LIC Jeevan Umang 745 is a whole-life insurance plan with limited premium payment. It is designed to offer your family a combination of income and protection in your absence. This plan provides yearly survival benefits from the end of the premium-paying period until maturity. In addition, the plan also offers a lump sum payout at maturity or in the event of the policyholder's death during the policy term.
Read moreLIC Jeevan Umang 745 is a life insurance plan covering the policyholder until they turn 100. The key benefit of this plan is that it comes with dual income and insurance protection to help the insured's family in their absence. The assured benefits act as a strong financial backup in any emergency.
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.
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.
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.
This LIC plan provides annual survival benefits starting at the end of the premium payment tenure and continuing till maturity.
If the insured survives, the plan also provides a lump sum amount as a maturity benefit at the end of the policy term.
The death benefit can be claimed if the policyholder dies during the policy tenure. It is paid either as a lump sum or in regular installments.
The plan offers the option to choose from different premium-paying terms, namely 15 years, 20 years, 25 years, and 30 years.
The LIC Jeevan Umang 745 policy is a participating policy that entitles buyers to additional bonuses based on LIC's profits in a year.
Discounts are available for choosing the either half-yearly or yearly premium payment mode.
Let’s take a look at the eligibility criteria of the policy:
Eligibility Criteria | Minimum | Maximum |
Entry Age | 30 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 | 18 years | 70 years |
Here are some of the prime benefits of the LIC Jeevan Umang plan:
On Death of the Life Assured Before the Commencement of Risk
Nominees can claim the entire premium amount paid (Return of premium).
On Death of the Life Assured After the Commencement of Risk & Before Maturity
Nominee can claim the higher amount between 7 times the annual premium and the basic sum assured amount. Applicable bonuses such as the simple reversionary bonus and final additional bonus are also paid out along with the death benefit.
If the life assured survives the premium payment tenure and provided the policy is in force, LIC Jeevan Umang starts paying out an annual survival benefit.
It is equal to 8% of the basic sum assured amount.
The same amount is offered every year till the policyholder survives or till the last plan anniversary before the date of maturity (whichever event occurs earlier).
If the life assured survives the specified maturity date, LIC offers them the basic sum assured along with the simple reversionary bonus and, if applicable, the final additional bonus.
The loan facility can be availed under the LIC Jeevan Umang plan as per the following terms and conditions:
A policyholder who has paid premiums without fail for a minimum of two years is eligible for a loan.
If in case the loan is availed during the premium paying term, the maximum loan amount is limited to 90% of the surrender value.
In the case of paid-up policies, the loan amount cap is 80% of the paid-up value.
Any loan unpaid shall be recovered from the claim proceeds during exit along with the applicable interest.
The following riders can be added to the LIC Jeevan Umang plan to increase the coverage.
LIC Accidental Death and Disability Rider Benefit
Suppose the insured dies or suffers from a disability due to an accident. In that case, 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. If the insured dies during the policy tenure, the additional sum assured under the rider is paid to the policy nominee, and the basic sum is assured.
LIC New Critical Illness Rider
This rider can be purchased only at the policy's inception. It offers financial respite to policyholders diagnosed with any 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 policyholder's demise, all future premiums of the policy are waived. This rider can help if the life assured is a child and the policyholder is the parent.
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/ |
Let’s take the example of Dev who is a 30-year-old male at the time of buying this policy. Assuming that he is looking for the following coverage -
Sum Assured - Rs. 10,00,000
Policy Term - (100 minus 30 years) = 70 years
Premium Paying Term - 20 years
Using the LIC Jeevan Umang calculator, the annual premium that Dev will have to pay comes to be Rs. 54,036 (including taxes).
* Note - Taxes include GST of 4.5% levied on 1st-year premiums and 2.25% on premiums payable in the subsequent years.
Let’s see what benefits Dev or his family will be entitled to in the following cases -
Dev’s family will receive the death benefit, which is either 7 times the annual premium (Rs. 3,78,252) or the Basic Sum Assured plus applicable bonuses (Rs. 10,00,000 + bonus). Since the latter is higher, LIC will pay this amount.
Dev will receive annual survival benefits for surviving these 10 years. It is equal to 8% of the BSA. Therefore, he would have received Rs. 80,000 annually for 10 years till his death.
On his death, Dev’s family can claim the death benefit amount, which will be equal to (Rs. 10,00,000 + bonuses).
Dev will receive the Basic Sum Assured plus applicable bonuses (Rs. 10,00,000 + bonus) as a maturity benefit.
Dev will also have received annual survival benefits from the end of the premium-paying term until the end of the policy term. Each year of survival entitles Dev to 8% of the BSA, equal to Rs. 80,000 annually.
You can use the LIC 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.
Entry Age | Policy Term | Premium Paying Term | |||
15 years | 20 years | 25 years | 30 years | ||
20 years | 80 years | 16,542/- | 11,407/- | 8,536/- | 6,840/- |
30 years | 70 years | 16,542/- | 11,407/- | 8,595- | 7027/- |
40 years | 60 years | 16,542/- | 11,476/- | 9,036/- | 7,664/- |
50 years | 50 years | 16,542/- | 12,368/- | NA | NA |
LIC offers a grace period of 15-30 days to policyholders who still need to pay a due premium. The policy lapses unless payment is done by the end of this period.
LIC offers a 15-day free-look period from the date of policy initiation. During this period, the policyholder can cancel the policy if he/she is dissatisfied with its terms and conditions.
The policyholder can surrender the policy, provided the premiums are duly paid for two consecutive years. On surrender, the insurance company will pay a surrender value equal to the special or guaranteed surrender value (whichever is higher).
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 |
|
The maximum amount of a loan is determined so that the annual interest rate does not exceed 50% of the annual survival benefit that may be payable under the policy. |
If the life assured has paid premiums for 2 years but stops after, the policy will continue as a paid-up policy. In such cases, the sum assured shall decrease 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
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 |
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.
The documents needed to avail of coverage under LIC Jeevan Umang are -
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
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.
Statutory taxes, if any, are imposed by the constitutional Tax Authority of India as per the prevailing tax laws. The tax rates are subject to revision from time to time. The taxes applicable shall be paid by the policyholder on the premium for the base policy and riders.
Regarding Income Tax, policyholders can enjoy tax benefits on the premium amount and the death and maturity proceeds under sections 80C and 10(10D) of the Income Tax Act of 1969.
LIC Resources
LIC Online Services |
LIC Investment Plans |
LIC Other Plans |
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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