LIC’s Jeevan Umang policy is a non-linked, whole life insurance plan that provides the policyholder with both, protection and profit. This plan offers annual survival benefits from the end of the premium-paying duration to maturity. A lump sum amount is paid to the policyholder at the time of maturity. If the policyholder dies during the plan tenure, then a lump sum is paid to their beneficiary/nominee. This plan also allows the customers to avail loan facilities and provides coverage throughout life or for a maximum of 100 years of the insured person.
|Minimum basic sum assured||Rs.2,00,000|
|Maximum basic sum assured||No limit|
|Policy tenure||100 years – (minus) age at entry|
|Minimum age at entry||90 days|
|Maximum age at entry||55 years|
Life Insurance Corporation of India (LIC) is a government owned insurance company headquartered in Mumbai, Maharashtra. It is the largest life insurance company in India and was founded in 1956. The organisation has a subscriber base of 25 crore people.
LIC operates all over India with 8 zonal offices, 113 divisional offices, and 2,048 branch offices. LIC offers a multitude of insurance plans for its consumers. Aam Aadmi Bima Yojana, insurance plans, special plans, pension plans, unit plans, etc., are some of the categories offered by them. Under the category of life insurance, LIC provides endowment plans like Jeevan Pragati and Jeevan Labh, money back plans like Jeevan Tarun and Bima Shree, term assurance plans like Anmol Jeevan II and Amulya Jeevan II, and so on. Jeevan Umang is the only whole life insurance plan offered by LIC.
Features of LIC’s Jeevan Umang
Listed below are some of the notable features of LIC’s Jeevan Umang
- The sum assured starts from Rs.2 lakh. Policyholders can choose any amount of sum assured above the minimum limit as there is no cap on the maximum amount.
- LIC offers different premium paying options for policyholders. Any premium paying term from the following can be chosen by policyholders according to their needs:
- 15 years
- 20 years
- 25 years
- 30 years
- Since the age of maturity under LIC’s Jeevan Umang is 100 years, the policy term is calculated by subtracting the policyholder’s age from 100. For example, If the policyholder is buying the plan at 25 years of age, the policy tenure will be 75 years.
- LIC allows policyholders to pay policy premiums on a monthly, quarterly, half-yearly, or yearly basis. For monthly payments, policyholders can only make payments through the National Automated Clearing House (NACH) facility.
- If premiums are paid for less than 3 years and the following years’ premium is not paid by the policyholder, the plan is considered void.
- If premiums are paid for a minimum of 3 years and the following years’ premium is not paid, the plan is transformed into a paid-up policy where the insurance remains active till maturity and the accumulated benefits are paid out at the end of maturity.
- Policyholders can also surrender their policies if they have paid the policy premiums for at least 3 years.
- LIC’s Jeevan Umang has a free-look period of 15 days. In that duration, policyholders can review the terms and conditions of the policy.
- Section 80C under the Income Tax Act of 1961, allows the premium paid for this policy to be eligible for tax deductions. Policyholders can claim tax benefits on the proceeds from this policy as well.
Mentioned below is the eligibility criteria specified by LIC for their Jeevan Umang whole life insurance policy:
- The minimum entry age is 90 days.
- The maximum entry age is 55 years.
- Policyholders must at least be 30 years of age at the end of the premium paying term.
- Policyholders can be up to 70 years of age at the end of the premium paying period.
- Risk will commence immediately for policyholders over 8 years. For policyholders under 8 years, risk will commence after 2 years of continuous policy coverage.
Benefits of LIC’s Jeevan Umang
Policyholders can avail the following benefits under this policy:
If the policyholder dies before the date of maturity of the policy, a lump sum amount will be paid out to the nominee based on the following terms:
- Death before commencement of risk: The amount paid out will be equal to the total amount of premiums paid excluding interest and any extra charges. If any extra amount is charged for add-on riders or any underwriting decision, it will be paid out as well.
- Death after commencement of risk: The amount paid out will be 10 times of the annualized premium, or sum assured on maturity, or the basic sum assured. The amount should not be less than 105% of the total amount of premiums paid.
A survival benefit of 8% of the basic sum assured will be paid annually each year to the policyholder till the date of maturity or till the policyholder survives. It is payable only if he/she survives to the end of the premium paying term and pays all the due premiums.
If the policyholder survives till the date of maturity, a lump sum amount comprising of the basic sum assured, reversionary bonuses, and final additional bonuses is paid to him/her.
Policyholders can avail a loan during the policy period only if their plan has acquired a surrender value. Interest rates are applicable on such loans and the rates are revised at regular intervals. A loan can be availed only if the policy premium has been paid for at least 3 years.
Policyholders can choose to buy any of the following add-on riders to enhance the coverage of their LIC Jeevan Umang policy:
- Accidental death and disability benefit rider
- Accident benefit rider
- New term assurance rider
- New critical illness benefit rider
Mentioned below are the general exclusions under this policy:
- The policy will be considered void if the policyholder commits suicide before the completion of 12 months of the policy since the commencement of risk. Claims made in such cases will be rejected except for 80% of the premiums paid.
- If the policyholder commits suicide within 12 months from the date of revival, a lump sum higher than 80% of the premiums paid or the surrender value will be payable.
The nominee or beneficiary is required to notify the insurer in cases of claims. For maturity benefits, the policyholder must submit a discharge form to the organisation along with relevant details. Mentioned below is the list of documents that need to be submitted during a death claim:
- Filled claim form
- Policy document
- Medical documents (if needed)
- Police FIR (if needed)
- Death certificate
- Post-mortem report
- Age proof and ID proof of the claimant