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LIC Jeevan Umang

LIC Jeevan Umang is a traditional, non-linked with-profit plan whole life assurance plan. It is a combination of both income and protection.

A participating plan that pays simple reversionary bonus and final addition bonus.

This plan was recently launched in May, 2017 and is a limited premium payment option plan. LIC Jeevan Umang offers a life cover up to 100 years. It is a whole life insurance plan that offers survival benefit at the end of the premium paying term, a lump sum amount on the completion of the policy term or on the death of the policy holder during the policy period.

Features of the LIC Jeevan Umang

Mentioned below are the key features of the LIC Jeevan Umang Plan:

  • It is a combination of both regular income and Lumpsum payment.
  • Offers an option to choose a premium paying term of 15 years, 20 years, 25 years or 30 years.
  • It is a non-linked life insurance plan with profits.
  • Offers life cover till the policyholder turns 100 years.
  • Offers a loan facility up to 90% of the surrender value if the policy holder has paid the premiums for 3 years regularly and if the plan has reached a Surrender Value.
  • The LIC Jeevan Umang Plan offers a simple reversionary bonus as well as final addition bonus if any.

Benefits of LIC Jeevan Umang Plan

The LIC Jeevan Umang Plan offers host of benefits as mentioned below:

Death benefit : In case of death of life insured before the risk commencement date, LIC will return all the premiums paid without interest to the nominee. However, in case the policyholder suffers a death after the risk commencement date, LIC will offer the sum assured to the nominee. This will also include simple reversionary bonus as well as final additional bonus if any.

Maturity benefit : In case of maturity of the policy, if all the premiums have been paid regularly, the insurance company pays the sum assured with addition to the simple reversionary bonus as well as final additional bonus if any.

Survival benefits : In case the insured survives the policy payment term, then 8% of the sum assured is paid every year as a guaranteed survival benefit. This benefit is paid till the maturity of the plan or the death of the insured, whichever is earlier.

Rebates : LIC Jeevan Umang offers two types of rebates. The first rebate is the premium payment mode rebate and the other is high basic sum assured rebate. For the premium payment mode, 2% on yearly and 1% on half yearly rebate is paid. For the high basic sum assured mode, 2% rebate is paid on basic sum assured of Rs.25 lakh and above. 1.75% rebate on the basic sum assured is paid on Rs.10 lakh to Rs.24.75 lakh. 1.25% rebate on the basic sum assured is paid on Rs.5 lakh to Rs.9.75 lakh.

Loans : LIC Jeevan Umang offers a loan facility up to 90% of the surrender value once you complete 3 years of the policy period and if the premiums were paid regularly. The policy also should have acquired a surrender value to be eligible for a loan facility.

Eligibility Criteria for LIC Jeevan Umang Plan

The eligibility criteria for the LIC Jeevan Umang Plan is mentioned below:

  • Minimum entry age: 90 days (completed)

  • Maximum entry age: 55 years in case of a policy period of 15 years

    • 50 years in case of a policy period of 20 years
    • 45 years in case of a policy period of 25 years
    • 40 years in case of a policy period of 30 years
  • Maturity age: 100 years with the nearest birthday

  • Premium payment frequency: Annually, half-yearly, quarterly and monthly

  • Minimum sum assured: Rs.2 lakh

  • Maximum sum assured: No limit

Riders offered by LIC Jeevan Umang Policy

The below mentioned riders are offered by LIC Jeevan Umang Policy:

  • LIC’s Accidental Death and Disability Benefit Rider : In case the insured suffers an accidental death during the policy period, an additional sum assured is offered to the nominee. This rider can be opted by paying an extra premium over and above the base policy premium anytime during the policy term.

  • LIC’s New Term Assurance Rider : In case of death, the rider benefit increases here. You can opt for this type of rider during the policy issuance by paying an additional amount. This rider offers a benefit for a period of 35 years or till the policy anniversary wherein the age of the insured is 75 years, whichever is earlier.

  • Accident Benefit Rider : This rider can be opted by paying an extra premium over and above the base policy premium. You can opt for this rider anytime within the policy paying term. In case the insured suffers an accidental death within 180 days from the accident date, the rider benefit is paid to the nominee.

  • New Critical Illness Benefit Rider: You can opt for this rider during the inception of the policy period, by paying an extra premium. Post opting for this rider, if you get diagnosed with any of the 15 critical illnesses mentioned in the policy rider, you will be paid the critical illness sum assured.

Other Details of LIC Jeevan Umang Policy

Some of the important details with regards to LIC Jeevan Umang Policy are mentioned below:

  • Revival period : Offers a revival period of 2 years. A policyholder can revive the policy from the date of the first unpaid premium by paying the arrears as well as the interest and other expenses.

  • Free look period : Offers a free look period of 15 days from the date of policy issuance.

  • Surrendering the policy : Offers liberty to surrender the policy anytime only in case the premiums are paid for last 3 years. LIC will then offer the surrender value which would be equal to higher of the guaranteed surrender value or the special surrender value.

  • Tax benefits : The premiums paid towards the LIC Jeevan Umang policy is exempted from income tax under the Section 80C of the Income Tax Act, 1961. Besides, the maturity amount receivable is also tax free under Section 10(10D).

LIC Jeevan Umang Policy Exclusions

Suicide: If the insured commits suicide within one year of the policy period, then the insurance company doesn’t offer any sum assured to the nominee. However, 80% of the premiums paid without any interest are paid to the nominee in case the policy is in force. The minimum entry age of the policyholder should be above 8 years.

LIC Jeevan Umang Review

LIC Jeevan Umang Policy offers an array of reasonably priced life insurance policy. This plan is made-to-measure to shield you against the mounting financial outlays post death. The variety of riders offered by this plan would enhance your base plan at a minimal rate. The added advantage of this plan is that anyone between the age of 90 days and 55 years can opt for this plan. This is the reason why this recently launched plan has gained a lot of popularity in no time.

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