LIC’s Jeevan Umang Review (Plan No.845) -Features, Benefits & Premium Calculations
LIC’s Jeevan Umang is another policy that LIC of India has launched in the month of May 2017. This new Jeevan Umang policy is the 4th policy launched by LIC this year so far. Earlier they have launched Aadhaar Stambh, Aadhaar Shila and PM Vaya Vandana Yojna with 8% guaranteed pension. In this article I will be sharing all the basic details about this new Jeevan Umang policy and its premium calculation, eligibility criteria and the complete review.
LIC’s Jeevan Umang is a non-linked whole life insurance policy. That means the insurance coverage & benefit will continue for a longer duration of life. I will discuss more about this on the benefits section. This policy is almost similar to the previously discontinued LIC policy Jeevan Tarang plan 178. Officially this policy will be launched on 16th May 2017.
Key Highlights of LIC’s Jeevan Umang Plan 845
The most attractive part of this policy is the term whole life policy where one will get coverage till the 100 years (nearest birthday). The premium payment term is less than this and after completion of premium payment term policyholder will get 8% of sum assured as guaranteed return every year as survila benefit. Let’s explore various other features of LIC’s Jeevan Umang policy.
Entry Age: Min entry age is 90 days, that means you can buy this policy for your child also. The maximum entry age is defined as per the age after completion of premium payment term. LIC has assumed that the age of any person at the end of PPT will be maximum 70 years and accordingly the maximum entry age is defined below with PPTs.
- 55 years for 15 years premium payment terms
- 50 years for 20 years premium payment terms
- 45 years for 25 years premium payment terms
- 40 years for 30 years premium payment terms
Premium Payment Terms & Modes: So, here the premium paying terms are also clear and that 15, 20, 25, & 30 Years. And the mode of premium payment is available as Yearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only). But if you want to get some discount or rebate on premium then also there are provisions. The applicable rebates are as follows: 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly.
Sum Assured Value: The min sum assured under this policy is Rs 2,00,000 and there is no limit for maximum sum assured value. But you have to increase the sum assured value in the multiples of Rs 25,000.
Policy Surrender & Lapse Rules: As usual you have to pay complete 3 years premium to get eligible for surrendering LIC Jeevan umang policy. In case you have forget to pay the premiums on time and your policy get lapsed, then you can revive your lapsed Jeevan umang policy within 2 years from First unpaid premium (FUP).
Loan facility: You can apply for loan against LIC Jeevan umang after completion of 3 complete years. The loan amount will also vary as per the state of the policy. E.g. generally loan will be available up to 90% of the policy surrender value and in case of paid up policies it is up to 80%.
Free look period: Like every policy you will get a 15 days free lock-in period within which you can return the policy documents in case you are not satisfied with the “Terms and Conditions” of the policy. Remember the date will start from the date of receipt of the policy documents, after this lock-in period you can’t cancel Jeevan umang policy. You have to either surrender or paid-u as per the policy rules.
Assignment-As per Sec.38 of Insurance Act 1938 allowed. Nomination required as per Sec.39 of Insurance Act 1938.
Survival Benefits of LIC’s Jeevan Umang (Plan No.845)
In case you have survived till the policy premium paying term end, you will receive a survival benefit equals to 8% of Basic sum assured (BSA) shall be payable each year. The very first survival benefit will be received at the end of PPT and after that after completion of full year only till life assured survives or policy anniversary prior to the date of maturity, whichever is earlier.
Death benefits of LIC’s Jeevan Umang (Plan No.845)
Now the date of commencement of the policy is linked with the death benefit of LIC Jeevan Umang policy. In case unfortunate death before the date of commencement of risk, nominee will get all premiums paid excluding taxes as death benefit. If death happens after commencement of risk, then Basic Sum Assured + Bonus + FAB will be paid to nominee as death claim.
Meaning of Sum Assured on Death is defined as the highest of
- 10 times of annualized premium or
- Sum assured on Maturity or
- Absolute annualized assured to be paid on death ie Basic Sum Assured
Maturity Benefits of LIC’s Jeevan Umang (Plan No.845)
Incase you have survived till the end of policy maturity date, then LIC will pay the Sum Assured value + Bonus+Final Additional Bonus (FAB) if any. Here is only one condition that you have paid all the LIC Jeevan Umang policy premiums duly till the end of PPT.
Date of Commencement of Risk For Jeevan Umang Policy
This date is defined as 8 years of policyholder. Means, if the policyholder is less than 8 years old at the time of buying LIC Jeevan Umang policy, then life cover will start 2 year after policy purchase or completion of 8 year of age, whichever is earlier.
E.g. if you have purchased LIC Jeevan Umang policy for your kid who is 1 year old, then life cover (risk) will start after 2 year i.e. when policyholder will become 3 year old.
If policy holder is 8 year old at the time of buying policy then, risk will start immediately.
LIC’s Jeevan Umang Premium Calculation & Return on Investment
This section will be updated soon.
Should I Buy LIC’s Jeevan Umang Policy?
Generally the 8% interest after paying all the premium payment terms and the whole life insurance is the key factor to drive this policy. Although there are various other alternatives to Jeevan Umang policy with which you can get a better & higher life insurance coverage and a good rate of return from your investment. If you have read couple of my other reviews you would have understood what exactly I am talking here.
But, in case you are happy to get a decent but guaranteed return and have enough protection for life then you can go for Jeevan Umang policy. I am assuming that you have enough life insurance coverage bought already. You can also share about your experiences or any further query related to LIC Jeevan Umang policy by writing a simple comment below. Thank you for reading and sharing this post in Facebook, Twitter and other social media.