LIC Jeevan Umang Plan - RozgaarPolicy.in

Features of LIC Jeevan Umang Plan-745

LIC of India provides LIC Jeevan Umang (745), which is a combination of long-term protection and financial growth. Below are some of the key features of the plan:

Annual Survival Benefits: LIC Jeevan Umang provides yearly survival benefits starting at the end of the premium payment tenure and continuing till maturity.
Maturity Benefit: If the insured survives the policy term, a lump sum amount is paid as a maturity benefit.
Whole Life Coverage with Limited Premium Payment: This plan offers lifetime coverage while requiring premium payments for a limited period, ensuring long-term security with fewer payments.
Flexible Payment and Death Benefit Options: Policyholders can choose their premium payment term and opt to receive the death benefit in installments for better financial planning.
High Sum Assured Rebate: Jeevan Umang LIC policy offers attractive rebates for higher sum assured, making it a cost-effective and rewarding investment.

Eligibility Criteria of LIC Jeevan Umang Plan

Let’s take a look at the eligibility criteria of the policy:

Eligibility Criteria	Minimum	Maximum
Entry Age	90 days	55 years
Policy Term	(100 years- Age at entry) years
Sum Assured	Rs. 2,00,000	No limit
Maturity Age	100 years
Premium paying term	15 years, 20 years, 25 years, and 30 years
Age at the end of premium paying term	30 years	70 years

Why Choose LIC Jeevan Umang?

LIC Jeevan Umang policy is designed to offer a perfect combination of security and growth, making it an ideal choice for long-term financial planning. With the following unique features and structured benefits, the plan is tailored to suit diverse financial needs:

Life-long Risk Cover till the Age of 100
The life cover against the risk of death of the policyholder starts from the date of issuance and lasts till he/she reaches 100 years of age.
Guaranteed Income from the Age of 30
Policyholders can buy this policy for themselves or their children and secure a lifetime annual income until they are 100. These are paid survival benefits for surviving every year till coverage ends.
Tax Benefits
All premiums paid for LIC Jeevan Umang qualify for tax benefits under Section 80C of the Income Tax Act, while the death benefit is fully tax-free. The maturity benefit is exempt from tax under Section 10(10D), subject to prevailing tax laws. For the latest tax regulations, always consult your financial advisor.

What are the LIC Jeevan Umang Benefits?

Here are some of the prime benefits of the LIC Jeevan Umang plan:

Death Benefit
In the unfortunate event of the policyholder’s passing, the death benefit will be provided based on the policy’s status:
- Before the commencement of risk: The total premiums paid (excluding taxes, extra premiums, and rider premiums) will be refunded without interest.
- After the commencement of risk: The nominee will receive the Sum Assured on Death, which is the higher of:
  - 7 times the annualized premium
  - The Basic Sum Assured
The total payout will be at least 105% of the total premiums paid up to the date of death.
Survival Benefit
If the policyholder survives beyond the premium paying term, an annual payout of 8% of the Basic Sum Assured will be given every year. The first payout begins right after the premium payment term ends and continues yearly until the policy matures or the policyholder’s passing, whichever comes first.
Maturity Benefit
If the life assured survives the specified maturity date, LIC offers them the basic sum assured along with the simple reversionary bonus and, if applicable, the final additional bonus.
Participation in Profits
The policy participates in profits based on LIC’s experience under this plan.
During Premium Paying Term:
- In-force policies are eligible for Simple Reversionary Bonuses.
- A Final Additional Bonus may be paid on death claims, but not for paid-up or surrendered policies during this term.
- Policies with unpaid premiums will not participate in future profits during this period.
After Premium Paying Term (for fully paid-up policies or paid-up policies with Maturity Paid-up Sum Assured ≥ ₹2 lakhs):
- A Final Additional Bonus may be paid on death, maturity, or surrender (included in Special Surrender Value, if applicable).
- Policies with Maturity Paid-up Sum Assured < ₹2 lakhs will not participate in profits.

Additional Benefits Available Under LIC Jeevan Umang Policy

Some addition LIC Jeevan Umang benefits include:

Rider Benefit
The following riders can be added to the LIC Jeevan Umang plan to increase the coverage.
- LIC Accidental Death and Disability Rider Benefit
  In the event of an accident, the Accident Benefit Sum Assured will be paid in a lump sum to te beneficiary. Whereas in the case of disability, arising out of an accident within 180 days from the date of the accident, an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments for 10 years. All future premiums will be waived in the event of accidental disability arising from an accident.
- LIC Accident Benefit Rider
  In case of accidental death, the Accident Benefit Sum Assured will be paid in lump sum along with the death benefit of the base plan.
- LIC New Term Assurance Rider
  Under this rider, an amount equal to Term Assurance Rider Sum Assured will be paid to the beneficiary, if the policyholder dies during the policy term. The policyholder needs to buy this rider at the time of inception only.
- LIC New Critical Illness Rider
  The rider covers the policyholder if they are diagnosed with any of the listed 15 critical illnesses, the policyholder will be paid the Critical Illness Sum Assured. The Critical Illness covered under the rider are:
  - Cancer of specified severity
  - Open chest CABG
  - Myocardial Infarction
  - Kidney Failure requiring regular dialysis
  - Major organ/ Bone Marrow transplant
  - Stroke resulting in permanent symptoms
  - Permanent Paralysis of Limbs
  - Multiple Sclerosis with persisting symptoms
  - Aortic Surgery
  - Primary (Idiopathic) Pulmonary Hypertension
  - Alzheimer’s Disease or Dementia
  - Blindness
  - Third Degree Burns
  - Open Heart Replacement or repair of Heart valves
  - Benign Brain Tumour
- LIC Premium Waiver Benefit Rider
  Under this rider, on the death of the policyholder, the pending premiums under the base policy falling due on and after the date of death till the expiry of the rider term shall be waived.
Death Benefits in installments
Under the policy, there is an option to receive death benefits in installments over a 5/10/15-year period rather than a lump sum payment. The installments must be paid in advance at chosen intervals of annually, half-yearly, quarterly, or monthly, subject to a minimum installment amount for different payment modes, such as:

	Minimum installment amount
Monthly	Rs. 5,000/-
Quarterly	Rs. 15,000/
Half-Yearly	Rs. 25,000/
Yearly	Rs. 50,000/

How does LIC Jeevan Umang work?

