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LIC Jeevan Umang is non-linked, whole life assurance plan with profits. This plan provides annual survival benefits at the end of the completion of premium payment up to 100 years of age and a maturity lump sum amount at maturity of term or death of the policyholder during the term.
LIC Jeevan Umang Plan 845 was recently launched in the market and came into effect from 16th May, 2017. This plan is similar to Jeevan Tarang Plan.
LIC Jeevan Umang is a whole life product i.e. it provides life coverage up to 100 years of age. A whole life plan is a life insurance plan which remains throughout the lifetime of the policyholder. There are various companies which have offered maturity and death benefits under such a policy,LIC is one of them.
1. It is whole life insurance plan i.e. for 100 years
2. 8% of the Sum Assured is paid as money back at the end of the term
3. Large Sum Assured available under this plan.
4. Benefits like LIC Accidental Death Disability Benefit Rider and Term Rider are available under this plan.
5. Simple reversionary bonus is payable on maturity or early death.
6. Suitable plan for pension.
7. Premiums paid are exempted from income tax under 80c.
8. Maturity amount is tax free under 10 (10D).
1. Entry age for the plan is 90 days (completed).
2. Premium paying term (PPT) - 15, 20, 25 and 30 years.
3. Maximum age at entry in years (nearest birthday) – 55 for 15 PPT, 50 for 20 PPT, 45 for 25 PPT, 40 for 30 PPT
4. Maturity age for the plan is 100 years with nearest birthday.
5. Policy term: 100-age at entry.
6. Basic sum assured is equal to 2, 00,000 and above in multiples of 25,000.
7. Premium paying mode can be yearly, half yearly, quarterly and monthly
8. Rebate on premium payment mode is 2% on yearly, 1% on half yearly, nil on quarterly and monthly.
On death before commencement of risk an amount equal to total amount of premium paid is given without any interest. On death after the commencement of risk a definite sum of Sum Assured on Death and vested Simple reversionary bonuses along with final additional bonus are given. Sum Assured on death is highest as it is 10 times of annualised premium or sum assured on maturity or absolute amount assured to be paid on death i.e. Basic Sum Assured. Premiums paid are tax free and free from any extra chargeable amount or rider premium.
On the completion of the premium paying term (PPT), provided that all the due premiums have been cleared, an amount equal to 8% of basic sum assured is paid to the policyholder every year till maturity. The survival benefit payment is paid at the end of the premium paying term and on successful completion of every subsequent year till the policyholder survives or policy anniversary prior to the date of maturity.
On the successful completion of the term policy i.e. when all the due premiums have been paid, Sum Assured on Maturity along with vested reversionary bonuses and final additional bonus is paid. Here the sum assured on maturity is equal to basic sum assured.
Accidental and Disability benefit rider
LIC’s accidental death and disability benefit rider is an optional rider available on payment of extra premium. This benefit can be availed any time during the premium paying term provided that the outstanding premium paying term is at least 5 years. Here the age nearer birthday of life assured should be 70 years and benefit is payable on the policy anniversary. If this benefit is chosen, an additional amount equal to accidental benefit sum insured is payable on death due to accident, provided that the rider is inforce at the time of accident. In case of permanent accidental disability an amount equal to Accident benefit sum is paid if the form of equal monthly installments spread over a period of 10 years and future premiums for Accident benefit sum assured along with premium for the portion of Basic sum assured is also given. If the assured dies before the expiry of the given period of 10 years, then in this case disability benefit installments which have not fallen due are paid along the claim amount.
Date of commencement of risk
If the entry age of assured is less than 8 years of, then the risk under this plan will begin either one day before the completion of 2 years from the date of inception or one day before the policy anniversary, immediately following the completion of 8 years of age. For those aged 8 years and above, risk will start immediately.
Risk coverage - End of the term of policy
Date of commencement of risk - Risk commencement starts from the day one i.e. when the policy is taken.
Loan facility - end of the term of policy
Risk coverage - The policy also offers loan facility.
Income tax reduction - Under this policy income premiums paid are exempted from taxes under 80c and maturity returns under 10 (10D).
Riders availability- Riders like accidental and disability rider are available under this plan.
Policy revival - Policy can be revived before 2 years from the date of first unpaid premium.
Cooling-off period - If the policyholder is not satisfied with the terms and conditions of the policy then he/she can return the policy within 15 days from the date of receipt of policy.
Suicide clause - 80% of the amount paid by the policyholder is returned if he commits suicide before 1 year.
Assignment and nominations - Assignment and nominations are possible under Jeevan Umang Plan.