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Home » Savings Plans » LIC Jeevan Umang (Plan No 945) – Features, Positive and Negative Factors

LIC Jeevan Umang (Plan No 945) – Features, Positive and Negative Factors

LIC Jeevan Umang (Plan No 945) – Features, Positive and Negative Factors

There is unique and one and only policy from LIC that offers life insurance for a whole life is LIC Jeevan Umang. This insurance plan offers combination of protection and income for the family of the life insured.  This plan provides protection and income for whole life i.e. Till 100 years of age. In this article, we would provide LIC Jeevan Uman Plan No 945 details, features, eligibility, benefits, positive and negative or hidden factors in this plan.

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Features of LIC Jeevan Umang Plan No 945

Here are the key features of the plan.

This is non-linked, with profit whole life insurance plan.

This plan provides life risk coverage and regular income for whole life i.e. till 100 years of age of the individual.

This is limited premium payment insurance plan. Premium payment term is between 15, 20, 25 and 30 years, however life insurance coverage would be there till 100 years of age of the individual.

In case of unfortunate death of the life insured, the death benefit is paid to the nominee.

Survival benefits equivalent to 8% of the Basic Sum Assured is paid every year after completion of premium payment term.

On maturity of the policy, Sum assured on maturity is payable.

This plan offers mode rebate and high sum assured rebate on premiums.

One can avail loan up to 90% of the surrender value.

Optional riders available in this plan.

Eligibility of LIC Jeevan Umang Plan

Min Basic Sum Assured (BSA) Rs 2 Lakhs
Max Basic Sum Assured (BSA) No limit
Premium Paying Term (PPT) 15, 20, 25 and 30 years
Policy Term / Tenure (100 – entry age) years
Min Age at entry 90 days
Max Age at entry 55 years
Min Age at the end of premium paying term 30 years
Max Age at the end of premium paying term 70 years
Age at maturity 100 years

Benefits in LIC Jeevan Umang Plan

1) Death Benefit

In case of death of the life assured during the policy term, below death benefit is paid to the nominee or family members.

On death during the first 5 years: “Sum Assured on Death” is payable

On death after the first 5 years, but before maturity: “Sum Assured on Death” + Loyalty Addition (if any), would be paid.

2) Survival Benefit

This benefit would start immediately after the premium paying term is over and till 100 years of age, of the life insured or death whichever is earlier. Survival Benefit is equal to 8% of basic sum assured and payable every year after the premium paying term is over.

3) Maturity Benefit

On the life assured surviving till end of policy term, “Sum Assured on Maturity” along with simple reversionary bonuses and final additional bonus would be paid.

Where “Sum Assured on Maturity” is equal to the Basic Sum Assured.

Sample Premium Rates in LIC Jeevan Umang Plan

Here is the LIC Jeevan Uman Premium Chart (sample) for every 1,000 sum assured.

Premium Paying Term
Age 15 20 25 30
20 80.30 54.55 39.95 31.15
30 80.30 54.55 40.20 32.05
40 80.30 54.80 42.30 35.10
50 80.30 58.90

Rebates in LIC Jeevan Umang Plan

Mode Rebate
Mode Rebate
Yearly 2% of tabular premium
Half Yearly 1% of tabular premium
Quarterly/Monthly Nil

 

High Sum Assured Rebate
Basic Sum Assured (BSA) Rebate on BSA
2 Lakhs to 4.75 Lakhs Nil
5 Lakhs to 9.75 Lakhs 1.25%
10 Lakhs to 24.75 Lakhs 1.75%
25 Lakhs and above 2.00%

Positive Factors in LIC Jeevan Umang Plan

This insurance plan is a whole life plan which covers life insurance till 100 years of age of the life insured. This is the one and only plan from LIC which offers a whole life plan.

It provides life insurance coverage like any other plan.

This plan comes “with profit” which is paid on maturity along with the sum assured on maturity.

It provides regular income (via survival benefit) after the premium payment term. A survival benefit of 8% of basic sum assured is paid each year after the premium payment plan.

On maturity, one can get sum assured on maturity + reversionary bonus and final additional bonus.

Rebate (discount) on premium is offered up to 2% of tabular premium.

One can get the high sum assured rebate of premium up to 2% of basic sum assured.

One can avail loan up to 90% of survival benefit.

Negative or hidden factors in LIC Jeevan Umang Plan

If you are looking for LIC Jeevan Umang disadvantages, this section would help you.

This plan offers optional riders which come with additional premium.

Loyalty additions on death are paid only if death occurs after 5 years from the date of policy.

This plan comes “with profits”. However, in case there are no profits, no amount would be paid.

In case of suicide of life assured within 12 months from the date of policy, only 80% of the total premiums would be paid.

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LIC Jeevan Umang Review (Plan No 945) – Should you opt?

Jeevan Uman from LIC is a whole life plan that provides protection and income till 100 years of age of the individual. This plan is simple to understand. It provides a death benefit, survival benefit, maturity benefit etc. There are limited negative factors in this plan. One should note that the returns would depend on several variables like age, policy term, profits of the corporation etc. However, such insurance saving schemes provide 4% to 5.5% returns beyond life insurance coverage. Investors who are looking for safety and okay with such low returns can opt for LIC Jeevan Umang.

Data Source: LIC Jeevan Uman Policy Document

Suresh KP

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