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 -
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 -
-
If Dev dies within the premium paying term
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.
-
If Dev dies 10 years after the premium paying term ends
-
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).
-
If Dev survives the policy term of 70 years
-
Dev will receive the Basic Sum Assured plus applicable bonuses (Rs. 10,00,000 + bonus) as maturity benefit.
-
Dev will also have received annual survival benefits starting from the end of the premium paying term till the end of the policy term. Each year of survival entitles Dev to 8% of the BSA, which is equal to Rs. 80,000 per year in this case.