LIC Jeevan Umang 745 vs LIC Jeevan Utsav 771 – Life Insurance Corporation (LIC) offers two popular income-generating plans designed to provide guaranteed income, flexibility, and robust coverage options—LIC Jeevan Umang 745 and LIC Jeevan Utsav 771. These plans cater to different customer needs, particularly in terms of policy term, premium payment flexibility, entry age, and unique features. In this article, we will compare these two plans in-depth to help potential policyholders determine the best option for their financial goals.
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Overview of LIC Jeevan Umang 745
LIC Jeevan Umang 745 is a whole-life policy that offers a guaranteed annual income in the form of a simple reversionary bonus and a final additional bonus. Commonly known as the “100-year plan,” Jeevan Umang is ideal for individuals seeking lifelong income security. Policyholders receive an 8% annual payout on the sum assured, a considerable benefit for those looking at a regular income stream throughout their lifetime.
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Key Features of LIC Jeevan Umang 745:
- Entry Age: Minimum entry age is 30 days (previously 90 days), while the maximum entry age is 55 years.
- Premium Payment Term: 15, 20, 25, or 30 years, depending on the policyholder’s age.
- Income Benefit: 8% of the sum assured annually, payable from the end of the premium payment term for the policyholder’s lifetime.
- Bonus Structure: Offers vested simple reversionary and final additional bonuses.
- Loan Facility: Loans are available after one policy year.
- Surrender Value: Can surrender after one year, unlike the previous two-year requirement.
Overview of LIC Jeevan Utsav 771
LIC Jeevan Utsav 771 is a guaranteed income plan with a short premium payment term, ideal for individuals who do not wish to commit to long-term premium payments. Policyholders can choose a term as short as five years. This plan includes both a Regular Income Benefit and a Flexible Income Benefit, with guaranteed annual payouts beginning after a deferment period, which can be advantageous for younger policyholders planning for future income needs.
Key Features of LIC Jeevan Utsav 771:
- Entry Age: Minimum entry age is 30 days; maximum entry age is 65 years.
- Premium Payment Term: Flexible, ranging from 5 to 16 years.
- Income Benefit: 10% of the sum assured as Regular Income Benefit or a compounding amount with the Flexi Income Benefit.
- Deferment Period: Applicable for income benefits based on the policy term.
- Loan Facility: Loans are available after one year of policy completion.
- Surrender Value: Policyholders can surrender after one year.
Also see: LIC Bima Jyoti Plan 760 Details
Detailed Comparison
| Feature | LIC Jeevan Umang 745 | LIC Jeevan Utsav 771 |
|---|---|---|
| Plan Type | Whole-life plan with lifelong income | Short-term guaranteed income plan |
| Entry Age | 30 days – 55 years | 30 days – 65 years |
| Premium Payment Term | 15, 20, 25, 30 years | 5 – 16 years |
| Premium Ceasing Age | 70 years | 75 years |
| Sum Assured | Minimum ₹2 lakh; no maximum limit | Minimum ₹5 lakh; no maximum limit |
| Income Benefit | 8% of sum assured annually | 10% of sum assured or Flexi Income Benefit |
| Bonus | Vested reversionary bonus and final bonus | Not applicable |
| Deferment Period | No deferment | Two-year deferment on 15-year policies |
| Loan Facility | Available after 1 year | Available after 1 year |
| Surrender Value | Surrender after 1 year | Surrender after 1 year |
Also see: LIC Jeevan Utsav Plan 771 Details
Income Benefit and Policy Illustration
LIC Jeevan Umang 745 – Lifetime Income Example
With LIC Jeevan Umang 745, the income benefit begins after the premium payment term ends. For example, for a policyholder with a ₹10 lakh sum assured, an annual payout of 8% or ₹80,000 will be provided, continuing for the lifetime of the policyholder.
- Premium Payment: If the policy term chosen is 15 years, the premium in the first year is approximately ₹84,449 (inclusive of GST). From the second year onward, the premium reduces slightly to ₹82,630.
- Income Generation: From the 15th year, the policyholder starts receiving ₹80,000 annually as survival benefit.
LIC Jeevan Utsav 771 – Short-term Guaranteed Income Example
LIC Jeevan Utsav 771 provides a Regular Income Benefit and a Flexi Income Benefit option, with payouts beginning after a deferment period. A policy with a sum assured of ₹10 lakh would generate ₹1 lakh annually under the Regular Income Benefit. With the Flexi Income Benefit, the policyholder may defer income to accumulate compounding benefits.
- Premium Payment: For a policy term of 15 years, the premium in the first year is around ₹68,866. It reduces to ₹67,383 in subsequent years.
- Income Generation: The policyholder begins receiving ₹1 lakh annually from the 18th year.
Also see: LIC Jeevan Anand Plan 715 Details
Death Benefits and Risk Cover
Both plans offer risk cover, with death benefits differing based on accidental or natural death.
LIC Jeevan Umang 745
- Death Benefit (Example): If the policyholder dies at 45 years, the nominee receives a sum assured plus bonuses totaling ₹18,75,000. In case of accidental death, the payout increases to ₹28,75,000.
