LIC Launches ‘Jeevan Utsav’ Single Premium Policy, Scheme to Open from January 12

At the beginning of the new year 2026, the Life Insurance Corporation of India (LIC) has taken two significant initiatives aimed at strengthening policyholder benefits. On one hand, LIC has announced the launch of a brand-new single premium insurance plan called ‘LIC Jeevan Utsav’, while on the other, it has rolled out a special campaign to help customers revive their lapsed insurance policies.

These steps are expected to benefit both new investors looking for hassle-free insurance coverage and existing policyholders who may have missed premium payments in the past.

LIC Jeevan Utsav: A Single Premium Whole Life Plan

LIC has confirmed that the LIC Jeevan Utsav Single Premium Plan will be available for purchase starting January 12. This plan is categorised as a non-linked, non-participating, individual savings and whole life insurance policy.

In simple terms, the policy offers lifelong insurance protection without any exposure to stock market fluctuations. Since it is a single premium plan, customers are required to pay the premium only once at the time of purchase, eliminating the need for recurring payments over the years.

This feature makes the plan particularly attractive for individuals who prefer making a one-time investment rather than managing regular premium schedules.

Who Is the Plan Suitable For?

LIC Jeevan Utsav is designed for those who seek long-term financial security along with insurance coverage. As the policy is non-linked, the benefits remain unaffected by market volatility, offering stability and predictability.

However, being a non-participating plan, policyholders will not receive any share in LIC’s profits. The returns are predefined, which means customers should carefully review the benefit structure, maturity terms, and conditions before making a decision.

Financial experts suggest that such plans are ideal for conservative investors who prioritise capital safety and assured benefits over higher, market-driven returns.

No Market Risk, But Limited Upside

Since the policy is not linked to equity or debt markets, investors are shielded from sudden market downturns. At the same time, the absence of profit participation means the returns may be relatively modest compared to market-linked insurance products.

Therefore, prospective buyers are advised to evaluate the policy in line with their long-term financial goals, liquidity needs, and risk appetite.

Relief for Customers with Lapsed Policies

Alongside the launch of the new policy, LIC has also announced a special revival campaign for policyholders whose policies have lapsed due to non-payment of premiums.

This revival drive will run across the country until March 2, providing customers with an opportunity to restore their policies at reduced costs.

Under the campaign:

• Non-linked policies are eligible for up to 30 percent discount on late fees, capped at ₹5,000

• Micro-insurance policies will receive a complete waiver of late fees

This initiative is aimed at encouraging customers to bring their policies back into force and continue enjoying insurance protection.

Key Rules for Policy Revival

According to LIC guidelines, policyholders can revive their lapsed policies within five years from the date of the first unpaid premium. However, it is important to note that no relaxation will be provided in medical or health-related requirements, which will continue to apply as per policy terms.

Experts believe this revival scheme could benefit thousands of policyholders who lost coverage due to temporary financial difficulties.

What Policyholders Should Keep in Mind

While LIC Jeevan Utsav offers convenience through a single premium structure, customers should thoroughly understand its features, benefits, and limitations. Comparing it with other insurance and savings products can help ensure it aligns with personal financial planning needs.