LIC Jeevan Umang: Securing Your Golden Years With A Lifetime of Benefits To Fulfil Retirement Wishes

Table Of Contents

• Introduction
• Understanding LIC Jeevan Umang
• Exploring LIC Jeevan Umang Policy Details
• Pros and Cons of LIC Jeevan Umang
• Advantages of LIC Jeevan Umang
• Limitations or Disadvantages of LIC Jeevan Umang
• Planning for Retirement with LIC Jeevan Umang
• Aligning LIC Jeevan Umang with Your Financial Portfolio
• Calculating Returns with LIC Jeevan Umang Calculator
• Tips for Making the Most of Your LIC Jeevan Umang Policy
• Frequently Asked Questions (FAQ) about LIC Jeevan Umang
• Conclusion: Secure Your Retirement with LIC Jeevan Umang

Introduction:

Welcome to our comprehensive guide on LIC Jeevan Umang, the ultimate retirement planning tool offered by Life Insurance Corporation of India (LIC). 

In this blog, I will brief you the policy details, key features, and benefits of LIC Jeevan Umang, helping you to make informed decisions about securing your golden years with this unique policy to fulfil retirement wishes or any other long term wishes.

Understanding LIC Jeevan Umang:

Retirement is a very very important phase of life. It becomes more crucial to plan for it as early as possible for ensuring financial stability during those golden retirement years. 

It becomes essential to have a reliable and secured financial plan in place to maintain your desired lifestyle and meet your financial goals post-retirement, as life expectancy increases.

LIC Jeevan Umang is a participating, non-linked, individual, whole life insurance and savings plan that offers policyholders a combination of life cover and guaranteed returns. 

This LIC Jeevan Umang plan was launched on 01.02.2020

One of its unique features is the "Limited Premium Payment" option, where the policyholder pays premiums only for a limited period while enjoying lifelong benefits.

The plan also comes with an attractive "GUARANTEED Survival Benefit" which provides a percentage of the Sum Assured at the end of the premium payment term and additional payouts at regular intervals. Additionally, LIC Jeevan Umang provides a "Maturity Benefit" to the policyholder, making it an ideal choice for those seeking financial security throughout their lives.

This plan is mostly sought after by the young generation who would like to generate a fixed pension style guaranteed income every year till lifetime after certain years of premium payment.

In a very general statement if I say by taking an example of 15 years of premium payment, the amount you pay, you start getting that much every year from 16th year onwards till whole life. 

Isn't it amazing?

Exploring LIC Jeevan Umang Policy Details:

Before investing in LIC Jeevan Umang, it is essential to understand the policy details and eligibility criteria. 

The plan is available to individuals aged 90 days to 55 years, making it accessible to a broad range of potential policyholders. 

The minimum Sum Assured varies based on the age of entry, and policyholders have the flexibility to choose their premium payment term.

The policy term and maturity age are key aspects of LIC Jeevan Umang. The policy term can range from 15 to 35 years, while the maturity age can extend up to 100 years, 

ensuring lifelong coverage. Policyholders can select the policy term and premium payment term according to their retirement age and financial goals.

Survival Benefit:

If the life assured survives to the end of the premium paying term, and all dues have been paid till that date, a survival benefit equal to 8% of Basic Sum Assured shall be payable each year. 

The first survival benefit payment is payable at the end of premium paying term. Next after completion of each subsequent year till the Life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier, the payment will be done. You can consider this as an annual pension amount.

Maturity Benefit:

If the life insured person survives till the end of the policy term, and all dues have been paid till that date then the "Maturity Sum Assured" along with vested Simple Reversionary Bonuses and additional bonus will be paid.

Eligibility Criteria:

Minimum Basic Sum Assured: Rs. 200000 (2 Lakhs)

Maximum Basic Sum Assured: No Limit

(The Basic Sum Assured shall be multiples of Rs 25000/-)

Premium Paying Term : 15, 20, 25 and 30 years

Policy Term : 100 Years

This means the Policy will be active till 16 years or 21 years or 25 years, but premium will be paid till 10 years or 15 years or 16 years.

Minimum Entry Age : 90 Days (completed)

Maximum Entry Age: 55 Years

Minimum Age atthe end of premium paying term : 30 years(nearer birthday)

Maximum Age atthe end of premium paying term : 70 years(nearer birthday)

Maximum Maturity Age : 100 Years (Nearest Birthday)

Date of Risk Commencement: Risk will commence immediately from the date of issuance of the policy if insured age is 8 years or more.

If less than 8 years then, the risk under this plan will start either one day before the completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.

