LIC Jeevan Umang Plan

LIC Jeevan Umang is one of LIC’s popular long-term savings and insurance plans that promises lifetime cover along with a yearly income after premium payments end. But is it actually the right plan for your needs, or are there better alternatives available?

In this article, we’ll break down LIC Jeevan Umang in simple terms so you can understand how it works, what you get, and whether it truly fits into your financial plan.

How Does the LIC Jeevan Umang Plan Work?

The LIC Jeevan Umang Plan is designed as an income + life insurance combination, where you pay premiums for a limited time and then receive a yearly income while your life cover continues till age 100. Here’s how the policy works in simple steps.

• You choose a Premium Paying Term (PPT) of 15, 20, 25, or 30 years.
• Once the PPT ends, LIC starts paying you annual survival benefits equal to 8% of Basic Sum Assured (BSA). This yearly payout continues as long as you are alive, up to the policy anniversary before age 100.
• Your life insurance cover continues throughout, even after premium payments stop. If the policy is in force and death occurs after risk commencement, the nominee receives Sum Assured on Death (higher of 7× annualised premium or Basic Sum Assured, subject to minimum 105% of total premiums paid) along with vested Simple Reversionary Bonuses and Final Additional Bonus (if any).
• If death occurs before risk commencement, premiums paid are returned (excluding GST, rider premiums, and loadings), without interest.
• On survival till age 100, you receive Basic Sum Assured + vested Simple Reversionary Bonuses + Final Additional Bonus (if any).

Example

Suppose your Basic Sum Assured is ₹10 lakh.

• After your premium-paying period ends, you receive ₹80,000 every year (8% of ₹10 lakh).
• This continues yearly while you remain insured till age 100.
• At maturity, you receive ₹10 lakh plus accumulated bonuses as a final payout.
• If death occurs during the policy term, your nominee receives the death benefit (Sum Assured on Death) along with accumulated bonuses as per policy terms.

Features and Benefits of LIC Jeevan Umang Plan

• The plan offers a loan facility once surrender value is acquired, helping meet liquidity needs without exiting the policy.
• You can enhance protection through optional riders by paying an additional premium.
• The death benefit can be received in instalments over 5, 10, or 15 years instead of a lump sum.
• The policy acquires surrender value after paying the required minimum premiums, allowing exit if needed, although surrender values are generally low in early years.
• If you stop paying premiums after at least one full year, the policy can continue as a paid-up policy with proportionately reduced benefits, instead of terminating completely.
• Premium rebates are available for higher Sum Assured choices and yearly or half-yearly payment modes, helping slightly reduce the premium cost.

What Are the Inclusions and Exclusions of the LIC Jeevan Umang Plan?

Inclusions

• Death benefit during policy term
• Survival benefits after PPT
• Maturity payout at age 100
• Bonus participation
• Loan facility
• Surrender option

Exclusions & conditions

• The suicide clause applies during the first 12 months from policy commencement or revival.
• Policy lapses if premiums are not paid up and not revived.
• Bonuses are not guaranteed; they depend on LIC making profits.

Note: The exclusions under this whole life endowment plan are similar to those of a term insurance plan. Read more about them in this exclusions in term insurance guide.

Premium Rates under LIC Jeevan Umang Plan

Assume:

• Entry age: 40 years
• Policy term: 60 years (cover till age 100)
• Premium Paying Term: 20 years
• Basic Sum Assured: ₹10 lakh
• Payment mode: Yearly
• Annual premium: ₹53,879 (excluding taxes and riders)

About non-guaranteed benefits

Apart from guaranteed payouts, the policy may also earn bonuses, which depend on LIC’s future performance and are not guaranteed. Illustrations often show scenarios at 4% and 8% returns, but these are only projections, not promises.

In short: You pay premiums for 20 years, receive yearly income thereafter, stay insured till age 100, and finally receive a lump sum plus bonuses, depending on LIC’s bonus declarations.

Important rider limits: The total premium paid for all riders cannot exceed 30% of the base policy premium. Additionally, the Accident Benefit Rider cover is capped at three times the Basic Sum Assured, while most other rider covers are generally limited to the Basic Sum Assured.

What Are the Documents Required to Buy the LIC Jeevan Umang Plan?

• Identity proof
• Address proof
• Age proof
• Income proof
• Medical reports (if required)
• Photographs

For further information, you can refer to the documents required for term insurance guide, since the nature of the documents required for the LIC Jeevan Umang Plan is similar to a term plan. You can buy this policy through LIC agents, LIC branch offices, brokers, or corporate agents, as it is primarily sold offline.

Why Choose the LIC Jeevan Umang Plan?

This plan may suit you if you already have sufficient term insurance and are mainly looking for a disciplined savings option that provides predictable yearly payouts. It can also work if you are comfortable locking money long-term and prefer guaranteed, stable outcomes over higher but uncertain returns.

You may want to avoid this plan if you need higher life cover at a lower cost, want better return potential through investing, need flexibility for future goals, or may exit the policy early. It may also not suit you if you’re choosing it only for income without comparing alternative investment options.

Why Term Insurance + Investing Separately Is Often Better

1) Life Cover is Usually Much Higher

In Jeevan Umang, life cover is linked to Basic Sum Assured or premium multiples, which often turns out to be insufficient for replacing income, covering loans, or securing children’s future, whereas term insurance offers significantly higher coverage (usually in crores) for the same budget.

2) Returns are Not Transparent

The final payout depends on bonuses declared by LIC, which are not guaranteed and vary over time, while investing separately allows you to clearly see performance and costs.

3) Liquidity is Limited

Surrender values are low in the early and middle years, which makes exiting expensive, whereas investments typically allow partial withdrawal, pausing, or switching.

4) Protection and Investment Goals Get Mixed

When insurance and investment are combined in one product, both functions usually become less efficient, while separating them allows each goal to be optimized.

5) Long Commitments May Not Suit Changing Life Needs

Since the policy continues till age 100, it requires a very long commitment, even though financial needs often change due to career moves, home purchases, or family responsibilities.

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Conclusion

The LIC Jeevan Umang Plan can work for people who want lifetime cover along with a predictable income after premiums end, and LIC, as an insurer, has a strong track record, especially in traditional endowment-style plans.

However, our advisors generally do not endorse endowment or savings-plus-insurance products as a concept, because combining insurance and investment usually leads to a compromise in both protection and returns. 

For most people, buying a term plan for protection and investing separately tends to provide better flexibility, higher coverage, and stronger long-term outcomes. If you want comprehensive protection, this best term insurance plans in India guide is worth taking a look at. The right choice ultimately depends on your financial discipline, goals, and need for guarantees versus flexibility.

Disclaimer

LIC is not a partner insurer with Ditto, and Ditto does not advise on or sell investment-plus-insurance savings products as part of its core offering. For details on how we review products and approach partnerships, you can refer to our Editorial Policy & Disclaimers. 

This article is for general awareness and is based on publicly available insurer information. Ditto is an IRDAI-licensed Corporate Agent. Please review policy documents carefully and consult a licensed advisor before making an insurance decision.