LIC Jeevan Umang (Premium Calculator Maturity) Review

LIC Jeevan Umang Plan Details, along with Premium Calculator Chart for Jeevan Umang from LIC (Policy Review & Premium Chart PDF Included) . LIC Jeevan Umang Plan provides for annual survival benefits from the end of the premium paying term till maturity. LIC Jeevan Umang Plan also provides a lump sum payment at the time of maturity or on death of the policyholder during the policy term. Depending upon the Corporation’s experience with regard to policies issued under this plan, the LIC Jeevan Umang policy shall participate in profits during the policy term.

Features of LIC Jeevan Umang

Long Term Yes
Survival Benefits Two-Three
Surrender Value  Calculated
Free Lock Period 15 Days

Death Benefit : LIC Jeevan Umang

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

  1. On death before the commencement of Risk:

Return of premium/s paid without interest shall be payable.

  1. On Death after the commencement of Risk :

Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses (as mentioned in 2 below) and Final Additional bonus, if any, shall be payable.

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

  • 10 times of annualised premium; or

  • Sum Assured on Maturity; or

  • Absolute amount assured to be paid on death, i.e. Basic Sum Assured.

This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Premiums referred above shall not include any taxes, extra amount chargeable under the LIC Jeevan Umang Plan due to underwriting decision and rider premium(s), if any.

Survival Benefit : LIC Jeevan Umang

On the life assured surviving to the end of the premium paying term, provided all due premiums have been paid, a survival benefit equal to 8% of Basic Sum Assured shall be payable each year for the LIC Jeevan Umang Plan.

The first survival benefit payment is payable at the end of premium paying term and thereafter on completion of each subsequent year till the Life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier for the LIC Jeevan Umang Plan.

Participation Benefits : LIC Jeevan Umang

Depending upon the Corporation’s experience with regard to policies issued under LIC Jeevan Umang Plan, the policy shall participate in profits during the policy term.

During the premium paying term :

Policies shall be eligible to receive Simple Reversionary Bonuses declared as per the experience of the Corporation during the premium paying term, provided the policy is in force.

Final Additional Bonus may also be declared under an inforce policy in the year when such policy results into a claim by death. However, Final Additional Bonus shall not be payable under paid-up policy or on surrender of a policy during the premium paying term.

In case the premiums are not duly paid, the LIC Jeevan Umang policy shall cease to participate in future profits during premium paying term.

After the premium paying term (applicable only for fully paid-up policies or for paid-up policies with Maturity Paid-up Sum Assured of Rs. 2 lakhs or more):

Under a fully paid-up policy (where all premiums payable during the term of the policy are paid) or in a paid-up policy with Maturity Paid-up Sum Assured of Rs. 2 lakhs or more, the terms for participation of profits after the premium paying term may be in a different form and on a differential scale depending on the Corporation’s experience under this plan at that time for the LIC Jeevan Umang Policy.

Final Additional Bonus may also be declared under the LIC Jeevan Umang Plan in the year when a policy results into a claim either by death or maturity. In addition, applicable Final Additional Bonus for surrendering policies, if any, shall also be included in Special Surrender Value calculation.

Under a paid-up policy with Maturity Paid-up Sum Assured of less than Rs. 2 lakhs, the LIC Jeevan Umang Policy shall not participate in future profits.

Eligibility for LIC Jeevan Umang

  1. Minimum Basic Sum Assured : Rs. 2,00,000

  2. Maximum Basic Sum Assured : No limit (The Basic Sum Assured shall be in multiples of Rs. 25,000/-)

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

  2. LIC Jeevan Umang Policy Term : (100 – age at entry) years

  3. Minimum Age at entry : 90 days (completed)

  4. Maximum Age at entry : 55 years (nearest birthday)

  5. Minimum Age at the end of premium paying term : 30 years (nearest birthday)

  6. Maximum Age at the end of premium paying term : 70 years (nearest birthday)

  7. Age at maturity : 100 years (nearest birthday)

Revival of LIC Jeevan Umang Plan

If premiums are not paid by the end of the grace period then the policy will lapse. 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, subject to submission of satisfactory evidence of continued insurability.

The Corporation reserves the right to accept at original terms, accept at modified terms or decline the revival of a discontinued LIC Jeevan Umang policy.

The revival of discontinued LIC Jeevan Umang policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.

If revival period falls beyond the premium paying term and the policy is revived after the due date of survival benefit(s), then:-

  1. the unpaid survival benefit(s) (applicable in case of paid-up policy wherein the Maturity Paid-up Sum Assured is less than 2 lakhs) or;

  2. the difference between Survival benefits on full Basic Sum Assured and Survival benefits on Maturity Paid-up Sum Assured (applicable in case of paid-up LIC Jeevan Umang policy wherein the Maturity Paid-up Sum Assured equal to or greater than 2 lakhs)

shall be paid to the LIC Jeevan Umang policy holder.

Revival of rider, if opted for, will be considered along with revival of the Base Policy, and not in isolation.

Surrender Value of Jeevan Umang Plan

The LIC Jeevan Umang policy can be surrendered at any time provided premiums have been paid for atleast 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.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.

The Guaranteed Surrender Value payable during the LIC Jeevan Umang 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 LIC Jeevan Umang policy is surrendered

Tax Issues in Jeevan Umang Plan

Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time on LIC Jeevan Umang Plan.

The amount of Service Tax payable as per the prevailing rates shall be payable by the policyholder on premiums payable under the LIC Jeevan Umang policy, which shall be collected separately over and above in addition to the premiums payable by the policyholder.

The amount of tax paid shall not be considered for the calculation of benefits payable under the LIC Jeevan Umang plan.

Conclusion : LIC Jeevan Umang

Through this article, we tried to clear all questions relating to LIC Jeevan Umang on a whole. If you have any further questions on LIC Jeevan Umang, feel free to post your questions to our comments box.