LIC has launched Jeevan Umang Plan no. 845 on 16th May 2017. It is a non-linked, with-profit, whole life assurance plan. LIC has launched a new plan called as LIC Jeevan Umang (845) on 16th May 2017. This newly introduced plan is a non-linked plan with low risk return options and guaranteed maturity benefits. The policy holder gets benefited from this plan by the annual survival pension without any tax liability starting from the end of the plan terms till maturity and with the provision of payment of lump sum by the time of maturity or death. In short, policyholder gets 8% return every year on basic sum assured after completing Premium Paying Term till he survives and after policyholder’s death, nominee will get the sum assured.
Premium Payment Mode:
- Yearly, Half Yearly, Quarterly and Monthly
Premium Payment Term (PPT):
- 15 Years, 20 years, 25 and 30 years
Minimum Entry Age:
Maximum Entry Age:
- 55 years for PPT = 15
- 50 years for PPT = 20
- 45 years for PPT = 25
- 40 years for PPT = 30
Maximum Maturity Age:
Basic Sum Assured:
- 2,00,000 and above in multiples of 25,000
LIC Jeevan Umang Policy Benefits:
Provided all premium paying terms have been completed without any failure, the following benefits shall be paid:
- 8% of basic sum assured until an year before maturity. The first survival benefit would be paid immediately after end of the premium paying term and will continue to be paid each year till the policyholder survives or till maturity date whichever is earlier.
- If death happens before the commencement of risk, an amount equals to the total paid premiums shall be payable excluding the interest.
- If death happens after the commencement of risk, the basic assured sum along with reversionary bonuses and Final Additional Bonuses (FAB) shall be payable.
“Sum Assured on Death” is defined as the highest of
- 10 times of your annual premium; or
- Sum Assured on Maturity; or
- The amount assured to be paid on death, i.e. Basic Sum Assured.This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Commencement of Risk: If age of the policyholder is less than 8 years, then the risk will start either after two years or by the completion of 8 years of age, whichever is earlier. If this is not the case, then the life cover will start immediately.
- Term of Policy = 20 years
- Age of Life Assured = 35
- The Policy Term = 65 years (100-35)
- Sum Assured: 5,00,000/-
From the above data, it can be concluded that the policyholder has to cover premium payments until he or she attains 55 years (35+20 PPT) of age. After that, payment of 8% of basic sum assured shall be payable to the life assured until one year prior to maturity (until 99 years). Death benefits are given to the mentioned nominee in case of the death of the policyholder.
Points to keep in mind while going for LIC’s Jeevan Umang:
- The life assured will not get benefited from this plan during the premium terms and if death happens, the assured sum along with bonuses will paid to the mentioned nominee.
- If your intention is to get sufficient life cover with minimum premium payments, then it is better to look for term insurance plans.
- If you are more concerned about the returns, then you should stick with buying a term insurance with a simple product like PPF. The returns are usually round 5 or 6% and it is not an ideal for those who expect a decent return.
Jeevan Anand Summary:
Jeevan Anand is the combination of Endowment Assurance and Whole Life plan. The risk cover will continue even after the maturity, that means Zindagi Ke Saath Bhi Zindagi Ke Bad Bhi… Jeevan Anand plan no. 149 provides financial protection against death throughout the lifetime of the life assured with the provision of payment of a lump sum at the end of the selected term in case of his survival.
For Example: Mr. Pankaj, age 25 years, takes Jeevan Anand policy for 25 years for Sum Assured Rs. 1 lakh. Now on Maturity Pankaj will receive Rs. 2,12,500/- (Rs. 1 lakh sum assured Plus Rs.1,12,500/- is the estimated bonus at Rs.45/- per thousand per year.)
In case, Mr. Pankaj, dies ( After premium paying term is over) at the age of 60 years, his nominee will get additional Rs. 1 lakh equal to sum assured amount. Since Mr. Pankaj has already received the bonus, LIC will not pay second time bonus.
In case, Mr. Pankaj dies during the Premium Paying Term, his nominee will get Rs.1 Lakh (sum Assured) + Accrued bonus till Mr. Pankaj’s death.
Jeevan Anand Key Features:
- LIC Jeevan Anand is the combination of Whole Life and Endowment Assurance plan.
- Even after the Premium Paying Term (PPT) is over, risk cover continues till the death of the policy holder.
- Accident Benefit is available during the Premium paying term and thereafter upto age 70.
- Limited premium payments.
- Double accidental cover upto age 70.
- Tax Savings
Modes of Premium Payment:
You can pay premium yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the selected term of the policy or till earlier death.
LIC Jeevan Anand Plan Premiums are limited. You only pay till the selected term of years or until death if it occurs during the term period. This policy not only makes provisions for the family of the life assured in the event of early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of policy holders life or in any other way considered suitable at that time.
If payment of premiums ceases after at least 3 years premiums have been paid, a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in the policy.
Jeevan Anand is a with-profit insurance plan and participates in the profits of the Corporation’s life insurance business. You will get the profit in the form of Bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once the bonus is declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period.
Sum Assured along with all vested bonuses payable at the end of the term to the policy holder.(Endowment term)
Sum Assured along with vested bonuses are payable on death during the premium paying term. An amount equal to the Sum Assured is payable if death occurs after the premium paying term. Simple Reversionary Bonus accrues during the premium paying term and is payable at the end of the premium paying term or on earlier death along with final additional bonus, if any. No Bonus is paid on death after the premium paying term.
Double Accident Benefit is available during the premium paying term and thereafter up to age 70. Maximum Accident Cover available under this plan will be Rs 5 lakh (this limit excludes accident benefit taken under other plans).
Also Check: New Jeevan Anand Plan
In case of permanent disability of the life assured due to accident this additional Sum assured is payable in instalments.
Jeevan Anand Eligibility Conditions and Restrictions:
- a:) Minimum Entry Age: 18 Years completed
- b:) Maximum Entry Age: 65 Years
- c:) Max. PPT Mat. Age: 75 years
- d:) Min. Premium term: 5 yrs
- e:) Max Premium term: 57 yrs
- f:) Minimum Sum Assured: Rs. 1,00,000/-
- g:) Maximum Sum Assured: No Limit
- h:) Risk cover: Sum Assured + Bonus
- i:) Loan on policy: Avaialable
- j:) Housing loan : Avaialable
Buying a life insurance contract is a long-term commitment. However, surrender values are available on the plan on earlier termination of the contract.
Also Check: Jeevan Saral – Most popular Endowment plan
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded.
LIC policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.
Who should buy Jeevan Anand policy?
Since Jeevan Anand is an endowment assurance plus whole life policy, this plan is apt for people of of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder’s life or in any other way he may think most suitable at that time.
Update: Jeevan Anand Plan No.149 Has Been Discontinued.