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LIC Jeevan Umang Plan

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LIC Jeevan Umang Policy (Plan number – 945) is a with-profit; conventional whole life plan, which is non-linked that also, comes with complete life coverage. The primary coverage of Jeevan Umang is that it pays-out coverage from the date of the end of premium payment till the survival date. In case of completion of the policy term or case, the holder passes away; then a lump-sum amount is paid out. Jeevan Umang is also a participating plan, which includes simple reversionary bonus and final addition bonus.

What is LIC Jeevan Umang Plan?

LIC Jeevan Umang is a whole life insurance plan, which provides life coverage of up to 100 years. It is a combination of both investment and protection.

  • The launch date of Jeevan Umang – 1st Feb 2020
  • Table Number – 945
  • Type – LIC Whole Life Insurance Plan
  • Bonus included – Yes
  • UIN – 512N312V02

Features of the LIC Jeevan Umang

LIC Jeevan Umang by Life Corporation of India comes packed with various salient features. The key features of LIC Jeevan Umang Policy are as follows:

  • The best feature of this policy is that it offers coverage for 100 years
  • It is a non­linked plan with-profits
  • 8% of sum assured is accumulated as money back each year on the survival of the policyholder and paid out at the end of the policy term
  • A large sum assured is provided under this plan
  • Riders like term rider, accidental and disability rider can be attached with this plan
  • Loan facility available for up to 90% of the surrender value if the policyholder has diligently paid his premium and maintained the policy well for 3 consecutive years and if the policy has reached surrender value (*Standard T&C Apply)
  • Various options are provided as premium paying modes as per the convenience of the insured
  • Offers various premium paying terms of 15, 20, 25 and 30 years
  • This plan is a beneficial mix of routine income and a fixed pay-out
  • Simple reversionary bonus is paid in case of death or maturity
  • If applicable by LIC, a final additional bonus is paid-out
  • A perfect pension plan for retired people
  • Death and Maturity amount is exempt from tax under section 10(10D) of the Income Tax Act, 1961. *Tax benefit is subject to changes in tax laws
  • Premium paid towards LIC Jeevan Umang is exempt from taxation as per section 80C of the ITA

Specifications of LIC Jeevan Umang are (*Standard T&C Apply):

Minimum entry age

90 days

Premium Paying Term

15,20,25 and 30 years

Maximum entry age

55 for 15 years PPT

50 for 20 years PPT

45 for 25 years PPT

40 for 30 years PPT

Maturity Age

100 years with the nearest birthday

Policy Term

100 years age at entry

Minimum sum assured

Rs. 2 Lakh multiples of Rs. 25000

Maximum sum assured

Unlimited

Premium Paying mode

Annually, bi-annually, quarterly and monthly (only in case of SSS and Nach)

Mode rebate of premium paying mode

2% on annually, 1% on half-yearly and not applicable on quarterly and monthly (only in case of SSS and Nach)

Benefits of the LIC Jeevan Umang Plan

Apart from a whole set of salient features, LIC Jeevan Umang Plan by Life Insurance Corporation of India offers different benefits. Some of the core benefits of LIC Jeevan Umang Policy are as follows:

Date of Commencement of Risk

If the entry age of the insured is less than 8 years, then the risk will start 1 day before the completion of 2 years from the date of commencement of the policy or 1 day before the anniversary of the policy and further following the completion of 8 years of age. For policyholders who are above 8 years of age, risk commences with immediate effect.

Death Benefits

If the death of the policyholder happens before the commencement of the risk, then the death benefit will be equal to the total amount of premium paid without any interest added to it.

If the death of the policyholder happens after the commencement of risk, then the death benefit will be a definite sum assured on death along with the vested simple reversionary bonus and the final additional bonus if applicable.

