LIC Jeevan Utsav Single Premium Plan (883) Calculator

LIC Jeevan Utsav Single Premium Plan (883) Calculator

What this calculator does

LIC's Jeevan Utsav Single Premium Plan (883) is a non-linked, non-participating, whole life savings plan funded by a single, one-time premium payment - there is no Premium Paying Term to choose and no recurring installments. Because the entire premium is paid upfront, the Deferment Period before your Guaranteed Income Benefit begins is a fixed 6 years, regardless of your entry age. Once the deferment period ends, you start receiving a Guaranteed Income Benefit equal to 9% of your Basic Sum Assured every year for the rest of your life - right up to age 100, when the policy matures and pays out the Basic Sum Assured plus accrued Guaranteed Additions.

You can take this Guaranteed Income Benefit in one of two ways:

• Regular Income Benefit - paid out to you in cash every year once the deferment period ends.
• Flexi Income Benefit - instead of paying it out, LIC keeps it on deposit and lets it accumulate with interest; you can withdraw the accumulated corpus fully or partially at any time.

This calculator gives you an indicative estimate of:

• the single premium (base and, if opted, the one-time Accident Benefit Rider premium) payable at entry
• the annual Guaranteed Income Benefit, when it starts, and the total you would receive (Regular option) or the corpus you would accumulate (Flexi option) by age 100
• the Guaranteed Additions accrued during the 6-year deferment period
• the Whole Life Benefit payable at age 100
• a year-by-year schedule of the Guaranteed Income Benefit from the end of the deferment period to maturity

based on your entry age, Basic Sum Assured, income benefit option, and whether you add the Accident Benefit Rider.

Formula Used

Deferment Period. Fixed at 6 years for the Single Premium variant, since there is no Premium Paying Term to base it on:

$$DefermentPeriod = 6$$ $$IncomeStartAge = EntryAge + DefermentPeriod$$

Single Premium. The illustrative single-premium rate (₹ per ₹1,000 Sum Assured) rises with entry age, since a single premium paid at an older age has fewer years to earn investment return before guaranteed income payouts begin:

$$PremiumRate(age) = 480 + age \times 3.2$$ $$BaseSinglePremium = \frac{SumAssured}{1000} \times PremiumRate(age)$$

If you opt for the Accident Benefit Rider, an additional one-time ₹8 per ₹1,000 of Sum Assured (capped at a Sum Assured of ₹50,00,000 for the rider) is added to the single premium:

$$RiderPremium = \frac{\min(SumAssured,\ 50{,}00{,}000)}{1000} \times 8$$ $$TotalSinglePremium = BaseSinglePremium + RiderPremium$$

Guaranteed Additions. These accrue only during the 6-year deferment period, at ₹45 per ₹1,000 Sum Assured for each policy year:

$$GuaranteedAdditions = \frac{SumAssured}{1000} \times 45 \times 6$$

Guaranteed Income Benefit. Once the deferment period ends, 9% of the Sum Assured accrues every year until maturity at age 100:

$$AnnualIncomeBenefit = 0.09 \times SumAssured$$

For the Regular Income Benefit option, this is paid out in cash each year:

$$TotalIncomeReceived = AnnualIncomeBenefit \times \big(100 - IncomeStartAge\big)$$

For the Flexi Income Benefit option, each year's amount is instead deposited and left to accumulate at an assumed interest rate (illustrative, 6% p.a.) as an annuity-due:

$$FlexiCorpus(n) = AnnualIncomeBenefit \times \frac{(1+r)^n - 1}{r} \times (1+r)$$

where n is the number of complete years since the deferment period ended and r = 0.06.

Whole Life Benefit. At age 100, the Basic Sum Assured plus accrued Guaranteed Additions are paid out together with the final income installment (or the full accumulated Flexi corpus, if that option was chosen and never withdrawn). Jeevan Utsav is a non-participating plan, so no bonus is declared:

$$WholeLifeBenefit = SumAssured + GuaranteedAdditions$$

Note: these rates are illustrative approximations for planning purposes, not LIC's official rate card, which is IRDAI-approved and can change over time. Always confirm exact figures with LIC or an authorized agent before purchasing a policy.

How to Use

1. Enter your Age at Entry in years (0 to 65).
2. Enter your desired Basic Sum Assured (minimum ₹5,00,000).
3. Choose your Guaranteed Income Benefit Option - Regular (paid out yearly) or Flexi (accumulates with interest until withdrawn).
4. Choose whether to add the Accident Benefit Rider (added to your single premium as a one-time cost).
5. Click Calculate Benefits to see your single premium, Guaranteed Income Benefit schedule, Guaranteed Additions, and Whole Life Benefit at age 100.

Worked Example

Suppose you are 30 years old, choose a Basic Sum Assured of ₹10,00,000, the Regular Income Benefit option, and no rider.

$$DefermentPeriod = 6 \text{ years}, \quad IncomeStartAge = 30 + 6 = 36$$ $$PremiumRate(30) = 480 + 30 \times 3.2 = 576$$ $$BaseSinglePremium = \frac{10{,}00{,}000}{1000} \times 576 = ₹5{,}76{,}000 \text{ (one-time)}$$

Your Guaranteed Income Benefit starts at age 36, at 0.09 \times 10{,}00{,}000 = ₹90{,}000 a year, for 100 - 36 = 64 years - a total of ₹57,60,000 in Regular Income Benefit alone. On top of that, the Guaranteed Additions accrued over the fixed 6-year deferment period (45 \times 6 = 270 per ₹1,000 Sum Assured, i.e. ₹2,70,000) are added to your Basic Sum Assured to give a Whole Life Benefit of ₹12,70,000, payable at age 100.