LIC Jeevan Umang 745

LIC Jeevan Umang 745

The LIC Jeevan Umang Plan 745 is a non-linked, participating, endowment plan offered by Life Insurance Corporation of India (LIC). It is designed to meet long-term financial goals by providing life coverage combined with a regular income benefit after the policy term. This plan is particularly beneficial for individuals seeking a combination of protection and income after a certain age, as it offers both life insurance coverage during the term and guaranteed income after the policy term until the policyholder’s lifetime.

The plan is also ideal for individuals who want to ensure their family’s financial security, with the added benefit of a steady post-retirement income. This life insurance plan guarantees periodic payouts after the end of the policy term, making it suitable for long-term goals such as retirement planning, children’s education, and family financial protection.

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In this article, we will explore the features, benefits, and working of the LIC Jeevan Umang Plan 745, along with an example to explain its benefits in detail.


1. Overview of LIC Jeevan Umang Plan 745

The LIC Jeevan Umang Plan 745 is a comprehensive life insurance policy that combines protection and post-retirement income in one plan. The policy offers a unique combination of life cover during the policy term and annual income benefits after the policy term for the rest of the policyholder’s life. The policy is particularly popular for individuals looking for retirement planning solutions that provide guaranteed income once the policy term is over.

Key Features of LIC Jeevan Umang Plan 745

  • Participating Endowment Plan: It is a participating policy, meaning the policyholder is eligible to receive bonuses that enhance the overall returns.
  • Life Coverage: Provides life insurance coverage during the policy term and post-policy term income for the lifetime of the policyholder.
  • Income Benefit: After the policy term, the policyholder receives an annual income benefit, which continues until the policyholder’s death.
  • Premium Payment Flexibility: The premium can be paid annually, semi-annually, quarterly, or monthly.
  • Tax Benefits: Premiums qualify for tax deductions under Section 80C and the benefits under Section 10(10D) are tax-free, making it a tax-efficient investment.
  • Loan Facility: A loan can be availed against the policy’s surrender value for urgent needs.
  • Bonus Facility: The policy is eligible for bonuses, which can be added to the sum assured.

The LIC Jeevan Umang Plan 745 is perfect for individuals who want financial security for their family and also seek a steady income stream after retirement. The plan is often used as a long-term investment tool that helps in accumulating a corpus while also ensuring financial protection through life coverage.


2. Detailed Features and Benefits of LIC Jeevan Umang Plan 745

a. Policy Term and Premium Payment Term

  • Policy Term: The policyholder can choose a policy term of 15, 20, or 25 years.
  • Premium Payment Term: The policyholder can choose between single premium or regular premium payment options. The premium payment term can be chosen in line with the policy term, for example:
    • If the policy term is 15 years, the premium payment term could be 10 or 12 years.
    • If the policy term is 20 years, the premium payment term could be 15 years.
    • If the policy term is 25 years, the premium payment term could be 20 or 25 years.
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This flexibility allows individuals to customize their premium payments and policy term to fit their financial goals.

b. Income Benefit After Policy Term

One of the standout features of the LIC Jeevan Umang Plan 745 is the income benefit that begins after the policy term ends. Once the policy matures, the policyholder will start receiving an annual payout equal to a percentage of the sum assured until death. This feature acts as a form of pension plan.

  • The annual income benefit is equal to 8% of the sum assured.
  • The income benefit continues throughout the policyholder’s lifetime, providing a steady income stream after retirement.

This feature is especially beneficial for individuals who want regular income after a certain age or at the end of the policy term.

c. Sum Assured on Death

The sum assured on death is the higher of the following:

  • Basic sum assured chosen at the start of the policy.
  • 125% of the annual premium paid.

In case of the policyholder’s untimely death during the policy term, the death benefit will be paid out to the nominee. Additionally, any bonuses that have accrued till the point of death will also be added to the death benefit.

This ensures that the policyholder’s family is financially protected in the event of an untimely demise.

d. Maturity Benefit

When the policyholder survives the entire policy term, they are entitled to a maturity benefit, which includes:

  • Sum Assured on Maturity: The amount of sum assured selected by the policyholder at the time of purchase.
  • Bonuses: Reversionary bonuses (if declared) that are added to the sum assured. The bonuses are paid along with the sum assured at maturity, significantly increasing the payout.
  • Final Additional Bonus (FAB): If applicable, the final additional bonus is added to the sum assured and bonuses at the time of maturity.

The maturity benefit provides a lump sum payment, which can be used for various financial purposes, such as retirement planning, children’s education, or any other long-term goal.

