Best Review - is LIC Jeevan Umang Policy is a good policy
Best Review - is LIC Jeevan Umang Policy is a good policy
LIC’s Jeevan Umang plan is an endowment as well as a life insurance plan, which offers regular (life) payments to the policyholder from the end of the premium paying term till he is alive.
It is a participating scheme, and under this, the policyholder gets the benefit of Simple Reversionary Bonus as well as Final Addition Bonus.
Key Features of LIC Jeevan Umang Plan:
It is an endowment and a lifelong insurance plan.
- The benefit of 8% of Sum Assured after premium paying term – for life till the age 100 years.
- The benefit of Reversionary Bonus as well as Final Addition Bonus under this plan
- Tax benefits on premium, death benefit, and maturity benefit.
Benefits under LIC Jeevan Umang Plan
Listed below are the LIC Jeevan Umang plan benefits.
- If the policyholder dies earlier then all premiums are returned to the nominee.
- If the policyholder dies after the “Risk Commencement Date” – Sum Assured on Death is paid to the nominee.
Here the Sum Assured on Death means the highest of the following.
10 times the annual premium
Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus
The death benefit shall never be less than 105% of all premiums paid.
The premiums mentioned in the death benefit do not include taxes, rider premiums and premiums increased on account of underwriting decisions.
Click here to understand the risk start date under this scheme.
The policyholder will start receiving 8% of the Basic Sum Assured every year from one year after the completion of the premium paying term. He will continue to receive this amount every year until he reaches the age of 100 years or until his death, whichever is earlier.
On attaining the age of 100 years, Sum Assured + Simple Reversionary Bonus + Final Addition Bonus will be paid to the policyholder,
Once the surrender value is received, you can avail of the loan facility under this scheme. This plan will surrender the surrender value only after paying the premium for 3 consecutive years.
receives. The loan amount and the rate of interest depend on the time taken for taking the loan.
Understand this scheme with an example:
Suppose Gaurav who is 35 years old invests in this scheme based on the following parameters.
- Sum Assured = Rs. 5,00,000
- Term of the plan = 100 – Age at the time of entry into the policy = 100 – 35 = 65 years
- Premium paying term = 20 years
The annual premium on this basis will be Rs 26,105 + taxes.
Since they are above 8 years of age at the time of taking the plan, the risk cover will start immediately.
Scenario 1 – Suppose Gaurav dies after paying premiums for 7 years.
The death benefit that his nominee (nominee) will get will be higher than the following.
- 10 times the annual premium = Rs 2,60,105
- Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus = Rs 5,00,000 + Simple Reversionary Bonus + Final Addition Bonus
If Gaurav dies at any time before the premium paying term, his nominee will get the same benefit.
Scenario 2 – Suppose Gaurav dies after 22 years of inception of the plan, and he has paid all his 20 premiums.
Since they have paid all their premiums for the entire 20 years, they will be eligible to receive the survival benefit every year from the 20th year onwards and it will be as follows.
- 1 year after 20th premium payment = 8% of Sum Assured = Rs. 8% of 5,00,000 = Rs. 40,000
- 2 years after 20th premium payment = 8% of Sum Assured = Rs. 8% of 5,00,000 = Rs. 40,000
His nominee(s) will get the death benefit, which will be higher than the following.
- 10 times the annual premium = Rs. 2,60,105
- Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus = Rs. 5,00,000 + Simple Reversionary Bonus + Final Addition Bonus
Note: Gaurav will continue to get 8% of the Basic Sum Assured every year from the premium paying term. That is, till Gaurav becomes 100 years old or he does not die, he will get Rs. 40,000 will continue to be available.
If Gaurav dies at any time after the premium paying term then his nominee will get the death benefit payout and the policy will terminate.
Every year that the person is alive after the premium paying term, he will get 8% of the Basic Sum Assured. He will get this Rs.40,000 till he reaches the age of 100 years or till his death, whichever is earlier.
Also, if the person dies at any time after the premium paying term, his nominee will get the death benefit and the policy will terminate.
Benefits Under LIC Jeevan Umang Plan
The following riders can be availed under this plan by paying a nominal additional premium.
- Accidental Death and Disability Benefit Rider
- accident benefit rider
- New Term Assurance Rider
- New Critical Illness Benefit Rider
Additional Features of LIC Jeevan Umang Plan
If a premium is not paid on time, the policy lapses. You can get this discontinued policy revived within 2 years from the date of the first premium paid but before the maturity date. Also, all outstanding premiums will have to be paid along with interest.
If less than three years of premiums have been paid, and the policy not revived, then after the expiry of the grace period all benefits under the plan will cease, and the amount not be paid to the policyholder.
If the premium is paid for at least three years, the policy will not lapse but will convert to a paid-up policy and continue till the end of the policy term.
Sum Assured on Death under a paid-up policy shall be reduced by an aggregate called “Death Paid-up Sum Assured” and shall be [(Number of Premiums Paid/Total Number of Premiums Payable) * Sum Assured on Death] will be equal to.
On surrender of the scheme:
If you have paid premiums for at least three consecutive years, you can surrender the policy at any time. On surrender of the policy, LIC will pay the higher of the Guaranteed Surrender Value and Special Surrender Value as Surrender Value.
The Special Surrender Value is determined by the Insurer from time with the prior approval of IRDAI.
Guaranteed Surrender Value = (Total Premium Paid) * (Guaranteed Surrender Value Factor) paid during the policy term.
Here the Guaranteed Surrender Value factor is stated in percentage, which depends on term and policy year.
Free Look Duration:
If the policyholder is not satisfied with the “Terms and Conditions”, You can cancel the policy within 15 days. After cancellation, the balance amount is returned to the policyholder after deducting stamp duty and rider charges.
I hope now you know “Is LIC Jeevan Umang Policy is a good policy?” and (What is LIC Jeevan Umang Policy?) It is an Endowment cum Whole Life Plan that provides a combination of income and security to your family.
A policyholder gets a guaranteed payment from the end of the premium paying term till the date of your survival. This plan also participates in a simple reversionary bonus and ultimate extra bonus.