Insurance

LIC's Jeevan Umang is the one of the Best Pension/Survival Benefits Plans and 8% Guaranteed for Life Time.

LIC’s Jeevan Umang (UIN: 512N312V02)

1. Benefits payable under an inforce policy:

a. On death of the Life Assured during the policy term provided all due premiums have been paid

then:

b. On death during first five years: “Sum Assured on Death” shall be payable.

c. On death after completion of five policy years but before the date of maturity: “Sum Assured on

Death” and Loyalty Addition, if any, shall be payable.

1. Death benefit

Where “Sum Assured on Death” is defined as the highest of 10 times of annualized premium; or Sum Assured

on Maturity as defined in 1. b); or Absolute amount assured to be paid on death, i.e. 110% of Basic Sum

Assured. The death benefit shall not be less than 105% of all the premiums paid as on date of death.Premiums

referred above shall not include any taxes, extra amount chargeable under the policydue to underwriting

decision and rider premiums, if any.

2. Survival Benefit :

On the life assured surviving to the end of the premium paying term, provided all due premiums have been

paid, 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.

3. Maturity Benefit:

On the life assured surviving to the end of the policy term, provided all due premiums have been paid, “Sum

Assured on Maturity” along with vested Simple Reversionary Bonuses (as mentioned in 2 below) and Final

Additional bonus, if any, shall be payable.

Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

2. Participation in profits :

Date of Launch : 01.02.2020

(A non-linked, with-profit, whole life assurance plan)

LIC’s Jeevan Umang plan 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.

Depending upon the Corporation’s experience with regard to policies issued under this plan, the policy shall

participate in profits during the policy term.

During the premium paying term :

Policies shall be eligible to receive Simple Reversionary Bonuses declared as per the experience of the Corporation

during the premium paying term, provided the policy is in force.

Final Additional Bonus may also be declared under an inforce policy in the year when such policy results into a

claim by death. However, Final Additional Bonus shall not be payable under paid-up policy or on surrender of a

policy during the premium paying term.

3. Optional Benefit:

1. LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01).

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

3. LIC’s New Term Assurance Rider (UIN: 512B210V01)

4. LIC’s New Critical Illness Benefit Rider (UIN: 512A212V01)

4. 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)

5. Payment of Premiums:

In case the premiums are not duly paid, the policy shall cease to participate in future profits during premium paying

term.

After the premium paying term (applicable only for fully paid-up policies or for paid-up policies with

Maturity Paid-up Sum Assured of Rs. 2 lakhs or more):

Under a fully paid-up policy (where all premiums payable during the term of the policy are paid) or in a paid-up

policy with 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 differential scale depending on the Corporation’s

experience under this plan at that time.

Final Additional Bonus may also be declared under the policy in the year when a policy results into a claim either by

death or maturity. In addition, applicable Final Additional Bonus for surrendering policies, if any, shall also be

included in Special Surrender Value calculation.

Under a paid-up policy with Maturity Paid-up Sum Assured of less than Rs. 2 lakhs, the policy shall not participate

in future profits.

The policyholder has an option of availing following Rider benefit(s):

Rider sum assured cannot exceed the Basic Sum Assured.

For more details on the above riders, refer to the rider brochure or contact LIC’s nearest Branch Office.

Date of commencement of risk: In case 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, risk will commence immediately.

Date of vesting under this plan: The policy shall automatically vest on the Life Assured on the policy anniversary

coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to

be a contract between the Corporation and Life Assured.

6. Sample Premium Rates:

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 - -

7. Mode and High Basic Sum Assured Rebates:

Yearly mode 2% of Tabular Premium

Half-yearly mode 1% of Tabular premium

Quarterly, Monthly (ECS) & Salary deduction NIL

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:

Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through

NACH only) or through salary deductions during the Premium Paying Term of the policy.

However, a grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly

or quarterly mode and 15 days for monthly mode of premium payment.

Following are some of the sample tabular annual premium rates (in Rs.) (exclusive of service tax) per Rs. 1000/-

Basic Sum Assured:

Mode Rebate:

High Basic Sum Assured Rebate:

If less than three years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits

under the policy shall cease after the expiry of grace period and nothing shall be payable.

If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy

shall not be void but shall continue as a paid-up policy till the end of policy term.

