LIC Jeevan Utsav Premium Chart: Rates & Returns

If you're considering LIC Jeevan Utsav Single Premium (Plan 883), understanding how its premium is calculated can help you evaluate whether the plan fits your financial goals. Since the policy requires only a one-time premium payment, the amount you pay depends primarily on your age, basic sum assured, and the guaranteed addition period you choose.

This article breaks down the premium chart, explains the factors that influence your premium, and covers the plan's key features, benefits, and payout options to help you make an informed purchase decision.

What Is LIC Jeevan Utsav Single Premium?

LIC Jeevan Utsav Single Premium (Plan 883) is a non-participating, non-linked whole life savings plan that provides life insurance coverage until age 100 in exchange for a one-time premium payment. It offers guaranteed additions of ₹40 for every ₹1,000 of the basic sum assured during the selected guaranteed addition period (7–17 years).

After this period, you can choose between the regular income benefit, which pays 10% of the basic sum assured annually, and the flexi-income benefit, where the annual payout accumulates at 5.5% per annum (compounded yearly) until withdrawn. At maturity, LIC pays the applicable maturity benefit along with accrued guaranteed additions.

How Does the LIC Jeevan Utsav Premium Chart Work?

• Premium Structure: The premium calculation differs between the two variants. Under Plan 771, your premium depends on the premium paying term (5–16 years). Choosing a shorter term results in higher annual premiums because the cost is spread over fewer years. Under Plan 883, your one-time premium depends on the guaranteed addition period (7–17 years). A shorter guaranteed addition period results in a higher upfront premium, as the survival benefits begin earlier.
• Basic Sum Assured: Both variants have a minimum basic sum assured of ₹5 lakh. A higher sum assured increases the premium, although rebates may reduce the effective cost.
• Age at Entry: Your age at purchase affects the premium. Older applicants have to pay slightly more because mortality risk increases with age.

Sample LIC Jeevan Utsav Premium Charts

LIC's sales brochure provides illustrative single premiums for standard lives, for policies sold through the offline channel, and for a basic sum assured of ₹5 lakh. These premiums exclude rider premiums and underwriting extras, if any.

Note: These figures are illustrative only. Your actual premium depends on the selected plan variant, age at entry, basic sum assured, premium-paying term (for Plan 771) or guaranteed addition period (for Plan 883), sales channel, applicable rebates, underwriting decisions, riders, and prevailing taxes. Always refer to LIC's latest benefit illustration before purchasing.

Why Do Premiums Change?

Several factors explain the variation in premiums:

• A shorter guaranteed addition period results in earlier income payouts, thereby increasing the one-time premium.
• Older applicants generally pay slightly more due to a higher mortality risk.
• A larger basic sum assured increases the premium, although rebates may reduce the effective cost.

Instead of manually estimating premiums, consider using LIC's official premium calculator or consulting an authorized LIC advisor for an accurate quote.

Maturity Benefits and Returns Illustration

Only LIC Jeevan Utsav Single Premium (Plan 883) offers a maturity benefit. If the life assured survives until age 100, LIC pays the higher of the basic sum assured or 1.25 times the tabular single premium, along with all accrued guaranteed additions. If you've opted for the flexi income benefit, any accumulated and unwithdrawn flexi income benefit is also paid as part of the maturity benefit.

The following illustrations, published in LIC's sales brochure, show how the plan works for different policyholders.

Illustration 1: Regular Income Benefit

Consider a 35-year-old purchasing the plan with a basic sum assured of ₹10,00,000, a 10-year guaranteed addition period, and the regular income benefit option.

• Single premium (excluding GST): ₹8,08,650
• Sum assured on death/maturity: ₹10,22,063
• Guaranteed additions: ₹40,000 per year for the first 10 policy years

From the 11th policy year, the policyholder begins receiving a regular income benefit of ₹1,00,000 annually. These annual payouts continue until the policy matures or the life assured passes away, whichever occurs earlier.

