LIC Jeevan Umang Plan

LIC Jeevan Umang is a participating, non-linked, 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 1st February 2020. LIC Jeevan Umang plan provides the annual survival benefits after the completion of premium payment tenure till maturity.

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Moreover, along with the survival benefit, the plan also provides a lump sum amount as maturity benefit and death benefit during the policy tenure.  

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 terms 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.

Eligibility Criteria of LIC Jeevan Umang Plan

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

Eligibility Criteria 

Minimum 

Maximum 

Entry Age 

90 days

55 years

Policy Term 

100 years- Age at entry 

Sum Assured 

Rs. 2,00,000

No limit 

Maturity Age 

100 years

Premium paying term 

15 years, 20 years, 25 years, and 30 years

Age at the end of premium paying term 

30 years

70 years

Benefits Offered by LIC Jeevan Umang

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

  1. Death Benefit 

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

    On Death Before the Commencement of Risk

    The entire premium amount paid (Return of premium) till date is payable to the beneficiary of the policy without any applicable interest excluding all taxes, additional premium, and the rider premiums (if any).

    On Death After the Commencement of Risk 

    The death benefit is the sum assured amount along with a vested simple reversionary bonus and a final additional bonus (if any) is paid to the beneficiary of the policy.

    The sum assured amount paid as the death benefit is higher of 7X of the annualized premium or basic sum assured amount.  This death benefit should not be less than 105% of the total premium paid (excluding all the taxes, additional premium, and rider premiums, if any) till the date of death. 

    The death benefit is paid to the beneficiary as a lump sum amount or in installments. 

  2. Survival Benefit

    If the life assured survives the premium payment tenure, provided the policy is in force, then the survival benefits equal to 8% of the basic sum assured amount is paid to the insured at the end of the premium paying tenure and thereafter on the completion of each subsequent year till policyholder survives or till the plan anniversary before the date of maturity (whichever event occurs earlier). 

  3. Maturity Benefit 

    In case the life assured survives the specified maturity date or the entire tenure of the policy, then sum assured on maturity along 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.

  4. Loans 

    The loan facility can be availed under the LIC Jeevan Umang plan as per the following policy’s terms and conditions. 

    • A policyholder is eligible for a loan if 2 years the full premium amount is paid
    • If in case the loan is availed during the tenure of premium payment, then the maximum loan for in-force policies in form of surrender value percentage is 90% and for paid-up policies, it is 80%. 
    • To be eligible for the loan facility, the plan should acquire a surrender value. 
    • Any loan unpaid along with the interest shall be recovered from the claim profits during exit. 

Riders Benefits Offered by LIC Jeevan Umang Policy

The rider benefits are offered by the LIC Jeevan Umang plan are to increase the coverage of the policy by paying an extra premium amount. The following are the rider benefits offered by the LIC Jeevan Umang policy.

  1. LIC Accidental Death and Disability Rider Benefit 

    This rider benefit can be purchased by paying an 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 the case of accidental disability, the accidental rider benefit sum assured is paid in equal monthly installments for 10 years. Moreover, all the future premium of the policy and the premium amount for the part of Basic SA that is equivalent to the sum assured of accidental benefit shall be waived off.

  2. 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 at least 5 years. The benefit that is covered under this rider shall only be available during the premium payment term. Under this rider, the accidental benefit sum assured is paid as a lump sum to the beneficiary of the policy in case of accidental demise of the insured within 180 days from the date of the accident. 

  3. LIC New Term Assurance Rider

    This option of rider can be availed at the inception of the policy. The benefit covered for this plan is available for a policy tenure of 35 years or till the plan anniversary when the assured’s age is 75 years (whichever comes first). 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.

  4. LIC New Critical Illness Rider

    This rider can be availed at the inception of the policy only. The covered benefits for this plan are available for a policy tenure of 35 years or till the plan anniversary when the assured’s age is 75 years (whichever comes first). The coverage offered in 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.

  5. 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 the 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 to the life assured. In case, the life assured fails to pay the premium the policy will become paid up.

  6. Sample illustration of Premium

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

    Age/ Policy Term 

    Amount in Rs. 

     

    15

    20

    25

    30

    20

    15,739 /-

    10, 692/-

    7,830/-

    6,105/-

    30

    15,739/-

    10,692 /-

    7,879/-

    6,282/-

    40

    15,739/-

    10,741/-

    8,291/-

    6880/-

    50

    15,739/-

    11,544 /-

    -

          - 

  7. 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 

  1. Grace Period 

    In case the policyholder fails to pay the premium of the policy within the premium payment tenure, then a grace period is offered by the policy during which the policyholder can clear the due premium. 30 days of grace period is allowed for the premium payment of yearly/half-yearly or quarterly and 15 days for a monthly payment of premiums from the first unpaid premium date. 

  2. Free-look Period 

    A free look 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.

  3. Policy Surrender 

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

  4. 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 termination 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 shall be decreased to a sum known as Death Paid-up Sum Assured.  The paid-up sum assured is equal to:

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

    Similarly, the maturity benefit offered is equal to

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

Tax Implication on LIC Jeevan Umang

Statutory taxes, if any or any are 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 of 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, a higher of 80% premiums paid till date or the acquired surrender value shall be paid.
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