LIC Jeevan Utsav (Plan 771): Product Terms and Tax Treatment for Tax Year 2026-27
This article describes the main terms of LIC Jeevan Utsav, Plan 771 (UIN 512N363V02), and explains how GST and income tax apply to it for Tax Year 2026-27.
It is relevant now because the plan was sold on revised terms from 22 September 2025, life insurance became exempt from GST from that date, and the Income-tax Act, 2025 has applied since 1 April 2026. Clients often ask whether the income is a return on premium and whether it is tax-free, and both questions need a careful answer. The description is based on the LIC brochure applicable from 22 September 2025, the Department of Financial Services GST FAQ updated 5 January 2026, and materials on the Income-tax Act, 2025, reviewed on 11 October 2026.
Identifying the plan
Plan 771 replaced Plan 871 (UIN 512N363V01), which was withdrawn from sale on 1 October 2024. Terms and tax references in older brochures may differ, so a client holding a legacy document should not rely on this description.
Plan 771 is a non-linked, non-participating, individual savings, whole-life plan with limited premium payment. Non-participating means that no discretionary bonus or surplus is declared. Non-linked means that benefits are not tied to units or net asset value. There is no conventional maturity benefit.
Provision by provision
Premium and eligibility
- The premium-paying term is 5 to 16 years.
- The minimum basic sum assured is Rs 5,00,000. It rises in steps of Rs 25,000 from Rs 5 lakh to Rs 24 lakh and in steps of Rs 1 lakh above that. There is no general maximum, subject to underwriting.
- Entry age depends on the term. For a 5-year term the minimum age is 8 years and the maximum 65 at nearer birthday. For a 16-year term the minimum is 30 days and the maximum 59 at nearer birthday. The maximum age at which premiums cease is 75 at nearer birthday.
- Premiums may be paid yearly, half-yearly, quarterly or monthly (monthly through NACH), and through salary deduction where eligible. Mode loadings apply. The grace period is 30 days for yearly, half-yearly and quarterly modes and 15 days for monthly mode.