Make lakhs with policy LIC Jeevan Umang

 LIC Jeevan Umang

(A non-linked, for-profit, permanent life insurance policy)

 

Your family is both protected and provided for by the LIC Jeevan Umang plan. In addition to a lump sum payment at maturity or in the event of the policyholder's passing during the policy term, this plan pays annual survival benefits from the end of the premium-paying term until maturity.In addition, this plan addresses liquidity requirements through a lending facility.

 

• Benefits payable under a policy in force:

 

• Death benefit

 

a. If the Life Assured dies during the policy term and all premiums are paid in full, then:

 

b. Upon death during the first five years, the "Death Benefit" is awarded.

 

c. Upon death after five policy years but prior to the date of maturity, the "Sum Assured on Death" and any applicable Loyalty Addition are payable.

 

"Sum Assured on Death" is defined as the greatest amount that will be paid upon death, which is equal to 110% of the Basic Sum Assured, or the sum that is equal to 10 times the annualised premium or the sum that is paid upon maturity as mentioned in 1.b). A minimum of 105% of all premiums paid up to the date of death must be covered by the death benefit. Taxes, additional sums due as a result of underwriting decisions, and rider premiums, if any, are not included in the aforementioned premiums.

 

• Survival Benefit:

 

If the life assured survives until the end of the premium-paying term, and all premiums are paid, an annual survival bonus equivalent to 8% of the Basic Sum Assured is awarded. The first survival benefit payment is made at the conclusion of the premium-paying period, and further payments are made annually until the Life assured dies or until the policy anniversary preceding the date of maturity, whichever occurs first.

 

• Pension Benefit:

 

If the life assured lives to the end of the policy term and all premiums have been paid in full, the "Sum Assured on Maturity" along with any vested Simple Reversionary Bonuses (as stated in 2 below) and Final Additional bonus, if any, are payable.

 

where "Basic Sum Assured" = "Sum Assured at Maturity."

 

• Profit participation:

 

Depending on the Corporation's experience with policies issued under this plan, the policy will share in earnings during the duration of the policy.

 

During the duration of premium payment:

 

Policies are eligible for Simple Reversionary Bonuses issued based on the experience of the Corporation during the premium-paying term, provided the policy is in effect.

 

In the year that a death benefit is paid under an active insurance, Final Additional Bonus may also be declared. However, paid-up policies or policy surrenders that occur during the time of payment of premiums are not eligible for the final additional bonus.

 

The insurer will no longer participate in future revenues during the premium-paying period if premiums are not paid on time.

 

After the premium-paying term (applies only to paid-up policies or paid-up policies with a Maturity Paid-up Sum Assured of Rs. 2 lakhs or more):

 

Under a fully paid-up policy (where all premiums payable during the policy term have been paid) or in a paid-up policy with a Maturity Paid-up Sum Assured of Rs. 2 lakhs or more, the terms for participation of profits after the premium paying term may be in a different form and on a different scale depending on the Corporation's experience under this plan at that time.

 

The policy also allows for the declaration of a Final Additional Bonus in the year of a claim for death or maturity. In addition, the appropriate Final Additional Bonus for surrendering insurance, if any, must be included in the computation of the Special Surrender Value.

 

A paid-up policy with a Maturity Paid-up Sum Assured of less than Rs. 2 lakhs is excluded from future profits.

 

• Optional Advantage:

 

The policyholder may choose among the following Rider benefits:

 

Accidental Death and Disability Benefit Rider from LIC (UIN: 512B209V01).

 

• LIC’s Accident Benefit Rider (UIN:512B203V02)

 

• The New Term Assurance Rider from LIC (UIN: 512B210V01)

 

• New Critical Illness Benefit Rider from LIC (UIN: 512A212V01)

 

The amount of the rider cannot exceed the amount of the basic sum insured.

 

For additional information on the above riders, please consult the rider booklet or contact the local LIC Branch Office.Eligibility Conditions and Other Restriction :

 

Minimum Basic Sum Assured	Rs. 2,00,000
Maximum Basic Sum Assured (The Basic Sum Assured shall be in multiples of Rs. 25,000/-)	No limit
Premium Paying Term	15, 20, 25 and 30 years)
Policy Term	(100 – age at entry) years
Minimum Age at entry	90 days (completed)
Maximum Age at entry	55 years (completed)
Minimum Age at the end of premium paying term	30 years (nearest birthday)
Maximum Age at the end of premium paying term	70 years (nearest birthday)
Age at maturity	100 years (nearest birthday)

 

Date of commencement of risk: If the Life Assured's age at entry is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date of policy inception, or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever occurs first. 

