LIC Jeevan Umang (945) - Reviews, Features and Benefits

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LIC Jeevan Umang (Plan No: 945) is a conventional, with-profit, non-linked endowment plan that comes with complete life insurance coverage. The policy provides the needful coverage at regular payout from the end of the premium payment term until the date of your survival. After completing the policy tenure or if the policyholder dies within the policy period, a fixed sum of money is payable. It is a participating plan which is eligible for Simple Reversionary Bonus and Final Addition Bonus.

Launch Date	Table Number	Product Type	Bonus	UIN
20th April, 2017	945	Endowment + Whole life	Yes	512N312V01

Highlights of LIC Jeevan Umang Plan

The insurance plan is a blessing as it offers coverage for the entire life i.e. for 100 years.
8% of the Sum Assured is paid every year as money back on survival at the end of the policy term.
Large Sum Assured available under this plan.
Riders like LIC Accidental Death Disability Benefit Rider and Term Rider are available under this plan.
Successful in fulfilling the liquidity requirements of the policyholder by providing the loan facility.
Various premium paying terms are available as options to select the most preferable one.
An additional feature of this plan is that it is a mixture of both the routine income and fixed pay.
Simple reversionary bonus is payable on maturity or early death.
Final Addition Bonus is payable if applicable by the LIC.
A perfect plan as a pension facility after retirement.
Premiums paid are exempt from tax under Section 80C of the Income Tax Act, 1961.
Death benefit and maturity amount are also tax-free under Section 10(10D) of the Income Tax Act, 1961.

Perks of LIC Jeevan Umang Plan

Date of Commencement of Risk

If the entry age of the assured is less than 8 years, then the risk under this plan will begin either 1 day before the completion of 2 years from the date of initiation or 1 day before the policy anniversary, and immediately following the completion of 8 years of age. For those aged 8 years and above, the risk will start immediately.

Death Benefit

On death before commencement of risk, an amount equal to the total amount of premium paid is given without any interest.
On death after the commencement of risk a definite ‘Sum Assured on Death’ and vested Simple Reversionary Bonuses along with applicable Final Additional Bonus are given.
‘Sum Assured on Death’ is the highest of 10 times of annualised premium;
or ‘Sum Assured on Maturity’;
or ‘Absolute Amount Assured’ is payable on death i.e. Basic Sum Assured. The death benefit is not less than 105% of all premiums paid till death.

Survival Addition

On the completion of the premium paying term (PPT), and if 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 first payment of the survival benefit is paid once the premium paying term ends after that subsequently on every year-end until the policyholder survives; or policy year before the date of maturity, the earlier date will be chosen for the payment of the benefit.

Maturity Benefit

On successful completion of the policy tenure and only if all the due premiums have been paid by the policyholder, ‘Sum Assured on Maturity’ along with the vested simple reversionary bonuses and final additional bonus if applicable is paid. Here, the ‘Sum Assured on maturity’ is equivalent to the Basic Sum Assured.

Tax Benefit

Under this policy, premiums paid are exempted from tax under Section 80C, and death benefit amount and maturity amount are also tax-free under Section 10D(D) of the Income Tax Act, 1961.

Profits Participation

As per the undertaking measures of the policy and also depending upon the LIC’s experience, the Jeevan Shagun Plan can participate in profits at the time of policy tenure.

Optional Riders Benefit Of LIC Jeevan Umang

Accidental Death and Disability Benefit Rider : This rider pays an extra sum to the beneficiary and can be availed by paying an additional premium (more than the basic premium) during the policy tenure which will be advantageous if the policyholder dies or disabled due to an accident.
Accident Benefit Rider : If the policyholder dies due to an accident following 180 days of the accident date, this benefit can be availed by the beneficiary. The rider can also be availed by paying an additional premium (more than the basic premium) during the policy tenure.
New Term Assurance Rider : The rider raises the death benefit and is applicable by paying an extra premium. Also, it provides the benefit for 35 years or until the policy year where the age of the policyholder is 75 years, the earlier date will be chosen for the payment of the benefit.
New Critical Illness Benefit Rider : The insured can go for the rider at the initiation of the policy term but can also take the advantage as the critical Sum Assured after the diagnosis of any of the 15 critical illnesses declared in the plan list.

*Note: These benefits can be availed any time during the premium paying term provided that the outstanding premium paying term is at least 5 years where the rider benefit is not more than the Basic Sum Assured.

Additional Details Of LIC Jeevan Umang Plan

Loan Facility: The policy offers loan facility cater to the liquidity needs of the policyholder. Upto 90% of the surrender value can be availed on paying the premiums on a regular basis for 3 years, and only if the plan exists a surrender value.

Suicide Clause: The policyholder shall receive 80% of the amount paid as premiums in the case if he/she commits suicide before 1 year of completion of the policy. This clause will not be applicable if the entry age of the life insured is below 8 years.

Policy Revival: If the premiums of the policy are not paid on time, even after the completion of the grace period, the policy will get lapsed. However, it can be revived within 2 consecutive years from the date of first unpaid premium but before the date of Maturity. To revive the policy, all due premiums should be paid, which is calculated at a fixed rate determined by the LIC.

Free Look Period: If the policyholder found the ‘Terms & Conditions’ of the policy are not satisfactory, then he/she can return the policy within 15 days from the date of receipt of the policy. LIC will terminate the policy and refund the deposited premium amount deducting the premium for risk (base plan and rider, if applicable) for the coverage period, including stamp duty charges.

