LIC Jeevan Umang Plan

LIC Jeevan Umang is a participating, non-linked, with profit whole life assurance plan, which offers the dual benefit of income and insurance protection to the family of the insured. The policy was launched on 1^st February 2020. LIC Jeevan Umang plan provides the annual survival benefits after the completion of premium payment tenure till maturity. Moreover, along with the survival benefit, the plan also provides a lump sum amount as maturity benefit and death benefit.

Features of LIC Jeevan Umang Plan

The following are some of the salient features of the LIC Jeevan Umang Plan.

• The plan offers the combined benefits of regular income and insurance coverage.
• The plan offers an option to choose from different premium paying tenure i.e. 15 years, 20 years, 25 years, and 30 years.
• The plan offers coverage for the whole life of the policyholder i.e. up to 100 years.
• LIC Jeevan Umang policy offers the benefit of the simple reversionary bonus plus a final additional bonus if any.

Benefits Offered by LIC Jeevan Umang

Here are some of the prime benefits offered by LIC Jeevan Umang

Death Benefit

On the demise of the life assured  due to an eventuality during the tenure of the policy, the death benefit is paid to the beneficiary of the policy as:

On Death Before the Commencement of Risk

The entire premium amount paid till date is payable to the beneficiary of the policy without any applicable interest as (Return of Premium).

On Death After the Commencement of Risk

Death benefit as the sum assured amount along with vested simple reversionary bonus and final additional bonus if any is paid to the beneficiary of the policy.

The sum assured amount paid as the death benefit is higher or basic sum assured amount or 7 times of the annualized premium.  The death benefit should not be less than 105% of the total premium paid till the date of death. 

Survival Benefit

If the life assured survives the premium paying tenure of the policy and if the LIC Jeevan Umang policy is in force then survival benefit equal to 8% of the basic sum assured amount is paid to the insured person at the end of the premium paying tenure and thereafter the completion of each subsequent year till policyholder survives the plan anniversary before the date of maturity. 

Maturity Benefit

In case the life assured survives the entire tenure of the policy, then sum assured on maturity among with the simple reversionary bonus and final additional bonus, if any is paid to the policyholder. The sum assured payable on maturity is equal to the basic sum assured amount.

Loans

The loan facility can be availed under the LIC Jeevan Umang plan. The policyholder can take a loan up to 90% of the surrender value after completion of 3 years of the policy, provided the premium of the policy is thoroughly paid. To be eligible for the loan facility, the plan should acquire a surrender value. 

Eligibility Criteria of LIC Jeevan Umang Plan

Let’s take a look at the eligibility criteria of the policy 

Riders Benefits Offered by LIC Jeevan Umang Policy

The rider benefits are offered by LIC Jeevan Umang plan is to increase the coverage of the policy.  The following are the rider benefits offered by the LIC Jeevan Umang policy.

LIC Accidental Death and Disability Rider Benefit

This rider benefit can be purchased by paying extra premium along with the base plan to enhance the coverage of the policy. Under this rider benefit, in case of accidental demise of the insured person, an accidental rider benefit sum assured is payable as a lump-sum amount to the beneficiary of the policy along with the death benefit under the base plan. Similarly, in case of accidental disability, the accidental rider benefit sum assured is paid in equal monthly installments over a period of 10 years. Moreover, all the future premium of the policy is waived off.

LIC Accidental Benefit Rider

The policyholder can choose for accidental rider benefit by paying an extra premium over and above the base premium of the policy. The policyholder can opt for this rider anytime during the premium paying tenure, provided the outstanding PPT of the base plan should be alteast 5 years. Under this rider option, accidental benefit rider as a lump sum is paid to the beneficiary of the policy in case of an accidental demise of the insured within 180 days from the date of the accident. 

LIC New Term Assurance Rider

This option of rider can be availed at the inception of the policy. Under this rider option, an additional term assurance sum assured amount is paid to the nominee of the policy along with the basic sum assured amount of the policy in case of the demise of the insured person during the policy tenure.

LIC New Critical Illness Rider

This rider can be availed at the inception of the policy only. The coverage offered under this rider is available during the tenure of the policy if the policyholder is diagnosed with any one of the 15 critical illnesses covered under this rider.

LIC Premium Waiver Benefit

If the policyholder opts for this rider option, then in the event of the demise  of the policyholder all the future premium of the policy is waived off. However, if premium paying tenure of the base plan exceeds the rider tenure, then all the future premiums due under the base policy from the date of expiry of the rider shall be payable the life assured. In case, the life assured fails to pay the premium the policy will become paid-up.

Sample illustration of Premium

The following are the sample illustration of premium rates for basic sum assured of Rs.2 lakh for the standard lives.

Rebates

Annual Mode- 2% of tabular premium

Half-yearly mode- 1% of tabular premium

Quarterly, monthly mode- Nil

High Sum Assured Rebate

Basic Sum Assured (B.S.A)

Rs. 2,00,000- Rs. 4,75,000- Nil

Rs.5,00,000-Rs.9,75,000- 1.25% of BSA

Rs.10,00,000- Rs.24,75,000- 1.75% of BSA

Rs. 25,00,000 and above- 2.00% of BSA

Other Details of LIC Jeevan Umang Plan 

Grace Period

In case the policyholder fails to pay the premium of the policy within the premium payment tenure of then a grace period of 30 days is offered by the policy during which the policyholder can clear the due premium.

Free-look Period

A free loo period of 15 days is offered by the policy from the date of policy initiation during which the policyholder can cancel the policy if he/she is dissatisfied with the terms and conditions of the policy.

Policy Surrender

The policyholder can surrender the policy, provided the premium of the policy is dully paid for two consecutive years. On surrender of the policy, the insurance company will pay the surrender value equal to the higher of special surrender value and guaranteed surrender value.

Paid-up Value

In case the life assured fails to pay the premium for at least 2 years of the policy and the plan is not revived then all the benefits offered by the policy are ceased after the completion of the grace period and no benefits will be offered to the policyholder.

In case the life assured fails to pay the premium of the policy after the completion of 2 policy years then the policy will continue as a paid-up policy. Under the paid-up policy the sum assured offered as the death benefit is known as Death Paid-up Sum Assured.  The paid-up sum assured is equal to:

Number of premium paid/ total number of premium to be paid X sum assured on death

Similarly, the maturity benefit offered is equal to

Number of paid premium/ total number of premium to be paid X sum assured on maturity 

Tax Implication on LIC Jeevan Umang

Statutory taxes, if any or any is imposed by the constitutional Tax Authority of India as per the prevailing tax law and the tax rates are applicable from time to time. The taxes applicable as per the prevailing tax law shall be paid by the policyholder on the premium for base policy and riders. The tax amount paid by the policyholder is not considered for the computation of benefits payable under the plan.

Required Documents

The documents needed to avail the coverage under this insurance plan are subject to the premium paid towards the plan and the chosen sum assured amount. The following are some of the basic documents required during the process of purchase.

• Age Proof
• Properly filled Proposal form/ Application form
• Address Proof
• Medical History
• Other KYC documents: Adhaar Card, PAN Card, Tax Details, etc.
• Medical Diagnosis Reports as required 

Policy Exclusions of LIC Jeevan Umang

The LIC Jeevan Umang policy does not entertain any claim made in case of the suicide of the policyholder.

• In case the policyholder commits suicide within 12 months of the policy inception, 80 % of the premiums paid till date shall be returned to the nominee, provided the policy is in force.
• In case the policyholder commits suicide after completion of 12 months from the date of revival of the policy, higher of 80% premiums paid till date or the acquired surrender value shall be paid.

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