Full review
Option I vs Option II: which should you choose?
Option I (Regular) is simpler: 10% of SA per year, paid unconditionally. Option II (Flexi) is better if you genuinely don't need the income immediately — LIC compounds the deferred income at 5.5% p.a. and lets you withdraw up to 75% once per year. The calculator's Flexi panel computes the exact pool size and the uplift versus taking Option I cash. As a rule of thumb: if you can defer for 10+ years after income starts, Flexi usually accumulates a pool 40–70% larger than the foregone Option I cash.
The income-start gap explained
For a 5-year PPT, income doesn't start until year 11 — a 5-year gap after premiums end. This is because LIC needs to accumulate enough reserve to fund a 10%/year perpetual income from a relatively small premium base. Buyers who want income immediately after PPT should choose PPT 10+ (gap = 3 years) or PPT 16 (gap = 3 years from end of PPT).
How the death benefit works
The death benefit floor is the higher of (BSA, 7× annualised premium) + accrued GAs, guaranteed ≥ 105% of total premiums paid. In the early PPT years, this can be materially larger than BSA alone — the GA accrual and the 7× multiple both matter. After PPT, the GAs stop accruing but the death benefit stays at BSA + total accrued GAs for life. If Option II (Flexi), the accumulated Flexi pool is also paid out on death.
What we'd compute differently
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term),
excludes optional rider premiums from the cash-flow base, and assumes the latest declared
simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions
on the Jeevan Utsav calculator.