LIC's Jeevan Umang (745)

How the plan works

LIC's Jeevan Umang is a participating, non-linked whole life plan. You pay premiums for a limited period (15, 20, 25 or 30 years), and the cover continues until age 100. Once the premium paying term is over, the plan pays a yearly survival benefit. At the end of the policy term (age 100), or on earlier death, a lump sum is paid along with bonuses.

• Minimum entry age: 30 days (completed)
• Policy term: 100 minus age at entry
• Age at the end of the premium paying term: minimum 18 years (completed), maximum 70 years (nearer birthday)
• Basic Sum Assured: minimum ₹2,00,000, no upper limit

Basic Sum Assured must be in these multiples:

Child policies: If the child is under 8 years at entry, risk cover starts on the earlier of one day before 2 years from the policy start date, or one day before the policy anniversary on or after the child turns 8. For entry at age 8 or above, risk starts immediately. The policy vests in the child on the policy anniversary on or after age 18.

Death benefit

If the policy is in force and death happens:

• Before risk starts (child policies): premiums paid are returned without interest (excluding taxes, extra premium and rider premium).
• After risk starts: the nominee receives the Sum Assured on Death plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

Sum Assured on Death is the higher of 7 times the annualised premium or the Basic Sum Assured. The death benefit will never be less than 105% of the total premiums paid up to the date of death.

Survival benefits

If the life assured is alive at the end of the premium paying term and all premiums are paid, the plan pays 8% of the Basic Sum Assured every year. The first payment comes at the end of the premium paying term, and then at the end of every following year as long as the life assured is alive, until the policy anniversary just before maturity.

Maturity benefit

On surviving to the end of the policy term (age 100), the Sum Assured on Maturity (equal to the Basic Sum Assured) is paid along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any.

Bonuses: The policy shares in LIC's profits. Simple Reversionary Bonuses may be declared during the premium paying term for in-force policies, and once declared they become part of the guaranteed benefits. After the premium paying term, profit participation may take a different form for fully paid-up policies, or paid-up policies with Maturity Paid-up Sum Assured of ₹2 lakh or more. Bonus rates are not fixed and depend on LIC's experience.

Optional riders

Available on payment of extra premium (you can choose either of the two accident riders, plus the others):

• LIC's Accidental Death and Disability Benefit Rider
• LIC's Accident Benefit Rider
• LIC's New Term Assurance Rider (at inception only)
• LIC's Premium Waiver Benefit Rider (on the proposer's life, for policies on minors)

Total premiums for all life insurance riders cannot exceed 30% of the base plan premium.

Loan, surrender & revival

Loan: Available after the first policy year if one full year's premium has been paid, within the surrender value.

After the premium paying term, a new loan is limited so that the yearly interest does not exceed 50% of the yearly survival benefit; interest is recovered from survival benefits. The brochure states a loan interest rate of 9.5% p.a. (compounding half-yearly) for loans sanctioned from 1 May 2024 to 30 April 2025; this is reviewed yearly.

Surrender: The policy can be surrendered after the first policy year if one full year's premium is paid. Guaranteed Surrender Value needs at least two full years' premiums; Special Surrender Value is available after the first year. You get the higher of the two.

Paid-up: If at least one full year's premium is paid and premiums stop, the policy continues with reduced (paid-up) benefits. Survival benefits continue at 8% of the Maturity Paid-up Sum Assured only if that amount is ₹2 lakh or more.

Revival: A lapsed policy can be revived within 5 consecutive complete years from the first unpaid premium, by paying arrears with interest and meeting underwriting requirements.

Other key terms

• Grace period: 30 days for yearly, half-yearly and quarterly premiums; 15 days for monthly.
• Free-look period: 30 days from receipt of the policy document (electronic or physical, whichever is earlier).
• Death benefit in instalments: You can choose to have all or part of the death benefit paid to the nominee over 5, 10 or 15 years (minimum instalment ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly).
• Mode rebate: Yearly 2% and half-yearly 1% of tabular premium; nil for quarterly, monthly and salary deduction.
• High Basic Sum Assured rebate:

• Sample premium: For ₹2 lakh Basic Sum Assured, a 30-year-old pays about ₹11,407 a year (20-year PPT), excluding taxes, as per the brochure's illustrative table.
• Suicide exclusion: Within 12 months of risk start, 80% of premiums paid is payable (not applicable if entry age is below 8 years).