LIC’s Jeevan Umang is a non-linked, with profit individual, whole life assurance plan. Jeevan Umang plan provides guaranteed income and insurance cover till the age 100. This combination plan provides income and protection in one single plan.
Table of Contents
LIC Jeevan Umang Plan – Key Features & Eligibility
- You pay for a certain duration, thereafter get regular income payout till maturity period.
- Assured income of 8% of sum assured till maturity.
- On death the family gets sum assured, bonus and Final additional bonus.
- Tax benefit on premium paid.
| Minimum Basic Sum Assured | Rs. 2,00,000 |
| Maximum Basic Sum Assured(The Basic Sum Assured shall be in multiples of Rs. 25,000/-) | No limit |
| Premium Paying Term | 15, 20, 25 and 30 years) |
| Policy Term | (100 – age at entry) years |
| Minimum Age at entry | 90 days (completed) |
| Maximum Age at entry | 55 years (completed) |
| Minimum Age at the end of premium paying term | 30 years (nearest birthday) |
| Maximum Age at the end of premium paying term | 70 years (nearest birthday) |
| Age at maturity | 100 years (nearest birthday) |
Benefits under LIC Jeevan Umang Policy
Survival Benefit :
- Income of 8% of Basic Sum Assured is given each year.
- The first payment is given at the end of premium paying term and thereafter on completion of each subsequent year ( till the Life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier).
Maturity Benefit
On maturity of policy, Sum Assured along with vested Simple Reversionary Bonuses and Final Additional bonus,is paid.
Death benefit
On death of the Life Assured, the nominee will get higher of the following
- basic Sum Assured
- 7 times of Annual Premium amount
*At any point of time the death benefit will not be lower than 105% of annual premium paid till date.
For example, if Mr. Anand is paying a premium of Rs 1 lac. In case of unfortunate event after 5 years, the family will get minimum 100000*5*105% =525000.
The amount death benefit is paid, depends on when the event( death) occurred:
On death BEFORE the commencement of Risk:
Return of premium/s paid without interest shall be payable.
On Death AFTER the commencement of Risk:
Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional bonus
Option to take Death Benefit in instalments:
One can choose to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for
Different modes of payments being as under:
| Mode of Instalment payment | Minimum instalment amount |
| Monthly | Rs. 5,000/- |
| Quarterly | Rs. 15,000/- |
| Half-Yearly | Rs. 25,000/- |
| Yearly | Rs. 50,000/- |
Date of commencement of Risk
In case the age at entry of the Life Assured is less than 8 years
The risk under this plan will commence either one day before the completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.
For example, Suppose Mr. Anand takes LIC Jeevan Umang for his Son Aarav, 5 years Age on 25/9/2020. The risk will commence from 24/9/2022 or at the time when Aarav will turn 8 years ( risk will commence on policy anniversary only).
For those aged 8 years or more
In such cases, the risk will commence immediately.
Riders
The policyholder has an option of availing following Rider benefit(s):
- LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death -Accidental death Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums for rider, will be waived off.
- LIC’s Accident Benefit Rider -In case of accidental death, the Accident Benefit Sum Assured will be payable in lump sum.
- LIC’s New Term Assurance Rider – The additional term assurance rider sum assure will be given, in case of death of policyholder.
- LIC’s New Critical Illness Benefit Rider -on diagnosis of any of specified illness 15 critical Illness Sum Assured shall be payable
- LIC’s Premium Waiver Benefit Rider – The rider can be taken if the life assured is minor. in case of death of proposer, premium payment of base policy will be paid by LIC.
Rider sum assured cannot exceed the Basic Sum Assured.
what if you do not pay Premium -(Paid-up)
The policy acquire a paid up value if you stop paying premium and the paid up value is given at the policy maturity date.
The paid up value depends on premium payment duration.The below mentioned policy paid up value is given.
If less than TWO years’ premiums have been paid
All the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable.
If at least TWO full years’ premiums have been paid
The policy will acquire paid up value and it will be paid at maturity.
The Sum Assured on Death under a paid-up policy shall be reduced to a sum called “Death Paid-up Sum Assured” and shall be equal to
[(Number of premiums paid /Total number of premiums payable) * Sum Assured on Death].
For Example, if you paid premium for 3 years only and the policy premium paying term was 15 year than the paid up value will be
3/15* Sum Assured
The Sum Assured on Maturity under a paid-up policy shall be reduced to a sum called “Maturity Paid-up Sum Assured” and shall be equal to
[(Number of premiums paid /Total number of premiums payable)*(Sum Assured on Maturity)].
