LIC Jeevan Umang

  • Protect your life till 100 Years
  • Best Gift for Your Loved Ones
  • 100% Tax-free

What is LIC Jeevan Umang Plan?

LIC’s Jeevan Umang (Plan No. 945) is a non-linked, participating, individual, whole-life assurance plan that covers the policyholder till s/he turns 100 years of age. The limited premium paying plan provides guaranteed annual survival benefits at the end of the premium paying term till maturity. Also, the policyholder gets a lump sum payment at maturity. In case of the policyholder's unfortunate demise during the active policy, the nominee gets a cash payout as the death benefits.

As a participating plan, LIC Jeevan Umang qualifies for the Simple Reversionary Bonus and a final Addition Bonus (if applicable). These assured benefits act as an income source that safeguards your family's future in case of any emergency.

Highlights of LIC Jeevan Umang

Below mentioned are the highlights of LIC Jeevan Umang

  • Premium Paying Terms

    15, 20, 25, and 30 years

  • Tax Benefit

    100% Tax-free Maturity

  • Premium Paying Term

    15, 20,25, and 30 years

  • Yearly Survival Benefits

    At 8% of the basic sum assured

Eligibility Criteria for LIC Jeevan Umang Policy

Some pre-defined eligibility criteria and restrictions make the policyholder eligible to buy Life Insurance Corporation Jeevan Umang Policy.

  • Entry Age

    90 days - 55 years

  • Basic Sum Assured

    Rs. 2 Lakh - No Limit

  • Policy Term

    (100 minus age at entry) years

  • Age at the End of Premium Paying Term

    30 years - 70 years

  • Age at Maturity

    100 years

Date of Commencement of Risk

In case the entry age of the life assured is less than 8, the commencement of the risk will start either one day before the completion of 2 years policy anniversary or one day before the policy anniversary on or immediately following the completion of 8 years, whichever is earlier. For policyholders over 8 years, the risk starts immediately from the policy issuance.

Benefits of LIC Jeevan Umang Plan

The following benefits are extended under Life Insurance Corporation Jeevan Umang Plan:

Death Benefit

  • If the policyholder dies before the risk commencement, the nominee can claim the entire premium amount paid till the date of death. The company shall return all the paid premiums, excluding interest and other expenses. 
  • If the policyholder dies after the risk commencement and before maturity, in that case, the company shall pay the death benefits as the higher of 7 times of annualised premium or basic sum assured. The death benefit includes a simple reversionary bonus and a final additional bonus (if applicable).

Survival Benefit

  • If the policyholder survives the premium payment term and all the premiums have been duly paid, the Jeevan Umang plan provides annual survival benefits till maturity. 
  • The guaranteed annual survival benefit of 8% of the Basic Sum Assured will be paid annually.
  • The benefits are provided till the policy anniversary prior to the maturity of the plan or the death of the policyholder (whichever event occurs first).

Maturity Benefit

If the policyholder survives the end of the premium tenure, a sum assured will be provided as the maturity benefits along with the vested Simple Reversionary Benefits and a Final Additional Bonus (if any).

Participation of Profits

The LIC Umang is eligible to participate in the Company’s profits during the policy term. This makes the policyholder eligible to receive Simple Reversionary Bonuses during the premium-paying tenure and Final Additional Bonus (if any) when the policy results in a claim by death. These bonuses are not payable under a paid-up policy or surrender of a policy during the premium paying term.

Why Choose LIC Jeevan Umang Plan

The mentioned benefits are not the only entity that makes the plan worth purchasing; let’s learn more about why you should invest in Life Insurance Corporation Jeevan Umang. Suppose you have decided on the life cover you want for yourself and your family's financial security. Let’s see what perks you get-

Tax-free Benefits

LIC Jeevan Umang Plan allows tax exemption over all the proceeds you receive, whether maturity, death, or annual survival benefits. All the benefits are tax-free under Section 10 (10D) of the Income Tax Act 1961.

Life Cover of 100 Years

The life cover of the LIC Umang starts with the date of policy issuance and lasts till the assured reaches 100 years.

Guaranteed Income

Suppose you buy your child’s Jeevan Umang Policy. After your child survives the premium paying term, the policy will provide the survival benefit every year till the coverage year ends. Hence, you have secured a guaranteed annual income source for your child starting from 30 years age.

How does LIC Jeevan Umang Plan work?

To provide most of the benefits to the life assured, the LIC Jeevan Umang allows them to choose premium payment modes conveniently. You can pay a premium yearly, half-yearly, quarterly, and monthly.

Suppose Rakesh is 30 years old when buying the policy of a basic sum assured of 2 Lakh for 20 years.

