Why LIC Jeevan Umang is a Good Plan for All
The LIC Jeevan Umang Plan, a life insurance plan offered by the Life Insurance Corporation of India (LIC), is a unique and versatile financial product that combines the benefits of life insurance coverage with long-term savings. As life longevity is increasing in India, pension planning is a must for all individuals. We need to learn from the retirement benefits problems faced by the Chinese pension system due to increasing elderly people in the country.
Thank you for reading this post, don't forget to subscribe!LIC Jeevan Akshay is designed to provide financial security, steady income, and peace of mind to policyholders and their families. This plan is particularly beneficial for individuals seeking a reliable source of income, lifetime insurance coverage, tax-free returns, and financial protection for their loved ones. Below, we explore the key features of Jeevan Umang and why it is a good plan for all.
Lifetime Insurance Coverage
One of the standout features of LIC Jeevan Umang is its lifetime insurance cover. Unlike traditional term insurance plans that provide coverage only for a specific period, Jeevan Umang offers life insurance protection for the entire lifetime of the policyholder, provided premiums are paid regularly. This ensures that the policyholder’s family is financially secure in the event of their untimely demise. The sum assured, along with bonuses, is paid to the nominee, providing a safety net for the family’s future needs.
Guarantee Yearly Returns
LIC Jeevan Umang is an excellent choice for individuals looking for a steady and guaranteed source of income. The plan provides annual payouts, known as survival benefits, starting from the end of the premium payment term until the policyholder’s death or maturity. These payouts are a percentage of the sum assured and are paid regardless of market fluctuations, making it a reliable source of income for retirees or those planning for long-term financial stability. The guaranteed returns make it a low-risk investment option, especially for risk-averse individuals.
Life time Tax-Free Income
The annual payouts and maturity benefits under Jeevan Umang are tax-free under Section 10(10D) of the Income Tax Act, 1961, provided the premium paid does not exceed 10% of the sum assured (for policies issued after April 1, 2023). This tax exemption makes the plan even more attractive, as it allows policyholders to enjoy their returns without worrying about tax liabilities. Additionally, the premiums paid are eligible for tax deductions under Section 80C, further enhancing the plan’s appeal.
Lump sum payment to Nominees at the end
In the unfortunate event of the policyholder’s demise, the nominee receives the sum assured along with accrued bonuses as a lump sum payment. This ensures that the family is financially protected and can meet immediate expenses, such as medical bills, education costs, or other liabilities. The lump sum payment provides a sense of security to the policyholder, knowing that their loved ones will be taken care of in their absence.
Flexible Premium Payment Term
LIC Jeevan Umang offers flexibility in choosing the premium payment term, which can range from 15 to 30 years, depending on the policyholder’s age and financial goals. This flexibility allows individuals to tailor the plan according to their financial capacity and long-term objectives. The longer premium payment term also reduces the annual premium burden, making it more affordable for a wider range of individuals.
Guaranteed Bonus Accumulation
LIC Jeevan Umang is a participating plan, meaning it is eligible for bonuses declared by LIC based on its performance. These bonuses are added to the policy and increase the overall returns. The accumulated bonuses, along with the sum assured, are paid to the nominee or the policyholder at the time of maturity or death, whichever occurs earlier. This feature enhances the plan’s value and ensures higher returns over time.
Financial Planning for Retirement
For individuals planning for retirement, Jeevan Umang serves as an excellent tool for building a corpus and ensuring a steady income post-retirement. The annual payouts can be used to cover living expenses, medical costs, or other financial needs during retirement. The plan’s long-term nature and guaranteed returns make it a reliable option for retirement planning.
Policy Loan Facility
Jeevan Umang also offers a loan facility against the policy, providing liquidity in times of financial need. Policyholders can avail of a loan up to a certain percentage of the surrender value, ensuring that they have access to funds without disrupting their financial plans.
Wide Accessibility
Jeevan Umang is available to individuals between the ages of 90 days and 55 years, making it accessible to a wide range of people. The plan’s simplicity, combined with its comprehensive benefits, makes it suitable for individuals from all walks of life, whether they are young professionals, parents, or retirees.
LIC Jeevan Umang is a well-rounded financial plan that offers a perfect blend of life insurance coverage, guaranteed income, and long-term savings. Its features, such as lifetime insurance coverage, yearly returns, tax-free income, and lump sum payments to nominees, make it an ideal choice for individuals seeking financial security and stability. Whether you are planning for retirement, securing your family’s future, or looking for a low-risk investment option, Jeevan Umang caters to all these needs effectively. Its flexibility, affordability, and comprehensive benefits make it a good plan for all, ensuring peace of mind and financial well-being for policyholders and their families.