LIC Jeevan Umang Plan-845

Summary of LIC Jeevan Umang Plan – Table No. 845

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 plan is a participating plan eligible for Simple Reversionary Bonus and Final Addition Bonus.

Launch Date Table Number Product Type Bonus UIN
20th April, 2017 845 Endowment + Whole life Yes 512N312V01

Key Features of LIC Jeevan Umang Policy

  • This is an endowment cum whole life policy
  • Offers 8% of 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

 

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

Eligibility condition of LIC Jeevan Umang Policy

 

Minimum Minimum
Sum Assured Rs. 1,00,000 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

 

Other conditions in LIC Jeevan Umang

Revival of the policy

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.

Paid-up Value

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 be 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)].

Surrendering the Policy

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

Free look period

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.

If you have any questions on this plan, please comment below and we would be happy to help.