Consider a whole life assurance plan like LIC Jeevan Umang or a better retirement

A whole life assurance plan offers yearly income, death benefits, survival benefits, and the provision for availing a loan. It is a vital financial safety net that is protective in the middle and late years of your life – when you need it the most. Here’s how LIC’s Jeevan Umang plan can help with a stress-free retirement.

LIC Jeevan Umang offers 8 percent guaranteed returns on sum assured for lifetime

Safeguard your financial requirements with LIC Jeevan Umang – a participating, non-linked whole life assurance plan providing yearly income and insurance protection to you and your family. In addition to providing yearly survival benefit after the premium paying tenure, the policy also provides a maturity benefit, and a loan facility. 

Let’s look at the plan highlights to understand why it is a retirement planning option:

  • Combined benefit of regular, yearly income, and insurance protection
  • Long-term plan designed with a minimum of 15 premium paying years up to 30 years
  • Whole life coverage – 100 years
  • Death benefit, survival benefit, and maturity benefit, and loan availability

Five Must-Have Investment Instruments For Retirement Planning

What are the eligibility criteria?

  1. The entry age of the policy is at 90 days, with a maximum age limit of 55 years. 
  2. Age at the end of the premium paying term must be a minimum of 30, and maximum of 70 years. 
  3. The premium paying terms are of 15, 20, 25, and 30 years. 
  4. The sum assured starts at Rs. 2,00,000, with no limit on the maximum coverage
  5. The maturity period is 100 years.

Also read: The 4 Phases Of Retirement

What are the benefits of LIC Jeevan Umang whole life assurance plan?

The LIC Jeevan Umang whole life assurance plan comes with key benefits for adequate retirement planning:

  • Death benefit

On the unfortunate demise of the policyholder during the policy tenure, a death benefit is paid in accordance with the commencement of risk.

If the age of the life assured is less than 8 years at the time of entry, the risk will commence just as the policy completes two years or when the individual turns 8 years old, whichever is earlier. If the insured individual is more than 8 years old, risk commences immediately. 

On death before the Commencement of Risk

The premium that has been paid already will be returned, without the application of any tax. 

On death after the Commencement of Risk

The nominee receives the sum assured, plus the reversionary bonus. The death benefit must be higher of either ten times the annualised premium, or 110% of the sum assured. 

  • Survival benefit

At the end of the premium paying term, the policyholder is entitled to receive the survival benefit every year to the tune of 8% of the basic sum assured. This shall continue until the policy reaches maturity, or the policyholder survives, whichever is earlier.  

  • Maturity benefit

In addition to the 8% every year, after the premium-paying tenure, the life assured receives the basic sum assured, the vested reversionary bonus, and any additional bonus he/she may have accrued. 

  • Loan

The life assured can avail a loan during the policy tenure, provided it has obtained a surrender value. To obtain a surrender value, the premium must have been paid for at east three consecutive years. The rate of interest on these loans depends on the Corporation and its policies for that year. 

  • Loan during premium paying term:
  • For ongoing policies, the maximum loan amount is 90% of the surrender value.
  • For paid-up policies, the maximum loan amount is 80% of the surrender value.    
  • Loan after the premium paying term:

In case of availing a loan after the premium paying term, the maximum amount of loan will be such that the annual interest payable on the loan is not more than 50% of the annual survival benefit that the life assured is eligible to receive every year. 

  • Riders

You can increase the scope of coverage with a few riders offered with the LIC Jeean Umang plan, with a nominal increase to your overall premium:

LIC Accidental Death and Disability Benefit Rider

With this rider, the policyholder’s nominee is eligible to receive the sum assured as a lumpsum amount. In case of accidental disability, the policyholder is eligible to receive the sum assured in monthly instalments for 10 years.  

LIC New Critical Illness Benefit Rider

This provides coverage against the list of specified illnesses, helping you save money against the cost of treatment.  

LIC New Term Assurance Rider

Yet another rider that provides a lumpsum amount in case of the demise of the policyholder during the policy tenure. 

LIC Accident Benefit Rider 

This rider is applicable only during the premium paying term of the policy. The lumpsum amount is paid to the nominee in case of the policyholder’s death during the premium payment term. 

Also read: Add An Extra Feature To Your Policy By Opting For A ‘Rider’

What are the advantages of LIC Jeevan Umang policy?

With a whole life assurance plan, your financial needs at the later stages of your life are taken care of. Being a relatively long-term plan, it provides a yearly income, a death benefit in case of an unfortunate event, survival benefit at the end of the policy term, and even the provision of availing a loan should you need it. 

