LIC's Jeevan Umang Plan

Life Insurance Corporation of India is amongst renowned names in the insurance sector of India. LIC facilitates various insurance products to cater to the financial and insurance needs of the customers. LIC has introduced many path-breaking insurance products that safeguarded the lives of people across India. LICs Jeevan Umang Plan is the most unique and only ‘Whole Life Plan’ offered by LIC. The LIC Jeevan Umang Plan is a traditional non-market-linked plan that also allows participation in the profits. Following is a complete study of the LICs Jeevan Umang Plan :

Features of LIC Jeevan Umang Plan

The features of the LICs Jeevan Umang Plan are as under :

  • The Jeevan Umang Plan has features of an endowment plan and whole life plan
  • The plan is the only whole life plan offered by LIC
  • The plan is a traditional plan i.e. unlike unit-linked the Jeevan Umang plan is not related to market movements and trends
  • The plan assures to pay survival benefit every year commencing from the date on which the premium paying tenure ends till the date of maturity
  • Upon maturity or in case of death of the policyholder during the tenure of the policy, the Jeevan Umang plan guarantees to pay a lump sum amount to :
    • The policyholder in case of maturity of the plan or
    • To the nominee in case of death of the insured during the policy tenure.
  • Simple Revisionary Bonus and Final Addition Bonus are offered under the plan

Benefits of LIC Jeevan Umang Plan

The LICs Jeevan Umang Plan guarantees to extend the following benefits to the policyholder:

  • Death benefit: Under the LICs Jeevan Umang Plan the payment of death benefit isl as under :
    • In case of death of policyholder before the date of risk commencement, LIC will pay the nominee all the premiums paid till date. The death benefit in this scenario shall not include payment of any interest or bonus to the nominee.
    • In case of death of policyholder after the date of risk commencement, LIC will pay the nominee the basic sum assured opted under the policy. The death benefit in this scenario shall include payment of simple reversionary bonus along with a final additional bonus if any.
  • Maturity benefit
    Under the Jeevan Umang Plan of LIC the maturity benefit of the policy is paid if the payment of all the due premiums is done regularly. The maturity benefit under this plan is entire sum assured plus simple reversionary bonus along with a final additional bonus if any
  • Survival benefit
    Under the LICs Jeevan Umang Plan an attractive survival benefit is offered to the policyholder. The survival benefit is paid to the life assured on survival till the end of the policy payment term.
    • The survival benefit is paid annually at 8% of the sum assured.
    • This guaranteed survival benefit is paid to the policyholder till the end date of maturity or in case of death of the life insured, whichever is earlier.
    Kindly note, if the maturity sum assured of the paid-up policy is less than Rs 2 Lakhs then no survival benefit is payable under this scenario.
  • Discounts
    One of the most attractive benefits of buying LIC Jeevan Umang plan is that this plan offers discounts in form of rebates to the policyholders.
    The plan supports 2 types of rebates namely
    • Rebate associated with Premium Payment Mode and
    • Rebate associated with high Basic Sum Assured.

    The discount rebates for both the categories are as under :

    Rebate on Premium Payment Mode
    For the yearly mode of premium Payment 2% of Rebate
    For Half-yearly mode of Premium Payment 1% of Rebate
    Rebate on High Sum Assure
    For Basic Sum Assured of more than Rs 25 Lakhs 2% of Rebate
    For Basic Sum Assured of more than Rs 10 Lakhs up to Rs 24.75 Lakhs 1.75% of Rebate
    For Basic Sum Assured of more than Rs 5 Lakhs up to Rs 9.75 Lakhs 1.25% of Rebate
    For Basic Sum Assured of Rs 2 Lakhs up to Rs 4.75 Lakhs NIL Rebate
  • Policy Loan
    In case of financial emergency policyholders of LIC Jeevan Umang can at any point of time avail policy loan on their LIC policy.
    • The loan facility can be availed on in-force Jeevan Umang Policies.
    • The maximum loan limit available under the LICs Jeevan Umang policy is up to 90% of the surrender value.
    • The surrender value of the policy can be calculated once the Jeevan Umang policy has completed THREE policy years provided all the due premiums are paid on regular basis.
    • The main criterion for availing policy loan on Jeevan Umang policy is that the policy must have acquired surrender value.
  • Participation in Profits
    The LIC Jeevan Umang plan is participatory plan i.e. the policyholders are eligible to receive bonuses depending upon the performance of the policy.
    The Jeevan Umang policy is eligible to receive :
    • Simple reversionary bonus and
    • Final additional bonus on in-force policies.

    On both Death as well as Maturity Benefit.

    Kindly note that the final additional bonus would not be paid if the policy is a paid-up policy or in case of surrendering of policy within the tenure of premium payment. Participation in profiles is applicable to all Jeevan Umang policies that are either fully-paid up policies or have maturity paid-up sum assured of 2 lakh rupees or more.

