What is Jeevan Umang?
LIC Jeevan Umang (Plan No. 745) is a participating, non-linked, whole life plan that provides coverage until age 100. After the premium paying term ends (15, 20, 25, or 30 years), the policyholder receives 8% of Sum Assured every year as survival benefit until age 100. At maturity (age 100), the full Sum Assured + accrued bonus + FAB is paid out. This makes it ideal for those seeking both lifelong protection and regular annual income.
Key Features
- Whole Life Coverage: The policy covers you until age 100. This is one of the longest coverage periods available in any LIC plan.
- 8% Annual Survival Benefit: After your premium paying term ends, LIC pays you 8% of the Sum Assured every year as survival benefit. For a ₹10,00,000 SA, that's ₹80,000 every year!
- Lump Sum at Age 100: At maturity (age 100), you receive the full Sum Assured + all accrued bonuses + FAB — in addition to all the survival benefits already received.
- Bonus: Simple Reversionary Bonus at approximately ₹45 per ₹1,000 SA per year
- Final Additional Bonus (FAB): One-time bonus at maturity for qualifying policies
- Flexible PPT: Choose from 15, 20, 25, or 30 year premium paying terms
- Tax Benefits: Premiums qualify for Section 80C deduction. Maturity proceeds tax-free under Section 10(10D) if premium ≤ 10% of SA
- Loan Facility: Loan available after policy acquires surrender value (3 years)
How the 8% Annual Income Works — Example
Scenario: Mr. Kumar, age 30, buys Jeevan Umang with ₹10,00,000 SA and 20-year PPT.
✅ Pays premiums: Age 30 to 50 (20 years)
✅ Receives 8% annually: ₹80,000/year from age 50 to 100 = 50 years × ₹80,000 = ₹40,00,000 total survival benefit
✅ At age 100: ₹10,00,000 (SA) + Accrued Bonus + FAB
Total benefit = ₹40,00,000 (survival) + maturity lump sum — all from a single policy!
Eligibility Criteria
- Minimum Entry Age: 90 days (0 years completed)
- Maximum Entry Age: 55 years (nearest birthday)
- Maturity Age: 100 years (fixed for all)
- Minimum Sum Assured: ₹2,00,000
- Maximum Sum Assured: No upper limit
- Premium Paying Terms: 15, 20, 25, or 30 years
- Policy Term: Whole life (100 minus entry age)
Maturity Benefit (at Age 100)
Maturity = Sum Assured + Accrued Bonus + Final Additional Bonus (FAB)
Note: This is in addition to all the 8% annual survival benefits already received after PPT ends.
Example: For ₹10,00,000 SA, age 30, 20-year PPT:
- Sum Assured at maturity: ₹10,00,000
- Accrued Bonus (₹45 × 1000 × 70 years): ₹31,50,000
- Final Additional Bonus: ~₹5,00,000
- Total Maturity Payout: ~₹46,50,000
- Plus ₹40,00,000 already received as 8% survival benefit over 50 years
Death Benefit
- During policy term: "Sum Assured on Death" + Accrued Bonus + FAB (if applicable). Sum Assured on Death = Higher of (10 × Annual Premium) or (1.25 × Basic SA)
- After PPT but before maturity: The nominee receives the death benefit. Any survival benefits already paid are not deducted from the death benefit.
Premium Paying Term Options
- 15-year PPT: Shortest payment period. Best for those who want to finish premiums early and start receiving 8% income sooner.
- 20-year PPT: Most popular option. Balanced between premium amount and early income start.
- 25-year PPT: Lower yearly premium, suitable for younger buyers.
- 30-year PPT: Lowest yearly premium, but income starts later. Good for very young buyers (including children's policies).
Premium Payment Modes
- Yearly: Base rate (no loading)
- Half-Yearly: ~51.3% of annual premium
- Quarterly: ~25.8% of annual premium
- Monthly (ECS/NACH): ~8.7% of annual premium
Jeevan Umang vs Other LIC Plans
- vs Jeevan Anand (715): Both provide post-maturity benefits. Jeevan Anand covers whole life with SA payable on death after maturity. Jeevan Umang pays 8% annually — providing regular income. Umang is better for those wanting regular income; Anand for lump sum protection.
- vs Jeevan Labh (736): Jeevan Labh is a fixed-term endowment (16/21/25 years) with better CAGR. Jeevan Umang covers till age 100 with annual income. Labh is better for pure savings; Umang for lifelong coverage + income.
- vs Jeevan Lakshya (733): Jeevan Lakshya provides annual income only on death (to the family). Jeevan Umang provides 8% income to the policyholder while alive. Umang benefits you directly; Lakshya benefits your family on your death.
Who Should Buy Jeevan Umang?
- People looking for lifelong insurance coverage until age 100
- Those who want regular annual income after finishing premium payments
- Parents buying policies for children (entry age starts from 90 days)
- Anyone seeking a pension-like income from their insurance policy
- Individuals who want guaranteed income regardless of market conditions