GoldmanSachs in their research article on millennials “Insights”published in https://www.goldmansachs.com/insights/archive/millennials/ concludes that” Millennials are exercising more, eating smarter and smoking less than previous generations. They are using apps to track training data and online information to find the healthiest foods. And this is one space where they are willing to spend money on compelling brands. For millennials,” healthy” does not mean “not sick”. It’s daily commitment to eating right and exercising. They disapprove of people 18 yrs or older “smoking one pack of cigarettes per day” and “taking one or two drinks nearly every day”
ANI South Asia’s leading Multimedia News Agency in their article published https://www.aninews.in/news/business/indias-millennials-spending-more-responsibly-borrowed-most-for-home-repair-medical-emergencies20210217130240/ in on Feb 17 ,2021 writes that “ A growing sense of responsible spending among Indian millennials is the biggest driver for instant loan applications.”
https://www.macrotrends.net/countries/IND/india/life-expectancy as per analysis of United Nations – World Population Prospects projects an increase of life expectancy. As per the study life expectancy in 2022 is 70.19. In every year life expectancy has an increasing trend compared to previous year.
In this context, it is a matter of concern for millennials to build assets that provides recurring income for long term preferably for 100 years. LIC’s 100 years plan – Jeevan Umang can do just that.
LIC’s Jeevan Umang Plan will change your life (Plan No.945)(UIN:512N312V01)
Read about A Financial plan that went awry
Amit is a trusted, hard-working, and competent employee of Brand India Ltd. His family is composed of his wife and two sons. He was not financially very solvent.
The dream of Amit and his wife Gita is to bring up their two sons professionally qualified so that they become well settled in life. The two sons grew up as two bright students and got admitted to Jadavpur Engineering College in Computer Science and Chemical Engineering respectively. Both passed out of the college and got placed in reputed Multinational firms. Both were placed overseas. In the meanwhile, Amit turned sixty years and retired from service. During his tenure of service, he took loans from Bank and withdrew from Provident Fund repeatedly to pay for the education of his sons. He had little savings. He retired with his gratuity without any pension.
Financially as long as their two sons were sending money to their parents back home situation remained good. Suddenly Amit was detected with blood cancer and in the course of his treatment, most of his gratuity got exhausted. In the meanwhile, both the sons got married subsequently. Monthly expenditure to meet the treatment cost ran high. The parents became hand to mouth and their sons stopped sending money.
Does such a life situation bother you? Do you have a solution if you are faced with a similar situation in life? If you have an answer then you need not read further, but if you haven’t then read below for a plausible solution.
Any future financial distress can be avoided by implementing a better financial plan
A pension or a policy like Jeevan Umang had it been taken by foresight for Amit subject to availability from a dependable insurer would have been a financial asset to offset the financial disequilibrium currently faced by the couple. In other words, you may conclude that Jeevan Umang is a desirable financial asset to own that promises yearly income at a specified rate and a cash estate for dependents
Eligibility for Jeevan Umang policy
Jeevan Umang can be taken from ages 90 days to 55 years. This plan is a combination of protection for the family and tax-free income for the breadwinner
Policy term
This is the 100-year plan of LIC.
Easy premium payment terms
The premium paying term is 15,20,25 and 30 years.
When does the policy mature?
Age at maturity is 100 years and policy terms are 100- the age at entry of policyholder.
Convenient premium payment options
The mode of payment for premium is Yearly, Half-yearly, Quarterly, Monthly (NACH).
Restrictions in the plan
There is a restriction on the maximum age at entry for premium paying terms (PPT) 15,20,25 and 30 years as 55(nearer birthday) for PPT 15,50(nearer birthday) for PPT 20,45(nearer birthday) for PPT 25, and 40 (nearer birthday) for PPT 30 respectively.
When does risk cover start?
Risk cover commences immediately from age 8 years onwards but has a waiting period for commencement of risk when age is below 8 years.
When does the payback period of the plan start and how much is credited?
After the final payment of premiums, or in other words, completion of the premium payment term, the policy will credit 8% of the Sum Assured every year to the bank account of the policyholder.
