Jeevan umang or Jeevan Utsav which is more profitable for my 5 year child
- June 22, 2025
- Posted by: jibankrnath101
- Category: investment paln
Jeevan umang or Jeevan Utsav which is more profitable for my 5 year child?
Both LIC Jeevan Umang and LIC Jeevan Utsav are strong contenders, but they serve slightly different purposes clik here to know more. Here’s a quick comparison tailored to your child’s age and long-term financial goals:
✅ Jeevan Umang
- Whole life coverage up to age 100.
- After the premium payment term (say 15 or 20 years), it pays 8% of the Basic Sum Assured every year as survival benefit.
- On maturity or death, it pays the Sum Assured + bonuses.
- Ideal if you want your child to receive regular income in adulthood and lifelong coverage.
- Participates in LIC’s profits, so bonuses can enhance returns over time.
✅ Jeevan Utsav
- Limited premium payment (5–16 years).
- Offers two options:
- Regular Income: 10% of Sum Assured annually after a chosen year.
- Flexi Income: Defer income and earn 5.5% interest, with flexible withdrawals.
- Offers guaranteed additions, making returns more predictable.
- Better if you want flexibility and guaranteed returns for specific milestones like education or marriage.
For a 5-year-old child:
- Jeevan Umang is often preferred for long-term wealth creation and lifelong protection.
- Jeevan Utsav may suit you better if you want guaranteed payouts during key life stages like college or early career.
If your goal is to build a legacy plan with compounding benefits, Umang aligns beautifully. But if you want structured, milestone-based payouts, Utsav offers more control.
LIC Jeevan Umang Plan (Plan No. 745) with a practical example to help you visualize how it works:
🔍 Key Features of Jeevan Umang
- Whole life coverage up to age 100.
- Limited premium payment options: 15, 20, 25, or 30 years.
- Annual survival benefit: 8% of Basic Sum Assured every year after premium term ends.
- Maturity benefit: Sum Assured + Bonuses at age 100.
- Death benefit: Sum Assured + Bonuses, anytime during the policy term.
- Participating plan: Eligible for LIC’s declared bonuses.
📊 Example Illustration
Let’s say you buy this plan for your 5-year-old child with the following details:
- Sum Assured: ₹10,00,000
- Premium Paying Term: 20 years
- Annual Premium: Approx. ₹54,000 (including taxes)
- Policy Term: Up to age 100 (i.e., 95 years of coverage)
What Happens:
- You pay premiums for 20 years (from age 5 to 25).
- Starting from age 26, your child receives ₹80,000 every year (8% of ₹10L) as survival benefit.
- This continues till age 99—that’s 74 years of annual income.
- At age 100, your child receives the maturity benefit: ₹10L + accumulated bonuses.
Total Benefits:
- Survival Benefits: ₹80,000 × 74 years = ₹59,20,000
- Maturity Benefit: ₹10,00,000 + Bonuses (can be substantial depending on LIC’s performance)
This plan is ideal if you want to secure your child’s lifelong income and create a legacy. It’s especially powerful when started early, thanks to compounding bonuses and long-term payouts.
The ideal amount to invest in child insurance depends on your financial goals, your child’s age, and the milestones you want to prepare for—like higher education, marriage, or even seed capital for a business. Here’s how to think about it:
🎯 Step-by-Step Guide to Decide the Investment Amount
-
Define the Goal
Estimate future costs:- Higher education in India: ₹25–50 lakhs
- Abroad: ₹50 lakhs–₹1 crore
- Marriage: ₹10–30 lakhs
Use an inflation rate of 6–8% to project future values.
-
Work Backwards
Use a child plan calculator to determine how much monthly or annual investment is needed to reach that goal. For example:- To build ₹50 lakhs in 15 years at 8% return, you’d need to invest around ₹15,000–₹18,000/month.
-
Balance with Your Budget
Choose a premium that’s affordable and sustainable. Even ₹2,000–₹5,000/month can grow significantly over 15–20 years. -
Diversify
Combine child insurance with mutual funds or PPF for a balanced approach—guaranteed protection + market-linked growth. -
Start Early
The earlier you begin, the smaller the monthly investment needed, thanks to the power of compounding.
Would you like me to simulate a plan based on your child’s age and your monthly budget? I can show you how much you’d accumulate by the time they turn 18 or 21.
Here’s a comprehensive look at the LIC Jeevan Utsav Plan (Plan No. 871/771)—a powerful blend of whole life insurance and guaranteed income designed for long-term financial security:
🔑 Key Features
- Whole Life Coverage: Protection up to age 100.
- Limited Premium Payment: Choose from 5 to 16 years.
- Guaranteed Additions: ₹40 per ₹1,000 Sum Assured every year during the premium-paying term.
- Two Income Options:
- Regular Income: 10% of Basic Sum Assured paid annually after a specified year.
- Flexi Income: Defer income and earn 5.5% compound interest, with flexible withdrawals.
- Non-linked & Non-participating: Returns are guaranteed, not market-linked.
- Loan Facility: Available after 2 years of premium payment.
- Riders Available: Accidental Death, Disability, Critical Illness, Term Assurance, and Premium Waiver.
📊 Example Illustration
Let’s say you choose:
- Age: 35 years
- Sum Assured: ₹10,00,000
- Premium Paying Term: 10 years
- Annual Premium: Approx. ₹1,11,050 (including GST)
Regular Income Option:
- From 13th policy year, you receive ₹1,00,000 every year for life.
- Guaranteed Additions: ₹40,000/year × 10 years = ₹4,00,000
- Death Benefit: ₹10L + ₹4L = ₹14,00,000 minimum
Flexi Income Option:
- Same ₹1L/year benefit, but you can defer and let it grow at 5.5% interest.
- Withdraw up to 75% of accumulated income in any year.
🎯 Ideal For You If:
- You want guaranteed lifelong income.
- You prefer shorter premium commitments.
- You’re planning for child’s future, retirement, or legacy creation.
Would you like me to simulate a personalized plan based on your child’s age and your budget? I can show you how much income and protection you’d build over time.
Investing in insurance for children is like planting a financial tree that grows with them—offering shade, security, and support through life’s milestones. Here are the key benefits:
🌱 1. Financial Security for the Future
Child insurance plans ensure that your child’s dreams—like higher education, starting a business, or marriage—are financially supported, even if something happens to you. Many plans offer a waiver of premium in case of the parent’s death, so the policy continues without interruption.
🎓 2. Education Planning
With rising education costs, these plans help build a dedicated education fund. Some policies offer payouts at key stages, like college admission or post-graduation, ensuring your child’s ambitions aren’t limited by finances.
💰 3. Guaranteed and Tax-Free Returns
Many child plans offer guaranteed maturity benefits and are eligible for tax deductions under Section 80C, with tax-free returns under Section 10(10D) of the Income Tax Act.
🏥 4. Health and Emergency Support
Some child insurance plans include health coverage or allow partial withdrawals for emergencies like medical treatment or school fees.
🔄 5. Flexibility and Loans
You can often choose between lump-sum or staggered payouts, and even take a loan against the policy if needed—without surrendering it.
🧠 6. Builds a Saving Habit and Legacy
Starting early teaches your child the value of saving and planning. It also sets up a long-term investment that can be used for future goals or even passed on as a legacy.
Would you like help choosing a plan that aligns with your child’s age and your financial goals? I can even simulate a few options based on your budget.