• LICs Jeevan Umang

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    India’s largest life insurer, Life Insurance Corporation of India (LIC), offers a variety of plans to meet the insurance and investment requirements of its customers. Among the diverse range of plans offered, there are plans that offer a combination of income and insurance for policyholders. LIC’s Jeevan Umang is one such policy. This is a whole-life assurance plan that provides coverage throughout the life (maximum of 100 years) of the insured person. Following the end of the premium paying term, it pays regular survival benefit to the insured person till the date of maturity or death.

    Eligibility for LIC’s Jeevan Umang

    The eligibility criteria outlined by the company for enrollment in Jeevan Umang policy are listed as follows:

    • The minimum age at entry is 90 days.
    • The maximum age at entry is 55 years.
    • The minimum age of policyholders at the end of premium paying term must be 30 years.
    • The maximum age of policyholders at the end of premium paying term must be 70 years.
    • For policyholders over 8 years of age, risk will commence immediately. However, for policyholders less than 8 years of age, risk shall commence only after 2 years of continuous policy coverage.

    Features of LIC’s Jeevan Umang

    Key features of LIC’s Jeevan Umang policy are listed as follows:

    • The minimum sum assured amount under this policy cover starts from Rs.2 lakh. There is no limit on the maximum sum assured amount that can be chosen by policyholders.
    • The company offers different premium paying options for policyholders. Customers can choose from premium paying terms of 15 years, 20 years, 25 years, and 30 years based on their requirements.
    • The age at maturity for this policy is 100 years. Hence, the policy term is calculated by subtracting your entry age from 100. For instance, if you are entering the policy at 30 years of age, the policy term shall be 70 years.
    • The company allows flexible premium payment at yearly, half-yearly, quarterly, or monthly intervals. If the monthly option is chosen, payments can be made only through NACH (National Automated Clearing House) facility.
    • There is a grace period of 30 days from the date of expiry for the payment of premiums. In case of monthly premium payment, the grace period is limited to 15 days.
    • The policy becomes void if premiums are paid for less than three years and subsequent premiums are not paid. In this case, no benefits shall be payable to policyholders.
    • If premiums are paid for at least three years and subsequent premiums are not paid, the policy becomes a paid-up policy. Here, the policy remains active till the end of the maturity period and the accumulated benefits shall be paid upon maturity.
    • If premiums are paid for at least three years, policyholders also have the option of surrendering the policy if they wish to exit the policy. In case of surrender, the company will pay the acquired surrender value to the policyholder.
    • A lapsed policy can be revived as per the revival guidelines set forth by LIC.
    • There is a free-look period of 15 days for policyholders to review the terms and conditions of this policy.
    • The premium amount paid towards this policy is eligible for income tax relief as per Section 80C of the Income Tax Act. The proceeds obtained from this policy is also eligible for tax relief.

    Benefits of LIC’s Jeevan Umang

    The benefits provided by LIC’s Jeevan Umang is given in the following table:

    Benefits Extent of coverage
    Death benefit (before the commencement of risk) The total premium amount will be returned without any additional interest.
    Death benefit (after the commencement of risk) The sum assured on death mentioned in the policy document will be paid to the beneficiary. (The death benefit shall not be less than 105% of the total premiums paid till the date of death.)
    Survival benefit Upon survival till the end of the premium paying term, the company will pay a survival benefit of 8% of the basic sum assured every year till the death of the policyholder or the date of maturity.
    Maturity benefit If the policyholder survives till the end of the policy term, the sum assured on maturity along with the bonuses shall be paid to the policyholder.

    Exclusions of LIC’s Jeevan Umang

    There are certain types of death for which the company is not liable to pay any compensation to the insured person. The key exclusion to be noted under the policy is suicide. If the policyholder commits suicide within the policy term, the policy shall become void. The following conditions apply in this case:

    • If the policyholder commits suicide within 12 months from the date of commencement of the policy, the company will return 80% of the total premiums paid to policyholders.
    • If the policyholder commits suicide within 12 months from the date of revival, the company will return 80% of the total premiums paid or the acquired surrender value (whichever is higher).

    Claim procedure

    In case of an event that may give rise to a claim, the beneficiary must notify the company immediately. In case of maturity, the insured must submit a discharge form to the company with the necessary details. The following list of documents shall be submitted along with a death claim:

    • Duly-filled claim form (can be downloaded from the LIC website)
    • Original policy document
    • Death certificate
    • Medical documents (if necessary)
    • Police FIR (if necessary)
    • Post-mortem report (if applicable)
    • Age proof and identity proof of the claimant

    Claim requests must be filed at the home branch where the policy was bought. If there are any doubts regarding the claim settlement process, policyholders can contact LIC’s customer service department. Once the necessary documents are submitted for a death claim or maturity claim, the company will verify the submitted documents and provide the settlement amount to the insured person.

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