P SRIDHAR, DO/LIC, CHENNAI

In a Nutshell…

• Utsav means “Festival” or “Celebration”

• This is a Whole Life Non-Linked Non-Par Plan
• Limited payment With Guaranteed Addition
• Provides Annual Survival Benefits after PPT till
Age 100 or till earlier death
• Much-awaited Product in INDIA
• The Game-Changer is Born in LIC

P SRIDHAR/DO/LIC/CHENNAI
 Plan Parameters
• Minimum Age: 90 Days Maximum Age: 65
• Premium Paying Term(s): 5 to 16
• For Ages 8 & above, Min PPT 5 Years allowed
• For Ages 0-7, Premium to Stop only at Age 16
• Maximum Premium Ceasing Age: 75
• Minimum SA: 5 Lacs Maximum SA: No Limit
• Modes allowed: Yearly/Half-Yly/Qly/NACH/SSS
• Minimum Age to Start Annual Income: 18
• See Next Slide for Age-related PPT options
P SRIDHAR/DO/LIC/CHENNAI
PPT Min AGE Max AGE
5 8 years 65 years
6 8 years 65 years
7 8 years 65 years
8 8 years 65 years
9 7 years 65 years
10 6 years 65 years
11 5 years 64 years
12 4 years 63 years
13 3 years 62 years
14 2 years 61 years
15 1 year 60 years
16 90 days 59 years
 Riders to Choose..

• Accidental Death & Disasbility Benefit Rider (AD &DB)

• Accidental Benefit Rider (AB)

• Premium Waiver Benefit Rider (PWB)

• Term Assurance Rider

• Critical Illness Rider

P SRIDHAR/DO/LIC/CHENNAI
 AD & DB Rider

– Covers both Accidental Death as well as Disability Benefit

– Accidental Death of LA entitles the Nominee to receive
Additional Sum Assured
– Disability Benefit provides for Sum Assured in 120 equal
instalments with Premium Waiver
– AD & DB Rider covers the LA till Age 70
– Very much advisable to opt for

P SRIDHAR/DO/LIC/CHENNAI
 Accident BenefitRider

– This Rider Covers Accidental Death only

– It is available only till the end of the Premium paying Term

P SRIDHAR/DO/LIC/CHENNAI
 PWB Rider

– This Rider is for Proposer who takes Policy on Minor Children

– Age of the Child should be between 0 to 17
– PWB Rider Cover holds good till Age 25 of the Life Assured
– It can be given under NM for Preferred/Spl NM Clients
– Arrive at Proper PWB SUC….

P SRIDHAR/DO/LIC/CHENNAI
 Term Rider Benefit

– Can be availed at the inception only

– Payment of Term Assurance Rider Sum assured in the event of

death

– Rider Benefit available for a term of 35 years or Age 75

whichever is earlier

P SRIDHAR/DO/LIC/CHENNAI
Critical Illness Rider

– This Rider also is available at inception only

– Critical Illness SA is payable if LA is diagnosed with

any of the 15 Critical Illness

– Rider Benefit available till Age 75 or Term 35 years

whichever is earlier

P SRIDHAR/DO/LIC/CHENNAI
Life Long Coverage
till Age 100
Guaranteed Addition of
Rs.40 per thousand SA
is added during PPT
What are the Income Benefits?
REGULAR
Income Benefit
FLEXI
Income Benefit
REGULAR
Income Benefit
10% of the Sum Assured
payable Every Year till Age
100 or earlier death
FLEXI
Income Benefit
10% of the SA is allowed to
accrue in LIC itself which gets
5.5% compound interest
• 10% of the SA gets accrued every year
• LA can withdraw upto 75% of the Balance
• It can be done once in a Year & every Year too
• This is nothing but “Any Time Money” concept
• 5.5 Compound Interest annually is Huge
• No other Portfolio in our Country offers this

P SRIDHAR/DO/LIC/CHENNAI
 Option to Switch

LA can change the Income Option

between REGULAR & FLEXI anytime
before 6 Months from the Start of 1st
Payout
 What is the Risk Cover?

