Life Insurance Corporation (LIC) is a public sector insurer that provides term policies, money back plans along with multiple lucrative endowment policies. But Jeevan Umang is one of a kind plan among all of them as it is the only whole life, non-linked, participating plan of LIC.
LIC generally provides death benefits and maturity benefits, but the Jeevan Umang plan will provide the subscriber a survival benefit, along with the endowment benefits. LIC will give you a regular payout in the form of premium, after the policy payment term, until the policy holder’s death.
Anybody can apply for this plan, the minimum entry age is 90 days, which means a parent can take this plan for a newborn baby, while the maximum age will vary between 40-55 depending on the policy term. The policy term can be for 15, 20, 25, 30 years. The maximum age however should be 70 years at the end of the policy. That means if a person is aged 55 years, he/can apply for this plan for 15 years policy term.
Benefits of the plan
Jeevan Umang is a whole life risk coverage plan, that will offer annualized 8% of Sum Assured after the premium payment term – till the survival which is counted by LIC till the age of 100, along with tax benefits on premiums, death benefit, and maturity benefits. The maturity benefit will be a total of sum assured, simple revisionary bonus, and final additional bonus.
In case of death before 100 years, the death benefits will be given to the nominee, the amount will again be a total of sum assured, simple revisionary bonus, and final additional bonus. Hence, the death benefit will be more than 105% of all premiums paid. The death benefits can be received in a lump sum or the regular payout. In the latter case, in 5, 10, 10, and 15 years terms, the benefit can be obtained in the monthly, quarter, half-yearly, and yearly frequencies.
As it is a non-linked plan, your money will not be traded in the equity market to keep the money secured, and would not affect the returns. Another benefit of this participating plan in LIC will share a part of the company’s yearly profit with the subscriber, which is called Simple Reversionary Bonus and Final Addition Bonus. The minimum sum assured of this policy is Rs. 2,00,000.
A loan facility is also available in Jeevan Umang, after 2 years of premium payment, the policyholder can take a loan again the plan. Tax deduction benefits will come under section 80(c), and maturity and the tax benefit will be exempted under section 10(D).
Premium option of Jeevan Umang
| Sum Assured (INR) | Age | Term | 1st yearly premium (tax 4.5%) | Premium from 2 year (tax 2.25%) | Approximate return yearly from age of 60-100 or till life assured survives | Total approximate return at age of 100 on survival |
|---|---|---|---|---|---|---|
| 200000 | 40 | 59 | 11486 | 11238 | 16000 | 1781000 |
| 500000 | 40 | 59 | 28060 | 27456 | 40000 | 4452500 |
| 1000000 | 40 | 59 | 55598 | 54401 | 80000 | 8905000 |
| 2000000 | 40 | 59 | 111196 | 108802 | 160000 | 17810000 |
Additional rider options
There are 5 additional rider options available in the plan with additional premium, namely – accidental death and disability benefit rider, accidental benefit rider, new term assurance rider, new critical illness benefit rider, and premium waiver benefit rider.
The subscriber can any time surrender the policy, provided premiums have been paid for at least 3 consecutive years, and LIC in that case will pay the Surrender Value equal to higher than the Guaranteed Surrender Value and Special Surrender Value. However, this policy is popular because of its unique quality of whole life benefits. Even after the death of the policyholder, the nominee will get the assured values. Many parents take this plan their children as it will assure them a good amount of money with affordable premium benefits for whole life.