What is the maturity amount credited by the policy?
On attaining the age of 100 years the policy will credit to the bank account of the policyholder the Maturity Benefit which is equal to Sum Assured on Maturity plus vested Reversionary Bonus and Final Additional Bonus
What is the death benefit?
In the event of death after commencement of Risk, Death Benefit equal to Sum Assured on Death plus vested Reversionary Bonus plus Final Additional Bonus will be credited to the bank account of the beneficiary or beneficiaries of the policy.
Some other optional benefit that may be added within the plan at an additional charge
Additionally, by preference, the policyholder may opt for LIC’s Accidental Death and Disability Benefit Rider(UIN:512B209V02),LIC’s Accident Benefit Rider(UIN:512B203V03),LIC’s New Term Assurance Rider(UIN:512B210V01),LIC’s New Critical Illness Benefit Rider(UIN:512A212V01) and LIC’s Premium Waiver Benefit Rider(UIN:512B204V03).
You may make use of our Jeevan Umang Plan calculator to make a guesstimate. You may try it 100% risk-free before you invest in the plan.
Finally, a life insurance plan with a total premium paid that is 30 to 15% less than the sum assured and in which savings multiply. LIC's Jeevan Labh Plan(Plan No.936) (UIN No.512N304V02) is a good plan to start your life insurance planning with.
All millennials may not be in a position to decide on a life insurance plan for their whole life. But they may be in a position to decide on a plan for a shorter term but sufficiently long to cover a major part of their lives
Easy Premium payment terms. Premium payment term is less than policy term
Jeevan Labh is a unique life insurance plan with premium payment terms of 10 years for policy term 16 years, 15 years for policy term 21 years, and 16 years for policy term 25 years.
The policy is available for children and adults
The policy may be taken for children whose age is 8 years completed, to persons whose age is 59 years (nearer birthday) for policy term 16 years,54 years (nearer birthday) for policy term 21 years, and 50 years (nearer birthday) for policy term 25 years.
All preferable premium payment mode is allowed
The mode of payment for premium is Yearly, Half-yearly, Quarterly, Monthly (NACH).
Some restrictions
There is a restriction on the maximum age at entry for the plan.59 years (nearest birthday for policy term 16 years,54 years(nearest birthday) for policy term 21 years, and 50 years(nearest birthday) for policy term 25 years.
Maturity Benefit
On completion of the policy term maturity benefit of the policy is payable. Maturity benefit equals to Sum Assured on Maturity plus vested Reversionary Bonuses plus Final Additional Bonus if any.
Death Benefit
In between the date of commencement of risk and the date of maturity of the policy in the event of death of the policyholder, the Death Benefit is equal to the Sum Assured on Death plus vested Reversionary Bonuses is payable.
Money available at times of crisis
The plan takes care of the liquidity needs through policy loans provided at least two full years of premiums have been paid.
Policyholders can exercise the choice to receive the Maturity benefit in instaments or in settling of Death benefit claim to a nominee(s) in instalment modes
The policyholder may exercise an option to receive a Maturity Benefit in instalments over a chosen period of 5 or 10 or 15 years payable monthly or quarterly or half-yearly or yearly. Similarly, the policyholder may opt for payment of the Net Claim Amount in the event of death of the policyholder to be settled instead of the lump sum amount by instalment matching to as payable for Death Claims. Obviously, in both cases, the total payment amount will be higher than the lump sum amount paid as an additional interest is paid along with the instalments.
Additional preferences
Additionally, by preference, the policyholder may opt for LIC’s Accidental Death and Disability Benefit Rider(UIN:512B209V02),LIC’s Accident Benefit Rider(UIN:512B203V03),LIC’s New Term Assurance Rider(UIN:512B210V01),LIC’s New Critical Illness Benefit Rider(UIN:512A212V01) and LIC’s Premium Waiver Benefit Rider(UIN:512B204V03.
