What Is LIC Jeevan Umang Plan?
LIC Jeevan Umang plan is a conventional, with-profit, non-linked endowment plan that also comes with full life insurance coverage. The plan was launched in 2017, and at its core, it aims to combine both the income and protection of the insurer from a single policy. One of the most significant advantages of Jeevan Umang's policy is that it covers up to 100 years.
Also, you will receive a survival bonus at the end of the premium paying term. At the same time, if the insurer dies before the policy's maturity, the nominee will surely get its benefits. Today, with this article's help, we aim to decode the benefits of having the LIC Jeevan Umang plan. Along with this, we also mention the eligibility criteria and the tax implications one needs to know about before availing of this LIC plan.
What are the Benefits of Jeevan Umang Policy?
Given below, we have mentioned some of the benefits that one needs to know about when comparing LIC Jeevan Umang's policy with others.
Death Benefit
If the policyholder passes away before the policy's maturity, then the premium amount will be returned to the nominee without adding any interest. On the other hand, if the policyholder dies after the policy has matured. In that case, a person will receive an assured sum on death plus a reversionary bonus. Then a final additional bonus will be given to the nominee of the policyholder.
Survival Benefit
8% of the basic sum will be insured to the policyholder each year as a survival benefit after all their premiums have been paid.
Maturity Benefit
Once you have paid all the premiums and the premium paying terms have ended, you will be rewarded with a sum assured on maturity and the vested simple reversionary bonus. A final additional bonus may also be given if applicable.
Optional Rider Benefits
The LIC Jeevan Umang plan allows users to have add-ons such as accidental death and disability benefit rider, new term assurance rider, new critical illness benefit rider, and more. The insurer can avail of all the benefits from the optional rider during the time of premium paying terms. You need to know that the outstanding premium paying terms are at least five years before the completion of the premium paying term.
Loan Facility
In addition, you can even take a loan on the LIC Jeevan Umang policy to cater to your need for liquidity. You can get the loan for 90% of the total surrender value as long as you have been paying the premiums regularly for the past three years.
Policy Return
If, due to some reason, you are not satisfied with the policy and want to close or return it. In that case, LIC gives you 15 days of free look period from the date of policy receipt.
LIC Jeevan Umang Eligibility
Now let's take a look at the eligibility criteria that comes with Jeevan Umang LIC plan.
- Entry Age:- 90 days to 55 years
- Policy Term:- 100 years minus the age of the insurer at the time of entry.
- Sum Assured:- Minimum sum assured is Rs 2,00,00, and there is no upper limit.
- Maturity Age:- 100 years
- Premium Paying Terms (PPT):- 15, 20, 25, and 30 years.
- Age at the end of the PPT:- 30 years to 70 years.
LIC Jeevan Umang Tax Benefit
The Income Tax department does not collect tax on the money you will be paying as the premium for the LIC Jeevan Umang policy. Apart from that, there could be some statutory taxes that can be imposed anytime by the Constitutional Tax Authority of India as per the tax laws of the country.
In addition to this, the tax rates are subject to revision from time to time, and if there are any applicable taxes in the future that which government puts on, the insurer needs to pay them for both the policy and the optional riders which they have chosen.
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Wrapping Up
So this is what the LIC Jeevan Umang policy is all about, this policy has prevailed among many citizens of the country, and they are enjoying the benefits after their policy has matured. You can take advantage of this LIC policy as well, but before you go and apply for it, we want you to go through each and every single line in the terms and conditions section of this and other policies. To understand the working, payment cycles, and hidden charges of the policy.
Can we exit out of the LIC Jeevan Umang policy wherever we want?
If you have paid all the premiums for the first three years, you can then surrender your LIC Jeevan Umang policy and close it. In case you close it before the initial three years, you will not be getting any assured some from the insurance company even if you have paid all the premiums.
Do we need to pay the tax on the maturity amount of the LIC Jeevan Umang policy?
Under section 80C of the Income Tax Act, 1961, the premium amount you will pay during the tenure of the policy will be exempted from your Income Tax. Apart from this, the amount you will get in return is also tax-free under Section 10(10D).
What are the exclusions of the LIC Jeevan Umang Plan?
If the person who has taken up the LIC Jeevan Umang plans suicide in just one year of the policy period. Then nominee of the policy will get no money from the insurance company. On the other hand, if the policy is matured, then 80% of the total amount premium will be paid to the nominee.
How can I pay the premium of the Jeevan Umang plan?
You can make the payment of the premium amount from your online net banking portal. Most government banks allow payment of LIC policies directly from their net banking portal. Apart from that, you can visit your nearest branch and make payment in person as well.