Review of LIC Jeevan Umang Plan

LIC of India offers this comprehensive whole life insurance plan that provides limited premium payment for a risk cover of whole life and also receives annual survival benefits once the premium payment term comes to an end. LIC Jeevan Umang 745 ensures that the family’s finances after the policyholder’s death are taken care of.

What are the Key Features of LIC Jeevan Umang?

Below mentioned are some of the key features of LIC Jeevan Umang plan 745:

• Double Benefits in Single Plan
  The plan offers the benefits of both endowment and a whole life plan by providing lifelong risk coverage and annual survival benefits.

• Cover till 100 Years
  The plan offers life cover to the policyholder till they turn 100 years with a limited premium payment only.

• Personalise your Plan

The plan offers an option to choose from different premium paying terms i.e. 15 years, 20 years, 25 years, and 30 years.

• Participation in Profits
  It is a participatory plan wherein the policyholders will receive bonuses depending
  upon the performance of the policy.

• Tax Benefits
  Premiums paid under the policy are exempted from tax up to Rs. 1.5 lakh under Section 80C. Along with this, the amount paid on death and maturity are also tax-free under Section 10 (10D) of the Income Tax Act, 1961.

Learn about How LIC Jeevan Umang 745 Plan Changed Mr. Amandeep’s Life

I recently bought LIC Jeevan Umang Plan from Policybazaar. The plan offers me a combination of savings and life protection. I am sure that if something happens to me, my family’s financial needs will be taken care of. By Amandeep

Mr. Amandeep recently bought LIC’s Jeevan Umang plan from Policybazaar. Since he wanted to protect his family’s financial future in case something unfortunate happens to him, as well as wanted to invest his money to fulfill his financial milestones, he decided to buy this dual benefit plan.

LIC Jeevan Umang is a whole life insurance plan wherein the insurance holder will be covered till they turn 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 their absence. In fact, the customers can even use the LIC Jeevan Umang plan calculator on LIC’s official website to receive the plan estimates that can help them make a smart financial decision.

Let us explore the other features and benefits of the LIC Jeevan Umang Plan 745 that convinced Mr. Amandeep and several other customers to buy this LIC plan.

What are the Benefits of the LIC Jeevan Umang Plan?

Here is a list of benefits of LIC Jeevan Umang Plan:

Death Benefit

• On death before the commencement of risk, a death benefit equal to the total amount of premium paid excluding taxes, extra premium and rider premium (if any) is payable to the nominee of the policyholder.

• On death after the commencement of risk, a death benefit equal to the Sum Assured on Death and vested Simple Reversionary Bonuses along with applicable Final Additional Bonuses are payable to the pre-mentioned family members of the policyholder.

Sum Assured on Death is the higher of 7 times of annualized premium or Basic Sum Assured.
The death benefit is not less than 105% of total premiums paid till death and shall be payable if the policy is in-force and all due premiums have been paid.

Maturity Benefit

On successful completion of the policy tenure, ‘Sum Assured on Maturity’ along with the vested simple reversionary bonuses and final additional bonus if applicable will be paid to Mr. Amandeep which can be further used by him to achieve his financial goals.

Survival Benefit

On the completion of the premium paying term (PPT), an amount equal to 8% of the Basic Sum Assured is paid to the policyholder every year till maturity.

Death Benefits in installments

Under the Jeevan Umang policy, the nominee of the policyholder can choose to receive the death benefit in installments rather than a one-time lump sum. The instalments can be received over a 5-10-15 year period and shall be paid in advance for in-force and paid-up policies. The LIC plan also provides the flexibility to choose the frequency of instalments like yearly, half-yearly, quarterly and monthly. 

Additional Riders for Enhanced Protection

For enhanced protection, the Jeevan Umang 745 LIC plan offers additional riders: LIC Accidental Death & Disability Benefit Rider, LIC Accident Benefit Rider, LIC New Term Assurance Rider, and LIC Premium Waiver Benefit Rider. These riders can be bought along with the base plan by paying minimal additional premiums.

Loan Facility Available

Policyholders are eligible for loans only after one full year’s premiums have been paid and after the completion of the first year of Jeevan Umang LIC plan. The maximum loan amount as a percentage of surrender value, is subject to the following conditions -

Annual interest charged on the loan amount by LIC should not exceed 50% of the annual survival benefit.

Free Look Period

If the policyholder is not satisfied with the terms and conditions of the Jeevan Umang policy, then they can return the LIC policy to the corporation within 30 days. Any deposited premiums will be refunded after necessary deductions.

Exclusion

If the policyholder commits suicide in the 12 months of policy inception, then the beneficiary will be paid 80% of total premiums paid till date. This clause is not applicable for minors below 8 years.

Note: The specified details are as per the latest Jeevan Umang 745 plan. LIC Jeevan Umang 945 plan was an older version and hence withdrawn by LIC.

Is Jeevan Umang a Good Policy?

Yes, Jeevan Umang is a good policy for people who are actively looking for a policy from a reliable government insurer, which provides life protection and savings in the same plan. Death benefit on the death of the policyholder, maturity benefit in case the policyholder survives the policy term and annual survival benefits in one single whole life insurance policy. Just like Mr. Amandeep, our other customers who bought the Jeevan Umang plan LIC are fully satisfied with the plan. By paying the premium of one policy, all customers can avail of the combined benefits and look after their family's financially secure future.

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