Benefits of LIC Jeevan Umang Policy

Listed below are the LIC Jeevan Umang Plan Benefits.

Death Benefit

• If the policyholder dies before the “Risk Commencement Date” - All the premiums paid will be returned to the nominee.

• If the policyholder dies after the “Risk Commencement Date” - The nominee will get the Sum Assured on Death.

Sum Assured on Death is the highest of the following:

• 10 times the Annualised Premium

• Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus

The Death Benefit will never be less than 105% of all premiums paid.

The premiums referred in the Death Benefit do not include taxes, Rider premiums and any increased premium on account of underwriting decisions.

Click to understand how the Risk Commencement Date works in this plan.


Survival Benefit

On completion of a year after the premium payment term, the policyholder will start get 8% of the Basic Sum Assured every year. This amount is payable every year till he reaches the age of 100 or he dies, whichever is earlier.


Maturity Benefit

On reaching 100 years of age, the policyholder will get the Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.


Loan Facility

You will be eligible to get a loan against this policy once it acquires a Surrender Value. This plan gets a Surrender Value only after 3 full years of premiums have been paid. The loan amount and interest rate would depend on the prevailing at the time of taking the loan.
 

LIC Jeevan Umang Plan Example

Let us understand this plan with the help of an example:

Suppose Gaurav who is 35 years old buys this plan with the following parameters.

Sum Assured = Rs. 5,00,000
Policy Term = 100 - Age at entry = 100 - 35 = 65 years
Premium Payment Term = 20 years

Based on this the yearly premium will be Rs. 26,105 + Taxes

Since his age is greater than 8 years at the time of taking the plan, the risk cover will start immediately. 


Scenario 1 - Gaurav dies after 7 years of paying the premium.

His nominee will get the Death Benefit which is higher of the following:

• 10 times the Annualised Premium = Rs. 2,60,105

• Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus = Rs. 5,00,000 + Simple Reversionary Bonus + Final Addition Bonus

In fact, his nominee will get this same benefit, if Gaurav dies anytime before the premium payment term.


Scenario 2 - Gaurav dies after 22 years of taking the plan and has paid all 20 premiums.

Since his premium payment of 20 years is over, he would be eligible for Survival Benefits every year after that as follows:

• 1 year after he has finished paying the 20th premium = 8% of Sum Assured = 8% of Rs. 5,00,000 = Rs. 40,000

• 2 years after he has finished paying the 20th premium = 8% of Sum Assured = 8% of Rs. 5,00,000 = Rs. 40,000

His nominee will get the Death Benefit which is higher of the following:

• 10 times the Annualised 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: Now for every year that Gaurav 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 or till his death, whichever is earlier.

Also, if Gaurav dies anytime after the premium payment term, his nominee will get the Death Benefit and the policy will terminate.


Scenario 3 - Gaurav survives till the age of 100.

He will get the Survival Benefit of Rs. 40,000 every year after the completion of the premium payment term of 20 years. 

He is also eligible for the Maturity Benefit also which = Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
 

Other Optional Benefits of LIC Jeevan Umang Policy

The following riders can be taken by paying an additional premium:

• Accidental Death and Disability Benefit

• Accident Benefit Rider

• New Term Assurance Rider

• New Critical Illness Benefit Rider