LIC offers various plans for people of all ages, including children, the elderly, women, and youth. Among these products are those that guarantee regular income throughout life. One such plan is LIC Jeevan Umang, which provides the recipient with a guaranteed income until the age of one hundred.
By purchasing this plan with an insurance cover of 500,000 rupees, the client can receive an annual income of 40,000 rupees for life.
Like government savings schemes managed by post offices, investing in LIC plans is considered a safe option. Specifically, the LIC Jeevan Umang policy guarantees income receipt until the age of one hundred.
When taking out the LIC Jeevan Umang plan, one can choose the premium payment period, which is 15, 20, 25, or 30 years. The minimum basic insurance amount that can be taken out is 200,000 rupees. This plan provides an annual payout benefit equal to 8% of the basic insurance amount, which is paid to the recipient until age 100. Furthermore, if the policyholder dies before reaching 100 years of age, the heir receives a lump sum that can be received in installments.
To understand the mechanism of receiving lifelong income under the LIC Jeevan Umang plan, consider an example. If a person aged 26 takes out a Jeevan Umang insurance cover of 500,000 rupees and chooses a payment term of 30 years, according to calculations, they will need to pay approximately 4.81 rupees as a premium. The annual premium will be 16,047 rupees, semi-annual 8,112 rupees, quarterly 4,100 rupees, and monthly only 1,367 rupees, which is equivalent to about 45 rupees per day.
After the premium payment period ends, i.e., at age 56, the recipient will start receiving 40,000 rupees annually, corresponding to 8% of the total insurance amount of 500,000 rupees, and this income will continue until age 100.
If the premium amount required to take out a 500,000 rupee cover is divided by the daily base, it becomes clear that to receive a lifelong income of 40,000 rupees per year, the client will have to pay an annual premium of 16,047 rupees, semi-annual 8,112 rupees, quarterly 4,100 rupees, and monthly 1,367 rupees, which is about 45 rupees per day.
In addition to the guarantee of lifelong income, the LIC Jeevan Umang policy provides additional benefits, among which the tax deduction is important for the popularity of this product. When taking out this plan, one can utilize a tax deduction in accordance with section 80C of the income tax.