Life Insurance Corporation of India (LIC) offers various types of insurance policies suited for customers of different profiles. One can opt for any policy according to his or her needs and choice. If you want lifelong coverage, whole life insurance might be a worthy investment for you. LIC’s Jeevan Umang is a long-term endowment policy that covers one up to 100 years of age and offers a combination of income and protection. This plan provides for annual survival benefits from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on death of the policyholder during the policy term.
LIC’s Jeevan Umang plan offers a combination of income and protection. It is a non-linked, with-profit, whole life assurance plan.
Take a look at the main features:
— Minimum age at entry: 90 days
— Maximum age at entry: 55 years
— Minimum basic sum assured: Rs 2,00,000
— Maximum basic sum assured: No limit
— Premium paying term: 15, 20, 25 and 30 years
— Policy Term: (100 – age at entry) years
— Minimum age at the end of premium-paying term: 30 years
— Maximum age at the end of premium-paying term: 70 years
— Age at maturity: 100 years
The policy can be surrendered at any time provided premium has been paid for three full years. On surrender of the policy, the policyholder will get the surrender value equal to higher of guaranteed surrender value and special surrender value.
A loan can be taken under the policy. If loan is taken during the premium-paying term, the maximum loan shall be up to 90% of surrender value.
By the time the policy is ready for payment, the policyholder would receive:
— Basic sum assured
— Simple reversionary bonus
— Final addition bonus if declared
In the case of death of the policyholder during the policy term, the nominee will receive all of the following:
— On death, during the first five policy years, sum assured on death shall be payable.
— On death, after completion of five policy years but before the date of maturity, sum assured on death and loyalty addition shall be payable.
The USP of the plan is guaranteed survival benefit. On the life-assured surviving to the end of the premium-paying term, provided all due premiums have been paid, a survival benefit equal to 8% of basic sum assured shall be payable each year.
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.
If you invest on an average just Rs 43.40 per day or Rs 1,302 every month as a premium your yearly total contribution will be Rs 15,624. If you take a policy of 30 years, then your investment will be around Rs 4.69 lakh. After which in the 31st year, you will start getting a return of Rs 3,333 per month that is Rs 40,000 annually. Which will continue for 100 years. If someone lives for 100 years, then he will get a benefit of about Rs 27.60 lakh.
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