LIC Jeevan Lakshya vs Jeevan Umang Policy

LIC Jeevan Lakshya Vs. Jeevan Umang

It might not be necessary to purchase life insurance for a person if no one depends on him/her or if he/she has sufficient financial resources. But if an individual has dependents who depend on him/her for financial support, he/she should consider purchasing life insurance so that the policy can cover the family members in the event of his/her untimely death.

In the realm of life insurance policies, LIC (Life Insurance Corporation of India) is a reliable name that guarantees government backing. Two of its plans, LIC Jeevan Lakshya and LIC Jeevan Umang, are specifically designed to offer security to the family members after the insured is gone. However, choosing any one of them may be confusing for some individuals, especially those who are not aware of the fundamental aspects of a life insurance policy.

Therefore, this post will highlight some of the key differences and similarities between the two plans so that one can make a wise decision!

What Is LIC Jeevan Lakshya?

Jeevan Lakshya policy from LIC is created to offer financial security to the policyholder’s family in the event of unfavorable occurrences like death, making sure that their future requirements are met. The plan primarily benefits minors and offers yearly income benefits to meet the needs of the family.

It is an accumulation of savings that also takes into account the risks. It is a restricted premium payment plan that is in no way associated with or categorized as a with-profit endowment assurance plan.

What Is LIC Jeevan Umang?

Jeevan Umang plan from LIC is a whole-life insurance policy created to provide the insured’s family with financial security and protection while he/she is away. From the conclusion of the premium-paying period until the time of maturity, this plan offers yearly survivor benefits. Additionally, if the policyholder passes away during the policy term or at maturity, a lump sum payment is made.

Eligibility Conditions Of LIC Jeevan Lakshya & LIC Jeevan Umang

ParametersLIC Jeevan LakshyaLIC Jeevan Umang
Minimum Entry Age18 Years (Last Birthday)90 Days (Completed)
Maximum Entry Age50 Years (Nearer Birthday)55 Years (Nearer Birthday)
Policy Term13 To 25 Years(100 Minus Age At Entry) Years
Minimum Basic Sum AssuredRs. 1,00,000Rs. 2,00,000
Maximum Basic Sum AssuredNo Limit
Premium Paying Term(Policy Term Minus 3) Years15, 20, 25, & 30 Years
Maturity Age65 Years (Nearer Birthday)100 Years (Nearer Birthday)

Comparison Of LIC Jeevan Lakshya & LIC Jeevan Umang

To make a better decision, it’s important to compare the features and benefits of both plans. Death Benefit: Both plans, LIC Jeevan Lakhya and LIC Jeevan Umang, offer death benefits, including ‘Sum Assured on Death’, ‘Simple Reversionary Bonuses’, and ‘Final Additional Bonus’, if any. This ‘Sum Assured on Death’ will be as follows for the plans: LIC Jeevan Lakshya
  • 7 X Annualized Premium
  • Sum of 110% of the Basic Sum Assured
LIC Jeevan Umang
  • 7 X Annualized Premium
This death benefit cannot be less than 105 percent of the premiums that have been paid up to the date of death. Maturity Benefit: If the life assured survives the policy term and the policy is still in effect, “Sum Assured on Maturity” will be paid, together with any vested ‘Simple Reversionary Bonuses’ and ‘Final Additional Bonuses’. This maturity benefit is available under both plans and is equal to the ‘Basic Sum Assured’. Survival Benefit: This benefit is present with Jeevan Umang policy from LIC. A survival bonus equivalent to 8% of the ‘Basic Sum Assured’ will be paid annually if the life assured survives to the end of the premium-paying term and all required premiums have been paid. The first survival benefit payment is made at the conclusion of the premium-paying period, and thereafter, provided the life assured survives, on completion of each succeeding year, or, if earlier, on the policy anniversary prior to the date of maturity. Rider Benefits: Sometimes the standard coverage is not sufficient for growing needs. Therefore, both plans offer rider options that the policyholder can purchase by paying an extra premium. The rider options available under both the plans are as follows: Jeevan Lakshya From LIC
  • Accidental Death & Disability Benefit Rider
  • Accident Benefit Rider
  • New Term Assurance Rider
  • New Critical Illness Benefit Rider
Jeevan Umang From LIC
  • Accidental Death & Disability Benefit Rider
  • Accident Benefit Rider
  • New Term Assurance Rider
  • New Critical Illness Benefit Rider
  • Premium Waiver Benefit Rider
Rebates: In case the policyholders of both plans have chosen a high sum assured, the plans offer various rebates as follows:
Basic Sum Assured (Rs.) Rebates On Tabular Premium
LIC Jeevan Lakshya
1,00,000 To 1,90,000 Nil
2,00,000 To 4,90,000 2% Of BSA
5,00,000 & Above 3% Of BSA
LIC Jeevan Umang
2,00,000 To 4,75,000 Nil
5,00,000 To 9,75,000 1.25% Of BSA
10,00,000 To 24,75,000 1.75% Of BSA
25,00,000 & Above 2.00% Of BSA

