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LIC Jeevan Labh is one of the effective life insurance plans by the Life Insurance Corporation Of India. It is a limited premium paying, non linked endowment plan that comes out with various benefits to serve its clientele. It offers a combination of protection and savings that means you will stay protected plus will be able to save your hard earned money in an effective manner. It also provides the needful financial support to the family in case of the demise of the insured. People from the age group of 8-59 can take advantage of this plan.
It is a basic endowment plan. You pay premiums for a limited period of time and at the end of the policy term, you will get the Maturity Benefits. In case of death of the policyholder anytime during the policy term, the nominee will get the Death Benefit.
This plan allows you to choose the policy tenure with various options such as 16 years, 21 years or 25 years.
It is basically a non linked, the limited premium paying term.
This is basically designed for individual investors.
You will also get the option of premium paying terms that include 10 years, 15 years or 16 years.
Comes with a premium payment frequency of around yearly, half-yearly, quarterly, monthly as well as salary savings scheme.
It comes along with a loan facility. In the case where the policyholder has paid premiums for 3 years continuously and if the policy reached a surrender value then the insured will be able to take advantage of the loan facility.
Offers a free look period of 15 days from the date of policy issuance.
Offers a revival period of 2 years. A policyholder can revive the policy from the date of the first unpaid premium by paying the arrears as well as the interest and other expenses.
|Plan type||Non-linked endowment plan with limited premium paying term|
|Policy coverage||Maturity Benefit, Death Benefit, Simple Reversionary Bonus and Final (Additional) Bonus (if any)|
|Premium paying terms (PPT)||
|Loan||Loans can be availed against this policy. Loans are available provided if at least 3 full years’ premiums have been paid and the policy has acquired a Surrender Value.|
|Free look period||15 days from the date of receiving policy documents. Premium amount already deposited will be returned after deducting proportional risk premium for cover period, medical examination expenses, reports, stamp duty etc.|
|Nominations||Nomination facility provided as per the Insurance Act|
|Basic Sum Assured||
|Premium payment frequency||
|Revival||Policy can be revived any time within 2 years from the date of first unpaid premium by paying all the premium arrears along with interest and other expenses.|
The LIC Jeevan Labh Plan offers a host of benefits as mentioned below:
Death benefit: In case of the death of the insured, the nominee will be liable to get benefit in the form of sum assured. Besides, any simple revolutionary bonuses as well as final additional bonuses if any are paid off to the nominee.
Maturity benefit: This will take place when the policyholder survives the policy period. In such a scenario, the insured will get the sum assured in the form of the maturity benefit is paid along with any simple revolutionary bonuses as well as final additional bonuses.
Rebate: It offers a rebate on 2% of the yearly premium and 1% of the half-yearly premium payments. Also, a rebate of 1.25% of the total sum assured is offered in case the sum assured is Rs.5 lakh to Rs.9.9 lakh. A rebate of 1.50% of the Basic Sum Assured if offered if the amount of sum assured is Rs.10 lakh to Rs.14.9 lakh. If the sum assured is 15 lakh and above, a rebate of 1.75% if offered.
Loans: It comes along with the loan facility that you will be able to take on the completion of initial 3 years of the policy period and if the premiums were paid regularly. The policy also should have acquired a surrender value to be eligible for a loan facility.
Profit participation: In the case where the policy is in full force, a simple revolutionary bonus will be provided to the insured. It is because the plan itself is a participating policy in nature.
Ideal plan: The LIC Jeevan Labh Plan is an ideal plan in case you wish to plan your child’s education or marriage.
Tax benefits: The premiums paid towards the LIC Jeevan Labh policy is exempted from income tax under the Section 80C of the Income Tax Act,1961. Besides, the maturity amount receivable is also tax-free under Section 10(10D).
Death benefits if one of the most effective features of this plan that allows your family to live a stable life after you. In case of the death of the insured during the policy tenure, all due premiums have been paid. The death benefit is defined as the sum assured on death, vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where "Sum Assured on Death" is defined as the higher of 10 times of annualized premium or Absolute amount assured to be paid on death i.e. Basic Sum Assured. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premium(s), if any.
"Sum Assured on Maturity" equal to Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.