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e. Bonus Facility

The LIC Jeevan Umang Plan 745 participates in the LIC bonus system, which means that policyholders are eligible for the following bonuses:

  1. Reversionary Bonuses: These are bonuses that are added to the sum assured each year and are payable on death or maturity. Reversionary bonuses are declared annually and depend on the performance of the LIC portfolio.
  2. Final Additional Bonus (FAB): A lump sum bonus that may be added at the time of policy maturity or death, depending on the corporation’s performance and the policy’s duration.

Bonus payments increase the overall value of the policy and enhance the returns on the premium paid.

f. Loan Facility

Policyholders can avail a loan against the policy’s surrender value in case of financial emergencies. The loan amount can be up to 90% of the surrender value, allowing policyholders to access funds without having to surrender the policy. The loan amount will attract interest, and if the loan remains unpaid, it will be deducted from the death or maturity benefit.

g. Tax Benefits

The LIC Jeevan Umang Plan 745 also offers tax benefits under the Income Tax Act:

  1. Section 80C: Premiums paid towards the policy are eligible for tax deductions of up to ₹1.5 lakh per year.
  2. Section 10(10D): The death benefit and maturity benefit (including the bonuses) are exempt from income tax, making the plan tax-efficient.

These tax-saving features make the plan an attractive option for individuals looking to optimize their tax liabilities while also securing their future.


3. Eligibility Criteria for LIC Jeevan Umang Plan 745

To be eligible for the LIC Jeevan Umang Plan 745, the following criteria must be met:

  • Minimum Age of Entry: 90 days (for children) and 18 years (for adults).
  • Maximum Age of Entry: 55 years (for a policy term of 25 years).
  • Minimum Sum Assured: ₹2,00,000.
  • Maximum Sum Assured: No upper limit, subject to underwriting.
  • Policy Term: 15, 20, or 25 years.
  • Premium Payment Term: Premiums can be paid on a single premium or as regular premiums.

4. Benefits of LIC Jeevan Umang Plan 745

a. Comprehensive Life Coverage

The policy provides life insurance coverage to the policyholder during the policy term. In case of an unfortunate event, the nominee receives the sum assured on death, along with any accrued bonuses, ensuring the family’s financial security.

b. Income Benefit After Policy Term

One of the standout features of the LIC Jeevan Umang Plan 745 is the guaranteed income benefit that starts after the policy term ends. The policyholder receives 8% of the sum assured as an annual income for the rest of their life, making it an ideal product for retirement planning.

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c. Bonus Facility

Being a participating plan, LIC Jeevan Umang is eligible for reversionary bonuses and a final additional bonus, which enhances the value of the policy over time.

d. Tax Savings

With tax benefits under Section 80C (for premiums paid) and Section 10(10D) (for death and maturity benefits), the LIC Jeevan Umang Plan 745 provides significant tax relief while helping the policyholder save for future financial needs.

e. Loan Facility

In case of emergency needs, policyholders can avail a loan against the policy’s surrender value, providing financial flexibility.


5. Example: Understanding LIC Jeevan Umang Plan 745

Let’s take an example to understand how the LIC Jeevan Umang Plan 745 works in real life.

Example:

Mr. Arvind, aged 40 years, buys the LIC Jeevan Umang Plan 745 with the following details:

  • Policy Term: 25 years.
  • Premium Payment Term: 20 years.
  • Sum Assured: ₹10,00,000.
  • Annual Premium: ₹60,000.
Benefits Breakdown:
  1. Death Benefit:
    • If Mr. Arvind passes away in the 10th year, his nominee will receive the sum assured on death (₹10,00,000) along with any bonuses accrued until that point.
  2. Maturity Benefit:
    • If Mr. Arvind survives the entire 25-year term, he will receive the sum assured on maturity (₹10,00,000) along with the reversionary bonuses and any final additional bonus.
    • Suppose the bonuses accumulate to ₹5,00,000 over the policy term, the total maturity benefit would be ₹15,00,000.
  3. Income Benefit:
    • After the policy term ends, Mr. Arvind will start receiving 8% of the sum assured (₹80,000 per year) as a guaranteed annual income for the rest of his life.
  4. Tax Benefits:
    • Mr. Arvind can claim a tax deduction of ₹60,000 under Section 80C for the premiums paid.
    • The maturity benefit and the annual income are tax-free under Section 10(10D).

6. Conclusion

The LIC Jeevan Umang Plan 745 is an ideal life insurance product for individuals who wish to combine life insurance protection with a regular income stream after the policy term ends. The plan offers flexible premium payment options, a lifetime income benefit, and bonus facilities, making it suitable for retirement planning and long-term financial goals. Moreover, it provides tax savings, making it an attractive option for investors looking to secure their financial future.

By choosing the LIC Jeevan Umang Plan 745, policyholders can ensure that they not only protect their family’s future but also enjoy a steady income after retirement, enhancing their overall financial security.