The Sum Assured on Death under a paid-up policy shall be reduced to a sum called “Death Paid-up Sum

Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable) * Sum Assured on

Death].

The Sum Assured on Maturity under a paid-up policy shall be reduced to a sum called “Maturity Paid-up Sum

Assured” and shall be equal to [(Number of premiums paid /Total number of premiums payable)*(Sum Assured on

Maturity)].

Survival benefits under a paid-up policy :

1. If Maturity Paid-up Sum Assured is less than the minimum Basic Sum Assured i.e. Rs. 2 lakhs, Survival

Benefits shall not be paid under such policies.

2. If Maturity Paid-up Sum Assured is equal to or more than minimum Basic Sum Assured of Rs. 2 lakhs, Survival

Benefits equal to 8% of Maturity Paid-up 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.

9. Revival:

1. 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;

2. 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)

10. Surrender Value:

Guaranteed Surrender Value factor applicable to total premiums paid (907 KB)

A paid-up policy shall not be entitled to participate in the future profits during the premium paying term, however,

the vested Simple Reversionary Bonuses shall remain attached to the reduced paid-up policy. Further, if a paid-up

policy wherein the Maturity Paid-up Sum Assured is Rs. 2 lakhs or more, continues after premium paying term, it

may participate in future profits after the premium paying term, depending on the Corporation’s experience under

such paid-up policies.

Rider(s) shall not acquire any paid-up value and the rider benefit(s) cease to apply, if policy is in lapsed condition.

If premiums are not paid by the end of the grace period then the policy will lapse. A lapsed policy can be revived

within a period of 2 consecutive years from the date of first unpaid premium by paying all the arrears of premium

together with interest (compounding half-yearly) at such rate as fixed by the Corporation at the time of the payment,

subject to submission of satisfactory evidence of continued insurability.

The Corporation reserves the right to accept at original terms, accept at modified terms or decline the revival of a

discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the

Corporation and is specifically communicated in writing to the Life Assured.

If revival period falls beyond the premium paying term and the policy is revived after the due date of survival

benefit(s), then:-

shall be paid to the policy holder.

Revival of rider, if opted for, will be considered along with revival of the Base Policy, and not in isolation.

The policy can be surrendered at any time provided premiums have been paid for atleast three consecutive years.

On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender

Value and Special Surrender Value.

The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to

prior approval of IRDAI.

The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied

by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value

factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered

and are as specified below:

Premiums referred above shall not include any taxes, extra amount if charged under the policy due to underwriting

decision and rider premiums, if any.

Guaranteed Surrender Value factors applicable to vested bonuses (925 KB)

11. Policy Loan:

12. Taxes:

13. Free look period :

14. Exclusion:

1. If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of

commencement of risk, the Corporation will not entertain any claim under this policy except for 80% of the

premiums paid, provided the policy is inforce. This clause shall not be applicable in case age at entry of the

Life Assured is below 8 years.

2. If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount

which is higher of 80% of the premiums paid till the date of death or the surrender value, shall be payable. The

In addition, surrender value of vested Simple Reversionary Bonuses, if any, shall also be payable, which is equal to

vested bonuses multiplied by Guaranteed Surrender Value factors applicable to vested bonuses. These Guaranteed

Surrender Value factors in percentage will depend on the policy term and policy year in which the policy is

surrendered and are specified as below:

Loan can be availed during the policy term provided the policy has acquired a surrender value and subject to the

terms and conditions as the Corporation may specify from time to time.

The interest rate to be applied for policy loan and as applicable for full term of the loan shall be determined at

periodic intervals. For loan sanctioned in Financial Year 2016-17, the applicable interest rate is 10% p.a. payable

half-yearly for entire loan term.

If loan is availed during the premium paying term:

The maximum loan as a percentage of surrender value shall be as under:

For inforce policies- upto 90%

For paid-up policies- upto 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.

Any loan outstanding along with interest shall be recovered from claim proceeds at the time of exit.

Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax

Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of Service Tax payable as per the prevailing rates shall be payable by the policyholder on premiums

payable under the policy, which shall be collected separately over and above in addition to the premiums payable

by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the

plan.

