LIC Jeevan Utkarsh Plan 846

LIC Jeevan Utkarsh Plan 846: Details, Features and Benefits

Life Insurance
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LIC Jeevan Utkarsh is a perfect fusion of protection with savings and offers 10 times the risk cover than the tabular single premium. This is a non-linked, loyalty additional-based life insurance plan. The LIC Jeevan Utkarsh allows you to choose the Sum assured per your requirements. It also cares about your liquidity needs and offers you loans.

In LIC Jeevan Utkarsh plan 846, if you complete 12 years term, the maturity provided will be Sum Assured plus the Loyalty addition. In case the policyholder dies in the policy term, the nominee gets 10 times the single premium (without rider charges) plus the Loyalty Addition as the death claim amount.

Read more: LIC New Jeevan Shanti Plan

What is LIC Jeevan Utkarsh Plan 846?

Jeevan Utkarsh plan 846 is an insurance product by the LIC company, introduced in 2017. The scheme is available for 270 days from the launch date. It offers various riders and benefits. The LIC Jeevan Utkarsh plan 846 has the settlement option for 5, 10, and 15 years. If the insured wishes to receive the equated amount for over 5, 10, or 15 years, he can opt for this option.

How LIC Jeevan Utkarsh Plan 846 works?

The LIC Jeevan Utkarsh plan 846 is a great plan that most people prefer to buy. Under this plan, the single premium amount depends on age and the basic sum assured chosen. The Sum Assured will be provided at the maturity of the LIC Jeevan Utkarsh.

The nominee will get the death benefits if the policyholder dies during the policy term. It will be 10 times a single premium with a Loyalty addition. If you survive the policy term, you will get the sum assured plus the Loyalty Addition on maturity.

“Who gets the Loyalty Additions”?

The LIC Jeevan Utkarsh plan 846 does not provide any bonuses. According to LIC, “ The plans under the Jeevan Utkarsh policy shall partake in the profits, in the form of loyalty addition that shall be paid at the time of exiting after the policy completes its 5 years.” This implies the loyalty addition will be provided only after 5 years of the plan purchase. It will be offered either on surrender or death.

Considering the insurer’s profitability, the Loyalty addition will be merged with the Sum assured and paid-on maturity of LIC Jeevan Utkarsh. As a result, loyalty addition is added only one time during the term of the policy.

Overview of LIC Jeevan Utkarsh Plan 846

The table below explains the essential details about the lic Jeevan Utkarsh plan:

Age of Entry6 years
Maximum Entry age47 years
Mode of premium payments1 time (Single premium)
Tenure12 years
Suma AssuredRs. 75,000 and above
SurrenderIn 1st year of policy- 70% of single premium

2nd year – 90% of single premium

Loan facilityAvailable after 3 months

Eligibility of LIC Jeevan Utkarsh Plan 846

Before purchasing the LIC Jeevan Utkarsh plan 846, you need to check the policy’s eligibility criteria. The table below depicts the eligibility criteria for the LIC Jeevan Utkarsh.

Policy inception ageMinimum – 6 yearsMaximum – 47 years
Basic Sum AssuredMin. Rs. 75000No upper limit
Payment modeOne time 
  • The Basic Sum assured multiples must be :

Rs. 5000 – If the Basic Sum assured is less than 3 Lacs.

Rs. 20,000- If the basic sum Assured is 3 lacs or above

Date of Inception of Risk:

Suppose the LIC Jeevan Utkarsh policy inception age of the insured person is less than 8 years. In that case, the risk will begin one day before the anniversary of the scheme, followed by attaining 8 years of age immediately. The risk will begin immediately if the insured is already 8 years completed while buying the LIC Jeevan Utkarsh.

Premium Rates Sample:

The table below depicts the rates of a tabular single premium if the SA is Rs. 1000.

Basic sum Assured

Policy inception ageTabular single premium Rate
10 yearsRs. 528.6
20 YearsRs. 544.9
30 YearsRs. 561.3
40 YearsRs. 657.9

Rebate if higher Basic Sum Assured:

Basic Sum assuredReduction in the tabular single premium on each 1000 as basic SA
Rs. 75000 – 1,45,000
Rs. 1,50,000 – 2,95,000Rs. 15
Rs. 3,00,000 – 4,80,000Rs. 20
Rs. 5,00,000 and aboveRs. 25

Benefits of LIC Jeevan Utkarsh Plan 846

The LIC Jeevan Utkarsh plan 846 offers various attractive benefits to the policyholder. Some of the main benefits are:

1. Death Benefits

If the policyholder dies in the first 5 years of the policy term of lic jeevan Utkarsh  :

  • Before the inception of the risk date- The single premium will be paid back to the nominee without any interest.
  • After the inception of the risk date: A sum Assured on death will be provided.