For those aged 8 and above, the risk begins immediately.

Date of vesting according to the plan: 

The policy shall automatically vest on the Life Assured on the policy anniversary corresponding with or shortly after the Life Assured's 18th birthday, and shall be constituted a contract between the Corporation and Life Assured upon vesting.

• Payment of Premiums: 

During the Premium Paying Term, premiums can be paid annually, semi-annually, quarterly, or monthly (monthly premiums only through NACH) or by salary deductions.

However, a grace period of one month, but no less than 30 days, will be granted for annual, semiannual, and quarterly payment modes, and 15 days for monthly payment modes.

• Sample Premium Rates Listed below are some sample tabular yearly premium rates (in rupees) (excluding service tax) per Rs. 1,000/- Basic Sum Assured:

AGE / PREMIUM PAYING TERM	15	20	25	30
20	80.30	54.55	39.95	31.15
30	80.30	54.55	40.20	32.05
40	80.30	54.80	42.30	35.10
50	80.30	58.90	-	-

·         Mode and High Basic Sum Assured Rebates:

Mode Rebate:

Yearly mode	2% of Tabular Premium
Half-yearly mode	1% of Tabular premium
Quarterly, Monthly (ECS) & Salary deduction	NIL

 

High Basic Sum Assured Rebate:

 

Basic Sum Assured	Rebate (Rs.)
2,00,000 to 4,75,000	Nil
5,00,000 to 9,75,000	1.25 ‰ BSA
10,00,000 to 24,75,000	1.75 ‰ BSA
25,00,000 and above	2.00 ‰ BSA

 

Paid-up:

 

(i)            If less than three years' worth of premiums have been paid and any future premium is not paid on time, all benefits under the insurance will terminate and nothing will be paid after the grace period expires.

(ii)          If at least three full years of premiums have been paid and future payments are not paid in a timely manner, the insurance will not lapse and will remain as a paid-up policy until the conclusion of the policy term.

Death Paid-up Sum Assured = (Number of premiums paid / Total number of premiums payable) * Sum Assured on Death.

The Sum Assured on Maturity of a paid-up insurance is lowered to the "Maturity Paid-up Sum Assured," which is equal to [(Number of premiums paid/Total number of premiums payable)*(Sum Assured on Maturity)].

 

Survival benefits under a paid-up policy:

(i)             Survival Benefits shall not be given if the Maturity Paid-up Sum Assured is less than the minimum Basic Sum Assured, which is Rs. 2 lakhs.

 

(ii)          Survival Benefits equal to 8% of Maturity Paid-up Sum Assured are payable annually if Maturity Paid-up Sum Assured is equal to or greater than the minimum Basic Sum Assured of Rs. 2 lakhs. The first survival benefit payment is made at the conclusion of the premium-paying period, and further payments are made annually until the Life assured dies or until the policy anniversary preceding the date of maturity, whichever occurs first.

 

A paid-up policy is not eligible to share in future profits throughout the premium-paying term; however, the vested Simple Reversionary Bonuses remain connected to the paid-up policy. Moreover, if a paid-up policy with a Maturity Paid-up Sum Assured of Rs. 2 lakhs or more continues after the premium-paying term, the Corporation may participate in future profits after the premium-paying term, depending on its experience with similar paid-up policies.

 

Rider(s) do not gain any paid-up value, and rider benefit(s) cease to apply if the policy has lapsed.

 

• Renewal:

If premiums are not paid within the grace period, the insurance lapses. A lapsed policy may be reinstated within two years from the date of the first unpaid premium by paying all arrears of premium plus interest (compounding semi-annually) at the rate determined by the Corporation at the time of the payment and submitting adequate evidence of continuous insurability.

 

The Corporation reserves the right to accept the resurrection of a lapsed insurance under its original terms, accept it under amended conditions, or reject it altogether. The resurrection of a lapsed policy shall become effective only after approval by the Corporation and particular written notification to the Life Assured.

 

• The unpaid survival benefit(s) (applicable in case of paid-up policy where the Maturity Paid-up Sum Assured is less than 2 lakhs) or; • the difference between Survival benefits on full Basic Sum Assured and Survival benefits on Maturity Paid-up Sum Assured (applicable in case of paid-up policy where the Maturity Paid-up Sum Assured is equal to or greater than 2 lakhs).

If chosen, the resuscitation of the rider will be evaluated in conjunction with the revival of the base policy, and not in isolation.

