LIC Jeevan Umang vs Jeevan Utsav Which is Better

In this post we will compare LIC Jeevan Umang vs Jeevan Utsav. LIC Jeevan Umang and Jeevan Utsav are two popular insurance plans offered by Life Insurance Corporation of India (LIC), the largest public sector life insurer in the country. Both plans provide whole life coverage and guaranteed benefits, but they differ in terms of premium payment term, maturity benefit, and surrender value. In this blog post, we will compare the features and benefits of both plans and help you decide which one is better suited for your needs and goals.

What is LIC Jeevan Umang?

LIC Jeevan Umang is a non-linked, participating, whole life assurance plan that provides coverage up to 100 years of age. It offers a survival benefit of 8% of the basic sum assured every year from the end of the premium payment term till maturity or death, whichever is earlier. It also provides a lump sum maturity benefit of the basic sum assured plus vested simple reversionary bonuses and final additional bonus, if any, on survival till the end of the policy term or on death. The plan also has an option to avail accidental death and disability benefit rider for extra protection.

The plan has four premium payment term options: 15, 20, 25, or 30 years. The policy term is 100 minus the age at entry of the policyholder. The minimum age at entry is 90 days (completed) and the maximum age at entry is 55 years (nearest birthday) for 15 years premium payment term, 50 years for 20 years premium payment term, 45 years for 25 years premium payment term, and 40 years for 30 years premium payment term. The minimum basic sum assured is Rs. 2 lakh and there is no maximum limit.

In addition, this plan also takes care of liquidity needs through a loan facility.

DeathBenefit: On death of the Life Assured during the policy term, provided the policy is in-force i.e. all due premiums have been paid shall be as under:
i. On death before the commencement of Risk: Return of premium/s paid without interest shall be payable.
ii. On Death after the commencement of Risk: Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Addional bonus, if any, shall be payable.
Where “Sum Assured on Death” is defined as the higher of 7 times of annualised premium or Basic Sum Assured.
This death benefit shall not be less than 105% of the total premiums paid upto the date of death.

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.

MaturityBenefit: On the life assured surviving to the end of the policy term, provided the policy is in force , “Sum Assured on Maturity” along with vested Simple Reversionary
Bonuses and Final Addional bonus, if any, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

What is LIC Jeevan Utsav?

LIC’s Jeevan Utsav is a Non-Linked, Non-Participating, Individual, Savings, Whole Life Insurance plan. This plan provides financial support to the family in case of unfortunate death of Life Assured and survival benefits in the form of Regular Income Benefit or Flexi Income Benefit as per the option chosen for the surviving policyholder

LIC’s Jeevan Utsav is a non-participating product under which benefits payable on death or survival are guaranteed and fixed irrespective of experience. Hence the policy is not entitled to discretionary benefits like bonuses etc. or share in Surplus.

This Plan can be purchased Offline through Licensed agents, Corporate agents, Brokers, and Insurance Marketing Firms as well as Online directly through the website www.licindia.in. However, it is not available for sale through Point of Sales Persons-Life Insurance (POSP-LI) / Common Public Service Centers (CPSC- SPV).

KEY FEATURES OF JEEVAN UTSAV:

• Whole life insurance with limited premium payment
• Two options are available at inception to choose the benefit under the plan
  • Option I – Regular Income Benefit
  • Option II – Flexi Income Benefit
• Guaranteed Additions throughout Premium Paying Term
• Flexibility to choose Premium Paying Term from 5 Years to 16 Years
• Benefit of attractive High Sum Assured Rebate
• Option to enhance coverage by opting for riders on payment of additional premium
• Takes care of liquidity needs through loan facility

Death Benefit: On death of the Life Assured after the date of commencement of risk, Death Benefit equal to “Sum Assured on Death” along with accrued Guaranteed Additions shall be payable, provided the policy is in-force. This Death Benefit shall not be less than 105% of total premiums paid up to the date of death.
“Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’.