The single premiums mentioned here do not include the tax or additional charges paid by the insured person.

If the policyholder dies after 5 years of buying the policy but before maturity:

In such case, the beneficiary will get the Sum assured on death with the loyalty addition (If available). The sum assured, in this case, will be either 125% of the single premium or Guaranteed Sum assured on maturity or the absolute amount assured.  It depends on which among these is the highest.

2. Maturity Benefits

If the policyholder survives the whole tenure and maturity period of the policy, he will get maturity benefits. The policyholder will get Sum assured on maturity plus the Loyalty Addition. The sum assured on maturity will be equal to the basic sum assured.

3. Loyalty Additions

The company may offer Loyalty addition during the existing, after 5 years of the policy, in case of the untimely demise or at maturity of lic jeevan Utkarsh. The Rates and terms and conditions of Loyalty addition depend on the company policy.

4. Tax Benefits

The Single premium amount that the insured person pays to the policy comes under tax benefits under section 80C of income tax. 1961. In the LIC Jeevan Utkarsh plan, the single premium is less than 10% of the actual capital SA.

Read more: LIC Nivesh Plus Plan

LIC Jeevan Utkarsh Plan 846 Example

Now that we know all the details about the LIC Jeevan Utkarsh 846 let’s understand it more with an example. Suppose someone has purchased the plan with the following details:

Year of buying policy2017
Age of buyer25 years
Basic SARs. 5 lacs
Term of premium1
Policy term12 years
Basic plan premium (Without GST)Rs. 2,62,450
Basic plan premium with riders and accidental and disability benefitsRs. 2,67,000

Now let’s evaluate the amount that the beneficiary will receive in 2 cases:

Benefits of Maturity:

Year of maturity2029
Age of maturity37 years
Total amountRs. 5 lacs + LA

Death before Maturity:

If the policyholder dies before the maturity or during the term of the LIC Jeevan Utkarsh, the beneficiary will get 10 times of single premium and loyalty addition. Let’s understand it with a table.

Suppose the policyholder dies in 2023; the nominee will get 10 times the single premium+ loyalty amount. It will be Rs. 2624500 +LA. The amount equal to Sum assured will also be paid to the nominee.

YearAgePremium excluded GSTRegular life coverAccidental life coverReturn
201725267000262450031245000
20182600262450031245000
20192700262450031245000
20202800262450031245000
20212900262450031245000
202230002624500 + LA3124500 + LA0
202331002624500 + LA3124500 + LA0
202432002624500 + LA3124500 + LA0
202533002624500 + LA3124500 + LA0
202634002624500 + LA3124500 + LA0
202735002624500 + LA3124500 + LA0
202836002624500 + LA3124500 + LA0
20293700Maturity 5 Lacs + LA

Conclusion

 In the content above, we have learned details about the LIC Jeevan Utkarsh plan 846. The plan is highly beneficial for the people who are the family’s sole earners. This plan provides security to the family after the demise of the policyholder. Moreover, if the policyholder survives the term, he will get the maturity benefits.

LIC Jeevan Utkarsh Plan 846 – FAQs

What will I get the surrender value in case I surrender the LIC Jeevan Utkarsh?

Ans. The surrender values of the LIC Jeevan Utkarsh plan 846 are as follows:

!st year- 70% of single premium

2Nd year – 90% of single premium

Is a loan facility available against this policy?

Ans. Yes, you can apply for a loan under the LIC Jeevan Utkarsh 846 after three months of the policy purchasing date.

What about the free look period of the LIC Jeevan Utkarsh plan 846?

Ans. A free look period of 15 days is there in the policy. If you are unhappy with the terms and conditions of the LIC Jeevan Utkarsh or any other issue, you can cancel the policy within 15 days.

Tell me about the exclusions in the LIC Jeevan Utkarsh plan 846.

Ans. The policy is invalid in case of the suicidal death of the policyholder.

Can we pay the premium in installments?

Ans. No, the LIC Jeevan Utkarsh plan 846 only provides a one-time premium feature. If you wish to buy the policy, you must pay a 1-time single premium.

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