Beauty of

Jeevan Umang

P Sridhar/DO/Chennai
Umang in a Nutshell

• Umang means “Happiness” or “Enthusiastic”

• This is a Whole Life Non-Linked Plan
• Limited payment With Profits
• Provides for annual Survival Benefits after PPT
till maturity (Age 100) or till earlier death
• Super Duper Hit in a Country like INDIA
PLAN OF THE
CENTURY
 Plan Parametres
• Minimum age at Entry: 90 Days Policy Term: 100 – Age @ Entry
• Premium paying Term: 15/20/25/30 (just 4 Options)
• Max Age @ Entry: 55 (15 PPT), 50 (20 PPT), 45 (25 PPT), 40 (30 PPT)
• Min Age at end of PPT: 30 years Max Age at end of PPT: 70 years
• Minimum Sum Assured: 2,00,000 Max Sum Assured: No Limit
• Sum Assured needs to be in multiples of 25,000
• Modes available: Yearly, Half-yearly, Quarterly, NACH & SSS
• Maturity Age: 100
Riders (Any 3 out of 4 to be chosen)

• Accidental Death & Disasbility Benefit Rider (AD &DB)

• Accidental Benefit Rider (AB)

• Term Assurance Rider

• Critical Illness Rider

Accidental Death & Disability Benefit Rider (AD & DB)

– Covers both Accidental Death as well as Disability Benefit

– Accidental Death of LA entitles the Nominee to receive Additional Sum
Assured
– Disability Benefit provides for Sum Assured in 120 equal instalments
with Premium Waiver
– AD & DB Rider covers the LA till Age 70
– Very much advisable to opt for
Accident Benefit Rider

– This Rider Covers Accidental Death only

– It is available only till the end of the Premium paying Term

Term Assurance Rider
– Can be availed at the inception only

– Payment of Term Assurance Rider Sum assured in the event of death

– Rider Benefit available for a term of 35 years or Age 70 whichever is

earlier
Critical Illness Rider

– This Rider also is available at inception only

– Critical Illness SA is payable if LA is diagnosed with

any of the 15 Critical Illness
Benefits in Jeevan Umang

– DEATH BENEFIT

– SURVIVAL BENEFIT

– MATURITY BENEFIT
Death Benefits
– During the Premium paying Term:
 Sum Assured + Bonus + FAB (if any)

– Death after the Premium paying Term:

 Sum Assured + Bonus (till PPT) +
Differential Bonus (after PPT) & FAB
Survival Benefits
– 8% of the Basic Sum Assured payable every year after PPT

– The 1st instalment becomes payable at the end of PPT

– This SB will continue every year till the LA is alive or till 1 year prior to
maturity (100)
 Maturity Benefit

– When the LA is alive on the date of

maturity (100 years), Sum Assured
together with Bonus and Final Additional
Bonus shall become payable
 Official
Benefit
Illustration
Is
Approved
By IRDA

Let us see
what LIC
has
quoted in
UMANG
Age 30 845/15 1 Crore
For 1 Cr SA, LIC quotes
11.43 Crs as Returns
Paid-up Value
– If minimum 3 full years’ premiums have been paid & any
subsequent premiums be not duly paid, the policy shall continue
as PAID-UP till the end of the Policy Term
– Let us see what is a Fully Paid-up Policy and Paid-up Policy….
– Fully Paid-up Policy is the one in which all the Premiums have been
paid
– Paid-up Policy is the one in which all premiums have NOT been
paid
– Fully Paid-up Policy gets all Benefits in the Policy
– Paid-up Policy gets reduced Benefits
 First Time in the History of L.I.C
Bonus and Final Additional Bonus
are Provided For Paid Up Policies
For the Rest of the Policy Term
Death Cover under a Paid-up Policy
– It is referred to as “Death Paid-up Sum Assured”
– How is it calculated?
– It’s a Simple Formula
– (No. of Yrs Premiums paid/ No. of Yrs Premiums payable) X Sum Assured

– Let us see an Example. Sum Assured is 10 Lacs with a PPT of 20 years; Policy
became paid-up after 5 years.
– Death Paid-up Sum Assured = (5/20) x 10,00,000 = Rs.2,50,000
– Bonus accrued for 5 years is also paid along with Death Paid-up Sum Assured
– After PPT, reduced Bonus is available. FAB is also available
Maturity under a Paid-up Policy
– It is referred to as “Maturity Paid-up Sum Assured”
– This is also calculated in the same way as “Death Paid-up Sum Assured”
– (No. of Yrs Premiums paid/ No. of Yrs Premiums payable) X Sum Assured

