Calculators LIC plans Jeevan Umang Review
LIC Jeevan Umang (Plan 745) is a par whole-life plan with limited premium payment (15, 20, 25 or 30 years). Once the premium-paying term ends, it pays 8% of Sum Assured every year for life — unconditionally, regardless of whether you live to 60, 80 or 100. For a 30-year-old buying ₹10 lakh SA with a 20-year PPT, the annual survival income works out to ₹80,000 from age 50 onwards. The XIRR at age 80 is typically 5.8–6.5% (base bonus scenario), improving to over 7% if you live to 90. Being a par plan, the terminal death/maturity benefit grows with declared bonuses — but the 8% annual income is a guaranteed contractual commitment, not bonus-dependent.
Buyers with a family history of longevity (parents who lived past 80), or those who have no defined-benefit pension and need an income floor that can't be outlived. Also works well as a second-income layer for the surviving spouse: a 35-year-old couple can structure one Jeevan Umang per person with staggered PPTs so income starts as each partner retires.
Anyone with a short planning horizon (health issues, early retirement aspirations before 40). Anyone with a pressing need for liquidity — Jeevan Umang has high surrender charges in the first 10 years and you sacrifice all accrued bonuses on early exit. Anyone primarily seeking estate maximisation — the par bonus stack is respectable but an endowment plan with FAB reinvested achieves similar terminal values at lower premium.
The XIRR on a whole-life income plan is structurally different from a maturity product. For endowments, XIRR is a fixed number — policy term is fixed. For Jeevan Umang, XIRR is a function of how long you live. Every additional year of income received after the PPT improves the XIRR. At the breakeven age (roughly 58–62 depending on PPT), cumulative income equals total premiums paid — a poor outcome. At 80, XIRR is typically 6–6.5%. At 90, it crosses 7%. This is why the plan is an insurance product, not an investment — it transfers longevity risk from you to LIC.
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term), excludes optional rider premiums from the cash-flow base, and assumes the latest declared simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions on the Jeevan Umang calculator.
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