With these assurances in the golden years of your life, you can live easy, knowing your financial needs will be met. Click here, to plan for your retirement effortlessly.  

Also read: Have You Financially Secured Your Retired Life?

Safeguard your financial requirements with LIC Jeevan Umang – a participating, non-linked whole life assurance plan providing yearly income and insurance protection to you and your family. In addition to providing yearly survival benefit after the premium paying tenure, the policy also provides a maturity benefit, and a loan facility. 

Let’s look at the plan highlights to understand why it is a retirement planning option:

  • Combined benefit of regular, yearly income, and insurance protection
  • Long-term plan designed with a minimum of 15 premium paying years up to 30 years
  • Whole life coverage – 100 years
  • Death benefit, survival benefit, and maturity benefit, and loan availability

Five Must-Have Investment Instruments For Retirement Planning

What are the eligibility criteria?

  1. The entry age of the policy is at 90 days, with a maximum age limit of 55 years. 
  2. Age at the end of the premium paying term must be a minimum of 30, and maximum of 70 years. 
  3. The premium paying terms are of 15, 20, 25, and 30 years. 
  4. The sum assured starts at Rs. 2,00,000, with no limit on the maximum coverage
  5. The maturity period is 100 years.

Also read: The 4 Phases Of Retirement

What are the benefits of LIC Jeevan Umang whole life assurance plan?

The LIC Jeevan Umang whole life assurance plan comes with key benefits for adequate retirement planning:

  • Death benefit

On the unfortunate demise of the policyholder during the policy tenure, a death benefit is paid in accordance with the commencement of risk.

If the age of the life assured is less than 8 years at the time of entry, the risk will commence just as the policy completes two years or when the individual turns 8 years old, whichever is earlier. If the insured individual is more than 8 years old, risk commences immediately. 

On death before the Commencement of Risk

The premium that has been paid already will be returned, without the application of any tax. 

On death after the Commencement of Risk

The nominee receives the sum assured, plus the reversionary bonus. The death benefit must be higher of either ten times the annualised premium, or 110% of the sum assured. 

  • Survival benefit

At the end of the premium paying term, the policyholder is entitled to receive the survival benefit every year to the tune of 8% of the basic sum assured. This shall continue until the policy reaches maturity, or the policyholder survives, whichever is earlier.  

  • Maturity benefit

In addition to the 8% every year, after the premium-paying tenure, the life assured receives the basic sum assured, the vested reversionary bonus, and any additional bonus he/she may have accrued. 

  • Loan

The life assured can avail a loan during the policy tenure, provided it has obtained a surrender value. To obtain a surrender value, the premium must have been paid for at east three consecutive years. The rate of interest on these loans depends on the Corporation and its policies for that year. 

  • Loan during premium paying term:
  • For ongoing policies, the maximum loan amount is 90% of the surrender value.
  • For paid-up policies, the maximum loan amount is 80% of the surrender value.    
  • Loan after the premium paying term:

In case of availing a loan after the premium paying term, the maximum amount of loan will be such that the annual interest payable on the loan is not more than 50% of the annual survival benefit that the life assured is eligible to receive every year. 

  • Riders

You can increase the scope of coverage with a few riders offered with the LIC Jeean Umang plan, with a nominal increase to your overall premium:

LIC Accidental Death and Disability Benefit Rider

With this rider, the policyholder’s nominee is eligible to receive the sum assured as a lumpsum amount. In case of accidental disability, the policyholder is eligible to receive the sum assured in monthly instalments for 10 years.  

LIC New Critical Illness Benefit Rider

This provides coverage against the list of specified illnesses, helping you save money against the cost of treatment.  

LIC New Term Assurance Rider

Yet another rider that provides a lumpsum amount in case of the demise of the policyholder during the policy tenure. 

LIC Accident Benefit Rider 

This rider is applicable only during the premium paying term of the policy. The lumpsum amount is paid to the nominee in case of the policyholder’s death during the premium payment term. 

Also read: Add An Extra Feature To Your Policy By Opting For A ‘Rider’

What are the advantages of LIC Jeevan Umang policy?

With a whole life assurance plan, your financial needs at the later stages of your life are taken care of. Being a relatively long-term plan, it provides a yearly income, a death benefit in case of an unfortunate event, survival benefit at the end of the policy term, and even the provision of availing a loan should you need it. 

With these assurances in the golden years of your life, you can live easy, knowing your financial needs will be met. Click here, to plan for your retirement effortlessly.  

Also read: Have You Financially Secured Your Retired Life?

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