Investment Plans 7330 views July 30, 2020

LIC Jeevan Umang Plan

Most of the individuals prefer accumulating funds for their future so that their family doesn’t face any kind of financial crises. But it is necessary that your savings are going into safe hands. Therefore you must invest your money in LIC because it is a trusted organization and helps you boost up your wealth through loyalty additions. One such plan is the LIC Jeevan Umang Plan in which the company gives you protection for life and provides a lump sum amount at maturity. If the insured dies during the policy term, the company will pay the death benefit to the family. So, you can look at all the key features of this plan.

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LIC Jeevan Umang Plan Eligibility Criteria

ParticularsDetails
Minimum Age of Entry90 Days
Maximum Age of Entry55 Years
Maximum Age of Maturity100 Years
Minimum Age at the End of Premium Paying Term30 Years
Maximum Age at the End of Premium Paying Term70 Years
Minimum Amount of the Sum AssuredRs.200000
Maximum Amount of the Sum AssuredNo Limit
Premium Paying Term10 Years, 20 Years, 25 Years, and 30 Years
Policy Term100 Years minus Age of Entry

Key Features of Jeevan Umang Plan

  1. This plan gives you death benefits, survival benefits and maturity benefits.
  2. You are free to choose the Sum Assured amount in this policy.
  3. There are various options available to choose the Sum Assured.
  4. You will also get loyalty additions in this insurance plan.
  5. There are multiple riders available in this plan that you can add to it.
  6. You will also get a grace period if you miss the payment of premium on the due date.
  7. Get Tax Benefits under section 80C and 80D of the Income Tax Act 1961

Benefits of Jeevan Umang Plan

Now you must go through the key benefits of this insurance plan and see how it can be helpful for you in the long run. On the other hand, this plan has some unique benefits that might amaze you.

Rebates on Premium

The company will give you a rebate on the premium amount if you choose a high sum assured amount. On the other hand, your premium will also be reduced if you have chosen yearly or half-yearly payment of your premium. In the table given below, you can see the rebates available on the premium amount.

Sum Assured and Payment FrequencyRebates
Yearly Payment of Premium2% of Tabular Premium
Half-Yearly Payment of Premium1% of Tabular Premium
Sum Assured is Between Rs.500000 to Rs.9750001.25% of the Basic Sum Assured
Sum Assured for Life is Rs.1000000 to Rs.24750001.75% of the Basic Sum Assured
Sum Assured for Life is Rs.2500000 and above2% of the Basic Sum Assured

Survival Benefits

You will receive survival benefits if you have completed the premium paying term successfully. The company will give you 8% of the Basic Sum Assured as survival benefits. The survival benefit will be given every year after the completion of the premium paying term and it continues until the policy matures.

Death Benefits

If the insured dies an unfortunate death, the nominee is entitled to receive the death benefit and they depend on the following conditions.

  1. If the insured dies before the risk commencement date, the return of premium paid without interest will be payable to the nominee.
  2. If the insured dies after the risk commencement date, the company will pay the Sum Assured on death, Simple Revisionary Bonuses, and Final Additional Bonus to the nominee.

The value of the Death Benefit will be the highest of the following:-

  1. Basic Sum Assured
  2. 7 times the annualized premium

The death benefit will never be less than 105% of the total premiums paid up to the time of death.

Option to Take Death Benefits in Instalments

The nominee can take the death benefits in installments and you are free to choose the time span of 5 years, 10 years and 15 years. It is not necessary to take the death benefit as a lump sum. Here are the different minimum amounts for different payment modes.

  1. Monthly Rs.5000
  2. Quarterly Rs.15000
  3. Half-Yearly Rs.25000
  4. Yearly Rs.50000

Maturity Benefits

If the insured successfully survives the policy term, he/she is entitled to receive the following:-

  1. Sum Assured on Maturity
  2. Simple Revisionary Bonuses and Final Additional Bonus

Various Modes for Paying the Premium

You will get different payment frequency modes – yearly, half-yearly, quarterly and monthly – for paying the premium. You can pay the premium amount through NACH Facility in which it will deduct the same automatically from your account on the due date.

Grace Period

You will get a grace period of 30 days in LIC Jeevan Umang Plan for paying the premium in case you fail to do so on the due date. If you are paying yearly, quarterly and half-yearly premiums, you will get a grace period of 30 days, otherwise, you will get a grace period of 15 days for a monthly premium payment mode.

Revival Benefit

LIC allows you to revive this policy if it has lapsed due to the non-payment of the premium during the grace period. The company gives you a time of 5 consecutive years to pay all the arrears including the interest and revive the lapsed plan.

After paying the premium for 2 years regularly, if you discontinue paying it, you will get the paid-up benefits where your death benefit and maturity benefit will be reduced. And at the time of death or maturity, you will receive reduced benefits.

Surrender Benefits

You can surrender the Jeevan Umang policy and take the surrender value. But you’ll only get the surrender benefits if you have paid all the premiums for 2 years without missing any premium. You will get the highest of the following:-

  1. Guaranteed Surrender Value
  2. Special Surrender Value

Loan Against Policy

You can take a loan against the policy from the company if you don’t want to surrender it. But you are allowed to take a loan against the policy only if your policy has acquired a surrender value. Life Insurance Corporation of India (LIC) will charge the applicable interest on the loan borrowed against the policy.

If the loan is taken during the premium paying term, the maximum loan amount will be:-

  1. Up to 90% in the case of inforce policies
  2. Up to 80% in the case of paid-up policies

Free-Look Period

You will get a free-look period of 15 days in this plan, which means that you can return the policy within 15 days if you don’t find it interesting. If you have purchased the policy online, you will get a grace period of 30 days.

Add-on Benefits

You can cover some extra risks related to your life by adding riders to this plan. The only rider that can be added to this plan is given below.

  1. Accidental Death and Disability Benefit Rider
  2. Accident Benefit Rider
  3. New term Assurance Rider
  4. New Critical Illness Benefit Rider
  5. Premium Waiver Benefit Rider

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