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LIC Jeevan Umang (Plan 945) - Review, Benefits, Features, Eligibility

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Gaurav Seth
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LIC Jeevan Umang (Plan No.945, UIN: 512N312V02)

LIC Jeevan Umang is a non-linked, participating, whole life assurance plan. This plan from LIC offers a combination of income & protection to the policyholders. It offers annual survival benefits after the completion of the premium payment term till maturity of policy & a lump-sum payout at maturity or on death of the policyholder during the term. Furthermore, through a loan facility, this plan can also take care of the liquidity requirements of the policyholders.

Eligibility criteria and other specifications

ParametersLIC Jeevan Umang
Entry Age

Minimum - 90 days

Maximum - 40 to 55 years (depends upon chosen policy term i.e 30,25,20 or 15 years)

Maturity Age100 years
Policy Tenure(100-entry age) years
Minimum Sum AssuredRs. 2,00,000
Maximum Sum Assured
  • No upper limit
  • Sum assured shall be in multiples of Rs.25,000.
Age at the completion of policy term 
  • Minimum- 30 years
  • Maximum- 70 years
Premium Payment Term
  • 15 years
  • 20 years
  • 25 years
  • 30 years

Benefits:

The LIC's Jeevan Umang Plan offers the following benefits to the policyholder:

Death benefit:

In case of death of the policyholder during the policy term, the LIC's Jeevan Umang Plan offers a Death Benefits which is as follows:

  • In the event of the death of the policyholder before the date of risk commencement, the LIC will be paying back all the premiums paid till death to the nominees. Under this case, the death benefit will not include payment of any interest or bonus.
  • In the event of death of the policyholder after the risk commencement, the LIC shall be paying the death benefits including Sum assured on death, simple reversionary bonuses & final additional bonus, if any. The sum assured has been defined as the higher of:
  • 7x of annualized premium
  • Basic sum assured

This death benefit will be at least 105% of all the premiums paid till death.

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Survival Benefit: In case the life assured survives during the premium payment term, a survival benefit which is equal to 8% of the Basic Sum Assured would be payable every year. The first survival benefit payment will be payable at the end of the premium payment period and afterward, at the end of each subsequent year till the life assured survives or until the policy anniversary before the maturity date, whichever is earlier.

Maturity benefit: In case of the life assured survives till the end of the policy, the maturity benefits including the Sum assured on maturity along with the simple reversionary bonuses and final additional bonus, if any will be payable to the policyholder by LIC.

Profits Participation: The LIC Jeevan Umang plan is a participatory plan, and therefore the policyholders are offered incentives based on the policy's performance. The policy will also be payable for the Basic Reversionary Bonuses and Final Additional Bonus if any during & after the premium payment term.

Rider Options

The policy offers 5 different rider options for policyholders along with a basic plan. These riders can be availed by paying an additional premium along with the premium for the basic sum assured. However, the policyholder can choose only one between LIC's Accidental Death and Disability Benefit Rider & LIC's Accident Benefit Rider. Therefore, a maximum of 4 additional riders can be opted by policyholder along with basic policy. The riders are:

  • LIC's Accidental Death and Disability Benefit Rider
  • LIC's Accident Benefit Rider
  • LIC's New Term Assurance Rider
  • LIC's New Critical Illness Benefit Rider
  • LIC's Premium Waiver Benefit Rider

Death Benefit Payout Options

The policy offers an option for the policyholder to choose for receiving the death payouts in installments i.e monthly, quarterly, half-yearly, or yearly instead of a lumpsum death payout. This option can be exercised at any time by the policyholder i.e even during the minority of life assured or after attaining 18 years of age, for part or full benefits under the policy.

The installments will be made in advance as per the chosen installment mode subject to the minimum amount of installments presented below for different modes:

Installment ModeMinimum Amount
YearlyRs.50,000
Half-YearlyRs.25,000
QuarterlyRs.15,000
MonthlyRs.5,000

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Mode of Premium Payments

The policyholders have the option to make premium payments regularly through monthly, quarterly, half-yearly, or yearly modes of installment. Also, the policyholder can opt for the premium deductions from the salary during the payment term of the policy.

