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 :
The features of the LIC’s Jeevan Umang Plan are as under :
The LIC’s Jeevan Umang Plan guarantees to extend the following benefits to the policyholder:
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.
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|
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.
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|
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|
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.
= 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 :
For monthly premium payment mode, the payment of premium shall be done through NACH only or directly through salary deduction.
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.
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 :
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:
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 :
Other LIC’s Term and Whole Life Insurance Plans