Survival benefits under a paid-up policy :
- If Maturity Paid-up Sum Assured is less than the minimum Basic Sum Assured i.e. Rs. 2 lakhs, Survival Benefits shall not be paid under such policies.
- If Maturity Paid-up Sum Assured is equal to or more than minimum Basic Sum Assured of Rs. 2 lakhs, Survival Benefits equal to 8% of Maturity Paid-up Sum Assured shall be payable each year. The first survival benefit payment is payable at the end of premium paying term and thereafter on completion of each subsequent year till the Life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier.
A paid-up policy shall not be entitled to participate in the future profits during the premium paying term, however, the vested Simple Reversionary Bonuses shall remain attached to the reduced paid-up policy. Further, if a paid-up policy wherein the Maturity Paid-up Sum Assured is Rs. 2 lakhs or more, continues after premium paying term, it may participate in future profits after the premium paying term, depending on the Corporation’s experience under such paid-up policies.
Rider(s) shall not acquire any paid-up value and the rider benefit(s) cease to apply, if policy is in lapsed condition.
Surrender Value:
The policy can be surrendered at any time provided premiums have been paid for at least two consecutive years.
On surrender of the policy, the Corporation shall pay the Surrender Value equal to the Guaranteed Surrender Value and Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered.
LIC Jeevan Umang Advantages
- Regular Income after completion of payout period
- tax benefit under section 80C.
- No hassle investment cum insurance plan
- Low premium amount and high benefits
- Premium can be paid in monthly or other mode Instalment
- maturity amount is tax free in nature
LIC Jeevan Umang Disadvantages
- Low returns: LIC Jeevan Umang returns are very low i.e in range of 5-6%. Even After taking regular payouts and maturity benefit, still the returns are very low. This return can not beat inflation now and then.
- Low Liquidity: In case of you want to withdraw entire money in between, then you are eligible to take loan, but no access to your money in between.
- In case you decide to not to pay premium, your policy acquire reduced benefits, paid up status and in case of surrender you get 30% or more premium paid. Thus you have to bear huge losses in such as case.
- Compulsory payment for entire duration
LIC Jeevan Umang calculator
| LIC Jeevan Umang Return Calculator | ||
| Year | Total no. of years | Premium |
| 2021 | 1 | -109500 |
| 2022 | 2 | -109500 |
| 2023 | 3 | -109500 |
| 2024 | 4 | -109500 |
| 2025 | 5 | -109500 |
| 2026 | 6 | -109500 |
| 2027 | 7 | -109500 |
| 2028 | 8 | -109500 |
| 2029 | 9 | -109500 |
| 2030 | 10 | -109500 |
| 2031 | 11 | -109500 |
| 2032 | 12 | -109500 |
| 2033 | 13 | -109500 |
| 2034 | 14 | -109500 |
| 2035 | 15 | -109500 |
| 2036 | 16 | -109500 |
| 2037 | 17 | -109500 |
| 2038 | 18 | -109500 |
| 2039 | 19 | -109500 |
| 2040 | 20 | -109500 |
| 2041 | 21 | 160000 |
| 2042 | 22 | 160000 |
| 2043 | 23 | 160000 |
| 2044 | 24 | 160000 |
| 2045 | 25 | 160000 |
| 2046 | 26 | 160000 |
| 2047 | 27 | 160000 |
| 2048 | 28 | 160000 |
| 2049 | 29 | 160000 |
| 2050 | 30 | 160000 |
| 2051 | 31 | 160000 |
| 2052 | 32 | 160000 |
| 2053 | 33 | 160000 |
| 2054 | 34 | 160000 |
| 2055 | 35 | 160000 |
| 2056 | 36 | 160000 |
| 2057 | 37 | 160000 |
| 2058 | 38 | 160000 |
| 2059 | 39 | 160000 |
| 2060 | 40 | 160000 |
| 2061 | 41 | 160000 |
| 2062 | 42 | 160000 |
| 2063 | 43 | 160000 |
| 2064 | 44 | 160000 |
| 2065 | 45 | 160000 |
| 2066 | 46 | 160000 |
| 2067 | 47 | 160000 |
| 2068 | 48 | 160000 |
| 2069 | 49 | 160000 |
| 2070 | 50 | 160000 |
| 2071 | 51 | 160000 |
| 2072 | 52 | 160000 |
| 2073 | 53 | 160000 |
| 2074 | 54 | 160000 |
| 2075 | 55 | 160000 |
| 2076 | 56 | 160000 |
| 2077 | 57 | 160000 |
| 2078 | 58 | 160000 |
| 2079 | 59 | 160000 |
| 2080 | 4,500,000 | |
| IRR | At age 100 | 4.74% |
LIC Jeevan Umang Policy Brochure
