LIC Jeevan Umang – Review, Features and Benefits

LIC’s Jeevan Umang Policy is a combination of income and protection to your family. This plan provides for annual survival benefits from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on the death of the policyholder during the policy term. This policy also takes care of the liquidity needs through a loan facility.

LIC Jeevan Umang Policy

Features of this policy –

  • Loan Facility is available
  • Optional Rider Benefit
  • Term of the Policy (100 – entry age) years
  • This policy also offers a simple reversionary bonus as well as the final additional bonus.
  • It also offers life cover till the policyholder turns 100 yrs old.
  • Premiums paid are exempted from tax.
  • Free Look period of 15 days if the policyholder is not satisfied with the terms and conditions of the policy.

Benefits of the policy –

A) Death Benefit

On the death of the Life Assured during the policy term, provided all due premiums have been paid then

  • On death before the commencement of Risk: Return of premium/s paid without interest shall be payable.
  • On Death after the commencement of Risk: Death Benefit + vested Simple Reversionary Bonuses + Final Additional Bonus, if any, shall be payable.

Where “Sum Assured on Death” is defined as the highest of –

  1. 10 times of annualized premium; or
  2. Sum Assured on Maturity; or
  3. Absolute amount assured to be paid on death, i.e. Basic Sum Assured.

Note: The Death Benefit shall not be less than 105% of all the premiums paid as on the date of death.

B) Survival Benefit:

If the policyholder survives till the end of premium paying term, then a survival benefit equal to 8% of Basic sum assured shall be payable each year provided all the due premiums have been paid.

C) Maturity Benefit:

If the policyholder survives till the maturity period then, “Sum Assured on Maturity” + vested Simple Reversionary Bonuses + Final Additional Bonus, if any, shall be payable, provided all due premiums have been paid. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

D) Optional Benefit:

This Rider benefit can be taken by paying an additional premium. Rider sum assured cannot exceed the Basic Sum Assured. Rider benefit are as follows –

  1. LIC’s Accidental Death and Disability Benefit Rider
  2. LIC’s Accident Benefit Rider
  3. LIC’s New Term Assurance Rider
  4. LIC’s New Critical Illness Benefit Rider

Eligibility Conditions of the Policy –

Minimum and Maximum Basic Sum Assured –
Rs. 2 lacs and No Limit
Premium Paying Term –
15, 20, 25 and 30 years
Minimum and Maximum Age at Entry –
90 Days (completed) and 55 yrs (nearest birthday)
Minimum and Maximum Age at the end of the premium paying term –
30 yrs and 70 yrs (nearest birthday)
Age at Maturity –
100 yrs (nearest birthday)
Policy Term –
100 – the age at entry (years)

Can lapsed policy be revived?

yes, a lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation at the time of the payment.

Can I surrender my 1 yr old policy?

No, 1 yr old policy cannot be surrendered. The policy can be surrendered only if all the premiums have been paid for at least three consecutive years. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.

Exclusion under this policy –

Suicide: If the insured commits suicide within one year of the policy period, then the insurance company will not pay any money to the nominee. However, 80% of the premiums paid without any interest are paid to the nominee in case the policy is in force.

Conclusion –

So by now, you all know every important detail about this policy. Now it is up to you all to decide whether to take this policy or not. If you have any queries regarding this policy, leave your questions in the comment section. I will get back to you asap.

6 replies on this article “LIC Jeevan Umang – Review, Features and Benefits”

  1. Srinivasan says:

    Hi Manish or Jago team, Umang being whole life policy – i’m trying to think whether i can take this for my kids – elder kid 10 years old and younger kid 6 years .. the term would be 24 to 25 years .. i’m thinking this way, where – starting their age 30, they will start getting returns until their age till they survive .. second query is – the LIC agents keep telling this 8% return for whole life and with future interest rate which may dip below 4% , do you see this as attractive.. i know that this can’t compete with other aggressive investment products linked with market.. however, this way, its kind of secured conservative returns to kids till their life. please provide your views Manish.

    1. Jagoinvestor says:

      Does not make sense if its 4% to me .. If it makes sense for your case, then you can buy !

      PLease note that are many policies which can give 6%+ IRR ..They seem to be better choice!

  2. Deepak says:

    How basic sum assured is calculated?

    1. Jagoinvestor says:

      Its already mentioned in policy.

  3. Karthik says:

    Thanks for this article.
    Please let me know how different is this LIC Jeevan Umang from the regular LIC Pension plans as both give yearly or monthly payout after premium ends.

    1. Jagoinvestor says:

      Its a deffered annuity plan which means it starts paying pension after you pay premiums for several years.

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