Sum Assured on death is highest of the below mentioned:

  • 7 times of the annual premium paid, or sum assured on maturity or absolute amount assured
  • The death benefit is not less than 105% of all the amounts of premium paid till death

Maturity Benefits

Sum assured on maturity is the basic sum assured, which is paid along with the vested simple reversionary bonus and the final additional bonus as applicable on successful completion of the LIC Jeevan Umang policy if the policyholder has diligently paid all his premiums. (*Standard T&C Apply)

Survival Benefits

On completion of the PPT - premium paying term, if the policyholder has maintained the policy well and paid all his premiums then 8% of the sum assured is paid out to the policyholder each year till maturity. This is only started when the PPT is over, and the first payment of the survival benefit is paid out each year to the insured. This repeats until the survival of the insured or the policy year before the date of maturity. Whichever date is earlier, that will be chosen for the final payment date of the survival benefit. (*Standard T&C Apply)

Loan under Policy

In case of financial emergency, the policyholder can avail the facility of a loan for up to 90% of the surrender value, by the terms and conditions of the LIC Jeevan Umang, after the policy reaches a specified surrender value and the premiums are paid for a minimum of 3 years. (*Standard T&C Apply)

Tax Benefits

The policyholder can claim tax exemptions under section 10(10)D on the maturity benefits and death amount. On the number of premiums paid, he can avail an exemption under Section 80C of the Indian Income Tax Act, 1961. *Tax benefit is subject to changes in tax laws

Bonuses

Simple Reversionary Bonus and Final Addition Bonus can be claimed at the time of death or maturity. (*Standard T&C Apply)

Profits Participation

As per the terms and conditions of the policy and also depending on the LIC experience, profit participation can be possible at the time of policy tenure.

Option to take settlement option for Death Benefit and Maturity Benefits in Instalments

In case of a paid-up policy or a policy in force, an option is made available to the policyholder or his family to receive the death benefit as a lump-­sum amount or in instalments divided for 5 or 10 or 15. This option will only be applied by the insured who is aged 18 years and above of age. The amount that is opted by the policyholder, which is also called the net claim, can be a percentage of the total claim or also an absolute value as per the needs and convenience of the family of the insured or the policyholder himself.

The instalments shall be paid in advance annually, or bi-annually, or quarterly, or monthly.

Intervals, subject to minimum instalment amount for different modes of payments being as under: (*Standard T&C Apply)

Mode of payment of Instalment

The minimum amount of Instalment

Monthly basis

Rs. 5000

Quarterly Basis

Rs. 15000

Bi-Annually

Rs. 25000

Annually

Rs. 50000

If the Net Claim Amount is less than the minimum instalment amount, then the claim proceeds shall be paid in lump-sum only. The interest rates applicable under instalment payments will be as per the norms fixed by IRDA or the Corporation from time to time.

Additional Optional Riders

With the payment of additional premium, multiple riders can be additionally paired with the plan with conditions like the benefit derived from these riders cannot exceed the basic sum assured and the add-on of the riders should be done 5 years before the outstanding premium paying term. Few additional riders are:

Accidental Death and Disability Benefit Rider

In case of accidental death, the nominee will be paid both the amounts of sum assured - accident benefit sum assured and death benefit of the plan.

In case of accidental permanent disability, within the time frame of 180 days, the policyholder will be paid the accident sum assured, which will further be spread for 10 years. Also, all premiums payable will cease after that.

Accident Benefit Rider

As per this rider, if the policyholder dies within 180 days of any unfortunate accident or event, then the nominee will be paid the accident benefit amount.

New term Assurance Rider

By paying an extra amount of premium, the policyholder can increase the death benefit amount. It also provides the benefit of 35 years or until the completion of the policy years where the age of the insured is 75 years. Whichever date is earlier, the rider benefit will be paid on that date.

New Critical Illness Benefit Rider

Under this rider, by paying an extra amount of premium, the insured can avail the benefit of covering 15 critical illnesses like cancer, heart attacks, and many more as per the plan list.

Types of Whole Life Policy

There are different types of Whole Life Insurance Policies available in the market, each of which is designed to cater to specific requirements. LIC has specifically designed LIC Jeevan Umang Plan, which the only whole life insurance plans recently launched by the Corporation with numerous benefits. Let us take a look at the major kinds of whole life policies:

Non-Participating Whole Life Insurance

A policy with a level and maintained premium rate and sum assured throughout the policy term is a non-participating whole life policy. The main benefit of this plan is that the costs are fixed, and even the out of pocket premiums to be paid are relatively low. Also, no dividends are aid out since it is a non-participating policy.

Participating Whole Life Insurance

The best feature of this plan is that it pays dividends. This means that any excess earnings earned by the insurance company through investments, savings or even a favourable mortality claim of the corporation, which is paid out to the policyholders in the form of cash, which helps in bringing down the premium amount. However, there is no guarantee that a sure shot benefit will be earned. The dividends earned by the policyholder can also be used in a paid-up additional insurance, thus increasing the face amount of the total coverage.

