What Is LIC Jeevan Labh Policy?
LIC Jeevan Labh is a non-linked endowment plan offered by the most trusted organization of India (the Life Insurance Corporation of India). Under this Jeevan Labh Policy plan, you need to pay premiums for a stipulated time and you will get maturity benefits once your policy will mature.In the case of the sudden demise of the policyholder, the beneficiary will receive the benefits of the LIC Jeevan Labh Policy.
The Jeevan Labh LIC Plan was introduced in 2015 and it offers both investments and insurance benefits. Since this is a limited period plan, you don’t need to pay premiums throughout the policy terms and can choose the affordable premium with the help of the LIC Jeevan Labh Premium Chart.
Let’s take a look at LIC Jeevan Labh Features.
- Entry Age: The minimum entry age is 9 years. The maximum entry ages are:
- 59 years for 16 years policy term
- 54 years for 21 years policy term
- 50 years for 25 years policy term
- Maturity Age: The maximum maturity age is 75 years
- Type of Plan: Non-linked plan of individual endowment
- Premium Paying Term (PPT): Ten years, Fifteen years, and Sixteen years
- Policy Tenure/Term: 16 years, 21 years, and 25 years
- Loan: You are eligible to take loans against your LIC plan Jeevan Labh policy. After the completion of 3 years of premiums, you can get loans.
- Sum Assured: Minimum Rs. 2 lakh and there is no limit for the maximum
- Free-Look Period: If you are not satisfied with the policy, you will get a free-look period of 15 days to surrender your policy. After deducting the proportional risk period for the coverage, stamp duty, medical examination expenditure, your remaining premium amount will be refunded
- Premium Payment Frequency: Yearly, half-yearly, monthly, and quarterly
- Revival: The policy can be easily revived within 2 years
- Policy Coverage: Death benefit, Simple Reversionary Bonus, Maturity benefit and the Final Bonus
LIC Jeevan Labh Benefits
Reading about the following benefits of LIC Jeevan Labh, you will be encouraged to invest in this profitable policy:
- Maturity Benefit: Once the policy matures, the policy owner will get a hefty sum assured amount from the insurer. This sum assured is equivalent to the basic sum assured along with vested simple reversionary bonuses and final additional bonuses.
- Death Benefit: The death benefits are offered as the sum of ‘Sum Assured on Death’ plus Simple Reversionary Bonuses along with the Final Additional Bonus (if any). The death benefits will not be less than 105% of the overall premium amount paid as of the date of death.
- Profit Participation: Since this one is a participating policy, thus, policyholders will get the simple reversionary bonuses as declared by the insurance company if the policy is fully active. You may also get a final additional bonus once you file a claim for maturity or death.
- Tax Benefits: Tax benefits are applied as per the section of the Income Tax Act, 1961.
- Loans: You may get loans against your policy plan. But you need to pay premiums for at least 3 years to get loans.
- Rebate: In terms of premium frequency, 2% of the annual premium, and 1% of half-yearly premium payments are offered to the policyholder as rebates. For sums assured ranging between Rs.2 lakhs – Rs.4.9 lakhs, the policyholder will receive a rebate of 1.25% of basic sum assured, between Rs.10 lakhs to Rs.14.9 lakhs, the policyholder will receive 1.50%, and for basic sum assured of Rs.15 lakhs and above, the policyholder will receive 1.75%.
- Surrender Value: After paying your premiums for three consecutive years, you can surrender your life insurance policy. The guaranteed surrender value will be equivalent to the total amount of premiums paid chosen from a LIC Jeevan Labh Premium Chart (subtracting any extra charges incurred for procedures like underwriting decisions or premiums for a rider) multiplied by the guaranteed surrender value factor.
LIC Jeevan Labh Riders:
LIC Plan Jeevan Labh also allows you to enjoy the benefits of riders as add-ons. Let us have a look at some of these riders that can be availed with a Jeevan Labh LIC Plan:
LIC Accidental Death and Disability Rider
If the insured policyholder suffers injuries due to an accident during the policy period, the additional sum assured will be paid to the beneficiary.
But if the policyholder suffers from any type of disability, then the accidental sum assured will be paid to the beneficiary in ten equal payments over a period of ten years. By paying an additional premium, you can purchase this rider.
- Entry age: Minimum 18 years, Maximum 65 years
- At the age of 70, the coverage will be terminated
- The minimum accident benefit sum assured is Rs. 10,000
- The maximum accident benefit sum assured is the basic sum assured
- The benefits will be given out in multiples of Rs. 10000
LIC New Term Assurance Rider
The benefits will enhance in the event of death. By paying an extra premium, you can opt for this rider.
- Entry age: Minimum entry age is 18 years
- Policy term:
1. 59 years for a 16-year policy term
2. 54 years for a 21-year policy term
3. 50 years for a 25-year policy term
- You need to pay the premium amount as per your base plan shown in the LIC Jeevan Labh premium chart
- The minimum sum assured under this rider is Rs. 1 lakh
Illustration of LIC Jeevan Labh Policy Details
Mr. Shubharup Gupta lives in Kolkata with his wife. Mr. Gupta purchased LIC’s Jeevan Labh Plan with a tenure of 25 years. He needs to pay premiums for 16 years, his premium mode is yearly and the sum assured amount is Rs. 2 lakh. Mr. Gupta is 35 years old and is paying an annual premium of a little over Rs. 9,100.
Once his policy matures (after 25 years), he will receive Rs.2.2 lakh that includes interest at 4% p.a. or Rs.3.7 lakhs at 8% p.a. interest. But if he expires in the 22nd policy year, his beneficiary will get a lump sum amount of Rs.2.17 lakhs (4% interest) or Rs.3.41 lakhs (8% interest) as death benefits from the insurer. The LIC Jeevan Labh interest rates are subject to company policies. In the above scenario, Mr. Gupta will be paying an overall amount of Rs.1.46 lakh as a premium in 16 years to enjoy a basic sum assured of Rs.2 lakh and other bonuses.
The article gave you an adequate idea regarding LIC Jeevan Labh policy. You learned about LIC Jeevan Labh benefits and its features too. But before purchasing this policy, make sure to go through the LIC Jeevan Labh interest rate and the terms and conditions. Besides, compare the LIC Jeevan Labh policy details with various other policies. This will help you make the right decision.