– Sum Assured on Death will be Higher of

– Basic Sum Assured

– 7 Times of Annualized Prem excluding Riders/GST

P SRIDHAR/DO/LIC/CHENNAI
 Death Benefit

– During the Premium Paying Term

– Sum Assured on Death + Accrued Guaranteed Addition

– After the Premium Paying Term

– If Regular Income Option, Sum Assured on Death + Accrued GA
– If Flexi, then SA on Death + Accrued GA + Balance Accumulation of SB

P SRIDHAR/DO/LIC/CHENNAI
Loan & Surrender
• Loan available after atleast 2 full years’ premiums have been paid

• Loan before the Start of Income Benefit:

• For inforce policies: Upto 75% of Surrender Value

• For paid-up policies: Upto 50% of Surrender Value

• Loan after the Start of Income Benefit:

• The Annual Loan Interest should NOT exceed 50% of the Annual
Survival Benefit

• Surrender available after 2 Full Years Premiums have been paid (GSV/SSV)
Paid-up Value
– If minimum 2 full years’ premiums have been paid & any subsequent
premiums be not duly paid, the policy shall continue as PAID-UP till
the end of the Policy Term
– Let us see what is a Fully Paid-up Policy and Paid-up Policy….
– Fully Paid-up Policy is the one in which all the Premiums have been
paid
– Paid-up Policy is the one in which all premiums have NOT been paid
– Death Paid-up SA = (No of Yrs Prem paid/Payable) x Death SA
– Paid-up SA = (No of Yrs Prem Paid/Payable) x Basic SA
 Paid-up Value in detail
If Paid up Sum Assured is If Paid up Sum Assured is
2 lacs or more less than 2 lacs
Income benefit is payable
Income Benefit is not
to the Life Assured for his
Payable
Life time (Refer Next Slide)

On Death, Death Paid Up On Death, Death Paid Up

Sum Assured plus Accrued Sum Assured plus Accrued
Guaranteed Additions Guaranteed Additions
payable to Nominee payable to Nominee
Income Benefits Table under Paid-up

If Paid up Sum Assured is 2 lacs or more:

Income Benefit (both
Paid up Sum Assured
types)
Rs. 2 lacs and above, 5% of the Paid up Sum
but less than Rs. 3 lacs Assured
Rs. 3 lacs and above, 6% of the Paid up Sum
but less than Rs. 4 lacs Assured
Rs. 4 lacs and above, 7% of the Paid up Sum
but less than Rs. 5 lacs Assured
10% of the Paid up Sum
Rs. 5 lacs and above
Assured
 Lives Eligible…
• All Male Lives
• Female Lives belonging to A1, A2, A3, B1 & B2
• Physically Challenged Lives with Income
• Minor Children, Major Students
• NRIs/FNIOs of Residence Group III, IV & V
• NRI Housewives & Juveniles of Gr IV & V only
• Mail Order to Residence Group V only

P SRIDHAR/DO/LIC/CHENNAI
Let us have More Clarity on PPT,
Income Starting Age as well as
Commission!
 Income Benefit
PPT Commission %
starting year

5 years 11th year 1st year

10%

6 years 11th year 2nd & 3rd year

5%
7 years 11th year
Subsequent
years
8 years 11th year 5%

BONUS COMMISSION
9 years 12th year 40%
P SRIDHAR/DO/LIC/CHENNAI
 Income Benefit
PPT Commission %
starting year

10 years 13th year 1st year

20%

11 years 14th year 2nd & 3rd year

7.5%
12 years 15th year
Subsequent
years
13 years 16th year 5%

BONUS COMMISSION
14 years 17th year 40%
 Income Benefit
PPT Commission %
starting year
1st year
25%
15 years 18th year
2nd & 3rd year
7.5%

Subsequent
years
16 years 19th year 5%

BONUS COMMISSION
40%
Lets see an Example
to understand basic
things in UTSAV!
Age : 8 years
PPT : 5 years GA 2 Lac
SA : 10,00,000
INCOME BENEFIT
AGE 19 yrs

INCOME BENEFIT
AMOUNT 1 Lac
 Short Term or Long Term?
Which is Better?

• Whatever PPT a Client Chooses, he would be paying

premium based on his Sum Assured only
• Hence, even if the PPT is Shorter, you are assured of
a Good Commission
• Let us check the Example of Age:30 SA: 10 Lacs for
PPTs 5 & 15
• Hope I have driven the Point with Clarity!

P SRIDHAR/DO/LIC/CHENNAI
 Power of Compounding

• Let us understand “Power of Compounding”

• Flexi Option gives 5.5% compounding annually
• PPF allows it for 15 Years; EPF till Age 60
• No Portfolio gives LIFE-LONG Compound Interest
• For 10 Lacs SA, the Survival Benefit is 1 Lac
• 1 Lac pa for 10 Yrs makes Fund Value 13.58 Lacs
• At the end of 15 Years, Corpus will be 23.64 Lacs
• At 24th Year, the Accumulation becomes 50.15 Lacs
• At 35th Year, it becomes Rs.1,00,00,000 (1 Crore)
• Let us see actual workings in the Next Slide(s)

