Key Features at a Glance
How Jeevan Umang Works
The plan has 3 clear phases:
Life cover active
Bonus accrues yearly
No premiums needed
Continues till age 100
SA + Bonus + FAB
as lump sum
Real Example — ₹10L SA, Age 30, PPT 20 Years
| Sum Assured | ₹10,00,000 |
| Entry Age | 30 years |
| PPT | 20 years (pay from age 30 to 50) |
| Annual Premium (approx.) | ~₹54,000 |
| Total Premium Paid (20 yrs) | ~₹10,80,000 |
| Annual Income (age 50-99) | ₹80,000/year × 50 years = ₹40,00,000 |
| Maturity at Age 100 | SA (₹10L) + Bonus (~₹9L) + FAB = ~₹19,00,000 |
| TOTAL RECEIVED | ~₹59,00,000 |
*Approximate estimates. Bonus at ₹45/1000/yr for 20 years of PPT. Actual amounts depend on LIC's declared bonus rates. Maturity at age 100 assumes the policyholder survives to 100.
💡 The maths: You invest approximately ₹10.8L over 20 years and receive approximately ₹59L over your lifetime — that's 5.5x your total investment. Of course, this is spread over 70 years, so the actual return (IRR) is approximately 5-6% — comparable to other guaranteed instruments like PPF.
All Benefits Explained
After PPT ends, receive 8% of SA annually till age 100. For ₹10L SA = ₹80,000/year. Guaranteed, automatic, tax-free (under current 10(10D) rules for qualifying policies).
At age 100, the full SA + all accumulated bonus + FAB is paid as lump sum. This is approximately ₹19L for a ₹10L SA policy (approximate estimate).
On death at any time (during or after PPT), nominee receives: SA + Accrued Bonus + FAB. Life cover continues for the entire term until age 100 — no additional premium needed after PPT.
After 3 years of premium payment, you can take a loan against the policy at approximately 9-10% interest. See Loan Guide →
Who Should Buy Jeevan Umang?
- Retirement planning — pension-like annual income
- Young parents — buy for child (age 0+), income starts early
- Conservative investors — guaranteed returns
- Lifetime life cover seekers
- Supplementary pension alongside NPS/EPF
- High-return seekers — equity/MF give more
- Short-term savings — minimum 15yr commitment
- People who need flexibility — locked-in structure
- Those with only term insurance — buy term first
💡 Expert Tip (Haresh Hirapara): Jeevan Umang is one of the best plans for creating a lifelong income stream. I recommend it especially for parents buying for newborns/children — with a 15-year PPT starting at age 0, the child begins receiving ₹80,000/year from age 15 for their entire life. That's income for education, career, and retirement — all from one policy. However, don't put all your savings here. Use it as the guaranteed base of your financial plan alongside equity investments. Consult a financial advisor for the right allocation.
🧮 Calculate Jeevan Umang Premium →
Frequently Asked Questions
This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. Premium, income, and maturity amounts are approximate estimates based on publicly available information. Actual amounts depend on LIC's declared bonus rates. For official rates, visit licindia.in.
This is not financial advice. Please consult a certified financial advisor before making insurance or investment decisions.