Life Insurance Corporation of India is a trusted name in the insurance sector of India. LIC offers various insurance plans to cater to the insurance needs of the people of India. LIC Jeevan Umang 945 is the only whole life plan offered by LIC. Therefore, in this post, we will discuss all you need to know about the LIC Jeevan Umang review.
Table of Contents
LIC Jeevan Umang Policy
LIC Jeevan Umang insurance policy is a non-linked, participating, individual, whole life insurance plan. This whole life insurance policy offers a combination of income and protection to your family. Under this plan, the policyholder gets guaranteed annual survival benefits from the end of the premium paying term till maturity. There is also a lump sum payment at the time of maturity or on the death of the policyholder during the policy term. In addition to the above benefits, this policy also takes care of liquidity needs through a loan facility.
Features of LIC Jeevan Umang Policy
Here are LIC Jeevan Umang policy details for you
1. It is a life insurance policy that is both an endowment and a life insurance policy.
2. This is the only whole life plan offered by LIC.
3. This is a traditional insurance plan.
4. After the premium-paying period is over, the insured receives 8 percent of the Sum Assured for life or until the age of 100 years.
5. This policy pays a lump sum payment at the time of maturity or on the death of the policyholder during the policy term.
6. Under this plan, you will get the benefits of both the Simple Reversionary Bonus and the Final Addition Bonus.
7. Tax advantages on premiums, death benefits, and maturity benefits are all available to you.
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Benefits of LIC Jeevan Umang Plan
1. Death Benefit
Under this plan the payment of death benefit is as under:
On Death before the commencement of Risk:
LIC will pay all the premiums paid till date without interest to the nominee.
On Death after the commencement of Risk:
LIC will pay the sum assured on death along with a vested simple reversionary bonus and final additional bonus (if any).
Sum Assured on Death is the highest of the following:
- 7 times of the annualised premium
- Basic Sum Assured
This death benefit will never be less than 105% of the total premiums paid up to the date of death.
Premiums mentioned above will not include taxes, extra premium, and rider premium(s), if any
2. Survival Benefit
The survival benefit is paid yearly equal to 8% of the basic sum assured. The first survival benefit payment is paid to the life insured at the end of the premium paying term. And thereafter on completion of each subsequent year till the life assured survives or till the policy anniversary before the date of maturity, whichever is earlier.
3. Maturity Benefit
On the life assured surviving to the end of the policy term, the policyholder will get the Sum Assured on maturity along with a simple reversionary bonus and final addition bonus (if any).
4. Optional Benefits
You can take the following riders by paying an additional premium.
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
Eligibility Criteria
Here are the eligibility criteria for you.
1. Minimum Basic Sum Assured: Rs.2,00,000
2. Maximum Basic Sum Assured: No limit
3. Premium Paying Term: 15, 20, 25, and 30 years
4. Policy Term: (100 – the age at entry) years
5. Minimum Age at entry: 90 days (completed)
6. Maximum Age at entry: 55 years (nearer birthday)
7. Minimum Age at the end of the premium paying term: 30 years (nearer birthday)
8. Maximum Age at the end of the premium paying term: 70 years (nearer birthday)
9. Age at maturity: 100 years (nearer birthday)
Loan under this policy
Policyholders take avail of a loan during the policy term provided at least two full years’ premiums have been paid. This loan is subject to the terms and conditions as the LIC may specify from time to time.
Loan during the premium paying term
The loan amount as a percentage of surrender value shall be as under:
- Up to 90% loan can be availed for in-force policies.
- Up to 80% loan can be availed for paid-up policies.
Loan after the premium paying term
The loan amount for policies that are entitled to survival benefits is calculated in such a way that the interest amount payable on the loan does not exceed 50% of the annual survival benefit payable under the policy.
LIC Jeevan Umang Premium Chart
Click here to view the LIC Jeevan Umang premium chart.
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Frequently Asked Questions
1. What is the grace period under the Jeevan Umang Plan?
A grace period of 30 days offered for payment of yearly or half-yearly or
quarterly premiums. While 15 days’ grace period allowed for the monthly mode of premiums from the date of the first unpaid premium.
2. What are the premium payment modes under this plan?
The premiums can be paid regularly at yearly, half-yearly, quarterly, or monthly mode or through salary deductions.
3. What is the survival benefit of the LIC Jeevan Umang scheme?
A guaranteed survival benefit paid yearly equal to 8% of the basic sum assured. The first survival benefit payment paid to the policyholder at the end of the premium paying term. And thereafter every year till the life assured survives or till the policy reaches maturity, whichever is earlier.
4. When it comes to Jeevan Umang or Jeevan Shanti, which is better?
In the case of a person with taxable income, Jeevan Shanti is a preferable choice since the deferred annuity option allows the individual to postpone further tax obligations.
5. Is Jeevan Umang good policy?
Yes, it is a good insurance policy as it offers a combination of income and protection to your family. This policy offers coverage for the entire life i.e. up to 100 years. A large sum assured is available under this policy. A guaranteed survival benefit is payable yearly equal to 8% of the basic sum assured.
Final Thoughts – LIC Jeevan Umang Review
I hope now you know what LIC LIC Jeevan Umang policy is? It is an endowment cum whole life plan which offers a combination of income and protection to your family. A policyholder gets a guaranteed payout from the end of the premium payment term till the date of your survival. The plan also participates in a simple reversionary bonus and final addition bonus.
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