Difference Between LIC Jeevan Umang And LIC Jeevan Amar
Published On Jan 12, 2022
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.
LIC Jeevan Amar plan is a term insurance plan that covers an individual up to 80 years of age. There is a minimum basic sum assured of INR 25 lakhs, while there is no upper limit on this sum. The policy also offers long-term coverage that can range from 10 to 40 years. Another great feature of the LIC Jeevan Amar plan is that it offers 2 types of benefit options to choose from: Increasing Sum Insured and Level Sum Insured.
Benefits of LIC Jeevan Umang Plan
Jeevan Umang is a whole life risk coverage plan that will offer an annualized 8% of Sum Assured after the premium payment term - till the survival which is counted by LIC till the age of 100, along with tax benefits on premiums, death benefit, and maturity benefits. The maturity benefit will be a total of sum assured, simple reversionary bonus, and final additional bonus. In case of death before 100 years, the death benefits will be given to the nominee, the amount will again be a total of sum assured, simple reversionary bonus, and final additional bonus. Hence, the death benefit will be more than 105% of all premiums paid. The death benefits can be received in a lump sum or the regular payout. In the latter case, in 5, 10, 10, and 15 years terms, the benefit can be obtained in the monthly, quarter, half-yearly, and yearly frequencies.
- As it is a non-linked plan, your money will not be traded in the equity market to keep the money secured, and would not affect the returns. Another benefit of this participating plan in LIC will be sharing a part of the company's yearly profit with the subscriber, which is called Simple Reversionary Bonus and Final Addition Bonus. The minimum sum assured of this policy is Rs. 2,00,000.
- A loan facility is also available in Jeevan Umang, after 2 years of premium payment, the policyholder can take a loan against the plan. Tax deduction benefits will come under section 80(c), and maturity and the tax benefit will be exempted under section 10(D).
- There are 5 additional rider options available in the plan with additional premium, namely - accidental death and disability benefit rider, accidental benefit rider, new term assurance rider, new critical illness benefit rider, and premium waiver benefit rider.
Benefits of LIC Jeevan Amar Plan
Here are the major benefits of Jeevan Amar LIC:
- The policyholder can choose either of the 2 available death benefit options: Increasing Sum Assured and Level Sum Assured.
- In the increasing sum assured option, the sum assured increases as the policy moves forward, while in the level sum assured option, the sum assured remains the same
- At the time of purchase, the policyholder can opt for the death benefit to be paid out either as a lump sum or in installments.
- There is flexibility to choose different premiums paying terms for this plan that can be single, regular, and limited.
- The policyholder enjoys the flexibility to choose the policy term and the premium paying term as per his coverage needs.
- The following tax benefits can be availed:
Under Section 80C of the Income Tax Act, 1961, the premium amount paid towards the LIC Jeevan Amar Plan is tax-exempted
The death benefit is also tax-free under Section 10(10D) of the Income Tax Act, 1961
- In terms of rebates and discounts, watch out for the following:
Jeevan Amar LIC offers special premium rates for females
It lets the policyholders enjoy a high sum assured rebate
- LIC Jeevan Amar Term Plan brings in premium rates in two categories:
- The policy brings in a choice to enhance the coverage. This is possible by obtaining an accident benefit rider that is applicable on the payment of additional premium to be paid on rider benefit.
Both plans can not be compared. Jeevan Amar is a pure term assurance policy whereas Jeevan Umang is a whole life policy. Choose depending upon your requirement. Jeevan Amar takes care of dependents (financially) when the life assured is no more. Jeevan Umang takes care of oneself with lifetime survival benefits and finally benefits are payable to the nominee.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.