LIC Jeevan Umang

About LIC Jeevan Umang

• LIC Jeevan Umang is a whole-life policy in which one gets a life cover till 100 years or one is alive
• Vested simple reversionary bonus and final additional bonus is paid on maturity
• Premium paying term is less than the policy term
• Policy term is calculated by the equation (100 – insured’s entry age)
• 8% of basic sum assured is paid every year as survival benefit from the end of premium payment term
• Flexible premium paying mode (single payment or monthly or quarterly or annually or semi-annually)
• Offers additional benefits in the form of four riders

How Does This Plan Work?

Under LIC Jeevan Umang plan an individual chooses a premium payment term (15, 20, 25 and 30) to pay regular premium for a policy term. The policy term is determined by the equation (100 – insured’s entry age). From the last year of the premium payment term, he will receive 8% of basic sum assured every year till maturity or till he lives, as survival benefit. On maturity he will receive a lump sum that consists of Basic Sum Assured + Vested simple reversionary Bonus + Final additional Bonus (if any payable).

Due to an unforeseen event, if the individual dies, his nominee will receive Sum Assured on Death. Consider the following instances, wherein his nominee will get the Sum Assured on Death

Note that the total death benefit paid should be > 105% of all the premiums paid as on date of death.

Now let’s understand this plan with an example:

Person’s age: 35 years
Sum Assured: Rs 5 lakhs
Premium paying term: 20 years
Policy term: 100 – 35 (100 – insured’s entry age) = 65 years

Consider a 35-year-old person chooses 20 years of premium payment term for a sum assured of Rs 5 lakhs under LIC Jeevan Umang plan; having 65 years of policy term. From the end of the 20^th year, he will receive Rs 40,000 every year till maturity or as long as he lives. On maturity, he will receive Rs 5 lakh (Basic Sum Assured) + Rs 4,70,000 (Vested simple reversionary bonus during premium payment term) + Rs 5,28,750 (Vested simple reversionary bonus after premium payment term) + Rs 34,85,000 (Final Additional Bonus, if payable). So, he gets Rs 49,83,750 as the total maturity benefit amount.

If in-case of death of the individual in the 5^th year of the policy term, his nominee will receive Rs 5 lakh (Basic Sum Assured) + Rs 1,17,500 (Vested simple reversionary bonus till 5 years). So the nominee gets Rs 6,17,500 as total death benefit.

Why should you buy LIC Jeevan Umang?

• This plan offers a combination of income and protection to one’s family
• This plan provides periodic payouts for specific life goals
• This plan also acts as extra income provider
• Low investment with high returns
• Premiums paid are tax exempt under Section 80C and maturity amount is tax free under Section 10(10D)
• Offers tax rebates on premium paid if higher sum assured is chosen

Who should buy LIC Jeevan Umang Plan?

• Minimum and maximum entry ages are 90 days and 55 years respectively
• Minimum sum assured is Rs 2 lakhs
• Maximum and maximum ages at the end of premium paying terms are 30 and 70 years respectively
• Age at maturity is 100 years
• Individuals who are looking for an additional source of income that would be helpful for their child’s marriage
• Individuals who wish to keep their legacy behind after their death
• Individuals who want income tax benefits

Riders and Add-ons

Riders available with this plan are as follows:

• LIC’s New Term Assurance Rider:  Under this rider option, an additional lump sum benefit is paid to the nominee on the unfortunate death of the policyholder.
• LIC’s Accident Benefit Rider: Under this rider option, an additional lump sum benefit is paid to the nominee on the unfortunate accidental death of the policyholder.
• LIC’s Accidental Death and Disability Benefit Rider: If the policyholder becomes permanently disabled due to an accident, a lump sum benefit will be paid to him.
• LIC’s New Critical Illness Benefit Rider: If the policyholder is diagnosed with any one of the major critical illness, he will get an additional lumpum benefit.

Claim Process

Know Claim Process of LIC Jeevan Umang

Claim Process