The policy term = 100 minus 30 = 70 years

Premium Paying Term = 20 years

Premium Rates Under LIC Jeevan Umang Plan

You can also use the Jeevan Umang calculator online to get your premium quotes before buying the plan. The standard premium for a basic sum assured of 2 Lakh will be as mentioned

Age

Premium Paying Term

15 20 25 30
20 Rs. 15739 Rs. 10692 Rs. 7830 Rs. 6105
30 Rs. 15739 Rs. 10692 Rs. 7879 Rs. 6282
40 Rs. 15739 Rs. 10741 Rs. 8291 Rs. 6880
50 Rs. 15739 Rs. 11544 – –

Let’s see the benefits Rakesh or his family will get from the life cover

Rakesh dies within the premium paying term

Rakesh’s family will receive a benefit equal to 7 times the annual premium or the basic sum assured plus applicable guaranteed benefits (Rs. 2,00,000 + Bonus), whichever amount is higher.

If Rakesh dies 10 years after the end of the premium paying term

Rakesh is eligible to get the survival and death benefits as follows-

  • Rakesh will receive the annual survival benefits for 10 years after the premium paying term till death, equal to 8% of the basic sum assured.  
  • On his death, Rakesh’s family can claim the death benefit, equal to sum assured plus applicable guaranteed benefits (Rs. 2,00,000 + Bonus).

If Rakesh survives the policy term till 70 years

Rakesh is eligible to get the survival and maturity benefits as follows-

  • Rakesh will receive the annual survival benefits from the end of the premium paying term until the policy matures, at the rate of 8% of the basic sum assured.  
  • Rakesh will get the maturity benefit which is the basic sum assured plus applicable guaranteed benefits (Rs. 2,00,000 + Bonus).

9 Remarkable Features of LIC Jeevan Umang Plan 

Besides the attractive benefits for life, Jeevan Umang offers remarkable features that make the plan the right investment.

Take Death Benefit in Instalments

LIC’s Jeevan Umang allows the policyholder to take the death benefits in instalments over 5, 10, or 15 years instead of a lump sum. This feature is available under paid-up and in-force policy. The minimum amount of instalments during different periods can be made as under

Mode of Instalment Payment Minimum Instalment Payment
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Yearly Rs. 50,000

* The chart is based on the illustration stated by LIC and approved by IRDAI.

Payment of Premiums

LIC Jeevan Umang allows the policyholder to make the premiums payments at regular intervals in yearly, half-yearly, quarterly, or monthly modes (using NACH only). The plan also allows salary deductions of the premium during the premium paying term of the policy.

Grace Period

The policy offers a grace period of 30 days for payments in yearly, half-yearly, and quarterly modes and 15 days for monthly payment modes from the date the first premium remains unpaid. During this period, the policy will remain in force, and if the policyholder misses paying the premium, the policy lapses.

Revival

The lapsed Jeevan Umang can be revived within 5 consecutive years from the first date of unpaid premiums and before the date of maturity. The policyholder must pay all outstanding premiums, interest, and other expenses.

The revival of the rider is only allowed with the revival of the base policy, not in isolation.

Free-look Period

LIC Umang allows a freelook period of 15 days from the policy buying date. If the policyholder is unsatisfied with the terms and conditions of the policy, they can return it within 15 days. The policyholder needs to state the reasons for objections to receiving the policy, and the corporation shall cancel the policy and return the premium amount paid, excluding any expenses.

Avail Loan

Loans can be availed against LIC Jeevan Umang policy if a policyholder has paid at least two full years’ premium and the policy has acquired a surrender value. The policyholder can avail of the maximum loan as a percentage of surrender value in the following conditions

  • During the premium paying term
    For in-force policies– upto 90% of surrender value
    For paid-up policies– upto 80% of surrender value
  • After the premium paying term
    The maximum loan amount varies per the condition that the annual interest rate of loan should not exceed 50% of the annual survival benefit.
    • In the conditions of unpaid loans, recovery should be allowed from the claim during exit, along with the applicable interest.

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7. Surrender Value

A policyholder can surrender the policy anytime after paying two full years' premiums. In such cases, the Jeevan Umang LIC acquires a surrender value. The insured will receive the surrender value, termed as Guaranteed Surrender Value or Special Surrender Value, whichever is higher.

8. Rebates 

LIC is popularly known for serving the most affordable premium plans. Jeevan Umang LIC offers rebates on different premium modes.

Premium Mode Rebates
Yearly 2% of Tabular Premium
Half-yearly 1% of Tabular Premium
Quarterly NIL
Monthly & Salary Deductions NIL

Rebates are also offered based on the sum assured.

