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.
LIC’s 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 LIC’s Jeevan Umang Plan :
Features of LIC Jeevan Umang Plan
The features of the LIC’s 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 LIC’s Jeevan Umang Plan guarantees to extend the following benefits to the policyholder:
- Death benefit: Under the LIC’s Jeevan Umang Plan the payment of death benefit is 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 LIC’s 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.
- 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.
- 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 LIC’s 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.
- 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. LIC’s Jeevan Umang policy supports FOUR Riders.
The policyholders of Jeevan Umang policy have an option to choose riders from:- LIC’s Accidental Death and Disability Rider
- LIC’s Accidental Benefit Rider
- LIC’s New Term Assurance Rider
- LIC’s 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 LIC’s 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 LIC’s 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 LIC’s Jeevan Umang Plan?
The policyholder’s of LIC’s 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.