Under these two broad categories of participating and non-participating, there are several types of whole life policies, which individuals can choose from:

Level Premium Whole Life Insurance

This indicates level premium payments, which need to be paid till the insured is alive. The amount of premium does not change throughout the policy term or the life of the policyholder and is aid until the end of the policy term.

Limited Payment, Whole Life Insurance

Under the Limited Payment Whole Life Insurance, policyholders must pay a little higher amount of premium. Still, the benefit is that it must be paid for a limited period receiving lifetime protection. Under this kind of plan, policyholders must pay premiums for a specified number of years – 10 years, 20 years, etc.

Single-Premium Whole Life Insurance

This is quite an expensive plan wherein a single amount of premium is paid as a single lump-sum amount at the issue of the policy, making it fully paid up, with no pending premium payments. It is considered more as an investment insurance product wherein the plan is funded for life.

Indeterminate Premium Whole Life Insurance

The main benefit is to adjust the premiums under this plan. The insurance company charges a rate of premium based on an estimate of its current earnings, cost of expenses and mortality. It is a flexible plan through which changes and adjustments can be made on the amount of premium going forth during the policy term.

Who should choose for LIC Jeevan Umang Plan?

An individual can opt for whole life insurance if:

  • He has made investments towards his retirement requirements and post-employment period and is seeking other opportunities to invest in
  • He owns an estate and wishes to bequeath his savings to his family members or beneficiaries
  • He is a young professional who has just started his career, and he will be capable of making regular premium payments for a considerable time into the future

Inclusions of LIC Jeevan Umang

Here is a rundown to the key inclusions of LIC Jeevan Umang:

Sample Premium Rates Paid for LIC Jeevan Umang

We will take the following example to estimate the amount of premium paid annually exclusive of service tax per Rs. 2 Lakh of basic sum assured. *Standard T&C Apply

Age

Premium Paying Term of 15 years

Premium Paying Term of 20 years

Premium Paying Term of 25 years

Premium Paying Term of 30 years

20 years

15739

10692

7830

6105

30 years

15739

10692

7879

6282

40 years

15739

10741

8291

6880

50 years

15739

11544

NA

NA

Rebate Information

Following are the rebates depending on the high basic sum assured offered on tabular premium: *Standard T&C Apply

Mode of Payment Rebate

Annual Mode

2% of Tabular Premium

Bi-Annual Mode

1% of Tabular Premium

Quarterly or Monthly NACH and Salary Deduction

Nil

High Sum Assured Rebate on Premium

Basic Sum Assured

Rebate

Rs. 1 Lakh to 1.95 Lakh

NIL

Rs. 2 Lakh to 4.95 Lakh

2.00 % of Basic Sum assured

RS. 5 Lakh and above

3.00 % of Basic Sum Assured

Grace Period

A grace period of 30 days is allowed to pay the premium towards the policy, in a failure of doing so, the policy is considered as a lapsed policy.

Policy Revival

If due to any circumstances, the policyholder fails to pay the premium, he will be given a grace period. If then also he fails to make the payment, the policy will stand lapsed. The policyholder can revive the policy within 2 years of its lapse, and the amount of premium payable including the previous dies will be calculated at a fixed rate, which will be decided by LIC.

Suicide Clause

The policyholder will receive an 80% of the premium paid if the policyholder commits suicide within 1 year of completion of the policy; this clause is invalid if the entry age of the insured is less than 8 years of age.

Date of Vesting

Date of vesting starts either after completion of 18 years for the policy or immediately. This will also be considered if LIC accepted and considered the vesting of the insured for a specified period.

Free Look Period

A free look period of 15 days is allowed within which if the insured plans to quit or surrender the policy he will be able to with a full refund of any premium paid towards the plan.

Loan Benefits

After completion of three years, the policy will attain a surrender value, post which a loan can be applied on the LIC plan in case of any financial emergency up to 90% of the surrender value.

Paid-up Value

There are certain conditions attached to the paid-up value:

If the policyholder fails to pay the premium towards the policy for three consecutive years and does not revive the policy even after its lapse, then no amount will be due towards him, and the plan will stand terminated.