- Additional Benefit: If the policyholder has started receiving survival benefits and passes away at 60, the nominee would receive ₹33,82,500 with the death benefit rider.
LIC Jeevan Utsav 771
- Death Benefit (Example): If a policyholder dies at 45, the nominee receives ₹16 lakh for natural death or ₹26 lakh for accidental death, with consistent benefits across the policy term.
- Flexibility: The cash value increases over time, allowing for potential withdrawals or policy termination if required by the policyholder.
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Riders for Enhanced Coverage
Both plans offer optional riders, including:
- Double Accidental Benefit Rider – Provides an enhanced sum in the case of accidental death.
- Accidental Death and Disability Benefit Rider – Covers disability along with death benefits.
- Premium Waiver Benefit – Waives future premiums under certain conditions.
- New Term Assurance Rider – Offers an additional sum assured during the policy term.
These riders provide flexibility to policyholders in customizing their coverage and benefits according to personal needs.
Comparison of Surrender and Loan Options
Both Jeevan Umang 745 and Jeevan Utsav 771 allow policyholders to surrender their policies or avail of loans after completing one year, making them relatively flexible compared to traditional policies.
- Surrender Value: With recent changes, policies can now be surrendered after one year, providing liquidity to policyholders if needed.
- Loan Facility: Available after one policy year, making both plans financially adaptable in case of emergencies.
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Key Differences: LIC Jeevan Umang 745 vs LIC Jeevan Utsav 771
- Income Duration: LIC Jeevan Umang offers a lifelong income, while Jeevan Utsav provides short-term benefits with a flexible premium term.
- Flexibility in Payment Term: Jeevan Utsav offers shorter payment terms (as low as five years), while Jeevan Umang requires longer-term commitments, making it suitable for individuals with a longer-term outlook.
- Entry Age Limit: Jeevan Utsav accommodates a broader entry age, making it accessible to older individuals, while Jeevan Umang has a maximum entry age of 55.
- Risk Cover Differences: Jeevan Umang’s risk cover increases with bonuses, whereas Jeevan Utsav provides a fixed risk cover with consistent guaranteed additions.
Also see: LIC New Policy on Premium Refunds for Lapsed Policies in Moradabad
Important Links
| lic jeevan umang 745 | official link |
| LIC Jeevan Utsav 771 | official link |
Conclusion: Which Plan to Choose?
LIC Jeevan Umang 745 is ideal for individuals seeking lifelong income with a stable 8% return and is suitable for younger investors with a long-term perspective. It provides considerable death benefits, accumulated bonuses, and a steady income stream, making it a good choice for retirement planning and legacy creation.
LIC Jeevan Utsav 771 appeals to those looking for a short premium-paying period with guaranteed income benefits. It’s particularly beneficial for policyholders close to retirement age or those who want flexible income options without a long-term premium commitment. The deferment and compounding options in the Flexi Income Benefit offer growth potential for future income.
Ultimately, the decision between LIC Jeevan Umang 745 and LIC Jeevan Utsav 771 depends on your financial goals, age, and preferred commitment term.
FAQs
Which policy is better for retirement planning, LIC Jeevan Umang or LIC Jeevan Utsav?
LIC Jeevan Umang is often preferred for retirement planning because it provides a lifelong income stream, with payouts of 8% of the sum assured annually. This makes it a reliable choice for those seeking a steady income through their retirement years. LIC Jeevan Utsav may be more suited for short-term income needs or if you prefer a shorter premium-paying term with guaranteed income benefits.
What are the main differences in the premium payment terms between LIC Jeevan Umang and LIC Jeevan Utsav?
LIC Jeevan Umang requires a longer premium-paying commitment with options ranging from 15 to 30 years. In contrast, LIC Jeevan Utsav is more flexible, with premium payment terms ranging from as short as 5 years up to 16 years, making it ideal for individuals who do not want a long-term payment commitment.
Can I add riders to both LIC Jeevan Umang and LIC Jeevan Utsav, and what are the options?
Yes, both Jeevan Umang and Jeevan Utsav offer optional riders to enhance coverage. Available riders include the Double Accidental Benefit Rider, Accidental Death and Disability Benefit Rider, Premium Waiver Benefit, and New Term Assurance Rider. These riders provide additional benefits like double death payout in case of accidental death, premium waivers, and extra sum assured options.
How do the surrender and loan options work for these policies?
Both policies allow you to surrender after completing one policy year, providing flexibility if you need to access funds early. They also offer a loan facility after one year, which can be a valuable option for policyholders needing liquidity without terminating the policy.
Which plan provides better death benefits for the nominee, Jeevan Umang or Jeevan Utsav?
Both plans offer strong death benefits, but LIC Jeevan Umang has an edge due to its vested reversionary and final additional bonuses, which increase the sum assured payout over time. In Jeevan Utsav, the death benefit is fixed, with guaranteed additions for consistent payout, providing a stable but less flexible option than Jeevan Umang in terms of death benefit growth.
Disclaimer: This article is for informational purposes only and does not constitute financial or insurance advice. Policy terms, benefits, and eligibility criteria are subject to change as per LIC’s regulations. Prospective policyholders should consult with a licensed insurance advisor or financial professional and review the official LIC policy documents to ensure these plans align with their personal financial needs and goals.