LIC Jeevan Umang Plan: A Comprehensive Guide

LIC Jeevan Umang Plan is a popular life insurance policy offered by the Life Insurance Corporation of India (LIC). It is a non-linked, with-profits, whole-life assurance plan that provides the policyholder life cover and regular income. This article will discuss the features, benefits, and other important details of the LIC Jeevan Umang Plan.

Features of LIC Jeevan Umang Plan

1. Policy Term: The policy term of LIC Jeevan Umang Plan is up to 100 years or until the policyholder attains the age of 100 years, whichever is earlier.
2. Premium Payment Term: The premium payment term for the policy is fixed at 15, 20, 25, or 30 years.
3. Guaranteed Annual Income: The policy provides a guaranteed annual income of 8% of the Sum Assured, payable yearly after the premium payment term is over.
4. Bonus: The policy participates in the corporation’s profits and occasionally receives reversionary bonuses declared by LIC.
5. Death Benefit: In case of the policyholder’s unfortunate death, the death benefit is payable to the nominee. The death benefit is the Sum Assured, with vested reversionary bonuses and a final additional bonus (if any).
6. Maturity Benefit: If the policyholder survives till the end of the policy term, they will receive the Sum Assured, vested reversionary bonuses, and a final additional bonus (if any).

Benefits of LIC Jeevan Umang Plan

1. Life Cover: The policy provides life cover for the policyholder throughout the policy term, which ensures financial security for the family in case of the policyholder’s untimely demise.
2. Regular Income: The policyholder receives a guaranteed annual income after the premium payment term is over, which can be useful to meet regular expenses or to plan for long-term financial goals.
3. Bonus: The policy participates in the corporation’s profits and occasionally receives reversionary bonuses declared by LIC. This enhances the policy’s value and provides additional benefits to the policyholder.
4. Tax Benefits: The policy offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
5. Loan Facility: The policyholder can avail of a loan against the policy after the completion of the premium payment term.

Eligibility Criteria for LIC Jeevan Umang Plan

1. Minimum Entry Age: 90 days (completed)
2. Maximum Entry Age: 55 years (nearest birthday)
3. Minimum Sum Assured: Rs. 2,00,000/-
4. Maximum Sum Assured: No Limit
5. Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly (ECS Only)

How to Apply for LIC Jeevan Umang Plan

The policy can be purchased online through the LIC website or offline by visiting the nearest LIC branch office. The policyholder must submit the required documents, such as proof of age, identity, address, income, proposal form, and premium payment.

Advantages of LIC Jeevan Umang Plan

1. Guaranteed Income: The policy provides a guaranteed income of 8% of the Sum Assured, payable yearly after the premium payment term is over. This regular income can help the policyholder to meet their regular expenses, pay off loans, and plan for their long-term financial goals.
2. Flexible-Premium Payment Options: The policy offers flexible premium payment options of 15, 20, 25, or 30 years, depending on the policyholder’s financial capabilities and requirements.
3. Whole Life Coverage: The policy provides coverage for up to 100 years or until the policyholder attains the age of 100, whichever is earlier. This ensures financial security for the policyholder and their family for their entire lifetime.
4. Tax Benefits: The policy offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. The premium paid towards the policy is eligible for a tax deduction, and the maturity benefit is tax-free.
5. Bonus: The policy participates in the corporation’s profits and occasionally receives reversionary bonuses declared by LIC. This enhances the policy’s value and provides additional benefits to the policyholder.

Disadvantages of LIC Jeevan Umang Plan

1. Lower Returns: The returns from LIC Jeevan Umang Plan may be lower compared to other investment options available in the market, such as mutual funds or stocks. However, the policy provides guaranteed income and life cover, which may be more important for some individuals than high returns.
2. Limited Liquidity: The policyholder can avail of a loan against the policy after the completion of the premium payment term. However, surrendering the policy before the completion of the premium payment term may result in a lower surrender value, which may not be beneficial for the policyholder.
3. Limited Flexibility: The policy offers limited flexibility regarding premium payment terms and Sum Assured. The policyholder must select the premium payment term and Sum Assured when purchasing the policy, which may not suit their changing financial needs.

How to Purchase LIC Jeevan Umang Plan

1. Visit the official website of LIC (https://www.licindia.in/) and click on the “Buy Policy Online” option.
2. Select “Jeevan Umang” from the list of available plans and enter the required information such as name, age, income, etc.
3. Choose the premium payment term, Sum Assured, and the premium amount per your financial requirements.
4. Submit the necessary documents, such as identity proof, address proof, income proof, etc., along with the application form.
5. Pay the premium using available payment options such as net banking, credit card, debit card, etc.
6. Once the payment is successful, the policy documents will be sent to the policyholder’s registered address.

Things to Keep in Mind

1. The policyholder should thoroughly read and understand the terms and conditions of the policy before purchasing it.
2. The policyholder should disclose all the relevant information, such as their health status, medical history, lifestyle habits, etc., truthfully and accurately.
3. The policyholder should pay the premium on time to avoid lapses or policy termination.
4. The policyholder should keep the policy documents safe and secure and inform the insurance company in case of any changes in their contact details.
5. The policyholder should review their financial goals and requirements periodically and make any necessary changes to the policy as per their needs.

How Does LIC Jeevan Umang Plan Work?

LIC Jeevan Umang Plan works on the traditional participating endowment plan model. The policyholder needs to pay the premium for a specified period, and after the premium payment term is over, the policy provides a guaranteed income of 8% of the Sum Assured for the rest of the policy term. The Sum Assured is paid to the nominee in case of the policyholder’s untimely demise during the policy term.

The policy also participates in the corporation’s profits and receives reversionary bonuses declared by LIC occasionally. The bonuses enhance the policy’s value and provide additional benefits to the policyholder. The policyholder can also avail of a loan against the policy after the completion of the premium payment term.

Who Should Opt for LIC Jeevan Umang Plan?

LIC Jeevan Umang Plan is suitable for individuals seeking a life insurance policy that provides guaranteed income and life cover. The policy is ideal for individuals who want to plan for their long-term financial goals, such as retirement, children’s education, etc. The policy also benefits individuals seeking tax benefits under Section 80C and Section 10(10D) of the Income Tax Act 1961.

The policy is also suitable for risk-averse individuals who prefer the security of a guaranteed income and life cover over high returns. The policy may not be suitable for individuals looking for high returns and liquidity, as the returns from the policy may be lower than other investment options available in the market.

Conclusion

LIC Jeevan Umang Plan is a comprehensive life insurance policy that provides the policyholder with guaranteed income and life cover. The policy offers various benefits, such as tax benefits, flexible premium payment options, and bonuses, which can be useful for long-term financial planning. The policy is suitable for individuals who are looking for financial security and guaranteed returns. However, the policy may not suit individuals looking for high returns and liquidity. With its attractive features and benefits, LIC Jeevan Umang Plan can be a good investment option for individuals looking for financial security and guaranteed returns.

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