LIC Jeevan Umang Plan

LIC Jeevan Umang- An Overview

LIC Jeevan Umang is a life assurance plan in which the policy holder will be covered till he/she turns 100 years of age. The key benefit of this plan is that it comes with dual benefits of income and insurance protection to help the family of the insured in his/her absence. The assured benefits act as a strong financial backup in case of any emergency.

Why Choose LIC Jeevan Umang?

1. Tax-free Maturity & Death Benefit

   All proceeds from LIC Jeevan Umang, be it on the death of the policyholder, at maturity of the policy, or the annual survival benefits, are entirely tax free under Section 10(10D) of the Income Tax Act, 1969.

2. Life-long Risk Cover till the Age of 100

   The life cover against the risk of death of the policyholder starts from the date of issuance and lasts till he/she reaches 100 years of age.

3. Guaranteed Income from the Age of 30

   Policyholders can buy this policy for themselves or their children and secure a lifetime annual income until 100. These are paid survival benefits for surviving every year till coverage ends.

Features of LIC Jeevan Umang Plan

Eligibility Criteria of LIC Jeevan Umang Plan

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

Benefits Offered by LIC Jeevan Umang

How does LIC Jeevan Umang work?

Additional Benefits available Under LIC Jeevan Umang Policy

1. Rider Benefit

   The following riders can be added to the LIC Jeevan Umang plan to increase the coverage.

   • LIC Accidental Death and Disability Rider Benefit
     If the insured dies or suffers from a disability due to an accident, LIC pays out the accidental rider benefit sum assured along with the death benefit under the base plan.

   • LIC Accidental Benefit Rider
     The benefit that is covered under this rider is only active during the premium paying tenure (PPT). One can add this rider on the condition that at least 5 years are remaining in the PPT.

   • LIC New Term Assurance Rider
     This option can be availed at the inception of the LIC Jeevan Umang policy. The additional sum assured under the rider is paid to the nominee of the policy along with the basic sum assured if the insured dies during the policy tenure.

   • LIC New Critical Illness Rider
     This rider can be availed at the inception of the policy only. It offers financial respite to policyholders if they are 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 premiums of the policy are waived off. This rider can help if the life assured is a child and the policyholder is the parent.

2. Death Benefits in installments

   Under the policy, there is an option to receive death benefits in installments over a 5/10/15-year period rather than a lump sum payment. The installments must be paid in advance at chosen intervals of annually, half-yearly, quarterly, or monthly, subject to a minimum installment amount for different payment modes, such as

   Mode of Installment payment	Minimum installment amount
   Monthly	Rs. 5,000/-
   Quarterly	Rs. 15,000/
   Half-Yearly	Rs. 25,000/
   Yearly	Rs. 50,000/

Other Details of the LIC Jeevan Umang Plan

1. Grace Period

   A grace period is 15-30 days offered by LIC to policyholders who have failed to pay a due premium amount. The policy lapses if payment is not done by the end of this period.

2. Free-look Period

   A free look period of 15 days from the date of policy initiation is offered by LIC. During this period, the policyholder can cancel the policy if he/she is dissatisfied with its terms and conditions.

3. Policy Surrender

   The policyholder can surrender the policy, provided the premiums are duly paid for two consecutive years. On surrender of the policy, the insurance company will pay a surrender value equal to the special surrender value or the guaranteed surrender value (whichever is higher).

4. Loan Facility

   The plan offers a loan facility wherein, one can avail loan to meet financial emergencies as per the below criteria:

   Loan availed during the premium paying term	Loan availed after the premium paying term
   For in-force policies- up to 90% For paid-up policies- up to 80%	The maximum amount of a loan is determined in such a way that the annual interest rate does not exceed 50% of the annual survival benefit that may be payable under the policy.

5. Paid-up Value

   In case the life assured has paid premiums for 2 years but stops after, then the policy will continue as a paid-up policy. In such cases, the sum assured shall decrease as per the remaining premiums.

   The paid-up sum assured on death is equal to:

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

   Similarly, the paid-up sum assured on maturity is equal to:

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

6. Rebates

   The plan offers rebates as per the below-mentioned table:

   Mode Rebate
   Yearly mode	2% of Tabular Premium
   Half-yearly mode	1% of Tabular premium
   Quarterly, Monthly (NACH) & Salary deduction	NIL

   High Sum Assured Rebate
   Basic Sum Assured (BSA)	Rebate (Rs.)
   2,00,000 to 4,75,000	Nil
   5,00,000 to 9,75,000	1.25% BSA
   10,00,000 to 24,75,000	1.75% BSA
   25,00,000 and above	2.00% BSA

Sample Illustration of Premiums Charged Under LIC Jeevan Umang

You can use the LIC Jeevan Umang calculator to get your premium quotes before purchasing the plan. The following is a sample illustration of annual premium rates (in Rs.) for a basic sum assured of Rs.2 lakhs across various entry ages and premium paying terms.

Tax Implications of LIC Jeevan Umang

Policy Exclusions of LIC Jeevan Umang

• If the life assured dies by suicide within the first 12 months of the policy, nominees can only claim 80% of the premiums paid till the date of death.

• If the life assured dies by suicide after completing 12 months from the date of revival of the policy, nominees can claim the higher 80% premiums paid to date or the acquired surrender value.

How To Buy LIC Plans from Policybazaar?

Step 1: To buy LIC Jeevan Umang, visit LIC of India

Step 2: In the form available, fill in the form with your name and contact number.

Step 3: Next, fill in your age and current city.

Step 4: Once done, you can also check the other plans available and customize the amount and time period as per your convenience.

Step 5:After this, you need to pay your premiums online.

Note: Policybazaar also provides door-to-door advisors to resolve your queries.

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