Basic Sum Assured (B.S.A.) Rebates
Rs. 2,00,000 to Rs. 4,45,000 NIL
Rs. 5,00,000 to Rs. 9,75,000 1.25% of B.S.A.
Rs. 10,00,000 to Rs. 24,75,000 1.75% of B.S.A.
Rs. 25,00,000 to and above 2.00% of B.S.A.

9. Paid-Up Value

If a policyholder has paid a premium of less than two years and subsequent premiums are not duly paid, all policy benefits cease after the grace period expires. If at least two years' premiums are duly paid, and any subsequent premiums are not paid, the policy acquires a paid-up value until the end of the term.

  • As per the plan, the sum assured paid at the time of death is known as “Death Paid-Up Sum Assured” and is calculated as
    Death Paid-up Sum Assured = ( Number of premiums paid/ Total Number of Premiums to be paid ) X Sum assured on death
  • As per the plan, the sum assured paid at the time of maturity is known as “Maturity Paid-Up Sum Assured” and is calculated as
    Maturity Paid-up Sum Assured = ( Number of premiums paid/ Total Number of Premiums to be paid ) X Sum assured on Maturity

Riders Offered by LIC Jeevan Umang Plan

An extra premium amount needs to be paid by the policyholder to avail of 5 optional riders under Jeevan Umang plan. A maximum of 4 riders can be availed from the following five optional riders under this plan

  • LIC’s Accidental Death and Disability Benefit Rider
    Suppose this rider has opted in case of accidental death of the policyholder. In that case, the accident benefit sum assured will be payable in lump sum along with the death benefits of the base plan, and the rider is at least 5 years. In case of accidental disability (within 180 days of the accident date), a benefit amount equal to the accidental benefit sum assured will be paid in equal monthly instalments up to 10 years. The benefit under this rider will be available upto the 70 years of age of the policyholder.
  • LIC’s Accident Benefit Rider
    If this rider is opted, in case of accidental death of the policyholder, the accident benefit sum assured will be payable in lump sum along with the death benefits of the base plan, and the rider is at least 5 years. The benefits this rider covers are only payable under the premium payment term.
  • LIC’s New Term Assurance Rider
    A policyholder can only opt for this rider during the inception of the policy. If this rider is selected, an amount equal to the term assurance rider, including the base death benefit, shall be offered. This rider is available for a term of 35 years or the policy anniversary on which the age nearer the birthday of the policyholder is 75 years, whichever is earlier.
  • LIC’s New Critical Illness Benefit Rider
    A policyholder can only opt for this rider during the inception of the policy. The critical illness benefits are payable on the first diagnosis specified under the rider. Basically, 15 critical illnesses are covered under this rider benefit. This rider is available for a term of 35 years or the policy anniversary on which the age nearer the birthday of the policyholder is 75 years, whichever is earlier.
  • LIC’s Premium Waiver Benefit Rider
    If opted for this rider, all the future due premium payments under the base policy will be waived off following the policyholder's death, and the rider is at least five years.

Exclusions of LIC Jeevan Umang Plan

By now, you are well aware of all the benefits and features of Jeevan Umang Plan 945. Still, you must be aware of some key clauses under Jeevan Umang policy exclusions. These are:

  • Suppose the policyholder (sane or insane) commits suicide within 12 months of the commencement of risk. In that case, the company will not provide any risk cover but is entitled to payout 80% of the total premium paid, excluding the rider premiums, additional premiums, and taxes other than term assurance rider, if any.
    This clause shall not apply if the life assured's entry age is less than 8 years.
  • If the policyholder (sane or insane) commits suicide within 12 months from the revival date, the company will pay an amount higher than 80% of the total premium paid till the date of the death. Or the company is liable to pay the surrender value available as of the date of death. The amount excludes any extra premiums, taxes, or rider premiums. The policy will not bear any further claims under LIC Umang policy.
    Nothing shall be payable if the life assured is less than 8 years at the time of the revival or for the policy lapsed without acquiring the paid-up value.

Final Words

The Jeevan Umang benefits make the LIC life insurance policy a good financial shield for you and your family in an emergency. The variety of riders will enhance the life cover at a minimal rate. The most important advantage is that the entry age of the plan is 90 days to 55 years. Hence, it can be the most suitable gift for your child or grandchildren to provide them with a guaranteed income when they need it the most. Plus, if you get yourself assured with LIC Jeevan Umang Plan, you will get an assured income as a retirement corpus.

Wait no more! As you can buy Jeevan Umang online in simple steps. If you need clarification on your specific issue occurred, just connect with one of our experts at RenewBuy.

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