Let’s take the example of Harsh who is a 30-year-old male at the time of buying this policy. Assuming that he is looking for the following coverage –

Sum Assured – Rs. 10,00,000
Policy Term – (100 minus 30 years) = 70 years
Premium Paying Term – 20 years

Using the LIC Jeevan Umang calculator, the annual premium that Harsh will have to pay comes to be Rs. 54,036 (including taxes).

* Note – Taxes include GST of 4.5% levied on 1st-year premiums and 2.25% on premiums payable in the subsequent years.

Let’s see what benefits Harsh or his family will be entitled to in the following cases by using the LIC Jeevan Umang Policy Calculator-

Scenario 1: If Harsh dies within the premium paying term
harsh’s family will receive the death benefit, which is either 7 times the annual premium (Rs. 3,78,252) or the Basic Sum Assured plus applicable bonuses (Rs. 10,00,000 + bonus). Since the latter is higher, LIC will pay this amount.
Scenario 2: If Harsh dies 10 years after the premium paying term ends
- Harsh will receive annual survival benefits for surviving these 10 years. It is equal to 8% of the BSA. Therefore, he would have received Rs. 80,000 annually for 10 years till his death.
- On his death, Harsh’s family can claim the death benefit amount, which will be equal to (Rs. 10,00,000 + bonuses).
Scenario 3: If Harsh survives the policy term of 70 years
- Harsh will receive the Basic Sum Assured plus applicable bonuses (Rs. 10,00,000 + bonus) as a maturity benefit.
- Harsh will also have received annual survival benefits from the end of the premium-paying term until the end of the policy term. Each year of survival entitles Harsh to 8% of the BSA, equal to Rs. 80,000 annually.

Sample Illustration of Premiums Charged Under LIC Jeevan Umang

You can use the LIC Calculator to get your premium quotes before purchasing the plan. The following is a sample illustration of annual premium rates (in Rs.) for a basic sum assured of Rs.2 lakhs across various entry ages and premium paying terms.

Entry Age	Policy Term	Premium Paying Term
Entry Age	Policy Term	15 years	20 years	25 years	30 years
20 years	80 years	15,739/-	10,692/-	7,830/-	6,105/-
30 years	70 years	15,739/-	10,692/-	7,879/-	6,282/-
40 years	60 years	15,739/-	10,741/-	8,291/-	6,880/-
50 years	50 years	15,739/-	11,544	NA	NA

LIC Jeevan Umang Policy Details

To make the most of your investment, understanding the LIC Jeevan Umang policy details is important. Here are the key LIC Jeevan Umang policy details:

Grace Period
LIC offers a grace period of 15-30 days to policyholders who still need to pay a due premium. If the premium payment frequency is monthly, the grace period is 15 days, for the rest of the frequencies, it is 30 days. The policy lapses unless payment is made by the end of this period.
Free-look Period
LIC offers a 15-day free-look period from the date of policy initiation. During this period, the policyholder can cancel the policy if he/she is dissatisfied with its terms and conditions.
Policy Surrender
The policyholder can surrender the policy, provided the premiums are duly paid for two consecutive years. On surrender, the insurance company will pay a surrender value equal to the special or guaranteed surrender value (whichever is higher).
Loan Facility
A policyholder becomes eligible for a loan after paying premiums for at least two years without fail. The plan offers a loan facility wherein, one can avail loan to meet financial emergencies as per the below criteria:

Any outstanding loan and interest will be deducted from the claim payout at the time of policy exit.	Loan availed after the premium paying term
For in-force policies- up to 90% For paid-up policies- up to 80%	The maximum amount of a loan is determined so that the annual interest rate does not exceed 50% of the annual survival benefit that may be payable under the policy.

Paid-up Value
If the life assured has paid premiums for 2 years but stops after that, the policy will continue as a paid-up policy. In such cases, the sum assured shall decrease per the remaining premiums.
The paid-up sum assured on death is equal to:
- Number of premiums paid/ total number of premiums to be paid X sum assured on death
Similarly, the paid-up sum assured on maturity is equal to:
- Number of paid premium/ total number of premiums to be paid X sum assured on maturity
Revival
A lapsed policy can be revived within 5 years from the first unpaid premium by paying all overdue premiums with interest (compounded half-yearly), subject to LIC’s underwriting rules and satisfactory evidence of insurability. Riders, if any, can only be revived along with the base policy.
If revival occurs after the premium paying term and survival benefits are due:
- For paid-up policies with Maturity Paid-up Sum Assured < ₹2 lakhs: unpaid survival benefits will be paid.
- For policies with Sum Assured ≥ ₹2 lakhs: the difference between full and reduced survival benefits will be paid.
Rebates
The plan offers rebates as per the below-mentioned table:


Yearly mode	2% of Tabular Premium
Half-yearly mode	1% of Tabular premium
Quarterly, Monthly (NACH) & Salary deduction	NIL


Basic Sum Assured (BSA)	Rebate (Rs.)
2,00,000 to 4,75,000	Nil
5,00,000 to 9,75,000	1.25% BSA
10,00,000 to 24,75,000	1.75% BSA
25,00,000 and above	2.00% BSA

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