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
| Parameters | LIC Jeevan Lakshya | LIC Jeevan Umang |
| Minimum Entry Age | 18 Years (Last Birthday) | 90 Days (Completed) |
| Maximum Entry Age | 50 Years (Nearer Birthday) | 55 Years (Nearer Birthday) |
| Policy Term | 13 To 25 Years | (100 Minus Age At Entry) Years |
| Minimum Basic Sum Assured | Rs. 1,00,000 | Rs. 2,00,000 |
| Maximum Basic Sum Assured | No Limit | |
| Premium Paying Term | (Policy Term Minus 3) Years | 15, 20, 25, & 30 Years |
| Maturity Age | 65 Years (Nearer Birthday) | 100 Years (Nearer Birthday) |
Comparison Of LIC Jeevan Lakshya & LIC Jeevan Umang
- 7 X Annualized Premium
- Sum of 110% of the Basic Sum Assured
- 7 X Annualized Premium
- Accidental Death & Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
- New Critical Illness Benefit Rider
- Accidental Death & Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
- New Critical Illness Benefit Rider
- Premium Waiver Benefit Rider
| 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 Year | Guaranteed Benefit | Non-Guaranteed Benefit | Total Maturity Benefit | Total Death Benefit | |||||
| Sum Assured On Maturity | Sum Assured On Death | (Simple Reversionary Bonus) | ||||||||
| Total Income Benefit Payable In Equal Instalments Over O/S Term After Death | Lump Sum Payable On Date Of Maturity | @4% PA | @8% PA | @4% PA | @8% PA | @4% PA | @8% PA | |||
| 5 | 21,830 | 0 | 2,00,000 | 1,10,000 | 3,500 | 16,000 | 0 | 0 | 1,27,500 | 2,00,000 |
| 15 | 65,490 | 0 | 1,00,000 | 1,10,000 | 10,500 | 48,000 | 0 | 0 | 1,27,500 | 2,00,000 |
| 20 | 87,320 | 0 | 50,000 | 1,10,000 | 14,000 | 64,000 | 0 | 0 | 1,27,500 | 2,00,000 |
| 21 | 91,686 | 0 | 40,000 | 1,10,000 | 14,700 | 67,200 | 0 | 0 | 1,27,500 | 2,00,000 |
| 22 | 96,052 | 0 | 30,000 | 1,10,000 | 15,400 | 70,400 | 0 | 0 | 1,27,500 | 2,00,000 |
| 23 | 96,052 | 0 | 20,000 | 1,10,000 | 16,100 | 73,600 | 0 | 0 | 1,27,500 | 2,00,000 |
| 24 | 96,052 | 0 | 10,000 | 1,10,000 | 16,800 | 76,800 | 0 | 0 | 1,27,500 | 2,00,000 |
| 25 | 96,052 | 1,00,000 | 0 | 1,10,000 | 17,500 | 80,000 | 1,17,500 | 1,90,000 | 1,27,500 | 2,00,000 |
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 Year | Total Premium Paid Till the End Of The Year (Rs.) | Guaranteed Benefits | Non-Guaranteed Benefit | Total Maturity Benefit | Total Death Benefit | |||||
| Survival Benefit | Sum Assured On Death | Sum Assured On Maturity | (Simple Reversionary Bonus) | |||||||
| @4% PA | @8% PA | @4% PA | @8% PA | @4% PA | @8% PA | |||||
| 5 | 73,925 | 0 | 5,00,000 | 0 | 0 | 1,07,500 | 0 | 0 | 5,00,000 | 6,07,500 |
| 10 | 1,47,850 | 0 | 5,00,000 | 0 | 0 | 2,15,000 | 0 | 0 | 5,00,000 | 7,15,000 |
| 20 | 2,95,700 | 0 | 5,00,000 | 0 | 0 | 4,30,000 | 0 | 0 | 5,00,000 | 9,47,500 |
| 40 | 4,43,550 | 40,000 | 5,00,000 | 0 | 0 | 7,52,500 | 0 | 0 | 5,00,000 | 21,40,000 |
| 60 | 4,43,550 | 40,000 | 5,00,000 | 0 | 0 | 9,67,500 | 0 | 0 | 5,00,000 | 43,12,500 |
| 65 | 4,43,550 | 40,000 | 5,00,000 | 0 | 0 | 10,21,250 | 0 | 0 | 5,00,000 | 50,03,250 |
| 70 | 4,43,550 | 40,000 | 5,00,000 | 0 | 0 | 10,75,000 | 0 | 0 | 5,00,000 | 56,86,000 |
| 75 | 4,43,550 | 0 | 5,00,000 | 5,00,000 | 0 | 11,28,750 | 5,00,000 | 63,08,250 | 5,00,000 | 63,08,250 |
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.
