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.
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||╳||✔|
|Optional Premium Waiver Rider||╳||✔|
|Basic Sum Assured||Rs. 5 Lakhs - Rs 25 Lakhs||Rs 2 Lakhs - No Upper Limit|
|Tax Benefit (Section 80C)||✔||✔|
The following sections discuss the two plans in more detail.
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.
The following are the benefits offered under LIC Jeevan Umang Plan
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.
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).
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.
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.
|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)|
|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|
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.
The following are the benefits offered under LIC Saral Jeevan Bima Plan.
On the death of the life insured under the following circumstances -
If death occurs due to an accident during the waiting period (45 days)
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|
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.
|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|
|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)|
|5 to 9 years||5%|
|10 to 14 years||6%|
|15 years and above||7%|
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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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