Rider Benefits:

There are some optional rider benefits available with additional premium and they are:

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

5. LIC's Premium Waiver Benefit Rider

Payment of Premium, Rebate and Loan :

The payment of premium can be paid regularly at yearly, half yearly, quarterly or monthly mode during the policy premium paying term. 

You can select auto debit from bank via NACH or through salary deduction as well. 

Below is a sample lic jeevan umang premium chart for a basic sum assured of Rs. 2 lakhs :

There is also some rebate on your premium amount when you take the plan. Two types of rebate : Mode Rebate and High Sum Assured Rebate 

In case of Mode Rebate, you will get 2% rebate on yearly premium and 1% on half yearly premium. 

In case of High Sum Assured Rebate, you will get 1.25% rebate 5 lakhs to 9.75 lakhs, 1.75% rebate on 10 lakhs to 24.75 lakhs and 1.75% rebate on 25 lakhs and above basic sum assured.

You can avail loan up to 90% of surrender value as well under this policy if you have completed 2 Years of successful payment of premium and for paid-up policies, it is up to 80%.

Free-Look Period, Grace Period and Surrender:

If you are not satisfied with the terms and conditions of the policy, you can return the policy document or bond within 15 days of the receipt of the bond to the corporation by stating of the reason of objection. 

On receipt of the document, LIC will refund you the amount by deducting the proportionate risk covers, expenses etc..

There is a standard grace period of 30 days for yearly, half yearly and quarterly premiums and 15 days for monthly premium from the date of unpaid premium. 

If still the premium is not paid during the grace period, then the policy lapses after that. 

You can revive a lapsed policy within 5 years from the date of first unpaid premium and before the maturity.  

If you already have paid the premium for 2 Years already, then you can surrender policy at any time. 

Death Benefit:

If the death happens to the life insured person during the policy term and all dues have been paid till that date, then "Sum Assured on Death" and bonus amount shall be paid by LIC . 

The "Sum Assured on Death" is normally defined as the higher of basic sum assured or 7 times of the annual premium amount and cannot be less than 105% of the total premium paid till the life insured death. 

Death Benefits in Instalments Option :

The policy holder or life insured can choose the option for the nominee to receive the maturity benefits in instalments over the period of 5,10,15 years instead of receiving the entire lump sum amount at a time. 

The instalment amount will be paid in advance at yearly or half yearly or quarterly or monthly as per you opted. 

Below is a sample illustration of the minimum amount to be paid to you as instalments:

If the net claim amount is less than the minimum instalment amount as per the selected option, then the entire amount will be paid in lump sum only. 

The death claim amount shall be paid to the nominee as per option selected by life insured/policy holder. 

Sample Benefit Illustration:

I have taken a sample illustration to see how much will the return and when will it start. I have taken age of life insured as 30 years, means Policy term is 70 years. Also the premium paying term is only 15 years where the life insured will be paying only 2,83,768.00 rupees yearly and total Sum assured is becoming 37 lakhs rupees. You can see the life insured will start getting guaranteed 2.96 Lakhs rupees every year after 15 years for next 55 years. This amount will be a constant pension lifetime. Isn't amazing?

Exclusion :

If the person commits suicide within 1 Year from the start date of the policy, then LIC will not pay any amount to the nominee. 

However, if at least 80% of the premium is already paid, then amount higher than 80% if premium paid or surrender value on death will be paid and no other claim will be entertained.

LIC also can bring the policy under question within 3 years of the policy commencement under various grounds like fraud, false info, or intentional information hiding to leverage benefits etc, but not after 3 years. 

Pros and Cons of LIC Jeevan Umang:

Like any financial product, LIC Jeevan Umang has its own set of advantages and limitations. It is essential to weigh these pros and cons to determine if the policy aligns with your financial needs and retirement objectives.

Advantages of LIC Jeevan Umang:

a) Lifetime Coverage: The policy provides coverage up to 100 years, ensuring financial protection for your entire life.

b) Guaranteed Returns: Policyholders receive guaranteed additions during the premium payment term, boosting the overall returns and return is Tax Free.

c) Survival Benefits: Regular payouts during the premium payment term provide liquidity for various financial needs.

d) Tax Benefits: Policyholders can avail tax deductions on premiums paid under Section 80C and the maturity under Section 10(10D) of the Income Tax Act, 1961.

LIC Jeevan Umang Disadvantages or Limitations:

a) Longer Commitment: The policy requires regular premium payments for a bit longer and a significant duration, making it your long-term financial commitment.

b) Low Liquidity: If you surrender the policy before the premium payment term, then it may result in reduced returns and minimal liquidity.

c) Low Flexibility: This policy offers limited flexibility in terms of partial withdrawals.

