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.
Guaranteed Tax Savings
Under sec 80C & 10(10D)₹ 1 Crore
Invest 10k Per Month*Zero LTCG Tax
Unlike 10% in Mutual Funds*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Moreover, along with the survival benefit, the plan also provides a lump sum amount as maturity benefit and death benefit during the policy tenure.
The following are some of the salient features of the 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 |
Here are some of the prime benefits offered by LIC Jeevan Umang
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.
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).
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.
The loan facility can be availed under the LIC Jeevan Umang plan as per the following policy’s terms and conditions.
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.
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.
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.
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.
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.
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.
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 /- |
- |
- |
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
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.
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.
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.
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
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.
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.
The LIC Jeevan Umang policy does not entertain any claim made in case of the suicide of the policyholder.
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