LIC’s Reversionary Bonus rates declared as a result of valuation as on 31.03.2021 per Rs.1000 Sum Assured for Jeevan Labh (Table No.936) policies
PREMIUM PAYMENT TERM | 10 | 15 | 16 |
POLICY TERM | 16 | 21 | 25 |
REVERSIONARY BONUS | 40 | 44 | 47 |
You may make use of our Jeevan Labh Plan calculator to make a guesstimate. You may try it 100% risk-free before you invest in the plan.
Guaranteed Bima Jyoti plan (UIN:512N339V02) the guiding light to Life Insurance savings
“Jyoti” in Sanskrit means “divine light”,” radiance”, and “brightness”. “Bima Jyoti” by its grace and brightness delivers the drifters in the path of savings and insurance to the path of light and freedom by removing all bars that prevent them from shining in wealth.
Few people are able to see the merit of saving through life insurance. Largely, they do not see themselves as a “life” and therefore do not envisage the uncertainties in time. Many a time policyholders try to investigate whether the amount promised by life underwriters is fixed in advance. It is uncertain in the case of LIC’s with-profit plans declaring bonuses year after year based on the experience of the Corporation. “ Bima Jyoti” has no iota of uncertainty as far payment amounts are concerned except the uncertainties in time in sending payment depending on the uncertainty of the “life”. LIC has committed itself in this plan to the amount to be paid. Rather it has taken a risk as the future investment experience of the Corporation is uncertain. Maybe it is taking a calculated risk. These plans may not be affordable by LIC in near future. Therefore, as the saying goes “make hay while the sun shines”. This plan may be considered a beacon light of life insurance.
Eligibility to own the plan
Children aged “90” days to adults aged 60 years (nearer birthday) are eligible to engage with this plan.
Make a pick of your preferable Policy term
The policy term varies from 15 to 20 years. In other words, policy terms can be 15,16,17,18,19, and 20 years.
Policy Premium payment term
Premium payment term equals to policy term less 5.
Some restrictions
The minimum maturity age is 18 years (completed birthday) and the maximum maturity age is 75 years (nearer birthday).
Under certain conditions maximum maturity age is restricted to 65 years (nearer birthday).
Guaranteed Additions
When policy is in force by payment of due premiums, Guaranteed Addition at the rate of Rs 50 per thousand Basic Sum Assured will be added to the policy at the end of each policy year.
Maturity benefit
Maturity Benefit is equal to “Sum assured at Maturity” plus Guaranteed Additions.
Death benefit
Death Benefit after commencement of risk is equal to “Sum assured at Death” plus Accrued Guaranteed Additions.
“Sum assured at Death” is technically defined as higher of basic sum assured or 7 times the annualised premium. Under this condition, the death benefit shall not be 105% of the total premiums paid.
Under circumstances, where death occurs before the commencement of risk , the return of premiums is paid excluding taxes and extra premiums.
Money available at times of crisis
The plan takes care of the liquidity needs through policy loans provided at least two full years of premiums have been paid.
Policyholders can exercise the choice to receive Maturity benefit in instalments or in settling of Death benefit claim to a nominee(s) in instalment modes
The policyholder may exercise an option to receive a Maturity Benefit in instalments over a chosen period of 5 or 10 or 15 years payable monthly or quarterly or half-yearly or yearly. Similarly, the policyholder may opt for payment of the Net Claim Amount in the event of death of the policyholder to be settled instead of the lump sum amount by instalment matching to as payable for Maturity Claims. Obviously, in both cases, the total payment amount will be higher than the lump sum amount paid as an additional interest is paid along with the instalments.
Additional preferences
Additionally, by preference, the policyholder may opt for LIC’s Accidental Death and Disability Benefit Rider(UIN:512B209V02),LIC’s Accident Benefit Rider(UIN:512B203V03),LIC’s New Term Assurance Rider(UIN:512B210V01),LIC’s New Critical Illness Benefit Rider(UIN:512A212V01) and LIC’s Premium Waiver Benefit Rider(UIN:512B204V03.
You may make use of our Bima Jyoti Plan calculator to make a guesstimate. You may try it 100% risk-free before you invest in the plan.
