LIC Jeevan Umang: Pay Premium for a Fixed Period, Get Annual Income and Life Cover Up to 100

Looking for a long-term life insurance plan that can also provide regular income after retirement? LIC Jeevan Umang is one such plan that offers life cover along with survival benefits, subject to the policy terms.
The plan provides life insurance cover up to the age of 100 years, according to its stated terms. Policyholders do not have to pay premiums throughout their lifetime. They can choose a premium-paying period of 15, 20, 25 or 30 years.

Annual Income After Premium Payments
One of the main features of Jeevan Umang is its survival benefit. After the premium-paying period ends, the policyholder can receive an annual benefit equal to 8% of the Basic Sum Assured, as per the policy conditions.
For example, if the Basic Sum Assured is ₹10 lakh, the annual survival benefit would be ₹80,000.
However, the actual premium and insurance amount will depend on factors such as the policyholder’s age, chosen cover and policy terms. The ₹5,000 monthly premium example often used for illustration should therefore not be treated as a fixed premium for everyone.

Example of How It Can Work
Suppose a 30-year-old person buys Jeevan Umang with a 20-year premium-paying term.
If the person pays an illustrative premium of ₹5,000 per month, the yearly payment would be ₹60,000. After paying premiums for 20 years, the person would be around 50 years old.
If the Basic Sum Assured is ₹10 lakh, the policy could provide an annual survival benefit of ₹80,000, subject to the policy’s terms and conditions.

What Happens at Maturity?
If the policyholder survives until the applicable maturity date, they may receive the maturity benefit along with applicable bonuses, including a Final Additional Bonus if declared and applicable under the policy.
If the policyholder dies while the policy is active, the nominee can receive the applicable death benefit according to the policy conditions.

Tax and Loan Benefits
Jeevan Umang may also offer tax benefits under Section 80C and, subject to the applicable conditions, benefits under Section 10(10D) of the Income Tax Act.
A policy loan may also be available after the policy has been in force for the required period, subject to LIC’s rules.

Important Before Buying
Although LIC is a government-owned insurance company, an insurance policy should not automatically be considered a completely risk-free investment.
The premium, benefits, bonuses, tax treatment and loan facility depend on the specific policy terms and prevailing laws. Anyone planning to buy Jeevan Umang should carefully read the official LIC policy document and understand the benefits, exclusions and conditions before investing.