LIC Jeevan Umang Plan (945)
Summary of LIC Jeevan Umang Plan – Table No. 945
LIC Jeevan Umang is an endowment cum whole life plan which offers a regular payout from the end of the premium payment term till the date of your survival. This is in addition to the life insurance cover which is being offered throughout the policy term. The policy ends when the policyholder reaches the age of 100 or on her/his death when a lumpsum amount is payable. This plan is a participating plan eligible for Simple Reversionary Bonus and Final Addition Bonus. You can avail a loan against this policy.
Click here to read the new version of – LIC Jeevan Umang – Table No. 845.
| Plan Name | LIC Jeevan Umang |
| Policy Type | Endowment & Whole Life |
| Plan Details | Plan No. 945 |
| UIN | 512N312V02 |
| Launch Date | 01st February, 2020 |
Key Features
- Offers 8% of Basic Sum Assured after the premium payment term - till you are alive or till the age of 100
- Plan offers Simple Reversionary Bonus & Final Addition Bonus
- Tax Benefits on Premiums, Death Benefit & Maturity Benefits
- You can avail a loan against this policy
Benefits
- 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.
On completion of the premium payment term, the policyholder will 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.
On reaching 100 years of age, the policyholder will get the Basic Sum Assured + Simple Reversionary Bonus + Final Addition Bonus. This is referred to as the Sum Assured on Maturity.
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.
The following riders can be taken by paying an additional premium:
- LIC’s Accidental Death and Disability Benefit Rider
- LIC’s Accident Benefit Rider
- LIC’s New Term Assurance Rider
- LIC’s New Critical Illness Benefit Rider
How it works
Let us understand this plan with the help of an example:
Suppose Gaurav who is 45 years old buys this plan with the following parameters.
Sum Assured = Rs. 5,00,000
Policy Term = 100 - Age at entry = 100 - 45 = 55 years
Premium Payment Term = 15 years
Based on this the yearly premium will be Rs. 38,722 + 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. 3,80,722
- 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 15 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
- Similarly, for each year after the completion of the premium payment term he would be receiving Rs. 40,000
His nominee will get the Death Benefit which is higher of the following:
- 10 times the Annualised Premium = Rs. 3,80,722
- 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 15 years.
He is not eligible for the Maturity Benefit also which = Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
Eligibility
| Minimum | Maximum | |
| Sum Assured | Rs. 2,00,000 | No Limit |
| Premium Payment Term | 15, 20, 25, & 30 years | |
| Policy Term | 100 - Age at entry | |
| Age at Entry | 90 days | 55 years |
| Age at End of Premium Payment Term | 30 years | 70 years |
| Premium Payment Modes | Yearly, Half-Yearly, Quarterly, Monthly | |
Surrender Value
If premiums are not paid on time, even after the grace period, the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium but before the date of Maturity. You will need to pay all the due premium with interest (compounding half-yearly) at a rate fixed by LIC.
If less than three years’ premiums have been paid and policy has not been revived, all the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable. If at least three full years’ premiums have been paid and any subsequent premiums are not duly paid, the policy shall not be void but shall continue as a paid-up policy till the end of policy term.
The Sum Assured on Death under a paid-up policy shall be reduced to a sum called “Death Paid-up Sum Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable) * Sum Assured on Death].
The Sum Assured on Maturity under a paid-up policy shall be reduced to a sum called “Maturity Paid-up Sum Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable)*(Sum Assured on Maturity)].
The policy can be surrendered at any time provided premiums have been paid for at least three consecutive years. On surrender of the policy, LIC shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Insurer from time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to LIC within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same LIC shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for base plan and rider, if any) for the period on cover and stamp duty charges.
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