Let us see about LIC’s Jeevan Umang Investment Scheme in India.
The LIC’s Jeevan Umang (Plan No. 945, UIN: 512N312V02) is a government-backed whole life insurance savings scheme in India, launched by Life Insurance Corporation (LIC) in 2017, offering lifelong protection with regular income post-premiums, maturity benefits, and tax advantages under Section 80C/10(10D)—(tax benefits mean 1.Deduction on premiums up to ₹1.5 lakh under Section 80C, 2.Partial tax-free interest via bonuses, and 3.Tax-free maturity/death proceeds if conditions met). Designed for risk-averse investors seeking family security, child plans, or retirement income across ages, it guarantees capital protection via bonuses, flexible premium terms, and lifelong cover up to age 100.
Where Should I Apply for Jeevan Umang?
Purchase Jeevan Umang easily at these authorized LIC locations with simple KYC documents (Aadhaar, PAN, photo, address proof, income proof).
- LIC Branches: All 2,000+ branches across India, ideal for in-person service, cash/cheque payments accepted.
- LIC Agents: Authorized agents for doorstep service and policy illustration.
- Online via LIC Portal: licindia.in using Aadhaar eKYC for instant proposal (no branch visit needed).
- Common Service Centers (CSCs): Rural access points.
- Documents Required: Proposal form, PAN, Aadhaar, 2 photos, nominee details, medicals (if sum assured >₹15 lakh or age >45).
- Deposit Methods: Cash/cheque at branch, ECS/NACH auto-debit, online transfer via portal, policy bond issued for tracking.
Guardian buys for minors, policy can be assigned/transferred anytime.
Eligibility Criteria
Jeevan Umang welcomes nearly all Indian residents, with age-based limits for inclusive family planning.
- Kids (Minors 90 days-18 years): Parents/legal guardians buy and pay premiums initially.
- Youth/Adults (18+): Salaried, self-employed, homemakers qualify (PAN mandatory).
- Senior Citizens (up to 55-60 years): Entry till max age based on premium term.
- Minimum Sum Assured: ₹1 lakh (no upper limit).
One policy per person, but multiple family policies allowed; premium paying term (PPT): 15/20/25/30 years.
Who is Not Eligible
Restrictions ensure focus on individual life cover.
- NRIs: Cannot buy new policies, existing continue till maturity.
- Foreign Citizens/PIO/OCI: Unless Indian resident.
- Multiple Identical Policies: Allowed but track premiums for tax limits.
- Joint Policies: Not permitted, single life only.
- HUFs/Institutions: Only individuals.
Example
In a family of 6—Father (age 35), Mother (age 32), and 4 kids (ages 3,6,9,12)—each parent buys separate policies with their own sum assured, sharing no combined limit like PPF (tax deduction pooled under family 80C).
Father buys ₹10 lakh policy (PPT 20 years, premium ~₹60,000/year)(PPT= Premium Paying Term).
Kid 1-2 policies under Father as proposer (₹2 lakh each, PPT 15 years).
Total family investment flexible, no PAN-group cap on sum assured—only 80C deduction limit applies.
Key Rule: Premiums per policy flexible (min based on age/BSA), but total 80C claim ≤₹1.5 lakh/family; split wisely to max tax savings.
Key Features
Risk Cover: Lifelong till age 100, starts immediately (deferment for kids: age+2 years).
PPT Options: 15/20/25/30 years (pay once, get benefits forever).
Premium Modes: Yearly (2% rebate), half-yearly (1% rebate), quarterly/monthly.
How Bonuses Work: Simple Reversionary Bonus (SRB) yearly (~₹40-50/₹1,000 BSA), Final Additional Bonus (FAB) at maturity/death.
Taxation: Premiums 80C deductible, maturity/death tax-free u/s 10(10D) if premium <10% of BSA.
No Risk: Guaranteed by LIC (govt-backed), bonuses declared annually.
How to Calculate Maturity?
Calculate using LIC premium calculator on licindia.in.
1st Example: YOU (Age 30 Adult)
You buy policy on yourself today at age 30 for family protection + future income.
Coverage Chosen: ₹10 Lakh Basic Sum Assured (BSA)
Your Annual Premium: ₹55,000 for 20 years only (till age 50)
Total You Pay: ₹11 Lakh over 20 years
From Age 51 onwards (payments STOP):
→ Receive ₹80,000 EVERY YEAR automatically till age 100
→ Total income: ₹80K × 50 years = ₹40 Lakh
→ Age 100: Final ₹25 Lakh maturity payout
If you die anytime: Family gets ₹10 Lakh+ immediately
Age 30 Table (₹10 Lakh BSA, 20-year PPT)
| Year | Age | Annual Premium | Cumulative Paid | Family Gets if Death | Yearly Income After Year 20 |
|---|---|---|---|---|---|
| 1 | 30 | ₹55,000 | ₹55,000 | ₹10.15 Lakh | – |
| 3 | 33 | ₹55,000 | ₹1.65 Lakh | ₹10.20 Lakh | – |
| 10 | 40 | ₹55,000 | ₹5.5 Lakh | ₹12 Lakh | – |
| 20 | 50 | ₹55,000 | ₹11 Lakh | ₹18 Lakh | ₹80,000 starts |
| 51 | 81 | ₹0 | ₹11 Lakh | ₹25 Lakh | ₹80,000 |
| 100 | 130 | ₹0 | ₹11 Lakh | ₹25 Lakh maturity | ₹80,000 |
Total Return: ₹11 Lakh paid → ₹65 Lakh+ received (₹40L income + ₹25L maturity)
2nd Example: YOU (Age 0 Newborn)
You buy policy ON your newborn child for their lifetime security.
