Eligibility Criteria and Purchase Price
The Minimum Basic Sum Assured under this policy is Rs. 2,00,000, while there is no limit on the Maximum Basic Sum Assured. However, the Basic Sum Assured should be in multiples of Rs. 25,000.
The Premium Paying Term, as mentioned by LIC is 15 years, 20 years and 30 years, and the Policy Term will be 100 – (age at entry) years of the investor. The minimum entry age is 90 days, and the maximum entry age is 55 years. On the other hand, Minimum Age at the end of premium paying term is 30 years. Maximum Age at the end of premium paying term should be 70 years. The maturity age will be 100 years.
The LIC Jeevan Umang plan provides an annual survival benefit from the end of the premium paying term till maturity along with a lump sum payment at the time of maturity or on the death of the policyholder during the policy term.
If the investor’s age is less than 8 years, the risk under Jeevan Umang plan will commence either one day before the complete on of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion on of 8 years of age, whichever is earlier. However, for the other investors, the risk will commence immediately from the date of issuance of the policy.
Installments option for Death Benefits
The investor can receive the death benefit in installments over the chosen period of 5 or 10 or 15 years. However, you can also avail of lump sum amount under an in-force as well as paid-up policy. This option can be availed of during the investor’s lifetime; for full or part of Death benefits payable under the policy. LIC informs, “The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments.”
|Mode of Instalment payment||Minimum instalment amount|
LIC Jeevan Umang – Survival benefits under paid-up policy
If the investor’s maturity paid-up sum assured is less than the minimum Basic Sum Assured (Rs. 2 lakhs). He or she will not receive the Survival Benefits. On the other hand, if the maturity paid-up sum assured is equal to or more than minimum basic sum assured of Rs. 2 lakhs, the investor will receive the survival benefits equal to 8% of Maturity Paid-up Sum Assured each year. Additionally, LIC stated, “The first survival benefit payment is payable at the end of premium paying term and thereafter on completion of each subsequent year till the Life assured survives or till the policy anniversary prior to the date of maturity, whichever is earlier.”
Under a paid-up policy, in case of death of the investor during the policy term, death paid-up sum assured along with vested Simple Reversionary Bonuses, will be paid by LIC. On the other hand, if the investor survives to the end of the policy term, Maturity Paid-up Sum Assured along with vested Simple Reversionary Bonuses will be paid by LIC.
LIC will also allow you to surrender the plan at any time provided two full years’ premiums have been paid.