Evaluating Jeevan Umang at 43: A Comprehensive Guide
Are you considering Jeevan Umang for a sum assured of 750,000 at the age of 43 for a 15-year period? Jeevan Umang, offered by Life Insurance Corporation (LIC), is a well-regarded policy due to its survival benefits and wealth creation potential. However, it’s important to weigh these benefits against the alternatives, such as term insurance and pure investment products, to determine the best fit for your needs.
Jeevan Umang Contributions and Benefits
Jeevan Umang: This policy provides survival benefits amounting to 8% of the sum assured every year throughout the insured’s life. This means that at the end of each year, the policy holder receives a payment equivalent to 8% of the sum assured, ensuring a steady income stream and protecting your family in case of an unfortunate event. In addition, Jeevan Umang is designed to create wealth over time, benefiting your family members immensely.
Term Insurance: A Better Choice for Pure Insurance Needs
If you are primarily looking for life insurance with the sole purpose of providing financial cover to your dependents in case of your untimely demise, term insurance is the optimal choice. Insurance policies such as Jeevan Umang, while offering some investment benefits, are inherently designed for providing life cover.
Be wary of expecting returns upon survival. Term insurance policies, designed purely for insurance coverage, do not provide any return upon the survival of the policy holder. These policies are structured to offer a fixed benefit to the beneficiary in the event of the policy holder’s death, ensuring financial stability for the family.
Pure Investment Products: A Higher Return Option
For those seeking returns, opting for pure investment products is more beneficial. These products, such as mutual funds, stocks, and fixed deposits, offer higher post-tax returns compared to the tax-free returns provided by insurance policies. These financial instruments are tailored for wealth creation and can offer significant growth over time.
The primary objective should not be to minimize tax, but to achieve a better net gain. Opting for investment products, especially in retirement planning, can provide higher returns, which can offset the tax burden more effectively than tax-free returns from insurance policies.
Jeevan Umang: An Excellent Choice at an Early Age
Jeevan Umang is a standout choice for individuals, especially when purchased at an earlier age, such as between 25 to 35. The younger you are, the more time you have to benefit from the policy’s wealth creation features. However, at the age of 43, you would benefit more from the survival benefits and the long-term planning that Jeevan Umang provides.
Final Thoughts
For individuals at the age of 43, Jeevan Umang can provide valuable survival benefits and wealth creation, making it a suitable choice. However, it is crucial to evaluate your specific needs and objectives. If you are more focused on pure insurance coverage, term insurance is the way to go. For wealth creation and investment, consider pure investment products. Always consult with a financial advisor to make an informed decision that aligns with your long-term financial goals.
Pro Tip: Don’t hesitate to contact a LIC representative to discuss your specific requirements and receive personalized advice. The number to contact is 9967847529.