P SRIDHAR/DO/LIC/CHENNAI
 ACCUMULATED 75% ACCUMULATED
END OF YEAR
VALUE VALUE
1 105500 79125
2 216803 162602
3 334227 250670
4 458109 343582
5 588805 441604
6 726689 545017
7 872157 654118
8 1025626 769219
9 1187535 890652
10 1358350 1018762
11 1538559 1153919
12 1728680 1296510
13 1929257 1446943
14 2140866 1605650
15 2364114 1773085
16 2599640 1949730
17 2848120 2136090
18 3110267 2332700
19 3386832 2540124
20 3678608 2758956
21 3986431 2989823
22 4311185 3233389
23 4653800 3490350
24 5015259 3761444
25 5396598 4047449
26 5798911 4349183
27 6223351 4667513
28 6671135 5003352
29 7143548 5357661
30 7641943 5731457
31 8167750 6125812
32 8722476 6541857
33 9307712 6980784
34 9925136 7443852
35 10576519 7932389
36 11263727 8447796
37 11988732 8991549
38 12753613 9565210
39 13560561 10170421
40 14411892 10808919
41 15310046 11482535
42 16257599 12193199
43 17257267 12942950
44 18311917 13733937
45 19424572 14568429
46 20598423 15448818
47 21836837 16377628
48 23143363 17357522
49 24521748 18391311
50 25975944 19481958
 Sell Utsav differently…

• Father’s Life-long Yearly Gift to Girl Child

• Grand Parent’s Gift to Grand Children
• Housewife Regular Guaranteed Income Plan
• Mother’s Support to Son
• Systematic Withdrawal Plan for Pension
• Regular Income Plan for Self

P SRIDHAR/DO/LIC/CHENNAI
 Father’s Gift to Daughter

• Girl Child always occupy Spl Place in Father’s House/Mind

• Daughter is so Precious to a Father
• Father would love to Provide Life-long income to Daughter
• JEEVAN UTSAV is the BEST Solution & a SUPER Gift!
• Let’s see an Example
• Age of Daughter: 1 PPT: 15 SA: 10 L Mly Prem: 5500
• Premium stops at Age 16 of the Child
• Tax-Free YLY Returns of 1,00,000 Life-long starts at Age 19
• Can any Portfolio in this World ensure the above till 100?
• See the Illustration and workings in the Next Slide

P SRIDHAR/DO/LIC/CHENNAI
 Grand Parent’s Gift
• Grand Children are Very Very Dear to any Grand Parent
• They are attached emotionally to a Large Extent
• Many Pension-earning Grand Parents are there in the City
• Their Bank Balance will always be Healthy
• They will be Ready to Save for their Grand Children
• Suggest such Wealthy Grand Parents to go for 5 Years PPT
• On the Life of Grand Child; Grand Parent will be Proposer
• Highlight the Beauty of Life-Long Annual Income in Utsav
• Grand Parents will have Greater Satisfaction to Save!
• When you approach 5, you are Sure to convert atleast 3

P SRIDHAR/DO/LIC/CHENNAI
 Systematic Withdrawal Plan
• Flexi Option can be a Systematic Withdrawal Plan
• Let us see an Example as to how SWP works
• Age 30 SA: 10 Lacs PPT: 11 Years Yly: 104239
• Income actually starts from 14th Year (Age:44)
• We can suggest Client to Plan for his PENSION
• From Age 60, let LA withdraw 2 Lacs every year
• Assume he does it till Age 100
• Even at Age 100, his Balance Fund is 76.19 Lacs
• Let us see the actual working in Next Slide

P SRIDHAR/DO/LIC/CHENNAI
 Regular Income Plan to Housewife

• Majority of married women are Housewife

• As such, they are dependent on their Husband, Children
• Any Loving Husband will be interested to save for Wife
• The Saving what he makes should be the Best of the Best!
• That can provide Income to his Wife Life-Long
• UTSAV gives Solution to this Pertinent need of Housewife
• Husband gets Satisfaction of his Life-time through UTSAV
• Let us work out an Example!
• Husband wants to Save Rs.10000 pm for his Wife
• Suggest 871/11 for 10 Lacs; Yly - Rs.1,04,239

P SRIDHAR/DO/LIC/CHENNAI
P SRIDHAR/DO/LIC/CHENNAI
P SRIDHAR/DO/LIC/CHENNAI
 Let us see what is “1-Plan” MDRT?