Sample Illustration

Below we have presented a sample illustration showing annual premiums assuming the policy has a basic sum assured of Rs.2 lakhs. Let’s have a look:

AgePremium Payment Term
 15202530
20Rs.15,739Rs.10,692Rs.7,830Rs.6,105
30Rs.15,739Rs.10,692Rs.7,879Rs.6,282
40Rs.15,739Rs.10,741Rs.8,291Rs.6,880
50Rs.15,739Rs.11,544--

Rebates Offered

The LIC’s Jeevan Umang policy offers rebates on modes of installment & for getting a high sum assured policy. Following is the applicable rebates:

Mode Rebate

ModeRebate(% of tabular premium)
Quarterly, Monthly & Salary deductionNil
Half-yearly1%
Yearly2%

High Sum Assured Rebate

Basic Sum AssuredRebate(%of B.S.A)
2 lakhs to 4.75 lakhsNil
5 lakhs to 9.75 lakhs1.25%
10 lakhs to 24.75 lakhs1.75%
25 lakhs & above2%

Loan against Policy

The LIC's Jeevan Umang also offers the facility to avail loans against policy given that the policy has acquired a surrender value & subject to terms & conditions as specified by the LIC.

The interest rates applicable on policy are defined by LIC at periodic intervals. The interest rates will be declared as per the approval by the IRDAI.

Loan during policy term

The max. loan as a percentage of surrender value is as under:

  • In case of in-force policy: Up to 90%
  • In case of paid-up policy: Up to 80%

Loan after premium payment term

The maximum amount allowed for a new loan for policies entitled to survival benefits is selected in a way that the effective annual interest amount on the loan doesn't exceed 50% of the annual survival benefits to be payable under the policy. 

Grace Period

The policy offers a grace period of 30 days in case of payments made at yearly, half-yearly, or quarterly modes and a period of 15 days for monthly premium mode. During this period, the policy will be considered active without any interruptions as per the terms & conditions of the policy.

The policy will lapse in case the premium is not paid before the expiry of the grace period.

Revival

The lapsed policy owing to the failure in making premium payment can be revived within a period of 5 consecutive years from the first unpaid premium date. The revival of policy will be done after the payment of outstanding premiums & applicable interest rates as fixed by the LIC. Also, the policyholder will need to submit the required documents & reports to LIC at the time of revival. The final decision for revival of the policy will be made by the LIC, and it reserves the right to cancel the revival request of the policyholder.

Free-look period

The policy may be returned to the LIC within 15 days of the purchase in case the policyholder is not satisfied with the terms & conditions of the policy, stating the reasons for dissatisfaction. On receipt of the policy documents, the LIC will cancel the policy & refund the premium amount after deducting for expenses like medical tests, special reports, stamp duty charges, etc.

Surrender Value

The policy can be surrendered at any time given that at least 2 full years of premiums have been paid. On surrender, the LIC will pay an amount higher of the Guaranteed Surrender Value & Special Surrender Value.

Suicide Exclusion

The policy shall be considered void in case:

  • The life assured (sane or insane) dies by suicide within 12 months from the date of commencement of risk. The LIC will not entertain any claims except for the amount higher of 80% of the total premium payments made till death or the surrender value on the date of death. This clause is not applicable in case the entry age of the life assured is less than 8 years.
  • The life assured dies by suicide within 12 months from the date of revival of the policy. The LIC will not entertain any claims except for the amount higher of 80% of the total premium payments made till death or the surrender value on the date of death. This clause is not applicable in case the entry age of the life assured is less than 8 years. Also, in case of policies lapsed without acquiring paid-up value, nothing will be payable.

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Example of LIC's Jeevan Umang Policy

Let us suppose Mr. X plans to buy the policy at the age of 35 years. He selects the premium payment term of 20 years and a sum assured of Rs.10 lakhs.

Policy Term  = 100 - Age at entry =  100 - 35 = 65 Years

Mr. X can select from the different payment options of paying the premium.

In this case, the premium for different payment options will be:

Payment Mode1st Year2nd Year onwards
AnnualRs. 54,036Rs. 52,872
Half-YearlyRs. 27,303Rs. 26,715
QuarterlyRs. 13,794Rs. 13,497
MonthlyRs. 4,598Rs. 4,499

Note: All the premiums are Inclusive of GST and Mr. X has to pay the premium for 20 years.

