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LIC Jeevan Umang Plan- The Dual Benefit Policy

The benefit of Income and protection of the family are two main concerns for any individual, isn’t it? It is often very confusing and difficult when one has to choose between the two. LIC’s Jeevan Umang plan is here for your rescue. It combines both benefits of income and protection of the insured’s family under one policy.

Let’s learn a little more about this policy.

What is LIC Jeevan Umang Plan?

LIC Jeevan Umang is a life insurance plan which offers the dual benefits of Income and family protection under one policy. On the 1st of February 2020, this policy was launched by the LIC. The policy provides the annual survival benefits from the completion of the premium payment tenure till the time of maturity. Along with this, the insured is also paid a lump sum on maturity or the death of the insured, whichever is earlier. The policy offers great returns which can help the policyholder enjoy financial independence after a fixed period of time i.e., after the premium payment tenure.

Let’s Understand The returns of this policy with an example.

Let’s assume that the policy has been bought by Mr. Dixit who is 29 years old.  He has chosen the premium payment tenure to be 20 years, this means he’ll start receiving the pension every year after he turns 49. His sum assured is 6 lakhs.

He will receive the pension until the policy matures. Let’s see the premium he pays.

Premium Payment Frequency

1st year

After 1st year

Monthly

2,856

2,794

Quarterly

8,567

8,382

Half-yearly

16,961

16,596

Yearly

33,581

32,858

This is the premium value including GST

After the payment period is over, he will receive Rs 48,000 every year. On maturity he will receive Rs 6 Lakhs, the sum assured.

Adding up all the premiums and sum assured, he receives Rs 15,16,200 in total which is almost 3 times the sum he paid.

Benefits of the LIC Jeevan Umang Plan

Prime benefits offered by the LIC Jeevan Umang Plan are as follows:

1. Death benefits

On the demise of the insured during the policy’s tenure, the death benefit is availed to the beneficiary as:

  • On death before commencement of risk: The beneficiary receives the sum total of all the premiums paid till date without any deductions or applicable interests.
  • On death after commencement of risk: The sum assured is paid to the beneficiary along with a reversionary bonus and final bonus if any.

2. Survival Benefits

If the insured survives at the end of the premium paying tenure, 8% of the basic sum assured is paid to the insured on its completion. Thereafter, the policyholder is paid the same amount after every year till he is alive and before the maturity of the policy.

3. Maturity benefits

If the policyholder survives the entire tenure of the policy i.e., 100 years, he or she is paid the sum insured. Applicable bonuses, simple reversionary bonus, and final bonus if any are added to the sum insured.

4. Loans

Policyholders can even avail of the loan facility under the LIC Jeevan Umang Plan. After the completion of 3 years of the policy, the policyholder can take a loan of up to 90% of the surrender value. But it is required that the premium is paid thoroughly and is up to date.

This policy is a huge relief for the earning member of the family. It not only provides a source of regular income but also relaxes the policyholder regarding the protection of his family in his absence.

Are you looking for a new insurance policy or a policy renewal? Reach out to us and let us assist you.

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