  • Rider Facility
    For policyholders who wish to avail additional insurance coverage at a lower cost can opt rider facility. Rider facility is an excellent way to increase your insurance coverage. LICs Jeevan Umang policy supports FOUR Riders.
    The policyholders of Jeevan Umang policy have an option to choose riders from:
    • LICs Accidental Death and Disability Rider
    • LICs Accidental Benefit Rider
    • LICs New Term Assurance Rider
    • LICs New Critical Illness Benefit Rider
  • Cooling-Off Period
    Also known as ‘Free-Look Period’ is an optional period of 15 days given to policyholder’s to return or cancel the policy. This is a benefit offered by LIC to its Jeevan Umang policyholder’s if they are not happy with the terms & conditions of the policy. For cancelling the policy the policyholder’s of the Jeevan Umang plan are required to return the original policy bond back to LIC stating the reason for cancelling the policy. Upon receipt of such request, LIC will process the cancellation of policy and return the premium amount after deducting related expenses.

What are the eligibility parameters of LICs Jeevan Umang Plan?

For buying the Jeevan Umang plan the customers have to fulfill certain eligibility parameters. These eligibility conditions are as under :

Particulars Minimum Limit Maximum Limit
Sum Assured Rs 2,00,000 No Restriction
Premium Payment Term 15 years / 20 years / 25 years and 30 years
Policy Term 100 years MINUS age at entry
Age at entry 90 days (complete) 55 years (nearest birthday)
Min / Max age at the end of the premium paying term 30 years 70 years
Age at Maturity Date 100 years

What are Premium Rates under LICs Jeevan Umang Policy?

For the ease of premium payment LIC has allowed its Jeevan Umang Policyholder to choose premium payment mode as per their convenience. The premium payment modes under LIC Jeevan Umang plan are Yearly, Half-Yearly, Quarterly and Monthly.

The sample premium rates for every Rs 1,000 of sum assured under Jeevan Umang policy is as under :

Policyholder’s Age Premium Paying Term
15 Years 20 Years 25 Years 30 Years
20 years 80.30 54.55 39.95 31.15
30 years 80.30 54.55 40.20 31.15
40 years 80.30 54.80 42.30 35.10
50 years 80.30 58.90 NA NA

Example:

Let us understand with an example of how the tabular premium rate chart can be used to derive the premium amount of the LIC Jeevan Umang Plan.

  • Mr X = Age 40
  • Basic Sum Assured = Rs 3,00,000
  • Policy Tenure = 20 years
  • Premium factor: 54.80

Annual Premium:
= 54.80/1000 * Rs 3,00,000
= Rs 16,440+ Tax
(Since premium rates are of Rs 1,000 per basic sum assured)

The payment of premium can be done in the following manner :

  • Cash
  • Cheque
  • Net banking
  • Credit cards
  • Debit cards

For monthly premium payment mode, the payment of premium shall be done through NACH only or directly through salary deduction.

How is surrender value calculated under LICs Jeevan Umang Plan?

The policyholder’s of LICs Jeevan Umang Policy after paying the premium of at least 3 consecutive years can at any given time surrender their policy. The surrender value of the Life Insurance Corporation’s Jeevan Umang Policy shall be equal to a guaranteed surrender value or special surrender value, whichever is higher. The Special Surrender Value or SSV is reviewed and determined by LIC at regular intervals with prior approval from IRDAI. While the Guaranteed Surrender Value or GSV is calculated by multiplying the guaranteed surrender value factor by the total premiums paid. The guaranteed surrender value factor changes as it is based on the term of the policy and the year in which the policy is surrendered.


FAQs

For Yearly and Half-Yearly mode of premium payment the Jeevan Umang Plan offers a grace period of 1 month for payment of due premium. While in the case of the quarterly or monthly mode of premium payment 15 days grace period is allowed.


The date of commencement of risk under the Jeevan Umang plan is as under :

  • For Life Assured aged less than 8 years: The date of commencement of risk will start either after completing 2 policy years or after attaining 8 years of age
  • For Life Assured aged more than 8 years: the date of commencement of risk shall start immediately

The LICs Jeevan Umang Plan is also applicable for minor lives so the date of vesting for minor life assured shall be the date of policy anniversary or the year in which minor life assured completes 18 years of age the policy shall be vested in the name of the primary life assured


The LICs Jeevan Umang Policy supports following modes of premium payment namely Yearly, Half-Yearly, Quarterly and Monthly.


Yes, the revival of lapsed policy is available under Jeevan Umang Plan. The revival of lapsed policy can be done within 2 consecutive years from the date of first unpaid premium. The revival of the lapsed policy can be done by paying all unpaid premiums along with interest thereon.


Loan facility is available under LICs Jeevan Umang Policy. The permissible loan amount that can be availed during the premium paying term of the policy is a certain factor of the surrender value of the policy as under:

  • 90% maximum loan can be availed for in-force policies
  • 80% maximum loan can be availed for paid-up policies

For loan taken on Jeevan Umang policies after the end of the premium paying term the maximum loan amount is calculated in such a manner that the amount of interest payable on the policy loan is not more than 50% of the annual survival benefit that is eligible for payment under the Jeevan Umang Plan.


Death due to Suicide is exclusion under the LICs Jeevan Umang Policy. In the case of Death due to suicide the Jeevan Umang policy will stand void except in the following scenarios :

  • If the death due to the suicide of the life assured is committed in the 1st year of policy i.e. within first 12 months from the date of commencement of the policy then corporation shall only pay 80% of the premium paid till date and the contract shall en. However, this clause is not applicable to life assured below the age of 8 years.
  • If the death due to the suicide of the life assured is committed in the first 12 months from the date of revival of the policy then LIC shall pay higher of either 80% of the premiums paid up to the date of death or surrender value.