If the policy is paid up for up to three years premium, then the paid-up sum assured also reduces proportionately and will continue as a paid-up policy till the end of the policy term.

Under this policy:

  • Death paid-up sum assured is the sum assured at the death of the policyholder, which is equal to the number of premium paid/number of premium to be paid * sum assured on death
  • Maturity paid-up sum assured is the sum assured at the maturity of the policy term, which is equal to the number of premium paid/number of premium to be paid * sum assured on maturity

Surrender Value

If the policyholder has paid the premium for three consecutive years, he can surrender the policy at any point in time. On this, the surrender value will be paid by LIC, which the higher of the two values- is guaranteed surrender value or special surrender value.

The special surrender value is authorised by IRDA I – Insurance Regulatory and Development Authority of India and occasionally declared by LIC in advance.

The Guaranteed Surrender value is equal to the total amount of premium paid * the guaranteed surrender value factor applies to the total paid premiums. This percentage of guaranteed surrender value depends on the term of the policy and the surrendered policy year.

Exclusions of LIC Jeevan Umang

Exclusions of the Plan are that in case the policyholder commits suicide within one year of buying the policy, then no claims will be paid more than 80% of the total amount of premium paid towards the plan. No claim will be paid if the insured is less than 8 years of age.

If the policyholder commits suicide within one year of the revival of the policy, in this case, 80% of the total amount of premium paid towards the plan excluding the bonuses, riders, taxes or any extra premium paid or the acquired surrender value will be paid out, whichever amount is higher.

Eligibility Conditions of LIC Jeevan Umang

Minimum and Maximum Basic Sum Assured

Rs. 2 Lakh and no limit

Premium Paying Term

15, 20, 25 and 30 years

Minimum and Maximum Age at entry

90 days (completed) and 55 years (nearest birthday)

Minimum and Maximum age at the end of the premium paying term

30 years and 70 years (nearest birthday)

Age at Maturity

100 years (nearest birthday)

Policy Term

100 – the age at entry (years)

Documents Required to Buying LIC Jeevan Umang Plan

Duly filled plan application form with the latest photograph of the applicant attached, along with the following documents:

  • Residence proof
  • Age Proof
  • Income Proof
  • Identity Proof
  • Medical Reports (if necessary)

Steps to Buying LIC Jeevan Umang Plan

The LIC Jeevan Umang policy can be bought both offline as well as online. The applicant can contact any of the local branches or contact a dedicated representative from LIC to buy the policy or very simply he can go online, follow simple steps and buy the plan as specified below:

Step 1: Visit the website to buy the LIC Jeevan Umang plan.

Step 2: Choose the plan and select ‘Online Purchase.

Step 3: Choose the Payment Option.

Step 4: Enter your details like name, date of birth, age, email address, physical address, contact number etc.

Step 5: Mention details of the proofs that may be required to be submitted like Aadhar card number, PAN Card number etc.

Step 6: Proceed to the payment option to finalize your LIC Jeevan Umang policy online.

Step 7:  After the payment, a soft copy confirmation of the successful plan purchase online will be sent on the insured's email id and message system.

Claim Process of LIC Jeevan Umang

The policyholder needs to follow the below-mentioned steps to file claims under the plan:

Step 1: Immediately contact LIC through the customer care department, online claim filing, SMS, or visiting the local branch in case of any eventuality fit for filing a claim.

Step 2: Register the same through modes, such as online, call, email or by physically visiting the branch office and fill in the claim form.

Step 3: Submit all the required documents along with the claim form like:

  • Original policy document
  • Banking details and the NEFT Mandate Form
  • Self-Attested photo ID proof and Address proof of the nominee, which can be his Aadhar Card, PAN Card, voter's card, passport, Driving License etc.)
  • A cancelled cheque of his bank or a copy of the policyholder’s bank passbook

Step 4: Company shall verify the authenticity of the claim and documents.

Step 5: Once verified and found positive, the claim amount is released

FAQs

  • Q1. What is the difference between the LIC Jeevan Shanti and LIC Jeevan Umang Policy?