– Let us see an Example. Sum Assured is 10 Lacs with a PPT of 20 years;

Policy became paid-up after 5 years.
– Maturity Paid-up Sum Assured = (5/20) x 10,00,000 = Rs.2,50,000
– Bonus accrued for 5 years also gets added to Maturity Paid-up Sum Assured
– After PPT, reduced Bonus available. FAB is also available
Survival Benefit in a Paid-up Policy

– This is a New Feature which is NOT available in regular Money back Plan
– If Maturity Paid-up Sum Assured is 2 Lacs & above, SB is payable
– This is Undoubtedly a Wonderful feature which benefits Lapsed PHs too

– Let us see an Example. Sum Assured is 10 Lacs with a PPT

of 20 years; Policy became paid-up after 5 years.
– Maturity Paid-up Sum Assured = (5/20) x 10,00,000 = Rs.2,50,000
– Survival Benefit of Rs.20000 per annum goes to the LA from
20th year till 100 years
 Paying
For
Full Premium Paying Term
Gives
Full Survival Benefits
Full Death Benefits
Full Maturity Benefits
Loan in Jeevan Umang
• Loan available after atleast 3 full years’ premiums have been paid

• Loan during the premium paying term:

• For inforce policies: Upto 90% of Surrender Value

• For paid-up policies: Upto 80% of Surrender Value

• Loan after the premium paying term:

• The Annual Loan Interest should NOT exceed 50% of the Annual Survival Benefit
• For example, SA: 1 Crore. SB: 8 Lacs. Maximum Loan is 40 Lacs only as Loan interest
@ 10% cannot exceed 4 Lacs which is 50% of annual SB
• If Loan interest is NOT paid on due dates, it would be deducted from SB amount
Surrender Value

• Available anytime provided atleast three full years’

premium have been paid

• Guaranteed Surrender Value

• Special Surrender Value

Guaranteed Surrender Value

• GSV is a concept based on Premium paid

• It shall be a Percentage of total premiums paid
• Depends on Policy Term & year of surrender
• Some Percentage of Bonus is also payable
• GSV Factors have to be referred in Circular
• This is the Basic Minimum Surrender Value
Special Surrender Value

• SSV is a concept which is based on Sum Assured

• LIC would be paying SSV if it is higher than GSV

• SSV during premium paying term

• SSV after premium paying term

SSV during premium paying term

• Available both for Inforce & paid up Policies

• SSV Factors are given in Plan Circular

SSV = SSV Factor x (Maturity Paid SA + Bonus)
SSV after premium paying term

• For fully Paid-up policy

– 90% (Basic SA + Bonus + FAB)

• For Paid-up policy

– 90% (MSA + Bonus + FAB)
Bonus & FAB in Jeevan Umang
– During the premium paying Term
Inforce Policies are eligible for full Bonus as declared by LIC
Final Additional Bonus for Inforce Policies are also in full
Paid-up Policies are NOT eligible for Future Bonus declarations
FAB is also not payable for Paid-up during Premium paying Term
_ After the premium paying Term
Bonus and FAB are available for fully paid-up Policies
If Maturity paid-up SA is 2 Lacs & more, such Pols too are eligible for Bonus & FAB
Bonus would be on a differential scale as per LIC’s experience
Let us work some examples
How can we sell Jeevan Umang?

• YEARLY Pension Plan

• MONTHLY Pension Plan

YEARLY PENSION PLAN
 Yearly 12 Lacs Pension

• Age: 30 845/15 1,50,00,000 Annual Prem: 12,02,178

– Survival Benefit @ 12,00,000 every year from Age 45 to 99

– Maturity Benefit @ Age 100 = 10,65,00,000

• Sum Assured : Rs.1,50,00,000

• Bonus & FAB : Rs.9,15,00,000
(Before & after PPT)