So, if he selects the annual option for the premium payment. The total premium paid in 20 years will be approx Rs. 10,58,604.

Scenario 1: Mr. X survives the premium payment term

In this case, Mr. X will get the survival benefit which is equal to 8% of the basic sum assured every year. 

Mr. X will get Rs.80,000 every year till he survives or till the age of 100 years, whichever is earlier. 

Scenario 2: Mr. X survives the policy term

If Mr. X survives the policy term, it means he lives till the age of 100 years. Then at that time, he will get the maturity sum assured along with a simple reversionary bonus and final additional bonus.

Scenario 3: Mr. X dies after the premium payment term

As said in scenario 1, Mr. X will get the annual survival benefit till he survives and when he dies, the nominee will get 7 times the annualized premium or the basic sum assured as death benefits, whichever is higher along with the simple reversionary bonus and final additional bonus.

Scenario 4: Mr. X dies during the premium payment term

In this case, the nominee will get 7 times the annualized premium or the basic sum assured as a death benefit, whichever is higher along with the simple reversionary bonus and final additional bonus.

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Frequently Asked Questions

Q. Is LIC Jeevan Umang good for investment?

A. LIC Jeevan Umang is a whole life endowment plan which offers the death benefits in case of death of policyholder and annual survival benefits after the completion of premium payment term till death of the policyholder. The annual survival benefits in LIC Jeevan Umang plan will be 8% of the basic sum assured. Along with that, the applicable bonus will also be paid at the maturity or death of the policyholder to the beneficiaries. Overall, the LIC  

Jeevan Umang Policy aims to offer a combination of protection & income to the family of policyholders. About the efficiency of policy, as the plan also offers regular income after the premium payment term so getting adequate coverage for yourself can be expensive as compared to the case if you buy a pure term insurance policy.  

The best is always to keep your investments & insurance needs separate so as to achieve efficiency in both. Getting a pure term policy with sufficient coverage which only offers death benefits will be ideal to fulfill your insurance requirements. On the side of investments, your long term wealth creation goal & income needs after or before retirement can be fulfilled by investing in a diversified portfolio of equity mutual funds which will have the potential to offer very good returns i.e around 12-15% over the long run. This way, you will be able achieve more efficiency in terms of returns, sum assured coverage & cost.

Q. What is LIC’s Jeevan Umang?

A. LIC's Jeevan Umang Plan is a non-linked, participating whole life assurance policy that gives income and protection to policyholders. The plan gives an annual survival benefit along with a maturity & death benefit.

Q. What is the minimum age to opt for LIC’s Jeevan Umang?

A. The minimum age to opt for the LIC Jeevan Umang policy is 90 days. Individuals below the age of 90 days are not eligible to opt for the policy. Also, the maximum age for the policy is of 55 years.

Q. What can be the maximum age at maturity in LIC’s Jeevan Umang?

A. The maximum age of the policyholder at the time of maturity can be of 100 years. However, the policyholder cannot opt for the policy term which exceeds the age of 70 years.

Q. What is the sum assured for LIC’s Jeevan Umang?

A. The minimum sum assured for the LIC Jeevan Umang policy is Rs. 2 lakh. The additional sum assured can be selected should be in multiples of Rs.25,000. There is no maximum limit to select the sum assured.

Q. What is the policy term for LIC’s Jeevan Umang?

A. LIC Jeevan Umang policy can have a minimum policy term of 15 years while the maximum policy term can be of 30 years.

Q. Is there any maturity benefit in LIC’s Jeevan Umang?

A. Yes, if the policyholder services the policy term, then he/she will get the maturity benefit. The maturity benefit will be the sum assured along with a simple reversionary & final additional bonus if any.

Q. What is the premium payment term for the LIC’s Jeevan Umang policy?

A. The premium payment term for LIC’s Jeevan Umang can be of 15 years, 20 years, 25 years, and 30 years.

Comments (1)

S

Swarna lata shaw

01/01/2023

যদি 5 বছর চালানোর পর সারেন্ডার করা হয় তাহলে কী রিটার্ন পাওয়া যায় প্লীজ ডিটেল্স এ বলুন (জীবন উমঙ পলিসি)

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