If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the

Corporation within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt

of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the

proportionate risk premium (for base plan and rider(s), if any) for the period on cover, expenses incurred on medical

examination, special reports, if any and stamp duty charges.

Suicide: This policy shall be void

Corporation will not entertain any other claim under this policy. This clause shall not be applicable:

1. In case the age of Life Assured is below 8 years at the time of revival; or

2. For a policy lapsed without acquiring paid-up value and nothing shall be payable under such policy.

Benefit Illustration (96.7 KB)

1. The non-guaranteed (variable) benefits in above illustration are calculated so that they are consistent with the

Projected Investment Rate of Return assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2)

respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment

Rate of Return that LICI will be able to earn throughout the term of the policy will be 4% p.a. or 8% p.a., as

the case may be. The Projected Investment Rate of Return is not guaranteed .

2. The main objective of the illustration is that the client is able to appreciate the features of the product and the

flow of benefits in different circumstances with some level of quantification.

Note: Premiums referred above shall not include any taxes, extra amount if charged under the policy due to

underwriting decision and any rider premium(s) other than Term Assurance Rider, if any.

BENEFIT ILLUSTRATION:

Statutory warning:

“ Some benefits are guaranteed and some benefits are variable with returns based on the future performance of

your Insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly

marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations

on this page will show two different rates of assumed future investment returns. These assumed rates of return are

not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy is

dependent on a number of factors including future investment performance.”

Notes:

SECTION 45 OF THE INSURANCE ACT, 1938

The provision of Section 45 of the Insurance Act, 1938 shall be as amended from time to time. The simplified

version of this provision is as under:

Provisions regarding policy not being called into question in terms of Section 45 of the Insurance Act, 1938 as

amended by the Insurance Laws (Amendment) Act, 2015 are as follows:

1. No Policy of Life Insurance shall be called in question on any ground whatsoever after expiry of 3 yrs from

a. the date of issuance of policy or

b. the date of commencement of risk or

c. the date of revival of policy or

d. the date of rider to the policy

whichever is later.

2. On the ground of fraud, a policy of Life Insurance may be called in question within 3 years from

a. the date of issuance of policy or

b. the date of commencement of risk or

c. the date of revival of policy or

d. the date of rider to the policy

whichever is later.

For this, the insurer should communicate in writing to the insured or legal representative or nominee or assignees of

insured, as applicable, mentioning the ground and materials on which such decision is based.

3. Fraud means any of the following acts committed by insured or by his agent, with the intent to deceive the insurer

or to induce the insurer to issue a life insurance policy:

a. The suggestion, as a fact of that which is not true and which the insured does not believe to be true;

b. The active concealment of a fact by the insured having knowledge or belief of the fact;

c. Any other act fitted to deceive; and

d. Any such act or omission as the law specifically declares to be fraudulent.

4. Mere silence is not fraud unless, depending on circumstances of the case, it is the duty of the insured or his

agent keeping silence to speak or silence is in itself equivalent to speak.

5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the Insured / beneficiary can prove

that the misstatement was true to the best of his knowledge and there was no deliberate intention to suppress the

fact or that such mis-statement of or suppression of material fact are within the knowledge of the insurer. Onus of

disproving is upon the policyholder, if alive, or beneficiaries.

6. Life insurance Policy can be called in question within 3 years on the ground that any statement of or suppression

of a fact material to expectancy of life of the insured was incorrectly made in the proposal or other document basis

which policy was issued or revived or rider issued. For this, the insurer should communicate in writing to the insured

or legal representative or nominee or assignees of insured, as applicable, mentioning the ground and materials on

which decision to repudiate the policy of life insurance is based.

7. In case repudiation is on ground of mis-statement and not on fraud, the premium collected on policy till the date

of repudiation shall be paid to the insured or legal representative or nominee or assignees of insured, within a

period of 90 days from the date of repudiation.

8. Fact shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer. The

onus is on insurer to show that if the insurer had been aware of the said fact, no life insurance policy would have

been issued to the insured.

9. The insurer can call for proof of age at any time if he is entitled to do so and no policy shall be deemed to be

called in question merely because the terms of the policy are adjusted on subsequent proof of age of life insured.

So, this Section will not be applicable for questioning age or adjustment based on proof of age submitted

subsequently.