The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.
|Sum Assured||Rs. 2,00,000||No Limit|
|Policy Term(in years)||16,21,25|
|Premium Paying Term(in years)||10 for 16 years of policy term|
|15 for 21 years of policy term|
|16 for 25 years of policy term|
|Age at Entry||8 years (completed)||59 years for policy term 16 years|
|54 years for policy term 21 years|
|50 years for policy term 25 years|
|Maximum Maturity Age||75 years|
|Premium Paying Frequency||Annually, Half-yearly, Quarterly, Monthly|
When you invest in an LIC Jeevan Labh Plan, the customer has to decide on the following:
Sum Assured (this is the amount of cover that you want)
Policy Term (the time period for which the insured wish to have the cover). The premium payment term gets decided automatically based on the policy term as follows:
On selecting a policy term of 16 years, you have to pay premiums for 10 years
On selecting a policy term of 21 years, you have to pay premiums for 15 years
On selecting a policy term of 25 years, you have to pay premiums for 16 years
Your annual premium for the plan will depend upon 2 factors that include age at which you are taking the policy.
As it is a participating plan, you will be liable for the following points through the policy term. These are not guaranteed and you will only know the values as and when they are declared by LIC.
Simple Reversionary Bonus
Final Addition Bonus
The below mentioned riders are offered by LIC Jeevan Labh Policy:
LIC's Accidental Death and Disability Rider: In case where the insured suffers from an accidental during the policy period the the additiona sum assured will be paid to the nominee. However, in case where the policyholders suffers from any kind of dsability then the accidental sum assured will be paid to the nominee in 10 equal installments over 10 years. You can get this rider on paying an extra premium over and above the base premium.
LIC's New Term Assurance Rider: In case of death, the rider benefit increases here. You can go for this form of rider during the policy issuance by paying an additional amount.
Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.
Sum Assured: Rs. 2,00,000
Policy Term: 16,21,25 (Years)
Premium Paying Term : 10,15,16 (Years)
Age: 20,30,40 (Years)
|Age||20 Years||30 Years||40 Years|
LIC Jeevan Labh policy allows you to surrender te same at any time subject to payment of at least 3 consecutive years’ premium. The Guaranteed Surrender Value amount would be equal to the total amount of premiums paid (minus any additional charges incurred such as underwriting decisions or rider premiums) multiplied by the Guaranteed Surrender Value Factor. The Guaranteed Surrender Value Factor at different points in the policy term are as follows:
|Guaranteed Surrender Value Factor|
|Policy Year||PPT 16 years||PPT 21 years||PPT 25 years|
LIC is popular to offer multiple rewards in the form of rebates to its policyholders. Under this plan, it offers the same in the following ways
Policyholders are liable to get the rebate on the premium mode in the following two ways
2% of the table premium is provided with yearly premium payment mode.
1% of the table premium is offered as half yearly premium payment mode.
This policy also provides rebated on the sum assured in following manners
1.25 % of the basic sum assured per Rs10000 of basic sum assured will be offered with the plan of sum assured between 50000 to 990000
1.50 % of the basic sum assured per Rs10000 of basic sum assured will be offered with the plan of sum assured between 50000 to 990000
1.75 % of the basic sum assured per Rs10000 of basic sum assured will be offered with the plan of sum assured between 1500000 and above.
Like many other life insurance plans, this plans also carries some additional benefits and one of them is tax benefits. Income tax benefits by this plan allow you to maximize your savings and minimize your tax liabilities.
Well, there may be some situations when the policyholder will not be happy with the plan. In such scenario, he has the permission to cancel the policy within 15 days of the plan issuance. This period is called the free-look period. On cancellation, the premium paid net of any applicable expenses would be returned.
In the case of Yearly, Half-yearly, and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In the case of monthly premium payment mode, the grace period is of 15 days.
Suicide: If the policyholder commits suicide within one year of the policy period, then the insurance company would not be liable to offer any sum assured to the nominee. However, in case of suicide beyond one year of the policy period, 80% of the premiums without any interest are paid to the nominee.
1. What if I was unable to pay the premium during the grace period?
In such a scenario, your policy will get a lapse and you would not be able to take advantages of the same further. But within two consecutive years, you will have the option of renewing the same. For the same, you have to pay all your unpaid premiums.
2. Will my policy get canceled if I stop paying premiums after three years of the policy?
Yes in such scenario, your policy will get canceled. However, it will continue as a paid-up policy and the maturity along with the death benefits will be reduced accordingly.
3. Is there is any loan facility against the policy
Yes, you can easily get a loan against the policy. But you will be liable to take the same after three initial years of the policy.
4. Any income tax benefits?
Yes, there are income tax benefits that you can get on investing in this plan.