LIC Jeevan Umang is another whole life insurance plan (Table no.845). This new plan from LIC is a non-linked with profits plan. It indicates 8% guaranteed payment every year after completion of premium payment term, however, the risk coverage would continue for the whole life of life insured.
If death occurs between the date of policy taken to till 100 yrs. of a policyholder, then
Sum assure + Vested Bonus + Final addition bonus will be paid
In case of maturity of the policy, if all the premiums have been paid routinely, the insurance agency pays the sum assured with the addition to the simple reversionary bonus as well as a final additional bonus if any.
On completion of a year after the premium payment term, the policyholder will start getting 8% of the Basic Sum Assured every year. This sum is payable consistently until he achieves the age of 100 or he dies, whichever is earlier.
Let me explain Jeevan Umang Plan with a few illustrations
Mr. Yogesh aged 30 years, taken 15 years premium payment plan for Rs 2 Lakhs. The premium payable is Rs 16,433 per annum.
a) If Mr. Yogesh, unfortunately, dies before 45 years of age (before premium payment term, his family would get Rs 2 Lakhs + Vested Bonus + Final Additional Bonus (if any).
b) If Mr. Yogesh Survives following 45 years old (after premium installment term. He would get Rs 8% of Sum Assured each year i.e. Rs 2 Lakhs x 8% = Rs 16,000 every year until the development as a survival advantage. He would get Rs 2 Lakhs + Vested reward + last extra reward on development.
c) If Mr. Yogesh Survives following 45 years old (after premium installment term. He would get Rs 8% of Sum Assured each year i.e. Rs 2 Lakhs x 8% = Rs 16,000 every year until the development as a survival advantage. Assume that he dies after premium payment term after taking few years of survival benefits. His family would get Rs 2 Lakhs as death advantage alongside vested reward + last extra reward (assuming any).
If you have any questions on the LIC Jeevan Umang plan, drop in a line in the comments and we will be happy to help out.