This LIC policy is remarkable: Get protection up to age 100 with a monthly investment of ₹5,000.

LIC Policy: The 'Jeevan Umang' policy is an excellent way to ensure financial security in old age. Unlike mutual funds, which carry market risks, this policy guarantees lifetime returns, ensuring a fixed income for the rest of your life.

LIC Jeevan Umang: If you are looking for a policy that offers long-term insurance coverage, the 'LIC Jeevan Umang' policy is a great choice. Investing in this policy provides a guaranteed annual income of ₹80,000 until the age of 100. A major advantage is that LIC (Life Insurance Corporation of India) is a government-owned company, meaning there is no risk involved in investing in its policies.

Consequently, those seeking a guaranteed annual income post-retirement can invest in the LIC Jeevan Umang plan. It is a whole-life insurance plan that provides coverage to the policyholder up to the age of 100. If you start by investing ₹5,000 per month, you will receive a fixed annual income under this scheme until you turn 100.

Key features of the scheme:

It offers the policyholder protection up to the age of 100. However, you do not have to pay premiums for your entire life; you can choose a premium payment term of 15, 20, 25, or 30 years based on your convenience.

Once the premium payment term ends, LIC provides a 'Survival Benefit'—amounting to 8% of the Basic Sum Assured—every year for the rest of your life.

Another significant advantage is the tax benefit: premiums paid are eligible for deduction under Section 80C, and the maturity proceeds or returns received, are tax-exempt under Section 10(10D). You can also avail a loan against this policy if the need arises, two years after it commences.

Understanding the investment mechanics

Suppose an individual purchases this policy at the age of 30 and opts for a 20-year premium payment term; a monthly investment of ₹5,000 would amount to an annual contribution of ₹60,000. This premium secures a life cover of approximately ₹10 lakh. Consequently, once the policyholder crosses the age of 50 and turns 51, they will receive a fixed annual payout of ₹80,000 (representing 8% of the ₹10 lakh sum assured) until the age of 100 or until their death.

If the policyholder survives beyond the age of 100, they receive a substantial lump-sum maturity benefit comprising the sum assured, along with the bonus and final additional bonus declared by LIC. Should the policyholder pass away at any time after the age of 50, their nominee receives the full sum assured of ₹10 lakh along with the accumulated funds as a lump-sum payment.