Survival Benefit: Survival Benefit in the form of Regular Income Benefit or Flexi Income Benefit as per the option chosen shall be as under:

Option I – Regular Income Benefit: On survival of Life Assured, Regular Income Benefit equal to 10% of Basic Sum Assured shall be payable at the end of each policy year provided all due premium have been paid.
Option II – Flexi Income Benefit: On survival of Life Assured, the policyholder shall be eligible for Flexi Income Benefit equal to 10% of Basic Sum Assured at the end of each policy year provided all due premium have been paid.
Policyholder shall have the flexibility to defer and accumulate such Flexi Income Benefits. The Corporation shall pay interest on the deferred and accumulated Flexi Income Benefit at the rate of 5.5% p.a. compounding yearly for completed months from its due date till the date of withdrawal or surrender or death, whichever is earlier. Fraction of months will be ignored for the purpose of calculation of interest. Policyholder on written request can withdraw once in a policy year, a maximum of 75% of balance accumulated Flexi Income Benefit(s) including interest, if any, which has not already been withdrawn and the net amount after withdrawal will continue to accumulate as mentioned above.
The accumulated Flexi Income Benefit(s) due and not withdrawn along
with interest, shall be payable on death or surrender, whichever is earlier.

Maturity Benefit: Maturity benefits are not available under this plan.

ELIGIBILITY CONDITIONS & OTHER RESTRICTIONS:

Minimum and Maximum Age at Entry

Minimum BasicSum Assured: 5,00,000

Maximum Basic Sum Assured: No Limit. However, the maximum Basic Sum Assured allowed to each individual will be subject to an underwriting decision as per the Board Approved Underwriting Policy.

Comparison between LIC Jeevan Umang and Jeevan Utsav

LIC Jeevan Umang and LIC Jeevan Utsav are both whole life insurance plans that offer guaranteed benefits and life-long coverage. However, they have some key differences in terms of features, benefits, and suitability. Here are some of the main points of comparison between the two plans.

• Premium Payment Term: Jeevan Umang has four options for premium payment terms: 15, 20, 25, or 30 years. Jeevan Utsav has the Flexibility to choose a Premium Paying Term from 5 Years to 16 Years
• Survival Benefit: Jeevan Umang provides a survival benefit of 8% of the basic sum assured every year from the end of the premium payment term till the age of 99 years. Jeevan Utsav provides a survival benefit of 10% of the basic sum assured every year from the end of the deferment term till the whole life of the life assured.
• Maturity Benefit: Jeevan Umang provides a maturity benefit of the basic sum assured plus vested simple reversionary bonuses and a final additional bonus, if any, at the age of 100 years or on the death of the policyholder, whichever is earlier. Jeevan Utsav does not provide a maturity benefit however it can be surrendered at any time after 2 years from the date of commencement.
• Death Benefit: Jeevan Umang provides a death benefit of the basic sum assured plus vested simple reversionary bonuses and final additional bonus, if any, if the death occurs before the commencement of risk. If the death occurs after the commencement of risk, the death benefit is 10 times the annualized premium or 125% of the basic sum assured, whichever is higher, plus vested simple reversionary bonuses and final additional bonus, if any. In Jeevan Utsav On death of the Life Assured after the date of commencement of risk, Death Benefit equal to “Sum Assured on Death” along with accrued Guaranteed Additions shall be payable, provided the policy is in-force. This Death Benefit shall not be less than 105% of total premiums paid up to the date of death.
  “Sum Assured on Death” is defined as higher of ‘Basic Sum Assured’ or ‘7 times of Annualized Premium’.
• Loan Facility: Jeevan Umang allows the policyholder to avail a loan after paying premiums for at least 2 full years, subject to certain terms and conditions. The maximum loan amount is 90% of the surrender value. Jeevan Utsav allows the policyholder to avail a loan after the policy acquires a surrender value, subject to certain terms and conditions. The maximum loan amount is 80% of the surrender value.
• Tax Benefits: Jeevan Umang offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, subject to the prevailing tax laws. Jeevan Utsav offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, subject to the prevailing tax laws.

Also Read: Which pension plan is better for 14-year child, Jeevan Umang or Jeevan Utsav

As you can see, Jeevan Umang and Jeevan Utsav have different advantages and disadvantages depending on your needs, goals, and preferences. Jeevan Umang may be suitable if you want a long-term plan that provides regular income and life protection. Jeevan Utsav may be suitable if you want a short-term plan that provides a lump sum benefit and life protection. However, these are only general suggestions and you should not base your decision solely on them. You should compare the plans in detail, consider your financial situation and objectives, and seek professional advice before choosing any plan.