In today’s fast-paced world, everyone is looking for short-term gains and quicker returns. Customers often say “Tell me a 5-year policy, or else I’ll invest in a fixed deposit.” This changing mindset has made it challenging for insurance agents to find short-term policies that can offer better returns and protection than bank FDs.
If you are also dealing with such clients, LIC has the perfect solution the LIC Jeevan Utsav Policy, a plan where you pay premiums for only 5 years and receive lifetime income along with full insurance coverage.
Why People Prefer Short-Term Policies
Many customers today prefer quick returns and avoid long-term commitments. According to insurance advisors, people now think short-term they want to pay for just 5 years and start earning soon after. The biggest competitor to LIC is the bank fixed deposit (FD), which only gives interest without providing life protection.
FD vs LIC Jeevan Utsav Policy
| Parameter | Fixed Deposit (FD) | LIC Jeevan Utsav Policy |
|---|---|---|
| Deposit/Premium Term | 5 Years | 5 Years |
| Life Cover | No | Sum Assured + Bonus |
| Income | Only Interest | 10% of Sum Assured Every Year (Till Age 100) |
| Death Benefit | Deposit + Interest | 7x Premium or 105% of Total Premium or Sum Assured (Whichever is Higher) + Guaranteed Addition |
| Bonus | Not Applicable | ₹40 per ₹1,000 Sum Assured for First 5 Years |
Plan Example: LIC Jeevan Utsav (Table Example)
- Premium Payment Term: 5 Years
- Customer Age: 35 Years
- Sum Assured: ₹5,00,000
- Accidental Death and Disability Benefit (ADDB): Included
Premium Calculation:
- 1st Year Premium: ₹1,17,484
- 2nd Year Premium: ₹1,14,955
(Notice: From the second year, the premium slightly reduces due to rebate and policy structure.)
How the Policy Generates Lifetime Income
| Year | Activity | Details |
|---|---|---|
| 1–5 | Premium Payment Period | Pay premium regularly for 5 years |
| 6–10 | Waiting Period | No premium payment, policy grows |
| 11–100 | Income Period | Receive 10% of Sum Assured every year (₹50,000 yearly on ₹5 lakh) |
Death Benefit Structure
- 7 times the annual premium, or
- 105% of total premiums paid, or
- Sum assured amount (whichever is higher)
Plus, Guaranteed Additions of ₹40 per ₹1,000 sum assured for the first 5 years.
Example: For a ₹5 lakh sum assured ₹40 × 500 = ₹20,000 yearly bonus × 5 years = ₹1,00,000 guaranteed addition.
Why This Plan Suits Short-Term Investors
This plan is ideal for clients who don’t want long commitments. You only pay for 5 years and then enjoy lifetime annual income plus full life cover.
How to Explain to Customers
Tell your clients “Sir, an FD only gives you interest. LIC Jeevan Utsav gives you higher income and lifetime protection. If something unfortunate happens, your family receives full coverage something no FD can provide.”
Bonus Tip: ADDB Rider Benefit
- In case of accidental death the nominee receives double the sum assured.
- In case of disability annual income equivalent to the sum assured is given for 10 years.
Final Verdict
The LIC Jeevan Utsav Policy stands out as one of the best short-term investment options for those seeking both income and protection. With just 5 years of premium payment and guaranteed lifetime benefits, it outperforms traditional fixed deposits by offering financial growth and life security. Insurance agents can confidently recommend this policy to clients looking for short-term commitment with long-term peace of mind.
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Readers are advised to review official LIC documents or consult a licensed financial advisor before making investment or policy decisions.