 

• Surrender Value:

The policy can be surrendered at any moment as long as premiums have been paid for at least three years in a row. The Corporation shall pay the higher of the Guaranteed Surrender Value and Special Surrender Value upon surrender of the insurance.

The Special Surrender Value is subject to periodic assessment and determination by the Corporation, with IRDAI's prior consent.

 

The Guaranteed Surrender Value payable during the insurance period is equal to the total premiums paid multiplied by the applicable Guaranteed Surrender Value factor. These Guaranteed Surrender Value elements, expressed as percentages, are dependent on the surrendered policy's term and policy year.

 

The aforementioned premiums do not include taxes, additional amounts charged under the policy owing to an underwriting decision, or rider charges, if applicable.

In addition, the surrender value of vested Simple Reversionary Bonuses, if any, should also be paid, which is equal to the vested bonuses multiplied by the applicable Guaranteed Surrender Value factors. The percentages of the following Guaranteed Surrender Value elements depend on the policy term and policy year during which the policy is surrendered:

 

 

• Policy Loan:

During the policy term, a loan may be obtained if the policy has achieved a surrender value and on the terms and conditions that the Corporation may designate from time to time.

Periodically, the interest rate to be applied to policy loans and as applicable for the entire loan duration will be set. For loans approved during the 2016-17 fiscal year, the appropriate interest rate is 10% p.a. payable semi-annually for the duration of the loan.

If a loan is obtained throughout the duration of premium payment:

 

The maximum loan as a proportion of surrender value is as follows:

• For implementing policies - up to 90%

• For paid-up plans, up to 80 percent.

 

If the loan is taken out after the premium payment term:

The maximum permitted amount of a new loan (where no previous loan is due) for policies eligible for survival benefits must be determined so that the effective yearly interest amount charged on the loan does not exceed fifty percent of the annual survival benefit payable under the policy.

At the time of exit, any unpaid loan and interest will be recouped from the claim profits.

 

• Taxes: Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any other constitutional Tax Authority of India shall be levied in accordance with the Tax laws and the applicable tax rate.

The policyholder is responsible for paying Service Tax according to the current rates on premiums payable under the insurance, which is collected separately in addition to the premiums payable by the policyholder. The amount of tax paid shall not be factored into the plan's benefit calculation.

 

• Free look period:

If the Policyholder is dissatisfied with the "Terms and Conditions" of the policy, he or she may return the policy to the Corporation along with an explanation of objections within 15 days of receiving the insurance bond. After deducting the proportionate risk premium (for base plan and rider(s), if applicable) for the duration of coverage, expenses incurred on medical examination, special reports, if any, and stamp duty charges, the Corporation shall cancel the policy and restore the premium deposit.

 

• Exclusion:

This policy is null and void if the insured commits suicide.

 

• If the Life Assured (whether sane or insane) commits suicide within 12 months of the date of risk beginning, the Corporation will only pay 80% of the premiums paid, assuming the insurance is in place. This condition shall not apply if the Life Assured's age upon admission is less than eight years.

 

• If the Life Assured (whether sane or insane) commits suicide within 12 months of the date of resurrection, the greater of 80 percent of the premiums paid until the date of death or the surrender value will be reimbursed. The Corporation will not accept any additional claims under the terms of this policy. This clause shall not apply: • If the age of the Life Assured at the time of revival is less than eight years; or

 

• For a policy that has lapsed without gaining a paid-up value, nothing shall be payable.

Note: The foregoing premiums do not include taxes, any additional amount paid under the policy owing to an underwriting decision, or any rider premium(s) other than the Term Assurance Rider, if applicable.

 

BENEFIT ILLUSTRATION:

 

Warning required by law: "Some benefits are guaranteed and others are variable, with returns relying on the future success of your insurer's life insurance company. If your insurance provides guaranteed returns, they will be labelled "guaranteed" in the illustration table on this page. If your policy offers variable returns, the projections on this page will depict two distinct future investment return rates. These anticipated rates of return are not guaranteed, nor are they the top or lower limits of what you may receive, as the value of your policy depends on a variety of variables, including future investment performance."

 

• The non-guaranteed (variable) benefits in the above illustration are computed to be consistent with the assumed Projected Investment Rate of Return of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2), respectively. In other words, this illustration of benefits is based on the assumption that LICI will be able to generate a Projected Investment Rate of Return of 4% p.a. or 8% p.a. during the duration of the policy. The projected rate of return on investment is not guaranteed.

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The primary purpose of the depiction is for the client to be able to quantify the product's characteristics and the flow of its advantages under various conditions.