LIC Jeevan Umang is built around a distinctive promise: pay premiums for a limited period, then receive a guaranteed annual income for the rest of your life, alongside cover that continues until age 100. The plan most people still reference, Plan 945, was withdrawn on October 1, 2024. The current version is Plan 745 (UIN 512N312V03). Here’s what it actually offers.
What Makes Jeevan Umang Different?
It’s a participating, whole life savings plan. You choose a premium paying term, pay through that period, and once it ends, LIC starts paying you an annual income equal to 8% of your Basic Sum Assured, every year, for the rest of your life or until the policy matures at age 100, whichever comes first. On top of that annual income, a lump sum maturity benefit is paid at age 100, or a death benefit is paid earlier if you don’t survive that long.
What Are the Eligibility Terms?
Premium paying term options are 15, 20, 25, or 30 years, and entry age depends on which term you choose:
| Premium Paying Term | Maximum Entry Age |
|---|---|
| 15 years | 55 years |
| 20 years | 50 years |
| 25 years | 45 years |
| 30 years | 40 years |
Minimum entry age is 3 years for a 15-year term, or as young as 30 days for the 20, 25, or 30 year terms. The minimum age at the end of your premium paying term is 18 years, reduced from the earlier 30-year threshold under the previous plan version. Maximum age at the end of the premium paying term is 70. Since maturity always occurs at age 100, your actual policy term is simply 100 minus your entry age.
Minimum Basic Sum Assured is ₹2,00,000, with no upper limit, in multiples of ₹25,000 up to ₹4,50,000, ₹50,000 up to ₹9,00,000, and ₹1,00,000 above that.
How Does the 8% Annual Income Actually Work?
Once your premium paying term ends, provided you’ve paid all due premiums, you receive a survival benefit equal to 8% of your Basic Sum Assured every year. The first payment falls due at the end of your premium paying term, and payments continue annually until you pass away or reach the policy anniversary just before your 100th birthday, whichever happens first.
On a Basic Sum Assured of ₹5,00,000, this works out to ₹40,000 a year, for potentially several decades, on top of whatever lump sum you eventually receive at maturity or your family receives on death.
What Happens at Maturity or on Death?
At maturity (age 100):
Basic Sum Assured, plus any vested Simple Reversionary Bonuses, plus a Final Additional Bonus if one is declared.
On death during the policy term:
The higher of 7 times your annualised premium or the Basic Sum Assured, plus vested bonuses and any Final Additional Bonus, with a floor ensuring the total is never less than 105% of premiums paid to date.
Since this is a participating plan, the bonus component isn’t fixed in advance. It depends on rates LIC declares periodically based on actual performance.
What Riders Are Available?
Four optional riders currently apply to this version of the plan:
- Accidental Death and Disability Benefit Rider
- Accident Benefit Rider (choose either this or the Accidental Death and Disability Rider, not both)
- LIC’s New Term Assurance Rider
- Premium Waiver Benefit Rider, available only where the life assured is a minor, waiving future premiums if the paying parent or guardian dies
The Critical Illness Health Rider, available on some other current LIC plans, is not currently offered under this version of Jeevan Umang.
Loan and Surrender Terms
You can surrender after one full year of premiums, though Guaranteed Surrender Value specifically requires two full years. Loan availability depends on whether you’re still paying premiums:
- During the premium paying term: up to 50% of surrender value before two years of premiums, rising to 75% after, for in-force policies (40%/65% for paid-up policies)
- After the premium paying term: loan amount is capped so the annual interest doesn’t exceed 50% of your annual survival benefit, with interest recovered directly from that income
High Sum Assured Rebates
| Basic Sum Assured | Rebate per ₹1,000 BSA |
|---|---|
| ₹2,00,000 to ₹4,50,000 | Nil |
| ₹5,00,000 to ₹9,00,000 | 2.50‰ |
| ₹10,00,000 to ₹24,00,000 | 3.50‰ |
| ₹25,00,000 and above | 4.00‰ |
What’s Excluded?
Standard suicide exclusion applies: if death occurs by suicide within 12 months of the policy’s start or revival, the nominee receives 80% of total premiums paid rather than the full death benefit, provided the policy is in force.
To know more about the different LIC plans types that may suit your needs, have a look at our complete LIC plans guide here.
Frequently Asked Questions
Is LIC Jeevan Umang Plan 945 still available?
No. Plan 945 was withdrawn on October 1, 2024. The current version is Plan 745 (UIN 512N312V03), with a lower minimum age at the end of the premium paying term, revised premium rates, and other updated terms.
How much annual income does Jeevan Umang actually pay?
8% of your Basic Sum Assured every year, starting at the end of your premium paying term and continuing until death or age 100, whichever comes first. On a ₹5,00,000 Basic Sum Assured, that’s ₹40,000 a year.
What premium paying terms are available?
15, 20, 25, or 30 years, with maximum entry age decreasing as the term lengthens, from 55 years for a 15-year term down to 40 years for a 30-year term.
Are the returns on this plan guaranteed?
The Basic Sum Assured and survival benefit are guaranteed. The bonus component added at maturity or death depends on rates declared periodically by LIC based on actual performance, so it isn’t fixed in advance.
Does this plan include a Critical Illness rider?
No, not currently. The Critical Illness Health Rider available on some other current LIC plans isn’t offered under this version of Jeevan Umang. Four other riders remain available.
At what age does Jeevan Umang mature?
Age 100. Your policy term is effectively 100 minus your entry age, since maturity always occurs at the same fixed age regardless of when you joined.
Last Updated on 23 hours ago by Team Paisaseekho
