Life Insurance plan.
This is a Single Premium plan with accrual of Guaranteed Additions during the Guaranteed Addition Period. The proposer can choose the Guaranteed Addition Period from 7 years to 17 years.
| Guaranteed Addition Period | 7 years to 17 years | |
| Minimum Age at Entry | Guaranteed Addition Period (in years) | Minimum Age at Entry (Completed) |
| 7 | 10 | |
| 8 | 9 | |
| 9 | 8 | |
| 10 | 7 | |
| 11 | 6 | |
| 12 | 5 | |
| 13 | 4 | |
| 14 | 3 | |
| 15 | 2 | |
| 16 | 1 | |
| 17 | 30 days | |
| Maximum Age at Entry | 65 years (nearer birthday) | |
| Minimum age on due date of First Regular Income Benefit/ Flexi Income Benefit | 18 Years (Completed) | |
| Premium Paying Term | Single Premium | |
| Age at maturity | 100 years (nearer birthday) | |
| Policy Term | (100 – Age at Entry) years | |
| Minimum Basic Sum Assured | ₹ 5,00,000 | |
| Maximum Basic Sum Assured | ₹ 25,000 / ₹ 50,000 | |
On death of the Life Assured after the date of commencement of risk, Death Benefit equal to “Sum Assured on Death” along with accrued Guaranteed Additions shall be payable.
“Sum Assured on Death” is defined as the higher of
Under Option II – Flexi Income Benefit, in addition to the above, any accumulated value of Flexi Income Benefit(s) due and not withdrawn shall also be payable.
Survival Benefit in the form of Regular Income Benefit or Flexi Income Benefit as per the Survival Benefit Option chosen
Option I – Regular Income Benefit
On survival of the Life Assured, Regular Income Benefit equal to 10% of Basic Sum Assured shall be payable at the end of each policy year starting from the year as specified in the table below.
These Regular Income Benefit payments shall continue till the Life Assured survives or till the LIC Jeevan Utsav Single Premium Plan policy anniversary prior to the date of maturity, whichever is earlier
| Guaranteed Addition Period | Regular Income Benefit / Flexi Income Benefit Start Year |
| 7 years | 8th Policy year |
| 8 years | 9th Policy year |
| 9 years | 10th Policy year |
| 10 years | 11th Policy year |
| 11 years | 12th Policy year |
| 12 years | 13th Policy year |
| 13 years | 14th Policy year |
| 14 years | 15th Policy year |
| 15 years | 16th Policy year |
| 16 years | 17th Policy year |
| 17 years | 18th Policy year |
Option II – Flexi Income Benefit
On survival of the Life Assured, the policyholder shall be eligible for Flexi Income Benefit equal to 10% of Basic Sum Assured at the end of each policy year starting from the year as specified in the Table above.
These Flexi Income Benefits shall continue till the Life Assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier.
Each Flexi Income Benefit shall be deferred and accumulated at the accumulation rate of 5.5% p.a. compounding yearly for completed months from its due date till the date of withdrawal or surrender or death or maturity, whichever is earlier.
On the life assured surviving to the end of the LIC Jeevan Utsav Single Premium Plan policy term, “Sum Assured on Maturity” along with accrued Guaranteed Additions shall be payable.
Where “Sum Assured on Maturity” is defined as the higher of
Under Option II – Flexi Income Benefit, in addition to the above, any accumulated value of Flexi Income Benefit(s) due and not withdrawn shall also be payable.
The Guaranteed Additions shall accrue at the rate of Rs. 40 per thousand Basic Sum Assured at the end of each policy year during the Guaranteed Addition Period.
Guaranteed Addition shall not accrue after the end of the Guaranteed Addition Period.
On death of Life Assured during the Guaranteed Addition Period, the Guaranteed Addition in the year of death shall be payable for the full policy year.
If the Policyholder is not satisfied with the “Terms and Conditions” of the LIC Jeevan Utsav Single Premium Plan policy, the policy may be returned to the Corporation within 30 days from the date of receipt of the electronic or physical mode of Policy Document, whichever is earlier.
The policy can be surrendered by the policyholder at any time during the policy term.
On surrender of the policy, the Corporation shall pay the Surrender Value, higher of
Guaranteed Surrender Value and surrender value of any accrued Guaranteed Additions; or
Special Surrender Value.
The LIC Jeevan Utsav Single Premium Plan offers a distinctive feature—regular guaranteed income for life after the Guaranteed Addition Period.
While this may seem attractive, the lifetime income alone should not be the basis for choosing the plan.
The overall returns and adequacy of the life cover also need to be evaluated.
The following illustration is based on the details provided in the LIC Jeevan Utsav Single Premium Plan policy brochure.
A 35-year-old male opts for the plan with a Basic Sum Assured of ₹10 lakh for a 65-year policy term by paying a single premium of ₹8,08,650.
| Male | 35 years |
| Basic Sum Assured | ₹ 10,00,000 |
| Policy Term | 65 years |
| Premium Paying Term | Single Premium |
| Annualised Premium | ₹ 8,08,650 |
After the 10-year Guaranteed Addition Period, he receives a guaranteed annual income of ₹1 lakh for life.