Child’s Coverage: ₹10 Lakh Basic Sum Assured (BSA)
Your Annual Premium: ₹28,000 for 20 years only (till child age 20)
Total You Pay: ₹5.6 Lakh over 20 years
Child Age 21 onwards (your payments STOP):
→ Child receives ₹80,000 EVERY YEAR automatically till age 100
→ Total income: ₹80K × 80 years = ₹64 Lakh
→ Child Age 100: Final ₹25 Lakh maturity payout
If child dies: You get ₹10 Lakh+ immediately
Newborn Baby Table (₹10 Lakh BSA, 20-year PPT)
| Year | Child Age | Annual Premium | Cumulative Paid | You Get if Child Death | Child Income After Year 20 |
|---|---|---|---|---|---|
| 1 | 0 | ₹28,000 | ₹28,000 | Premium refunded | – |
| 3 | 2 | ₹28,000 | ₹84,000 | ₹10.10 Lakh | – |
| 10 | 9 | ₹28,000 | ₹2.8 Lakh | ₹11 Lakh | – |
| 20 | 19 | ₹28,000 | ₹5.6 Lakh | ₹15 Lakh | ₹80,000 starts |
| 21 | 20 | ₹0 | ₹5.6 Lakh | ₹20 Lakh | ₹80,000 |
| 50 | 49 | ₹0 | ₹5.6 Lakh | ₹25 Lakh | ₹80,000 |
| 100 | 99 | ₹0 | ₹5.6 Lakh | ₹25 Lakh maturity | ₹80,000 |
Total Return: ₹5.6 Lakh paid → ₹89 Lakh received (₹64L income + ₹25L maturity)(Best time to opt this policy)
The premium increases slightly, if u choose this policy after first 90 days of newborn baby.
Age 0-1 year (90 days to 1st birthday): ₹28,000/year
Age 1-2 years: ₹28,000-₹29,000/year
Age 3+ years: Premium starts increasing
Loans, Surrender & Extensions (Flexibility)
Loans from Policy
When? After 2-3 full years premiums.
How much? Up to 85% of surrender value (SV).
Repay? Flexible, interest ~9-10% p.a.
Example: Year 5 balance SV ₹2 lakh, loan ₹1.7 lakh available.
Surrender/Withdrawals
When? Anytime after 2-3 years (full surrender).
How much? Acquired SV (higher of Guaranteed/ Special SV + bonuses).
No partial withdrawals, but death/survival structured.
Policy Continuation After PPT
Maturity: No full maturity till age 100.
Options: Survival benefits continue lifelong; convert to paid-up if premiums missed.
Example: PPT ends year 20, get 8% BSA yearly till death/maturity.
Common Mistakes & Penalties (Avoid these)
Multiple Proposers on One Policy: Invalid, stick to single life.
Miss Premiums: Lapses after 6 months grace, revive within 5 years.
Wrong BSA: Use LIC calculator for affordability.
Jeevan Umang Example Table
(₹10 Lakh BSA, Age 30, 20-year PPT, Est. 5% Bonus)
| Year | Annual Premium (₹) | Cumulative Premiums (₹) | Approx. Surrender Value (₹) | Tax Saved (₹) | Survival Benefit Post-Year 20 (₹) |
|---|---|---|---|---|---|
| 1 | 55,000 | 55,000 | 60,000 | 16,500 | – |
| 2 | 55,000 | 1,10,000 | 1,25,000 | 16,500 | – |
| 3 | 55,000 | 1,65,000 | 1,95,000 | 16,500 | – |
| 4 | 55,000 | 2,20,000 | 2,70,000 | 16,500 | – |
| 5 | 55,000 | 2,75,000 | 3,50,000 | 16,500 | – |
| 10 | 55,000 | 5,50,000 | 8,00,000 | 16,500 | – |
| 15 | 55,000 | 8,25,000 | 13,00,000 | 16,500 | – |
| 20 | 55,000 | 11,00,000 | 18,00,000 | 16,500 | 80,000 yearly, (starts) |
| 25 | – | 11,00,000 | 22,00,000 | 0 | 80,000 |
| 50 | – | 11,00,000 | – | 0 | 80,000 |
| 100 | – | 11,00,000 | 25,00,000 (Maturity) | 0 | 80,000 |
Final Totals
Example considering a baby of age 0, a newborn baby.
Total Premiums Paid: ₹11,00,000
Total Survival Benefits (Years 21-100, 80 years × ₹80,000): ₹64,00,000
Maturity Value at Age 100: ₹25,00,000 (BSA + Vested Bonuses + FAB)
Total Wealth Created: ₹89,00,000+
Total Tax Saved (30% bracket over 20 years): ₹3,30,000.
Tax Savings Table
| Tax Slab | Annual Tax Saved (₹) | Total Tax Saved in 20 yrs (₹) |
|---|---|---|
| 0% (Income ≤ ₹5 lakh) | 0 | 0 |
| 20% (Income ₹5–10 lakh) | 11,000 | 2,20,000 |
| 30% (Income > ₹12 lakh) | 16,500 | 3,30,000 |
This is all about LIC’s Jeevan Umang investment scheme in India.
Excellent explanation. 👍
The details are very clear, well-structured, and easy to understand. You’ve covered eligibility, benefits, taxation, examples, and calculation logic perfectly. This is a comprehensive and accurate overview of LIC Jeevan Umang, especially useful for first-time investors and family planning decisions. Well done.
👍