LIC Policy: The Jeevan Umang policy offers the best formula for financial security in old age. Unlike the risk of mutual funds, it offers guaranteed lifetime returns. This means you'll have a fixed income throughout your life.
LIC Jeevan Umang: 100 Years of Protection
LIC Jeevan Umang: If you're looking for a policy that offers long-term insurance coverage, the LIC Jeevan Umang policy is a great option. Investing in this policy provides a guaranteed income of ₹80,000 per year until the age of 100. A major advantage is that LIC (Life Insurance Corporation of India) is a government-owned insurance company, which means there's no risk involved in investing in its policies.
Those seeking guaranteed annual income after retirement can invest in the LIC Jeevan Umang Plan. This is a whole-life insurance plan that provides coverage until the policyholder reaches the age of 100. If you start investing with ₹5,000 per month, this plan will provide you with a fixed annual income until you reach the age of 100.
Some highlights of the scheme
This policyholder receives 100 years of protection. However, you don't have to pay for the entire life. You can choose premium payment terms of 15, 20, 25, or 30 years, depending on your convenience.
After the premium payment period is over, LIC will continue to give you 8% of the Basic Sum Assured every year as Survival Benefit throughout your life.
Another significant advantage is that premiums are tax-deductible under Section 80C and maturity/returns are tax-deductible under Section 10(10D). You can also take a loan against the policy if needed after two years of inception.
Understand the complete mathematics of investment
Suppose a person takes out this policy at age 30 and chooses to pay premiums for 20 years; their monthly investment of ₹5,000 will generate ₹60,000 annually. This premium will provide a life cover of approximately ₹1 million. This means that after 20 years, when the policyholder turns 50 and reaches 51, they will receive 8% of ₹1 million, or ₹80,000 annually, fixed annually, until they reach 100 or die.
If the policyholder survives beyond the age of 100, they receive a lump sum maturity benefit consisting of the sum assured, plus any bonuses declared by LIC, and a final additional bonus. If the policyholder dies any time after the age of 50, their nominee receives the full sum assured of ₹10 lakh and all the money accumulated over the years in one lump sum.