At the end of the policy term, a maturity benefit of ₹14.22 lakh is payable.
Assuming a life expectancy of 85 years, the overall Internal Rate of Return (IRR) works out to 6.51% as per the LIC Jeevan Utsav Single Premium Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -8,08,650 | 10,62,063 |
| 36 | 2 | 0 | 11,02,063 |
| 37 | 3 | 0 | 11,42,063 |
| 38 | 4 | 0 | 11,82,063 |
| 39 | 5 | 0 | 12,22,063 |
| 40 | 6 | 0 | 12,62,063 |
| 41 | 7 | 0 | 13,02,063 |
| 42 | 8 | 0 | 13,42,063 |
| 43 | 9 | 0 | 13,82,063 |
| 44 | 10 | 0 | 14,22,063 |
| 45 | 11 | 0 | 14,22,063 |
| 46 | 12 | 1,00,000 | 14,22,063 |
| 47 | 13 | 1,00,000 | 14,22,063 |
| 48 | 14 | 1,00,000 | 14,22,063 |
| 49 | 15 | 1,00,000 | 14,22,063 |
| 50 | 16 | 1,00,000 | 14,22,063 |
| 51 | 17 | 1,00,000 | 14,22,063 |
| 52 | 18 | 1,00,000 | 14,22,063 |
| 53 | 19 | 1,00,000 | 14,22,063 |
| 54 | 20 | 1,00,000 | 14,22,063 |
| 55 | 21 | 1,00,000 | 14,22,063 |
| 56 | 22 | 1,00,000 | 14,22,063 |
| 57 | 23 | 1,00,000 | 14,22,063 |
| 58 | 24 | 1,00,000 | 14,22,063 |
| 59 | 25 | 1,00,000 | 14,22,063 |
| 60 | 26 | 1,00,000 | 14,22,063 |
| 61 | 27 | 1,00,000 | 14,22,063 |
| 62 | 28 | 1,00,000 | 14,22,063 |
| 63 | 29 | 1,00,000 | 14,22,063 |
| 64 | 30 | 1,00,000 | 14,22,063 |
| 65 | 31 | 1,00,000 | 14,22,063 |
| 66 | 32 | 1,00,000 | 14,22,063 |
| 67 | 33 | 1,00,000 | 14,22,063 |
| 68 | 34 | 1,00,000 | 14,22,063 |
| 69 | 35 | 1,00,000 | 14,22,063 |
| 70 | 36 | 1,00,000 | 14,22,063 |
| 71 | 37 | 1,00,000 | 14,22,063 |
| 72 | 38 | 1,00,000 | 14,22,063 |
| 73 | 39 | 1,00,000 | 14,22,063 |
| 74 | 40 | 1,00,000 | 14,22,063 |
| 75 | 41 | 1,00,000 | 14,22,063 |
| 76 | 42 | 1,00,000 | 14,22,063 |
| 77 | 43 | 1,00,000 | 14,22,063 |
| 78 | 44 | 1,00,000 | 14,22,063 |
| 79 | 45 | 1,00,000 | 14,22,063 |
| 80 | 46 | 1,00,000 | 14,22,063 |
| 81 | 47 | 1,00,000 | 14,22,063 |
| 82 | 48 | 1,00,000 | 14,22,063 |
| 83 | 49 | 1,00,000 | 14,22,063 |
| 84 | 50 | 1,00,000 | 14,22,063 |
| 85 | 14,22,063 | ||
| IRR | 6.51% |
Despite providing a lifetime income, the plan offers relatively low returns, which limits its investment appeal.
Further, the guaranteed income remains fixed and does not increase with inflation, reducing its purchasing power over time.
The insurance cover is also not particularly meaningful—the lifelong coverage extends well beyond the period most individuals typically need, while the ₹10 lakh sum assured may be inadequate to support significant financial goals.
Overall, the LIC Jeevan Utsav Single Premium Plan offers limited value on both the investment and insurance fronts, making it an unattractive choice for most investors.
The regular income from the LIC Jeevan Utsav Single Premium Plan does not increase with inflation, which can gradually erode its purchasing power.
A more effective approach is to keep insurance and investments separate.
This allows you to secure adequate life cover while building an investment corpus that can generate an inflation-adjusted income.
The following illustration demonstrates the difference.
A pure-term insurance policy with a sum assured of ₹14.50 lakh, equivalent to the maximum death benefit under the LIC Jeevan Utsav Single Premium Plan, costs a single premium of ₹1.67 lakh for a 35-year term.
This leaves ₹6.41 lakh available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 14,50,000 |
| Policy Term | 35 years |
| Premium Paying Term | Single Premium |
| Annualised Premium | ₹ 1,67,000 |
| Investment | ₹ 6,41,650 |
For the first 10 years, the ₹6.41 lakh is invested in an equity mutual fund.
At the end of 10 years, the accumulated corpus is shifted to an investment earning 7% annually.