Total Premium payable = Rs. 1,76,70,294

Amount Receivable = Rs.17,25,00,000
NET GAIN = Rs.15,48,29,706
Yearly Pension Plan (Death Cover)
Age:30 845/15 1,50,00,000
AGE DEATH COVER (Basic)
40 2,40,00,000
50 3,18,00,000
60 5,17,50,000
70 9,30,00,000
80 9,75,00,000
90 10,20,00,000
100 10,65,00,000
Yearly Pension Plan (Accident Cover)
Age:30 845/15 1,50,00,000

DEATH COVER
AGE
(Accident)
40 3,40,00,000
50 4,18,00,000
60 6,17,50,000
70 10,30,00,000
80 9,75,00,000
90 10,20,00,000
100 10,65,00,000
 Yearly 6 Lacs Pension Plan
• Age: 30 845/20 75,00,000 Annual Prem: 4,13,890

– Survival Benefit @ 6,00,000 every year from Age 50 to 99

– Maturity Benefit @ Age 100 = 6,01,87,500

• Sum Assured : Rs. 75,00,000

• Bonus & FAB : Rs.5,26,87,500
(Before & after PPT)

Total Premium payable: Rs.81,08,491

Amount Receivable: Rs.8,26,87,500
NET GAIN: Rs.8,19,579,009
Yearly 6 Lacs Plan(Death Cover)
Age:30 845/20 75,00,000

AGE Death Cover (Basic)

40 1,16,25,000
50 1,62,75,000
60 2,60,62,500
70 4,65,00,000
80 4,85,62,500
90 5,06,25,000
100 5,26,87,500
Yearly 6 Lacs Plan (Accident Cover)
Age:30 845/20 75,00,000

AGE Death Cover (Accident)

40 1,91,25,000
50 2,37,75,000
60 3,35,62,500
70 5,40,00,000
80 4,85,62,500
90 5,06,25,000
100 5,26,87,500
 Yearly Pension Plan 4 Lacs
• Age: 30 845/25 50,00,000 Annual Prem: 2,01,664

– Survival Benefit @ 4,00,000 every year from Age 55 to 99

– Maturity Benefit @ Age 100 = 3,46,25,000

• Sum Assured : Rs. 50,00,000

• Bonus & FAB : Rs.2,96,00,000
(Before & after PPT)

Total Premium payable: Rs.49,37,392

Amount Receivable: Rs.5,26,25,000
NET GAIN: Rs.4,76,87,608
Yearly 4 Lacs Pension (Accident Cover)
Age:30 845/25 50,00,000

AGE Death Cover (Accident)

40 1,25,00,000
50 1,53,50,000
60 2,23,75,000
70 3,58,75,000
80 3,21,25,000
90 3,33,75,000
100 3,46,25,000
Yearly 4 Lacs Pension (Death Cover)
Age:30 845/25 50,00,000

AGE Death Cover (Basic)

40 75,00,000
50 1,03,50,000
60 1,73,75,000
70 3,08,75,000
80 3,21,25,000
90 3,33,75,000
100 3,46,25,000
Yearly 2 Lacs Pension Plan
• Age: 30 845/30 25,00,000 Annual Prem: 79,705

– Survival Benefit @ 2,00,000 every year from Age 60 to 99

– Maturity Benefit @ Age 100 = 1,75,00,000

• Sum Assured : Rs. 25,00,000

• Bonus & FAB : Rs.1,50,00,000
(Before & after PPT)

Total Premium Payable: Rs.23,41,356

Amount Receivable: Rs.2,25,00,000
NET GAIN: Rs.2,01,58,644
Yearly 2 Lacs Pension (Death Cover)
Age:30 845/30 25,00,000

AGE Death Cover (Basic)

40 37,25,000
50 51,25,000
60 89,25,000
70 1,56,62,500
80 1,62,75,000
90 1,68,87,500
100 1,75,00,000
Yearly 2 Lacs pension (Acc Cover)
Age:30 845/30 25,00,000

AGE Death Cover (Accident)

40 62,25,000
50 76,25,000
60 1,14,25,000
70 1,81,62,500
80 1,62,75,000
90 1,68,87,500
100 1,75,00,000
MONTHLY PENSION PLAN
 UMANG as a Monthly Pension Plan

