LIC Jeevan Umang
(A Non-Linked, Participating, Individual, Life Assurance Savings, Whole Life Plan)
LIC's Jeevan Umang is a non-linked, Participating, individual, whole life assurance plan which offers a combination of income and protection to your family. 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.
In addition, this plan also takes care of liquidity needs through loan facility.
Death Benefit-
On death of the Life Assured before the stipulated Date of maturity provided the policy is in-force then-
On death before the Date of commencement of Risk-
An amount equal to the total amount of premiums paid without interest excluding taxes, Extra Premium and Rider Premium, if any, shall be payable.
On death after the Date of commencement of Risk-
Death Benefit defined as the sum of “Sum Assured on Death”, vested Simple Reversionary Bonus and Final Additional Bonus, if any, shall be payable.
Where “Sum Assured on Death” is higher of 7 times of Annualized Premium or Basic Sum Assured.
This death benefit shall not be less than 105% of the total premiums paid (excluding taxes, Extra Premium and Rider(s) premiums, if any), up to the date of death.
Survival Benefit-
On the life assured surviving to the end of the premium paying term, provided the policy is in-force , 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.
Maturity Benefit-
On the Life Assured surviving to the stipulated Date of Maturity, provided the policy is in-force, “Sum Assured on Maturity” along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
Participation in profits-
Depending upon the Corporation’s experience with regard to policies issued under this plan, the policy shall participate in profits during the policy term.
Profit distribution during premium paying term-
Policies will be eligible for Simple Reversionary Bonus during premium paying term at such rate and on such terms as may be declared by the Corporation. These Reversionary Bonuses shall be declared annually on the Basic Sum Assured at the end of each financial year provided the policy is in-force.
In case the premiums are not duly paid, the policy shall cease to participate in future profits during the premium paying term irrespective of whether or not the policy has acquired paid up value.
Final Additional Bonus may also be declared under an in-force policy in the year when such policy results into a claim by death.
Final Additional Bonus shall not be payable under paid-up policy or on surrender of a policy during the premium paying term.
Profit distribution after premium paying term (applicable only for fully paid-up policies or for paid-up policies with Maturity Paid-up Sum Assured of ₹ 2 lakhs or more)-
Under a fully paid-up policy (where all premiums payable during the term of the policy stand paid) or in a paid-up policy with Maturity Paid-up Sum Assured of ₹ 2 lakhs or more, the terms for participation of profits after the premium paying term may be in a different form and on a differential scale depending on the Corporation’s experience under this plan at that time.
Final Additional Bonus may also be declared under such policy in the year when a policy results into a claim either by death or maturity.
Under a paid-up policy with Maturity Paid-up Sum Assured of less than ₹ 2 lakhs, the policy shall not participate in any future profits.
Eligibility Conditions and Other Restrictions-
Date of Commencement of Risk-
If the age at entry of the Life Assured 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 commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more at entry, risk will commence immediately from the date of issuance of policy.
Vesting of Policy on the Life of a Minor-
If the Life Assured is alive on the Date of Vesting and if a request in writing for surrendering the policy has not been received by Corporation before such Date of Vesting from the person entitled to the policy moneys, this policy shall automatically vest in the Life Assured on such Date of vesting.
Rider Benefits-
The following five riders are available under this policy-
- Accidental Death and Disability Benefit Rider
- New Term Assurance Rider
- Accident Benefit Rider
- New Critical Illness Benefit Rider
- Premium Waiver Benefit Rider
However, the eligible Life Assured can opt between either of the Accidental Death and Disability Rider or Accident Benefit Rider.
Accidental Death and Disability Benefit Rider/Accident Benefit Rider-
Under an in-force policy either of these riders can be opted for at any time within the premium paying term of the Base Policy provided, the outstanding premium paying term of the Base Policy as well as the rider is at least five years. Under the policy on the life of minors, this rider will be available from the policy anniversary following completion of age 18 years on receipt of specific request.
New Term Assurance Rider/New Critical Illness Benefit Rider-
These riders are available only at the inception of the policy on payment of additional premium.
Premium Waiver Benefit Rider-
Under an in-force policy, this rider can be opted for on the life of Proposer of the policy (as the Life assured is minor), at any time coinciding with the policy anniversary but within the premium paying term of the Base Policy provided the outstanding premium paying term of the Base Policy and the rider is at least five years. Further, this rider shall be allowed under the policy wherein the Life Assured is Minor at the time of opting this rider. The Rider term shall not exceed (25 minus age of the minor Life Assured at the time of opting this rider).