This corpus can then be used to generate regular withdrawals similar to the income offered by the LIC plan.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -8,08,650 | 14,50,000 |
| 36 | 2 | 0 | 14,50,000 |
| 37 | 3 | 0 | 14,50,000 |
| 38 | 4 | 0 | 14,50,000 |
| 39 | 5 | 0 | 14,50,000 |
| 40 | 6 | 0 | 14,50,000 |
| 41 | 7 | 0 | 14,50,000 |
| 42 | 8 | 0 | 14,50,000 |
| 43 | 9 | 0 | 14,50,000 |
| 44 | 10 | 0 | 14,50,000 |
| 45 | 11 | 0 | 14,50,000 |
| 46 | 12 | 1,00,000 | 14,50,000 |
| 47 | 13 | 1,00,000 | 14,50,000 |
| 48 | 14 | 1,00,000 | 14,50,000 |
| 49 | 15 | 1,00,000 | 14,50,000 |
| 50 | 16 | 1,00,000 | 14,50,000 |
| 51 | 17 | 1,00,000 | 14,50,000 |
| 52 | 18 | 1,00,000 | 14,50,000 |
| 53 | 19 | 1,00,000 | 14,50,000 |
| 54 | 20 | 1,00,000 | 14,50,000 |
| 55 | 21 | 1,00,000 | 14,50,000 |
| 56 | 22 | 1,00,000 | 14,50,000 |
| 57 | 23 | 1,00,000 | 14,50,000 |
| 58 | 24 | 1,00,000 | 14,50,000 |
| 59 | 25 | 1,00,000 | 14,50,000 |
| 60 | 26 | 1,00,000 | 14,50,000 |
| 61 | 27 | 1,00,000 | 14,50,000 |
| 62 | 28 | 1,00,000 | 14,50,000 |
| 63 | 29 | 1,00,000 | 14,50,000 |
| 64 | 30 | 1,00,000 | 14,50,000 |
| 65 | 31 | 1,00,000 | 14,50,000 |
| 66 | 32 | 1,00,000 | 14,50,000 |
| 67 | 33 | 1,00,000 | 14,50,000 |
| 68 | 34 | 1,00,000 | 14,50,000 |
| 69 | 35 | 1,00,000 | 14,50,000 |
| 70 | 36 | 1,00,000 | 14,50,000 |
| 71 | 37 | 1,00,000 | |
| 72 | 38 | 1,00,000 | |
| 73 | 39 | 1,00,000 | |
| 74 | 40 | 1,00,000 | |
| 75 | 41 | 1,00,000 | |
| 76 | 42 | 1,00,000 | |
| 77 | 43 | 1,00,000 | |
| 78 | 44 | 1,00,000 | |
| 79 | 45 | 1,00,000 | |
| 80 | 46 | 1,00,000 | |
| 81 | 47 | 1,00,000 | |
| 82 | 48 | 1,00,000 | |
| 83 | 49 | 1,00,000 | |
| 84 | 50 | 1,00,000 | |
| 85 | 76,83,356 | ||
| IRR | 7.53% | ||
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 19,92,868 |
| Purchase price | 6,41,650 |
| Long-Term Capital Gains | 13,51,218 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 12,26,218 |
| Tax paid on LTCG | 1,53,277 |
| Maturity value after tax | 18,39,590 |
After accounting for tax, the corpus grows to ₹18.39 lakh after 10 years.
With a 7% return, it can support regular withdrawals while continuing to grow.
By age 85, the remaining corpus is estimated at ₹76.83 lakh—nearly five times the final payout from the LIC Jeevan Utsav Single Premium Plan.
The strategy delivers an estimated IRR of 7.53%.
Delaying withdrawals during the initial years can further benefit from compounding, potentially increasing both the corpus and the overall IRR.
More importantly, this approach offers greater flexibility—you can adjust the withdrawal amount based on your changing needs and increase it over time to counter the impact of inflation.
By separating insurance from investment, you can achieve better potential returns, adequate life cover and greater flexibility, making this strategy a more effective alternative to the LIC Jeevan Utsav Single Premium Plan.
The LIC Jeevan Utsav Single Premium Plan allows you to invest a lump sum and receive regular income for life after the applicable Guaranteed Addition Period.
While this may appeal to those looking for a steady income stream, a closer look reveals that the plan offers limited value in terms of returns and flexibility.
Although the plan provides whole-life cover, the sum assured may be inadequate to meet meaningful financial goals.
Life insurance should ideally be aligned with your financial responsibilities, liabilities, and future goals, particularly during your working years when adequate protection is most important.
The plan’s key limitations include low returns, inadequate life cover, and a fixed income structure that does not account for inflation or changing financial needs and it also has a high agent commission.
A more effective approach is to separate insurance from investment.
Pure-term insurance can provide substantial life cover at a relatively affordable cost, helping protect your family’s financial security.
At the same time, investing your savings in suitable investment products can help build a larger corpus and generate income that can be adjusted over time to keep pace with inflation.
Investments should be selected based on your risk profile, investment horizon, and financial goals, rather than the promise of guaranteed income alone.
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If you are unsure about how to structure your insurance and investments, consulting a Certified Financial Planner can help you develop a strategy aligned with your financial needs.
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