LIC’s cool plan
Every person wants that his hard-earned money of his entire life should be invested in such a place where there is no fear of stock market fluctuations. Keep getting a fixed income and live a happy old age. If you are also looking for such a safe investment, then two plans of Life Insurance Corporation of India (LIC), ‘Jeevan Umang’ and ‘Jeevan Utsav’ can be a great option for you. Both of these are Whole Life Plans, which give you risk cover till the age of 100 years. But the big question is which of these policies is more powerful for you? Let us understand the complete mathematics of these two.
enthusiasm for life
LIC’s Jeevan Umang Plan has been designed for investors who want a safe investment for the long term. Any person between 0 to 55 years can take this policy. Starting with a minimum sum assured of Rs 2 lakh, there is no limit on the maximum investment. In this, you get the option to pay premium for 15, 20, 25 or 30 years as per your convenience.
The biggest feature of this plan is its payout. As soon as your premium paying period ends, you get 8% of the sum assured every year for the entire life of your account without any gap. In case of sudden need of money, you can take a loan or surrender it only after one year of inception of the policy. At the same time, in the absence of the policyholder, the nominee gets a huge fund of bonus and final addition bonus (FAB) along with the basic sum assured.
celebration of life
If you want more regular income by paying premiums for a shorter period, then ‘Jeevan Utsav’ can be a great strategy. It can be taken by a person aged between 0 to 65 years, whose minimum sum assured is Rs 5 lakh. The premium payment period in this plan is only between 5 to 16 years.
This policy is quite attractive in terms of returns. 10% of the sum assured starts being credited to your account every year, starting two years after the completion of the premium paying term. In this, loan and surrender facility is available after 2 years. If any untoward incident happens to the policyholder, the family is paid a ‘Guaranteed Addition’ along with the sum assured.
Understand with an example where you will get the benefit
Suppose you are 35 years old and you take a sum assured policy of Rs 10 lakh for the secure future of your 8 year old child. You have chosen a premium term of 15 years.
If you choose ‘Jeevan Umang’, you will have to pay a premium of Rs 81,774 annually. Your total investment in 15 years will be approximately Rs 12.26 lakh. From the time your child turns 23 years old, till the age of 100 years, he will continue to get Rs 96 thousand every year. If the policyholder dies at the age of 50, the nominee will get a huge corpus of around Rs 56 lakh including bonuses.
Whereas, if you choose ‘Jeevan Utsav’, your annual installment will reduce and will be Rs 66,173. Your total investment in 15 years will be around Rs 9.92 lakh. After this, when the child turns 25, he will get Rs 1 lakh every year till he turns 100. However, in case something untoward happens at the age of 50, the nominee will get a death benefit of around Rs 16 lakh.
Also read- LIC’s great scheme: You will get Rs 20 lakh by depositing Rs 166 daily
