LIC Saral Jeevan Bima Vs LIC Jeevan Umang

LIC of India’s Saral Jeevan Bima and Jeevan Umang are two vastly different products. One is a pure risk term insurance cover while the other is a whole life insurance policy. The article discusses the LIC Saral Jeevan Bima and LIC Jeevan Umang policies.

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Comparison Between LIC Saral Jeevan Bima & LIC Jeevan Umang

Here is a detailed comparison between LIC of India’s Saral Jeevan Bima and Jeevan Umang so that you can make an informed choice between the two.

Features LIC Saral Jeevan Bima LIC Jeevan Umang
Life Cover Limited Period Whole Life
Maturity Benefit on Survival
Premium Paying Frequency Regular, Limited, Single Limited
Annual Income Benefit
Profit Participation
Optional Premium Waiver Rider
Loan Feature
Basic Sum Assured Rs. 5 Lakhs - Rs 25 Lakhs Rs 2 Lakhs - No Upper Limit
Tax Benefit (Section 80C)
Surrender Benefit

The following sections discuss the two plans in more detail.

About LIC Jeevan Umang

LIC Jeevan Umang is a 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 following the demise of the policyholder during the policy term.

In addition, LIC Jeevan Umang also takes care of liquidity needs through loan facilities, unlike the LIC Saral Jeevan Bima policy.

Jeevan Umang Benefits

The following are the benefits offered under LIC Jeevan Umang Plan

  1. Death Benefit

    On the demise of the policyholder during the policy term, the sum assured on death along with a vested simple reversionary bonus and a final additional bonus is paid to the beneficiary of the policy.

    Sum assured on death will be equal to the basic sum assured amount or 7 times the annualized premium, whichever is higher.

  2. Survival Benefit

    If the life assured survives the premium paying term, an annual Survival benefit equal to 8% of the Basic Sum Assured is paid till death or policy maturity (whichever comes earlier).

  3. Maturity Benefit

    On survival of the life assured till the date of maturity, LIC is liable to pay the basic sum assured in lump sum plus bonuses.

  4. Profit Participation

    LIC Jeevan Umang is a participating policy, unlike LIC Saral Jeevan Bima. This means that the policy participates in the profits of the company. This entitles policyholders to the simple reversionary bonus and the final additional bonus, payable along with the death or maturity benefit.

Eligibility Conditions

Premium Paying Term 15, 20, 25, and 30 years
Policy Term (100 - the 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)

Premium Rebates

Mode Rebate
Annual Mode 2% of tabular premium
Half-yearly mode 1% of tabular premium
High Basic Sum Assured Rebate
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% of BSA

About LIC Saral Jeevan Bima

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

Saral Jeevan Bima Benefits

The following are the benefits offered under LIC Saral Jeevan Bima Plan.

  1. Death Benefit

    On the death of the life insured under the following circumstances -

    1. If death occurs due to an accident during the waiting period (45 days)

    2. If death occurs after the waiting period

    The Sum Assured on Death will be the highest of the following -

    Regular / Limited Premium Payment Single Premium Payment
    • 10 times the Annual Premium
    • 105% of all premiums paid till death
    • Basic Sum Assured
    • 125% of the Single Premium amount
    • Basic Sum Assured
  2. Maturity Benefit

    LIC does not pay a maturity benefit if the life insured survives the whole policy term as it is a pure risk term life cover.

Eligibility Conditions

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

Premium Rebates

Mode of Premium Payment Rebate
Half-yearly mode 2% of Tabular annual premium
Monthly (ECS/NACH) 3% of Tabular annual premium
Basic Sum Assured (B.S.A) Rebate (Rs.)
10,00,000 to 14,50,000 0.1% of B.S.A.
15,00,000 to 19,50,000 0.2% of B.S.A
20,00,000 and above 0.25% of B.S.A.
Rebate under Online Sale
Premium Paying Term Online Sale (Rate of rebate)
Single Premium 2%
5 to 9 years 5%
10 to 14 years 6%
15 years and above 7%

Summing It Up

This complete comparison between Saral Jeevan Bima and Jeevan Umang should help you select a policy that is suitable for you. While one only offers a risk cover on the life of an individual (Saral Jeevan Bima), the other comes with savings opportunities as well (LIC Jeevan Umang).

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