LIC Jeevan Umang
8% guaranteed return
8% guaranteed return
High risk cover at affordable cost
High risk cover at affordable cost
Tax deduction under Section 80C
Tax deduction under Section 80C
Attractive High sum assured rebates
Attractive High sum assured rebates
Table of Contents
Jeevan Umang
LIC’s Jeevan Umang (Plan No. 945) is a non-linked, participating, individual, whole-life assurance plan that covers the policyholder till s/he turns 100 years of age. The limited premium paying plan provides guaranteed annual survival benefits at the end of the premium paying term till maturity. Also, the policyholder gets a lump sum payment at maturity. In case of the policyholder's unfortunate demise during the active policy, the nominee gets a cash payout as the death benefits.
Why Choose LIC Jeevan Umang?
Tax-free Maturity & Death Benefit
All proceeds from LIC Jeevan Umang, be it on the death of the policyholder, at maturity of the policy, are entirely tax free under Section 10(10D) of the Income Tax Act, 1969.
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 100. These are paid survival benefits for surviving every year till coverage ends.
Eligibility Conditions and Other Restrictions:
| Particulars | Details |
|---|---|
| Minimum Entry Age (completed) | 90 Days |
| PREMIUM PAYING TERM (PPT) | 15, 20, 25, & 30 Years |
| Maximum Age at Entry in Years (Nearest Birthday) | 55 for 15 PPT 50 for 20 PPT 45 for 25 PPT 40 for 30 PPT |
| AGE AT MATURITY | 100 Years (Nearest Birthday) |
| POLICY TERM | 100 – Age at Entry |
| BASIC SUM ASSURED | 2,00,000 and above in multiples of 25,000 |
| Premium payment mode | Single/ yearly only/ half yearly |
| PREMIUM PAYMENT MODE REBATE | 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly |
Benefits Offered by LIC Jeevan Umang
A. Death Benefit
- On Death of the Life Assured Before the Commencement of Risk (Nominees can claim the entire premium amount paid (Return of premium).)
- On Death of the Life Assured After the Commencement of Risk & Before Maturity (Nominee can claim the higher amount between 7 times the annual premium and the basic sum assured amount. Applicable bonuses such as the simple reversionary bonus and final additional bonus are also paid out along with the death benefit.)
B. Survival Benefit
- If the life assured survives the premium payment tenure and provided the policy is in force, LIC Jeevan Umang starts paying out an annual survival benefit.
- It is equal to 8% of the basic sum assured amount.
- The same amount is offered every year till the policyholder survives or till the last plan anniversary before the date of maturity (whichever event occurs earlier).
C. Maturity Benefit
In case the life assured survives the specified maturity date, then LIC offers them the basic sum assured along with the simple reversionary bonus and final additional bonus if any.
D. Loans
The loan facility can be availed under the LIC Jeevan Umang plan as per the following terms and conditions:
- A policyholder is eligible for a loan if they have paid premiums for a minimum of 2 years without fail.
- If in case the loan is availed during the premium paying term, the maximum loan amount is limited to 90% of the surrender value.
- In the case of paid-up policies, the cap on the loan amount is 80% of the paid-up value.
- Any loan unpaid shall be recovered from the claim proceeds during exit along with the applicable interest.
Additional Benefits available Under LIC Jeevan Umang Policy
Rider Benefit
LIC Accidental Death and Disability Rider Benefit
If the insured dies or suffers from a disability due to an accident, LIC pays out the accidental rider benefit sum assured along with the death benefit under the base plan.LIC Accidental Benefit Rider
The benefit that is covered under this rider is only active during the premium paying tenure (PPT). One can add this rider on the condition that at least 5 years are remaining in the PPT.LIC New Term Assurance Rider
This option can be availed at the inception of the LIC Jeevan Umang policy. The additional sum assured under the rider is paid to the nominee of the policy along with the basic sum assured if the insured dies during the policy tenure.LIC New Critical Illness Rider
This rider can be availed at the inception of the policy only. It offers financial respite to policyholders if they are diagnosed with any one of the 15 critical illnesses covered under this rider.LIC Premium Waiver Benefit
If the policyholder opts for this rider option, then in the event of the demise of the policyholder all the future premiums of the policy are waived off. This rider can help if the life assured is a child and the policyholder is the parent.
B. 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
| Mode of Installment payment | Minimum installment amount |
| Monthly | Rs. 5,000/- |
| Quarterly | Rs. 15,000/ |
| Half-Yearly | Rs. 25,000/ |
| Yearly | Rs. 50,000/ |
Other Details of the LIC Jeevan Umang Plan
Grace Period
A grace period is 15-30 days offered by LIC to policyholders who have failed to pay a due premium amount. The policy lapses if payment is not done by the end of this period.
Free-look Period
A free look period of 15 days from the date of policy initiation is offered by LIC. 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 of the policy, the insurance company will pay a surrender value equal to the special surrender value or the guaranteed surrender value (whichever is higher).
Loan Facility
The plan offers a loan facility wherein, one can avail loan to meet financial emergencies as per the below criteria:
Loan availed during the premium paying term 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 in such a way that the annual interest rate does not exceed 50% of the annual survival benefit that may be payable under the policy. Paid-up Value
In case the life assured has paid premiums for 2 years but stops after, then the policy will continue as a paid-up policy. In such cases, the sum assured shall decrease as 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
Rebates
The plan offers rebates as per the below-mentioned table:
Mode Rebate Yearly mode 2% of Tabular Premium Half-yearly mode 1% of Tabular premium Quarterly, Monthly (NACH) & Salary deduction NIL High Sum Assured Rebate 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
Tax Implications of LIC Jeevan Umang
Statutory taxes, if any, are imposed by the constitutional Tax Authority of India as per the prevailing tax laws. The tax rates are subject to revision from time to time. The taxes applicable shall be paid by the policyholder on the premium for the base policy and riders.
In terms of Income Tax, policyholders can enjoy tax benefits on the premium amount and the death and maturity proceeds under sections 80C and 10(10D) of the Income Tax Act of 1969.