Want Rs 1 Lakh Every Year for Life? LIC Jeevan Utsav Requires Savings of Just Rs 160 a Day

Updated: NewsPoint | 29 Jun 2026, 12:27 pm

Planning finances for the future has become more important than ever, especially for families looking to create long-term financial security. Among the many life insurance products available today, LIC Jeevan Utsav stands out by combining life cover with a guaranteed lifetime income. The plan aims to provide financial stability irrespective of changing market conditions, making it suitable for individuals seeking predictable returns.

One of its biggest attractions is the promise of a fixed annual income after the premium payment period is completed. Since the payouts are guaranteed, they remain unaffected by market volatility or economic fluctuations, offering greater peace of mind to policyholders.

Suitable For Children As Well As Adults

The plan is available for individuals from as young as 30 days old up to 65 years of age. This broad eligibility allows parents to start investing for their children's future at an early stage while also enabling adults to create a reliable income stream for later years.

For children below one year of age, premiums can be paid for up to 16 years. A disciplined investment of around ₹160 per day over this period can eventually provide a guaranteed annual income of ₹1 lakh from the age of 18 onwards. This translates to a daily payout equivalent of nearly ₹274, making it an attractive option for supporting higher education or the beginning of a career.

Older applicants above 65 years can also participate by selecting a shorter premium payment term of five to 10 years.

Guaranteed Annual Income After Premium Payments

The policy requires a minimum basic sum assured of ₹5 lakh, while there is no upper limit on the maximum sum assured. Under the Regular Income Benefit option, policyholders receive an annual payment equal to 10 per cent of the basic sum assured.

The income begins two years after the premium payment term ends and continues every year for life, up to the age of 100. Since the amount is predetermined, policyholders can plan their finances with greater certainty without worrying about market-linked risks.

Flexi Income Benefit Adds More Value

Apart from the regular annual payout option, the plan also offers a Flexi Income Benefit. This feature is useful for policyholders who do not require the annual income immediately.

Instead of withdrawing the yearly amount, it can remain with LIC, where it earns compound interest at the rate of 5.5 per cent per annum. The accumulated amount can be withdrawn later, allowing investors to benefit from the power of compounding while maintaining financial flexibility.

Example Of How The Plan Works

Consider a 36-year-old individual purchasing a policy with a basic sum assured of ₹10 lakh and choosing a premium payment term of 15 years along with an Accidental Death and Disability Benefit rider.

The annual premium works out to ₹66,150. Alternatively, premiums can be paid semi-annually at ₹33,653, quarterly at ₹16,950 or monthly at ₹5,691.

After completing the 15-year premium payment period, there is a waiting period of two years. From the age of 53, the policyholder begins receiving ₹1 lakh every year, which is equivalent to 10 per cent of the basic sum assured.

Life Cover And Additional Protection

Besides guaranteed income, the plan also offers valuable insurance protection. In the event of the policyholder's death, the nominee receives the basic sum assured along with applicable guaranteed additions, depending on the number of years for which premiums were paid.

Policyholders can further strengthen their protection by choosing optional riders available at an additional cost. These include Accidental Death and Disability Benefit, Accident Benefit, enhanced Accident Benefit options, Term Rider and Premium Waiver Benefit.

For child policies, risk cover begins either two years after the policy starts or when the child reaches eight years of age, depending on the age at which the policy was purchased.

A Long-Term Financial Planning Option

LIC Jeevan Utsav is designed for individuals looking to balance life insurance with assured long-term income. Whether the objective is securing a child's future, creating a retirement income or building financial stability for the family, the plan offers multiple features under one policy.

Along with guaranteed annual income, policyholders can also benefit from loan facilities, eligible tax benefits under prevailing tax laws and lifelong financial protection. With fixed payouts, flexible income choices and life cover, the plan can serve as a useful addition to a long-term financial strategy for those who value certainty over market-linked returns.