LIC Saral Jeevan Bima Vs LIC Jeevan Umang

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With rising uncertainties in life, just like COVID-19, having an insurance policy that gives you maximum coverage and benefits has become imperative. There are many insurance policies to choose from these days. In this article, you will extensively know about LIC SaralJeevanBima and LIC JeevanUmang policies.

Let us have a detailed comparison between SaralJeevanBima and JeevanUmang so that you can make an informed choice between the two.

LIC SaralJeevanBima

SaralJeevanBima is a Non-Linked, Non-Participating, Individual, limited premium, Pure Risk Life Insurance plan by LIC. The main purpose of LIC’s SaralJeevanBima is to offer financial protection to the family of the policyholder in case of his/her unfortunate demise during the policy period.

SaralJeevanBima Benefits

The following are the benefits offered under LIC SaralJeevanBima Plan.

  1. Death Benefit

    During the waiting period of 45 days from the date of the beginning of the risk

    Only death due to an accident during the waiting period of 45 days from the date of commencement of risk is covered in this policy.

    Death of the life assured due to accident during the waiting period, provided the policy is in force, the benefit amount payable is:

    For regular premium or limited premium payment policy, equal to Sum Assured on Death which is the highest ofeither of the following options

    • 10 times the Annualized Premium
    • 105% of all premiums paid as on the date of death
    • Absolute amount assured to be paid on death

    For Single premium policy, equal to Sum Assured on Death which is the higher of the following options

    • 125% of Single Premium
    • Absolute amount assured to be paid on death

    Death of the policyholder other than due to accident during this period:

    • Amount equal to 100% of premiums paid till date, excluding taxes, shall be paid
    • Basic Sum Assured not to be paid

    After the expiry of the waiting period of 45 days from the date of risk commencement

    Death of life assured after the expiry of the waiting period but before the date of maturity, provided the policy is in force, the benefit amount payable is:

    For regular premium or Limited premium payment policy, “Sum Assured on Death” which is the highest of either of the following options

    • 10 times of annualized premium
    • 105% of all the premiums paid as on the date of death
    • Absolute amount assured to be paid on death

    For a single premium policy, “Sum Assured on Death” which is the higher of either of the following options

    • 125% of Single Premium
    • Absolute amount assured to be paid on death

    Absolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured

  2. Maturity Benefit

    There is no maturity benefit inclusion in the policy on the life assured surviving after the date of maturity of the policy.

Eligibility Conditions And Other Restrictions

Minimum Basic Sum Assured

Rs. 5,00,000

Maximum Basic Sum
(The Basic Sum Assured shall be in multiples of Rs. 50,000/-)

Rs. 25,00,000 per life basis

Minimum Age at entry 

 18 years (Last Birthday)

Maximum Age at entry 

 65 years (Last Birthday)

Maximum Maturity Age 

 70 years (Last Birthday)

Policy Term

 No limit

Single/Regular/Limited Premium

 [5 to 40] years

Premium Paying Term

-

Regular Premium

 Same as policy term

Limited Premium

 5 and 10 years

Single-Premium

 Premium is payable in lumpsum

Rebates

Mode Loadings (applicable for Regular and Limited Premium payment)

Yearly mode 

 NIL

Half-yearly mode 

 2% of Tabular annual premium

Monthly (ECS/NACH) 

 3% of Tabular annual premium

High Sum Assured Rebate

Basic Sum Assured (B.S.A) 

 Rebate (Rs.)

5, 00,000 to 9, 50,000 

 Nil

10, 00,000 to 14, 50,000 

 0.10%o B.S.A.

15, 00,000 to 19, 50,000 

 0.20%o B.S.A

20, 00,000 and above 

 0.25%o B.S.A.

Rebate under Online Sale
Proposal to be completed under online sales without any assistance of Agent/intermediary shall be eligible for a rebate on the tabular premium at the following rates

Premium Paying Term 

 Online Sale (Rate of rebate)

Single Premium 

2.00%

5 to 9 years 

5.00%

10 to 14 years 

6.00%

15 years and above 

7.00%

Online And Offline Process For LIC SaralJeevanBima Registration

Even though the registration process for SaralJeevanBima online is extremely simple and hassle-free, here are both ways of buying the policy

  1. Online Steps

    • Visit the official website of the life insurance company, which offers the SaralJeevanBima plan
    • Select the option of SaralJeevanBima insurance plan link
    • Click on apply online and go to the application page
    • The application form will be displayed on the screen
    • Fill in the required details like date of birth, gender, husband/father name, etc.) also, upload the important documents
    • Click on the button of submit for the final submission of the application form
  2. Offline Steps