If this rider is opted for, on death of proposer, payment of premiums in respect of base policy falling due after the date of death till the expiry of rider term shall be waived. However, in such case, if the premium paying term of the base policy exceeds the rider term, all the further premiums due under the base policy from the date of expiry of this Premium Waiver Benefit Rider term shall be payable by the Life Assured. On non-payment of such premiums the policy would become paid-up.
Conditions of rider(s), if opted, are enclosed as endorsement to this policy.
Payment of Premiums-
The policyholder has to pay the Premium on the due dates during the premium paying term as specified in the Schedule of this Policy Document along with applicable taxes, if any, from time to time.
In case of death of Life Assured under an in-force policy wherein all the premiums due till the date of death have been paid and where the mode of payment of premium is other than yearly, balance premium(s), if any, falling due from the date of death and before the next policy anniversary shall be deducted from the claim amount.
The Corporation does not have any obligation to issue a notice that premium is due or for the amount that is due.
Grace Period-
A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. If the premium is not paid before the expiry of the days of grace, the Policy lapses.
If the death of the Life Assured occurs within the grace period but before the payment of the premium then due, the policy will still be valid and the benefits shall be paid after deductions of the said unpaid premium as also the balance premium(s), if any, falling due from the date of death and before the next policy anniversary.
The above grace period will also apply to rider premiums which are payable along with premium for base policy.
Rebates-
Revival-
An Insurance Policy would lapse on non-payment of due premium within the days of grace. A policy in lapsed condition may be revived during the life time of the Life Assured, but within the Revival Period. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider is opted for) on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting
Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured/Proposer.
The Corporation however, reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation.
If revival period falls beyond the premium paying term and the policy is revived after the due date of survival benefit(s), then-
- the unpaid survival benefit(s) (applicable in case of paid-up policy wherein 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 wherein the Maturity Paid-up Sum Assured equal to or greater than 2 lakhs) shall be paid to the policy holder.
Revival of Rider(s), if opted for, will only be considered along with the revival of the Base Policy and not in isolation.
Policy Loan-
Loan shall be available under the policy subject to the following terms and conditions, within the surrender value of the policy for such amounts and on such further terms and conditions as the Corporation may fix from time to time-
- Loan can be availed provided at least two full years’ premiums have been paid.
- If loan is availed during the premium paying term-
- The maximum loan as a percentage of surrender value shall be as under:
- For in-force policies – up to 90%
- For paid-up policies – up to 80%
- If loan is availed after the premium paying term: The maximum permissible amount of new loan (where no previous loan taken earlier is outstanding) for policies which are entitled for survival benefits shall be arrived at in such a way that the effective annual interest amount payable on loan does not exceed 50% of the annual survival benefit payable under the policy.
- However, the Corporation reserves the right to determine the loan amount to be granted.
- The loan during the minority of Life Assured can be availed by the Proposer provided the loan is raised for the benefit of the minor Life Assured. The Policy shall be assigned absolutely to and held by the Corporation as security for the repayment of Loan and of the interest thereon;
- If loan is availed during the premium paying term: Interest on Loan during the premium paying term shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the Corporation at the time of taking loan under this policy. The applicable interest rate shall be based on the method approved by IRDAI. The first payment of interest is to be made on the next Policy anniversary or on the date six months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned and every half year thereafter.
- In case if the loan is not repaid during the premium paying term and if there is default in the interest payment, then due Interest on the loan shall be recovered from survival benefits due or any other amount payable under the policy;
- If loan is availed after the premium paying term: Interest on the loan shall be recovered from the survival benefits and at the rate which shall be specified by the Corporation when the loan is made;
- In the event of default in payment of loan interest on the due date as herein mentioned above and when the outstanding loan amount along with interest is to exceed the surrender value, the Corporation would be entitled to foreclose such policies. Such policies when being foreclosed shall be entitled to payment of the difference of surrender value and the outstanding loan amount along with interest, if any ;
- Corporation is entitled to recover or recall the amount of the Loan with all due interest by giving 3 months’ notice;
- In case the policy shall mature or is surrendered or becomes a claim by death, the Corporation shall become entitled to deduct the amount of outstanding Loan, together with all interest from the policy moneys.
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