    A1. Comparison between LIC Jeevan Shanti Vs LIC Jeevan Umang:

    Condition

    LIC Jeevan Shanti

    LIC Jeevan Umang

    Type

    Pension plan

    Whole-life plan

    Benefits

    Creates a cash-flow like an annuity

    Creates a cash-flow similar to an annuity, but unlike the pension plans, the returns under Jeevan Umang are tax-free

    Payment

    Jeevan Shanti is a lump sum plan where policyholders can choose the option of a deferred annuity

    Jeevan Umang is a regular premium plan

    Conditions

    Jeevan Shanti will be better for a person with lump sum cash.

    Jeevan Umang will be better for retail investors, especially for those who want regular and guaranteed tax-free income.

    Maximum Age

     

    55 years

  • Q2. What is a simple reversionary bonus and final addition bonus?

    A2. Simple Reversionary Bonus – which is calculated on per thousand sums assured at the end of the financial year and is paid out at the end of the policy term, and Final Addition Bonus – which is paid if the policy is run for a minimum number of specified years and can be claimed at the time of death or maturity.

  • Q3. What are the different types of whole life insurance plans?

    A3. Different types of whole life insurances are:

    • Non-Participating Whole Life Insurance
    • Participating Whole Life Insurance
    • Pure Whole Life Insurance
    • Limited Payment Whole Life Insurance
    • Single-Premium Whole Life Insurance
  • Q4. What are the other exclusions that are not covered by LIC Jeevan Umang?

    A4. Other exclusions besides suicide, which have been discussed, are:

    • Death due to war, nuclear damage or any attack
    • If death or accident is under the influence of alcohol or drugs
    • If the policyholder indulges in any illegal activity and suffers death or disability
    • If the policyholder is suffering from any sexually transmitted diseases like HIV, AIDs etc.
  • Q5. Is it possible to surrender a one-year-old LIC Jeevan Umang Policy?

    A5. No, the policy can only be surrendered after paying three years of premium. The corporation pays the surrender value, which is equal to a higher guaranteed surrender value and special surrender value. 

  • Q6. How can I pay the premium for LIC Jeevan Umang Policy through my bank or service provider?

    A6. One needs to follow the steps:

    • You have to log on to the bank/service provider’s website
    • On the web page, you must sign the date on which you want your account to be debited and click the consent for the payment
    • You may even specify an account in case of multiple bank accounts
    • The authorized bank will debit your bank account, consolidate the payments and send the consolidated amount to LIC in the form of bankers' cheque/pay order
    • The authorized service provider will send the instructions to the bank branch through the RBI's Electronic Clearance System, and the bank will debit your account and credit the same to the service provider's bank account, who'll then remit the amount to LIC
    • Some service providers have autopay facility or phone-banking facility
  • Q7. How can a lapsed policy be revived?

    A7. A lapsed policy can be revived within 2 years during the lifetime of the assured, from the due date of the first unpaid premium and before the date of maturity. The revival of a lapsed policy is either on medical or non-medical criterion depending upon the age of the policyholder at the time of revival and the sum to be revived. The policy can be revived by paying previous amounts of premiums, which are calculated by LIC as per the laid terms and conditions.

  • Q8. What is with-profit or without-profit insurance plans under LIC?

    A8. An insurance policy can be 'with' or 'without' profit. In the with-profit insurance plan, bonuses are disclosed, if there are any earned after periodical calculations are done for the policy and are payable along with the agreed-upon an amount, in 'without' profit insurance plan the amount is paid without any addition. The premium rate charged for a 'with' profit policy is, therefore, higher than for a 'without' profit policy.

  • Q9. Do I need an insurance agent to buy LIC Jeevan Umang Plan?

    A9. No, in this technologically developed world that we live in, which is now a small global world, everything is done online. Anyone can visit the website or search for various plans of LIC and other companies online and search for the most suitable policy that fits in their budget and needs. The purchase, payment of premium, revival, surrender and even claims can be made online without any hassle.

  • Q10. Is LIC Jeevan Umang Plan available for senior citizens?

    A10. Yes, whole life insurance is a viable option for senior citizens as this policy provides comprehensive cover and does not have any age limit attached under eligibility. Following the death of the insured, the beneficiary named in the policy will receive the pay-out / death benefit. Whole life insurance policies offer several useful benefits like tax exemptions, growth of cash value, permanent protection, uniform premium payments, cash access via loans and other withdrawal options.

Written By: Paisawiki - Updated: 12 April 2021