Benefit Illustration Of LIC Jeevan Lakshya & LIC Jeevan Umang

To choose the right plan out of the two, benefit illustrations of both plans are necessary. It will help in forecasting the performance of both plans during the course of its coverage. Therefore, this section will give a detailed illustration of the benefits of both plans.

LIC Jeevan Lakshya:

Let’s take the example of Mr. Dinesh, a 30-year-old male, who has purchased the Jeevan Lakshya life insurance policy from LIC. The details of the plan are as follows:

  • Policy Term: 25 Years
  • Premium Payment Term: 22 Years
  • Premium Payment Mode: Yearly
  • Basic Sum Assured: Rs. 1,00,000
  • Premium (Excluding Taxes): 4,366

The plan will work for him in the following manner!

 

End Of Year

Total Premium Paid Till The End Of The YearGuaranteed BenefitNon-Guaranteed BenefitTotal Maturity BenefitTotal Death Benefit
Sum Assured On MaturitySum Assured On Death(Simple Reversionary Bonus)
Total Income Benefit Payable In Equal Instalments Over O/S Term After DeathLump Sum Payable On Date Of Maturity@4% PA@8% PA@4% PA@8% PA@4% PA@8% PA
521,83002,00,0001,10,0003,50016,000001,27,5002,00,000
1565,49001,00,0001,10,00010,50048,000001,27,5002,00,000
2087,320050,0001,10,00014,00064,000001,27,5002,00,000
2191,686040,0001,10,00014,70067,200001,27,5002,00,000
2296,052030,0001,10,00015,40070,400001,27,5002,00,000
2396,052020,0001,10,00016,10073,600001,27,5002,00,000
2496,052010,0001,10,00016,80076,800001,27,5002,00,000
2596,0521,00,00001,10,00017,50080,0001,17,5001,90,0001,27,5002,00,000

LIC Jeevan Umang:

Let’s take the example of a 25-year-old Akansha, who has purchased the Jeevan Umang life insurance plan from LIC. The policy details are as follows:

  • Policy Term: 25 Years
  • Premium Paying Term: 30 Years
  • Premium Payment Mode: Yearly
  • Basic Sum Assured: Rs. 5,00,000
  • Premium (Excluding Taxes): Rs. 14,758

The benefits available under different scenarios of the plan are as follows!

End of YearTotal Premium Paid Till the End Of The Year (Rs.)Guaranteed BenefitsNon-Guaranteed BenefitTotal Maturity BenefitTotal Death Benefit
Survival BenefitSum Assured On DeathSum Assured On Maturity(Simple Reversionary Bonus)
@4% PA@8% PA@4% PA@8% PA@4% PA@8% PA
573,92505,00,000001,07,500005,00,0006,07,500
101,47,85005,00,000002,15,000005,00,0007,15,000
202,95,70005,00,000004,30,000005,00,0009,47,500
404,43,55040,0005,00,000007,52,500005,00,00021,40,000
604,43,55040,0005,00,000009,67,500005,00,00043,12,500
654,43,55040,0005,00,0000010,21,250005,00,00050,03,250
704,43,55040,0005,00,0000010,75,000005,00,00056,86,000
754,43,55005,00,0005,00,000011,28,7505,00,00063,08,2505,00,00063,08,250

Which One Is Better: LIC Jeevan Lakshya OR LIC Jeevan Umang?

Both policies are good to go.

The LIC Jeevan Lakshya insurance is unquestionably the finest alternative if you’re seeking larger sum assured rebates and enhanced maturity benefits. The plan does have a number of drawbacks, though, including the fact that benefits are not guaranteed and bonus declarations change annually.

On the other hand, if you wish to have lifelong coverage and guaranteed annual benefits, then the LIC Jeevan Umang plan is the best option for you. However, there is one key drawback. Receiving the survival benefits occurs at a defined frequency and there is only a yearly option offered. It doesn’t account for inflation either.

Also, it is highly advised to check the reviews of both plans before making any decision. Instead of browsing LIC Jeevan Umang reviews on social media sites like ‘Quora’, consult licensed and experienced financial advisers who can provide you with personalized suggestions.

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