LIC’s Jeevan Umang – Plan 945 (revised with effect from 01/02/2020) – All details with premium and maturity benefit calculators. Jeevan Umang is a popular ‘with profit’ insurance plan from LIC of India with several innovative benefits to boast off. The initial version of Jeevan Umang Plan 845 was revised with effect from 1st February and renamed as Jeevan Umang 945. Let us have a detailed look at the newly revised plan.
The unique feature of the Jeevan Umang 945 is that it offers a life long, guaranteed, pension and increasing insurance coverage to the policyholder and that too without any tax liability on pension amount.
In the current economic scenario, where bank interest rates are getting reduced day by day and nobody is willing to offer any guaranteed interest rates for long periods. On the other hand, LIC has taken a bold step by offering guaranteed annual survival benefits at the rate of 8% of Sum Assured, after the premium paying term, till 100 years of age.
Insurance coverage and surrender value of the plan increases steadily after the premium paying term, providing high insurance coverage and liquidity at a higher age. Even though LIC would like to keep the maturity at 100 years of age, the policyholder can surrender the plan even earlier if he requires money.
Jeevan Umang 945 - conditions, features, and rebates
|Eligibility Conditions and Restrictions|
|1||Minimum Age At Entry||90 days (completed)|
|2||Maximum Age At Entry||55 years for 15 year premium period|
|50 years for 20 year premium period|
|45 years for 25 year premium period|
|40 years for 30 year premium period|
|3||Age at maturity||100 years|
|4||Minimum Sum Assured||2,00,000|
|5||Sum Assured Multiples||25,000|
|Premium modes available||Yearly, Half Yearly, Quarterly, and monthly (NACH and SSS)|
|Survival Benefits||Paid every year after premium paying term at the rate of 8% of sum assured (paid annually)|
|Maturity||Sum Assured along with Accrued Bonus and Final Addition Bonus Payable|
|Life long coverage||Coverage equal to Sum Assured + Accrued Bonus + Final Addition Bonus shall be available up to 100 years of age.|
|Accident Cover||Can choose any of (1) Accident benefit(AB) or (2) Accidental Death and Disability Benefit (ADDB) rider.|
|Critical Illness Rider||Critical illness rider shall be available for a policy term of 35 years or till the policy anniversary on which the age of the life assured is 75 years which ever is earlier|
|Premium waiver benefit||A minor can avail this benefit on payment of rider premium and in case of unfortunate death of the proposer future premiums are waived.|
|Term Assurance Rider||Coverage shall be available up to a period of 35 years or till the policy anniversary on which the age of the life assured is 75 years which ever is earlier.|
|High Sum Assured Rebate|
|Basic Sum Assured||Rebate per 1000 Basic Sum Assured|
|2,00,000 to 4,75,000||Nil|
|5,00,000 to 9,75,000||1.25/1000 of BSA|
|10,00,000 to 24,75,000||1.75/1000 of BSA|
|25,00,000 and above||2.00/1000 of BSA|
|Yearly mode||2% of tabular premium|
|Half-Yearly mode||1% of Sum Assured|
|Quarterly and monthly||Nil|
Jeevan Umang 945- Premium and Benefit Calculator
Jeevan Umang 945 - Important points to remember
- LIC’s Jeevan Umang is a non-linked, with profit whole life plan. This means that it is not directly linked to share market and insurance coverage is available throughout life.
- The policy acquires paid-up value on payment 2 full year premiums. And hence surrender is possible after two-year premium payment.
- As it is a with-profit plan, it will be eligible for a bonus declared by LIC at the time of exit by way of maturity or death.
- Premium paying term can be selected from 15, 20, 25 and 30 years.
- Guaranteed survival benefits at the rate of 8% of Sum Assured will be available annually after completion of the premium paying term till maturity or death whichever is earlier.
- Death benefit equal to Sum Assured + Bonus + final additional bonus and shall be available throughout life.
- Maturity benefit at the age of 100 includes Sum Assured + Bonus + Final Additional Bonus.
- Simple Reversionary Bonus for Jeevan Umang is available only up to premium paying term. After that, the bonus rate for the plan will be at a special Differential Rate (DB-Differential Bonus).
- Income tax rebate u/s 80C is available for the premium paid. You can use this Online Income Tax Calculator to calculate your income liability.
- Maturity benefit and guaranteed survival benefit (@ 8% of Sum Assured ) is exempted from income tax liability u/s 10(10d) of the Income-tax act
Latest Bonus Rates - Jeevan Umang 845
Bonus Rates during premium paying term
|Jeevan Umang Bonus Rates 2019 – 2020|
|Age at Entry||Bonus During Premium Paying Term|
|15 Years||20 Years||25 Years||30 Years|
Bonus after premium paying term
Special bonus rates called differential bonus rates shall become applicable for fully paid up policies or for policies with maturity paid-up sum assured 2,00,000 or more. Differential bonus rates applicable after the premium paying term have not been declared by the Life Insurance Corporation of India yet. So we cannot accurately calculate the maturity benefit of the plan. But we can estimate the expected rates as per the benefit illustration @ 8% scenario provided by LIC of India.
Jeevan Umang 945 - Example of Benefits
In order to get a clear idea of the benefits of LIC’s Jeevan Umang plan, let us take an example of a person Mr. Rahul with the following details and assume that he is purchasing a 25 lakh sum assured policy.
|Plan Details Considered For Illustration|
|Premium Paying Term||15 Years|
|First Year Premium||2,04,674|
|Subsiquent year premium||2,00,267|
|Total Premium Paid||30,08,412|
Please note: Illustration shown here is just an example to understand the benefit pattern of the plan. Actual returns can vary based on the experiences of the corporation. The returns calculated here are on the basis of declared bonus rates and benefit illustration scenario provided by LIC at 8% gross investment returns.
Likely possibilities for Mr. Rahul after purchasing the policy
- Survives the term of 25 years and receives the guaranteed survival benefit
- Receives the maturity at the age of 100 years
- Death occurs in the period of receiving guaranteed survival Benefit
- Death occurs during the premium paying term
- Death occurs due to an accident
1. Survives the ppt of 15 years and receives the guaranteed survival benefit
Guaranteed survival benefit of Rs 2,00,000 per annum shall become payable once the premium payment is over. The maximum period possible to receive survival benefit will be for 60 years as the benefit is available up to 100 years of age.
2. Receives the maturity at 100 years of age
If the policyholder survives up to the age of 100 he will be eligible for a benefit of Sum Assured + Bonus +Final Addition bonus as shown in the illustration provided above.
3. Death occurs in the period of receiving guaranteed survival benefits.
Death coverage includes Sum assured + Bonus + Final Additional Bonus
4. Death occurs during premium paying term
Death coverage includes Sum assured + Bonus + Final Additional Bonus (if any) during the premium paying period
5. Death occurs due to accident
In case of an unfortunate event of death occurring due to an accident, additional benefits are payable, if and only if (1) the optional accident benefit rider is taken at the time of the policy (2) death occurs during the premium paying term.
Two types of accident benefit riders are available under the Jeevan Umang policy.
- LIC’s Accident benefit rider: If death occurs due to an accident an additional sum assured will be paid. Premium required for this rider is Rs .50 per thousand (sum assured) accident coverage opted for.
- LIC’s Accidental death and disability benefit rider: Here accidental death coverage equal to additional Sum Assured will be available in case of accidental death. Survival benefits at the rate of 10% of Sum Assured for a period of 10 years (or maturity whichever is earlier) also shall become payable in case of an accidental permanent disability.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.