• Attempting to do MDRT with a Single Plan JEEVAN UTSAV

• Jeevan Utsav is likely to become the much sought-after Plan
• Insurance Market is INDIA is largely driven towards Short Term
• Many of the Pvt Life Companies are having such Products
• The above factors will make UTSAV an All-Time Favourite!
• 871/5 - Target High-earning Clients with short term appetite
• 871/10 - People who wants neither Long nor Short Term
• 871/15 - Middle Class/Upper-Middle Class Clients
• Add TR where ever possible & feasible to avail 10 10 (D)

P SRIDHAR/DO/LIC/CHENNAI
 MDRT through 871/5
Sum Yearly
Policies
Assured Premium
10 lacs 221600 16
15 lacs 332400 11
20 lacs 443200 8
25 lacs 549000 7
50 lacs 1091750 4
1 Crore 2183500 2
 MDRT through 871/10
Sum Yearly
Policies
Assured Premium
10 lacs 113200 28
15 lacs 169800 19
20 lacs 226400 15
25 lacs 279000 12
50 lacs 553000 6
1 Crore 1106000 3
 MDRT through 871/15
Sum Yearly
Policies
Assured Premium
10 lacs 65900 39
15 lacs 98850 26
20 lacs 131800 19
25 lacs 160750 16
50 lacs 320250 8
1 Crore 640500 4
 Importance of Term Rider in UTSAV

• Clear Understanding of 10 10 (d) of the IT Act is necessary

• What is Sum Assured & Captial Sum Assured in Utsav?
• What is Annualised Premium? How it is arrived?
• 10 10 (d) benefit works if Premium < 10% of Capital S.A.
• Term Rider helps Clients who opt for Shorter PPT (< 10 yrs)
• Let us see an Example; Open the App now; I will Explain…
• Age 30 PPT: 5 Years SA: 10 Lacs Yly Prem: 2,17,800 (Basic)
• Here Capital SA is (2,17,800 x 7) = 15,24,600
• 10% of 1524600 = 152460. YLY Premium > 10% of Capital SA
• Hence, there will be TDS of 2% on YLY Survival Benefit
• In the above case, add TR of 10 Lacs. Problem Solved!!!
P SRIDHAR/DO/LIC/CHENNAI
 Sovereign Guarantee under
Section 37 of L.I.C. Act, 1956 is
available only to LIC Policyholders
Jeevan Utsav Plan
P SRIDHAR/DO/LIC/CHENNAI
 Reason 1
• Jeevan Utsav is the ONLY Short-Term Plan
available for Savings, Regular Income as
well as Retirement Planning. Once the PPT
is over, the Client is free to decide whether
he needs Regular Income or Accumulate it
and take 75% of the Accumulation at any
year. He can also fix Retirement Age and
take Yly Fixed Income
Reason 2

• Guaranteed Annuity @ 10% of Sum

Assured till Age 100 ensures Money Flow
to the Customer in his/her rainy days.
In this era of Uncertain and falling interest
regime any Portfolio which gives
Guarantee needs to be SOLD Left & Right
Reason 3

• No Plan in the History of LIC offered 5.5%

Compound Interest annually till Age 100
for Survival Benefits that are left with it.
Power of Compounding can be realized
by Clients through Flexi Option Method
Reason 4
• Only Whole Life Plan in our Country with
Unbelievable HUGE/SKY-ROCKETING
Accumulation which would touch 5 times
of the Principal at 50th Year & beyond that
too. For 1 Lac SB under Flexi Option, the
Corpus becomes 2.5 Crores @ 50th Year.
This can be the BEST ASSET CREATION
for our dependents with 100% Guarantee!
Reason 5
• No Plan in the History of LIC for Children
Segment that allowed Premium Payment
for a Very Short Term, yet providing Life
Long Guaranteed 10% of SA as Yly Benefit
which will encourage Grand Parents also
to Save for their Grand Children without
the necessity of Long Term Commitment!
Reason 6
• No other Single Portfolio in our Country have
such a short PPT & provide Guaranteed Tax-free
Liquidity, Risk Cover till Age 100, Guaranteed
Addition during PPT, Emergency Loan facilities
anytime till age 100, Surrender option etc.
Its an ALL-IN-ONE Concept
Marketing Opportunities…
• Vast Target Market; From 3-months Old Child to Age 65
• Shortest PPT; Life-Long 10% of SA; Flexi Option & what not?
• For Minor Children, straightaway 25 Lacs can be given
• If PWB Rider added to Parent, we can give 50 Lacs to Child
• For Major Students, straightaway 50 Lacs can be given
• Parents matching insurance NOT at all needed for it
• Concentrate on Children Segment (Minor/Major)
• Tell Parents that UTSAV is the BEST ASSET you can give to Child
• Grand Parents would be Eager to invest on Grand Children
• Do Wonderful Business this Month and in all the Months….

P SRIDHAR/DO/LIC/CHENNAI
 Sovereign Guarantee under
Section 37 of L.I.C. Act, 1956 is
available only to LIC Policyholders
P. Sridhar/DO/Chennai