• Suggest Client to take UMANG every month

• From April to March on 1st day of the month (12 Policies)
• Dating back Option can be used if any month gets missed
• Terms can be 15/20/25/30
• At the end of the PPT, every Policy would start providing SB @ 8%
of the Sum Assured
• 12 Policies from APRIL to MARCH ensures that the Client would
be getting MONTHY PENSION (Life Long) after PPT till Age 100
 Monthly 1 Lac Pension Plan
12 Pols of 845/15 for 12.5 Lacs each
D.O.C. Sum Assured
01.04.2019 12,50,000
01.05.2019 12,50,000
01.06.2019 12,50,000
01.07.2019 12,50,000
01.08.2019 12,50,000
Total S.A.
01.09.2019 12,50,000
1.5 Crore
01.10.2019 12,50,000
01.11.2019 12,50,000
01.12.2019 12,50,000
01.01.2020 12,50,000
01.02.2020 12,50,000
01.03.2020 12,50,000
See the Magical Monthly Returns

Date of S.B. Monthly Tax-Free

(Every Month) Income
01.04.2034 1,00,000
01.05.2034 1,00,000
01.06.2034 1,00,000 1 Lakh
01.07.2034 1,00,000 Monthly
01.08.2034 1,00,000 Guaranteed
01.09.2034 1,00,000 Till Age:100
01.10.2034 1,00,000 of the
01.11.2034 1,00,000 Customer
01.12.2034 1,00,000
01.01.2035 1,00,000
01.02.2035 1,00,000
01.03.2035 1,00,000
Monthly Pension & Sum Assured
Monthly Per Policy Sum Assured
Pension to be taken for
Requirement 12 months
50,000 6,25,000
26,000 3,25,000
20,000 2,50,000
16,000 2,00,000
Reason 1

• Jeevan Umang is the ONLY PLAN available

for both Savings as well as Retirement
Planning. Once the PPT is over, the Client
is free to decide whether he needs BULK
MONEY at that time. If NOT, he can
continue it for RETIREMENT PROVISION
Reason 2

• Guaranteed Annuity @ 8% of Sum

Assured till Age 100 ensures Money Flow
to the Customer in his/her rainy days.
In this era of Uncertain and falling interest
regime any Portfolio which gives
guarantee needs to be SOLD Left & Right
Reason 3

• Higher Cover from Day-1 which keeps

increasing year-after-year that matches
with the rising Economic Value of the
Client during his active working years
Reason 4

• Only Whole Life Plan in our Country with

Unbelievable HUGE/SKY-ROCKETING Risk
Cover which would touch 6 times of the
Sum Assured at advanced ages. This can
be the BEST ASSET CREATION for our
dependents
Reason 5

• No Plan in the History of LIC allowed

Bonus and FAB once it has become
paid-up. Such a marvelous feature
ensures that Policyholders get a
reasonable deal from JEEVAN UMANG
Reason 6
• No other Single Portfolio in our Country can
ensure Guaranteed Tax-free Liquidity, Huge Risk
Cover till Age 100, participation in profits for
paid-up policies too, Emergency Loan facilities
anytime till age 100, Surrender option etc.
Its an ALL-IN-ONE Concept
 Few Marketing Slogans….

• Pay 1 Lac pm for 15 years to get back 1 Lac pm Pension LIFE LONG
tax free with a Huge Maturity of 10 Crores with equal risk cover
• Pay 34000 pm for 20 Yrs to get back 50000 pm Pension Life Long
till age 100 tax free with a Maturity of 6 Crores
• Pay 17000 pm for 25 Yrs to get back Double the amount 34000
pm as Pension Life Long with a Maturity of 3.46 Crores
• Pay 6600 pm for 30 Yrs to get back 16600 pm as Pension Life Long
with a Maturity of 1.75 Crores
Why Pension is needed?

• No proper Social Security Scheme

• We cannot always work as stamina decreases
• Average Life Expectancy keeps increasing
• We need to have an Independent Life
• We need to have a Secured Future
Govt of India Statistics on Pension

Population with pension : 3.55%

Population without pension: 96.45%

 WORLD INTEREST RATES
Name of the Country Rate of Interest %
U.S.A. 2.00
U.K. 0.50
JAPAN -0.10
CHINA 4.00
RUSSIA 7.25
AUSTRALIA 1.50
BRAZIL 6.50
INDONESIA 5.25
FRANCE 0.00
SWITZERLAND -0.75
Call it PENSION or anything else
 P. Sridhar/DO/Chennai
9384854925/8825576676