This is a non-linked, whole life insurance plan that offers regular payouts even after the premium-paying term ends. It provides financial security throughout one’s lifetime.
Benefits of LIC Jeevan Umang Plan Policy
- Lifetime Coverage: Jeevan Umang offers coverage for the entire lifetime of the insured, as long as the premiums are paid. This provides lifelong financial security and peace of mind.
- Guaranteed Income: The policy provides a guaranteed survival benefit in the form of annual payouts to the policyholder after the premium payment term is completed. These payouts continue for the entire lifetime of the insured.
- Death Benefit: In the event of the policyholder’s demise during the policy term, the nominee receives a death benefit. This benefit typically includes the sum assured, any accrued bonuses, and final additional bonuses, if applicable.
- Maturity Benefit: If the policyholder survives the entire policy term, they continue to receive the annual survival benefits, and upon maturity, they receive the sum assured, vested bonuses, and final additional bonuses, if any.
- Participation in Profits: Jeevan Umang policyholders participate in the profits of LIC and are eligible for bonuses declared by the corporation. These bonuses enhance the overall returns.
- Loan Facility: After a certain period, policyholders can avail of a loan against the policy’s cash value, providing liquidity when needed.
- Surrender Value: If the policyholder decides to surrender the policy before maturity, a surrender value is paid out, including the cash value and accrued bonuses. However, the surrender value may be lower than the maturity benefit.
- Flexible Premium Payment: Policyholders can choose from various premium payment frequencies, including yearly, half-yearly, quarterly, or monthly, depending on their convenience.
- Income Tax Benefits: Premiums paid for the LIC Jeevan Umang plan are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity amount is usually tax-exempt under Section 10(10D), subject to certain conditions.
- Riders: Policyholders can enhance their coverage by adding riders such as accidental death benefit riders or disability benefit riders for an additional premium.
- Financial Security: The policy provides financial security to the policyholder’s family in case of the insured’s demise and ensures a guaranteed income stream for the insured’s lifetime, helping to meet long-term financial goals.
- Long-Term Savings: It encourages disciplined savings over the premium payment term, which can be used for various financial needs, such as retirement planning or legacy building.