Date of Vesting: Automatic vesting will start immediately on or after completing 18 years of age; or if LIC accepted and considered the policyholder’s vesting for a specified period.

Specifications OF LIC Jeevan Umang

Minimum Entry Age (completed)	90 Days
Premium Paying Term (PPT)	15, 20, 25 and 30 years
Maximum Entry Age (nearest birthday) (in years)	55 for 15 years PPT, 50 for 20 years PPT, 45 for 25 years PPT, 40 for 30 years PPT
Maturity Age	100 years with nearest birthday
Policy Term	100 years age at entry
Minimum Sum Assured	Rs. 2 lakhs (multiples of Rs. 25,000)
Maximum Sum Assured	No limit
Premium Paying Mode	Yearly, half yearly, quarterly & monthly (SSS and NACH Only)
Mode Rebate (Premium Paying Mode)	2% on yearly, 1% on half yearly, Nil on quarterly & monthly (SSS and NACH Only)

Things to Know About Jeevan Umang Plan

Rebate Information: Following are the Rebates [High Basic Sum Assured (BSA)] offered on the tabular premium:

Rs. 2 lakhs-Rs. 4.75 lakhs [Nil]
Rs. 5 lakhs-Rs. 9.75 lakhs [1.25 % BSA]
Rs. 10 lakhs-Rs. 24.75 lakhs [1.75 % BSA]
Rs. 25 lakhs & above [2 % BSA]

Paid-up Value: If the policyholder did not pay the premiums for at least 3 years and the policy has not been revived all the included benefits under the plan will be ceased after the grace period and no claim amount will be paid.

In the case where at least 3 years premiums have been paid, but not after that then the policy will be valid but will continue as a paid-up policy till the end of the policy term.

Under this policy, the Sum Assured at the time of death is known as "Death Paid-up Sum Assured" and is equal to [(Number of premiums paid/Total number of premiums to be paid) ✕ Sum Assured on Death].

Also, the Sum Assured at the time of maturity is known as "Maturity Paid-up Sum Assured" and is equal to [(Number of premiums paid/Total number of premiums to be paid) ✕ (Sum Assured on Maturity)].

Surrender Value: One can surrender the policy any time only if all the premiums are paid for 3 years consecutively. On surrendering the plan, LIC will pay the Surrender Value that is equal to the higher of Guaranteed Surrender Value and Special Surrender Value.

The Special Surrender Value can be revised and declared by the LIC occasionally under the authorization from IRDAI (Insurance Regulatory and Development Authority of India) in advance.

The Guaranteed Surrender Value paid at the time of policy tenure will be equal to the total premiums paid multiplied by the Guaranteed Surrender Value Factor applies to the total premiums paid. These Guaranteed Surrender Value factors determined as percentages that rely on the term of the policy and the surrendered policy year.

Exclusions: This policy will be invalid in the event of Suicide cases.

If the policyholder commits suicide during the first year of the policy, LIC will not accept any claim under this plan except for 80% of the premiums already paid, only if the policy is inforce. This specification will not be practised in case the policyholder’s entry age is below 8 years.
If the policyholder commits suicide within the year from the revival date, an amount is paid that is higher of 80% of the premiums paid until death or the surrender value. LIC will not accept any other claim under the plan. This specification will not be practised.

LIC Jeevan Umang Plan: FAQs

1. What is LIC Jeevan Umang Plan, and how does it work?

LIC Jeevan Umang is a non-linked, with-profits, whole life assurance plan. Under this plan, the policyholder has to pay premiums regularly for the chosen policy term, and in return, the plan provides life insurance coverage for the entire lifetime of the policyholder. The policy also pays out annual survival benefits after the premium payment term and a lump sum payment on maturity or death.

2. What are the eligibility criteria for LIC Jeevan Umang Policy?

The minimum entry age for the policyholder is 90 days, and the maximum entry age is 55 years. The maximum maturity age for the policyholder is 100 years. And the minimum sum assured under this plan is Rs. 2,00,000, and there is no maximum limit on the sum assured.

3. What are the premium payment options available under LIC Jeevan Umang Plan?

The policyholder can choose to pay premiums yearly, half-yearly, quarterly, or monthly. The premium payment term for this plan is the same as the policy term, which can be 15, 20, 25, or 30 years.

4. What are the advantages and disadvantages of the LIC Jeevan Umang Plan?

The plan provides a guaranteed annual survival benefit (ASB) of 8% of the basic sum assured after the premium payment term until the policyholder's death or maturity. On maturity, the policyholder receives a lump sum payment of the basic sum assured. In case of the policyholder's death, the nominee receives the sum assured along with any accrued bonuses(if any). There are no such disadvantages to the Jeevan Umang LIC plan.

5. Can the policyholder take a loan against LIC Jeevan Umang Plan?

Yes, the policyholder can take a loan against this plan after the policy acquires a surrender value, which usually happens after the premium payment term. The loan amount can be up to 90% of the surrender value, and the interest rate on the loan is decided by LIC from time to time.

6. Does LIC Jeevan Umang provide coverage against fatalities brought on by any Critical illnesses?

Yes, your plan will cover any natural deaths or health-related problems. The LIC Critical Illness Rider, which provides coverage for 15 critical illnesses, is another option if you want more comprehensive coverage.