    • Visit the nearest branch office of the life insurance company where you want to purchase SaralJeevanBimaYojana
    • Get the application form
    • Thoroughly fill the application form with all the required details like date of birth, gender, husband/father name
    • Attach the important documents asked for
    • Submit the application form

Documents Required for LIC SaralJeevanBima Plan

The following are the important documents required for the SaralJeevanBima Term Plan

  • Address Proof – Aadhaar Card, Passport, Driving License
  • Passport size photograph
  • Mobile number
  • Identity Proof- Aadhaar Card, PAN card, Passport, or any particular document asked by the service provider

LIC JeevanUmang

LIC JeevanUmang is a participating, non-linked, with profit whole life assurance plan which offers a combination of income and protection to your family. The plan provides annual survival benefits after the completion of premium payment tenure. Also, a lump-sum payment is made at the time of maturity or the demise of the policyholder during the policy term.

In addition, LIC JeevanUmang also takes care of liquidity needs through loan facilities, unlike LIC JeevanBima policy.

JeevanUmang Benefits

The following are the benefits offered under LIC JeevanUmang Plan

  1. Death Benefit

    On the demise of the policyholder during the policy term, all premiums shall be paid as under

    On Death Before Commencement of Risk

    The entire premium amount paid till date is payable to the beneficiary of the policy without any applicable interest as (Return of Premium)

    On Death After the Commencement of Risk

    Death benefit as the sum assured amount along with vested simple reversionary bonus and final additional bonus if any is paid to the beneficiary of the policy.

    The sum assured amount paid as the death benefit is higher or basic sum assured amount or 7 times of the annualized premium.

    The death benefit should not be less than 105% of the total premium paid till the date of death.

  2. Survival Benefit

    If the life assured survives after the end of the premium paying term, provided all premiums are duly paid, Survival benefit equal to 8% of Basic Sum Assured shall be payable each year. The first survival benefit is paid at the end of the premium paying term and thereafter on completion of each year till the policyholder survives or the plan anniversary before the date of maturity, whichever is earlier.

  3. Maturity Benefit

    On survival of the life assured through the entire policy tenure, “Sum Assured on Maturity” along with vested Simple Reversionary BonusesandFinal Additional Bonus,ifany,shallbepayable.

    Sum Assured on Maturity is equal to Basic Sum Assured.

  4. Loan Benefit

    The loan facility can be availed under the LIC JeevanUmang plan. The policyholder can take a loan up to 90% of the surrender value after the completion of 3 years of the policy, provided the premium of the policy is thoroughly paid. For eligibility, the plan should acquire a surrender value.

  5. Riders Benefit

    These are the following 5 options available under Riders Benefits. However, the policyholder can opt between Accidental Death and Disability Benefit Rider or Accident Benefit Rider options. So, 4 out of 5 can be availed under the policy.

    • LIC'sAccidentalDeathandDisabilityBenefitRider
    • LIC's Accident Benefit Rider
    • LIC’s New Term Assurance Rider
    • LIC’s New Critical Illness Rider
    • LIC’s Premium Waiver Benefit

Eligibility Conditions And Other Restrictions

Minimum Basic Sum Assured 

Rs. 2,00,000

MaximumBasic Sum Assured
(The Basic Sum Assured shall be in multiples of Rs. 25,000/-)

 No limit

Premium Paying Term 

 15, 20, 25 and 30 years

Policy Term 

 (100 - age at entry) years

Minimum Age at entry 

 90 days (completed)

Maximum Age at entry 

 55 years(nearer birthday)

Minimum Age at the end of premium paying term 

 30 years(nearer birthday)

Maximum Age at the end of premium paying term 

 70 years(nearer birthday)

Age at maturity 

 100 years(nearer birthday)

Sample Illustrative Premium

Age/ Policy Term

Premium Paying Term
Amount

 

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 /-

-

-

Rebates

Mode Rebate

Annual Mode

 2% of tabular premium

Half-yearly mode

 1% of tabular premium

Quarterly, monthly mode

 Nil

High Basic Sum Assured Rebate

Basic Sum Assured (B.S.A) 

 Rebate on Tabular Premium

Rs. 2,00,000 to Rs. 4,75,000

 Nil

Rs.5,00,000 to Rs.9,75,000

 1.25% of BSA

Rs.10,00,000 to Rs.24,75,000

 1.75% of BSA

Rs. 25,00,000 and above

 2.00% of BSA

Documents Required For LIC JeevanUmang 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.

  • 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

Summing It Up

This complete comparison between SaralJeevanBima and JeevanUmang will surely help you select the policy that is suitable as per your preference. Be it SaralJeevanBima or JeevanUmang, both the LIC plans have their pros and cons and are meant to fulfill different requirements of different individuals. So, the ultimate choice is up to you.

Written By: PolicyBazaar - Updated: 24 August 2021
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