LIC Jeevan Umang Plan
The Jeevan Umang (Plan No. 945, UIN No. 512N312V02) from LIC is a participating, non-linked, individual, and whole life assurance plan that gives your family both the benefits of income and protection. From the end of the premium-paying period until maturity, this plan offers yearly survival benefits. It also offers a lump sum payment at maturity or in the event of the policyholder’s death during the policy term.
|Date Of Launch||01.02.2020|
|Minimum Entry Age||90 Days (Completed)|
|Maximum Entry Age||55 Years (Nearest Birthday)|
|Policy Term||(100 – Age At Entry) Years|
|Premium Paying Term||15, 20, 25, & 30 Years|
|Age At Maturity||100 Years|
|Minimum Basic Sum Assured||Rs. 2,00,000|
|Maximum Basic Sum Assured||No Limit|
Focal Points Of LIC’s Jeevan Umang Plan
Here are some of the prominent features of the LIC Jeevan Umang plan:
- Payment Of Premiums: The premium amount for the plan can be paid regularly in monthly, quarterly, half-yearly, or yearly mode. You can also choose the option of salary deduction during the premium paying term of the policy. The monthly premiums need to be paid through NACH only.
- Grace Period: The plan offers a grace period of 30 days for the payment of quarterly or yearly or half-yearly premiums and 15 days for the monthly premiums. The grace period will begin from the date of the first unpaid premium. The policy will be considered in force during this period and if the premiums are not paid before the expiry of the grace period, the policy will lapse.
- Revival Period: If you fail to pay premiums within the provided grace period, your policy will lapse. The company allows the policyholder to revive the lapsed policy within a period of 5 consecutive years from the date of the first unpaid premium.
- Surrender Facility: If two complete years’ premiums have been paid, the policy may be surrendered at any time. When the policy is surrendered, the company will pay the higher of guaranteed surrender value and the special surrender value as the surrender value.
- Loan Facility: Loans may be obtained during the policy period as long as at least two full years’ premiums have been paid, subject to the conditions that the corporation may establish at any time.
- Free Look Period: If the policyholder is dissatisfied with the terms and conditions of the LIC Jeevan Umang plan, he/she can cancel the policy and return it to the corporation within 15 days from the date of receipt of the policy.
- Rebate: The plan offers rebates on various basic sum assured amounts. They are as follows:
|Basic Sum Assured (Rs.)||Rebate On Premium|
|2,00,000 To 4,75,000||Nil|
|5,00,000 To 9,75,000||1.25% On BSA|
|10,00,000 To 24,75,000||1.75% On BSA|
|25,00,000 & Above||2.00% On BSA|
Benefits Offered By LIC Jeevan Umang Plan
Below are some of the incredible benefits offered by the plan:
- Death Benefit: The nominee will get a refund of any premium payments made if the policyholder passes away prior to the “Risk Commencement Date.” The nominee will receive the Sum Assured on Death if the policyholder passes away after the “Risk Commencement Date.” Sum Assured on Death will be the highest of 10 X Annualized Premium and Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
- Survival Benefit: After one year of premium payments have been made, the policyholder will begin receiving 8% of the Basic Sum Assured annually. Until he becomes 100 or passes away, whichever comes first, this sum is due each year.
- Maturity Benefit: The insured will receive the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus at becoming 100 years old.
- Participation In Profits: The policy will share in profits throughout the policy term, based on the corporation’s past experience with policies issued under this scheme.
- Rider Benefits: The plan offers five optional riders to enhance the policy including Accidental Benefit Rider, Accidental Death & Disability Benefit Rider, New Term Assurance Rider, Premium Waiver Benefit Rider, and Critical Illness Benefit Rider.
- Tax Benefits: Under Section 80 C and 10(10 D) of the Income Tax Act of 1969, the policyholders can enjoy the tax benefits on the premium amounts as well as the death and maturity benefits of the plan.
Functioning Of LIC’s Jeevan Umang Plan
Let’s understand this plan with a suitable example!
Imagine Mr. Rakesh, 30 years old, buys LIC Jeevan Umang plan of sum assured Rs. 5 lakhs and premium payment term of 20 years. The policy term will be 100 – Entry Age, i.e., 100 – 30 = 70 years. Therefore, the annualized premium including tax will be Rs. 26,104 + 1,175 = Rs. 27,279.
SCENARIO 1: Mr. Rakesh dies after 6 years of paying the premium.
In such a case, the nominee will get the death benefit which is higher of the following:
- 10 X Annualized Premium = 10 X 27,279 = Rs. 2,72,790
- Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus = Rs. 5,00,000 + Simple Reversionary Bonus + Final Addition Bonus
SCENARIO 2: Mr. Rakesh dies after 23 years of paying the premium
As the premium payment term is over and Mr. Rakesh has paid all his 20 premiums, he will be eligible for the survival benefits.
1 Year After The 20th Premium: 8% of Sum Assured = 8% of 5,00,000 = Rs. 40,000
2 Years After The 20th Premium: 8% of Sum Assured = Rs. 40,000
3 Years After The 20th Premium: 8% of Sum Assured = Rs. 40,000
Moreover, after Mr. Rakesh’s death, the nominee will get the death benefit as mentioned in the above case.
Therefore, Mr. Rakesh will receive 8% of the Basic Sum Assured for each year he lives following the premium-paying period. Until he is 100 or until he passes away, whichever comes first, he will receive this Rs. 40,000. Additionally, if he passes away at any point beyond the term for paying the premiums, his nominee will get the Death Benefit, and the insurance will expire.
SCENARIO 3: Mr. Rakesh survives till the age of 100.
After the 20-year period of premium payments has ended, Mr. Rakesh would receive the Survival Benefit of Rs. 40,000 per year. The Maturity Benefit, which consists of the Sum Assured plus the Simple Reversionary Bonus and the Final Addition Bonus, is also available to him.
Exclusions Under LIC’s Jeevan Umang Plan
The following things are excluded under the policy:
- Only 80% of the premiums paid up to the date of death may be claimed by nominees if the life assured commits suicide within the first year of the policy.
- After a full year from the policy’s resurrection date, if the life assured dies by suicide, the nominees may be entitled to the higher 80 percent of premiums paid thus far or the policy’s acquired surrender value.
How To Purchase LIC’s Jeevan Umang Plan?
Since the plan is not available for online purchase on the LIC website, you can buy it via an offline method. You can pay a visit to a nearby LIC branch office and the customer representative present there will assist you in buying the plan. Make sure to bring all your necessary documents to make your purchase seamless and convenient. You can also make a call to the company’s customer care number to ensure you bring the relevant documents to the branch office.
Frequently Asked Questions
You can select to receive your death or maturity benefit on monthly basis over 5, 10, or 15 years. In this manner, this plan can act as a monthly income source for you and your family.
According to the Jeevan Umang plan, risk began to accrue on the following date:
- For Life Assured under the age of eight years, the date of risk initiation will either begin after two policy years have passed or after turning eight years old.
- For Life Assured over the age of 8, the date of the risk’s onset shall be immediate.
The Jeevan Umang Plan of the LIC is also applicable to minor lives, therefore the date of vesting for minor lives assured shall be the date of the policy anniversary or the year in which the minor lives assured turns 18 years of age; the policy shall vest in the name of the primary life assured.
The following factors of the policy’s surrender value determine the allowable loan amount that may be accessed during the premium-paying term of the policy:
- For active insurance, a maximum loan of 90 percent may be accessed.
- For fully paid-up policies, a maximum loan amount of 80% may be accessed.