If the policyholder survives until age 100, LIC pays a maturity benefit of ₹14,22,063, which includes the sum assured on maturity and accrued guaranteed additions.

Estimated Internal Rate of Return (IRR): 5.8%–6.5% p.a. (pre-tax), assuming the policyholder survives until maturity and receives all scheduled benefits. The actual IRR may vary depending on the timing of cash flows and whether the annual income is spent or reinvested.

Illustration 2: Flexi Income Benefit

Now consider a 50-year-old purchasing the plan with a basic sum assured of ₹10,00,000, a 12-year guaranteed addition period, and the Flexi Income Benefit option.

• Single premium (excluding GST): ₹7,17,250
• Sum assured on death/maturity: ₹10,00,000

After the guaranteed addition period ends, the annual flexi income benefit of ₹1,00,000 begins. Instead of being paid immediately, this amount accumulates at 5.5% per annum (compounded yearly) until it is withdrawn. The policyholder can withdraw up to 75% of the accumulated balance once every policy year, while the remaining balance continues to earn interest. 

Estimated IRR: 5.8%–6.1% p.a. (pre-tax) if the accumulated flexi income benefits remain invested and are withdrawn at maturity. Withdrawing the flexi income benefits earlier can reduce the effective IRR because the accumulated amount has less time to earn interest.

Factors That Affect the LIC Jeevan Utsav Premium

1. Age at Entry: Your age at the time of policy purchase is one of the biggest factors affecting the premium. In general, older applicants pay higher premiums because mortality risk increases with age.
2. Basic Sum Assured: The basic sum assured you choose directly impacts your premium. A higher sum assured results in a higher one-time premium. However, selecting a larger cover may also make you eligible for higher basic sum assured rebates, which can reduce the effective premium paid.
3. Guaranteed Addition Period: You can choose a guaranteed addition period ranging from 7 to 17 years. A shorter guaranteed addition period generally results in a higher premium because the survival benefits begin earlier and continue for a longer period. Choosing a longer guaranteed addition period usually reduces the upfront premium.
4. Optional Riders: You can enhance your coverage by adding optional riders such as LIC's accidental death and disability benefit rider and LIC's new term assurance rider at an additional cost. At Ditto, we recommend choosing riders only if they address a specific protection need.
   
   Many policyholders may find it more cost-effective to purchase a separate term insurance plan or standalone health insurance and personal accident insurance instead of bundling multiple benefits into one policy. Rider availability, eligibility, and premiums are subject to LIC's underwriting guidelines.
5. Available Rebates: Depending on your policy details, you may be eligible for one or more premium rebates, including:

• High basic sum assured rebate
• Online purchase rebate for policies bought directly through LIC's website without agent assistance
• Existing policyholder rebate
• Nominee or beneficiary rebate for nominees of deceased LIC policyholders

Should You Use the Premium Chart or an Online Calculator?

The premium chart is useful for understanding how premiums vary by age and guaranteed addition period. However, it contains only illustrative values.

If you want an accurate premium estimate based on your age, chosen basic sum assured, and applicable rebates, using LIC's official premium calculator or requesting a personalized quote from an authorized LIC representative is a better option.

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Conclusion

LIC Jeevan Utsav is available in two variants: the Limited Premium Payment plan (Plan 771) and the Single Premium plan (Plan 883). While both offer guaranteed benefits and lifelong coverage, they differ in their premium structures, benefit timelines, and maturity benefits. Before choosing a variant, review the relevant premium chart, compare the survival benefit options, and obtain a personalized benefit illustration.

At Ditto, we recommend keeping insurance and investments separate. If your priority is financial protection, a pure term insurance plan is often a better choice. For wealth creation, dedicated investment options such as the Public Provident Fund (PPF), National Pension System (NPS), mutual funds, or fixed deposits (FDs) may be more suitable than bundled insurance-investment products.