Planning for Retirement with LIC Jeevan Umang:

LIC Jeevan Umang plays a vital role in building a comprehensive retirement strategy. 

If you combine it with other investment options, it can ensure a steady income stream during retirement.

It is essential to assess your current financial situation, identify retirement goals, and estimate the required corpus to plan retirement effectively. 

This planning includes evaluating your expenses, existing investments, and income sources post-retirement.

Aligning LIC Jeevan Umang with Your Financial Portfolio:

a) Diversification: You have to diversify your investment portfolio by combining LIC Jeevan Umang with other retirement-oriented investments like mutual funds (if you have good risk appetite & you are in your early age), fixed deposits and Public Provident Fund (PPF).

b) Risk Tolerance: You have to consider your risk appetite and choose a mix of investments that align with your comfort level.

c) Periodically Review: Please make a habit of periodically reviewing your financial plan and make adjustments based on changes in your life circumstances and financial goals.

Calculating Returns with LIC Jeevan Umang Calculator:

Policyholders can use the LIC Jeevan Umang calculator tool in official website to understand the potential returns and benefits of LIC Jeevan Umang. 

This user-friendly online tool enables policyholders to estimate the maturity benefits and income payouts they can expect based on their premium payments and policy terms.

The calculator takes into account factors such as age, premium payment term, Sum Assured, and bonus rates to provide a comprehensive projection of the policy's benefits. 

Understanding the role of bonuses and guaranteed additions in enhancing the policy's returns is crucial for making well-informed financial decisions.

Tips for Making the Most of Your LIC Jeevan Umang Policy:

Consider the following tips to maximize the benefits of LIC Jeevan Umang:

1. Keep Your Policy Active: Make a reminder and pay premiums regularly to keep the policy active and enjoy uninterrupted coverage and benefits.

2. Review and Adjust Your Coverage: Periodically review your financial goals and adjust your LIC Jeevan Umang policy coverage accordingly.

3. Seek Professional Financial Advice: Consult with a financial advisor to ensure your retirement planning aligns with your unique needs and circumstances. You can contact me, if you want to know more or take up this or any other plan.

Frequently Asked Questions (FAQ) about LIC Jeevan Umang:

To address common queries surrounding LIC Jeevan Umang, here are some frequently asked questions:

1. What is the Death Benefit Coverage in LIC Jeevan Umang?

The death benefit under LIC Jeevan Umang includes the Sum Assured on Death, vested Simple Reversionary Bonuses, and Final Additional Bonus (if any). 

The death benefit is paid to the nominee in the event of the policyholder's unfortunate demise during the policy term.

2. Can I Surrender or Take a Loan against the LIC Jeevan Umang Policy?

Policyholders have the option to surrender the policy after the completion of two years of premium payments. 

Surrendering the policy before the premium payment term will result in reduced benefits. 

Additionally, policyholders can take a loan against the policy's surrender value after two years.

3. How is the LIC Jeevan Umang Premium Amount Calculated?

The premium amount for LIC Jeevan Umang is calculated based on several factors, including the policyholder's age, chosen Sum Assured, premium payment term

 and policy term. The premium payment frequency (annual, semi-annual, quarterly, or monthly) also impacts the premium amount.

4. What Happens if I miss a LIC Jeevan Umang Plan Premium Payment?

LIC Jeevan Umang provides a grace period for premium payment, typically 30 days from the premium due date. 

If the policyholder fails to make the premium payment within the grace period, the policy may lapse. 

To reinstate the policy, the policyholder may need to pay any outstanding premiums and comply with specific conditions laid out by LIC.

Conclusion: Secure Your Retirement with LIC Jeevan Umang

In conclusion, LIC Jeevan Umang is an excellent retirement planning tool that provides a lifetime of benefits and financial security. 

With its unique combination of life cover and guaranteed returns, this policy can serve as a reliable companion in your journey towards a prosperous retirement.

Remember, retirement planning is a long-term commitment, and the earlier you start, the better. 

Embrace the benefits of LIC Jeevan Umang and secure your golden years with confidence and peace of mind.

Plan your retirement today and embark on a journey of financial freedom with LIC Jeevan Umang. 

Your golden years deserve the best, and this policy can make your dreams a reality.

Please contact me, if you want to know more/take up this or any other plan.

Happy Investing !!! 🙏🙏🙏

About Author:

Welcome to NewsWiseStories! I'm Blog Junkie (Sipu). 

I look to sharing my passion, ideas, thoughts, and knowledge on stories, news, finance, health tips, jobs, etc, with all of you from time to time through my blog posts to make these valuable for you.

Thank you for joining me on this incredible and exciting blogging journey & stay tuned for my upcoming articles!

Warm Regards/Blog Junkie (Sipu)

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