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LIC has recently introduced a number of endowment insurance policies, among which, one of the best that is available is the LIC Jeevan Labh Plan. It is mainly a combination of both investments as well as insurance. The policy is for a fixed tenure, and the policy buyer can have a fixed time of about 16 years or 21 years or even 25 years. The premium payment time period of the policy is around 6 years lesser than the actual tenure of the plan taken by the buyer.
Along with the benefits of the endowment, the LIC Jeevan Labh Plan also offers a number of other benefits to the buyer such as that of term insurance, disability benefit, and accidental death benefit.
Though the plan is a combination of many benefits, but still there are a few features that the buyers should surely look into before getting this plan.
● Insurance Cover: LIC Jeevan Labh Plan offers a minimum of 10 times the insurance of the annual premium paid.
- The policy offers insurance of a person at any age from 8 years old to about 75 years old.
- The tenure of the policy is from 16 years to about 25 years.● Savings Plan:
Contribution: Along with insurance cover, the policy also offers a savings plan for the policy buyer. Savings is huge in this kind of policy because the premium tenure is lesser than the term and hence the premium is much higher. For an amount of Rs. 20 lakh for 21 years, you will have to pay a premium of about Rs. 1.04 lakhs for 16 years annually. Though the premium of the plan can be submitted monthly, quarterly or even half yearly but there is a 2% of discount for people who pay it on a yearly basis.
Returns: LIC Jeevan Labh Plan is mainly for savings, and hence you should not expect much in terms of returns. Though it is not guaranteed, but the LIC endowment plans do offer bonuses for the policy buyers.
Taxation: There is a good benefit on taxation, and hence it is a great policy for tax savings. The amount at maturity is mainly tax-free, but you should never forget that these insurance policies are always subjected to some kind of service taxes.
In total there are three riders of the LIC Jeevan Labh Plan, but the first two riders of the policy are merged together to provide one.
● Disability Benefit and Accidental Death Benefit: Disability benefit and the accidental death benefit is the first rider to this particular policy. As per the accidental death benefit rider, the death of the person due to accident offers the double of the assured amount. But of course, there is a limit of Rs. 1 crore. In the case of the disability benefit, if the person gets disabled permanently within 180 days of the accident, then the assured amount is offered till 10 years of tenure on a monthly installment basis. Both accidental death and disability benefit have been clubbed and they can be taken by the policy buyer but only before 5 years tenure of policy paying.
● Term Insurance: Term insurance rider benefit is both those who wish to have enough of coverage of insurance such as death benefit. The only two factors to be considered here are that you have to take this benefit since the beginning of the policy, and the assured sum should be lesser than Rs. 25 lakhs. The minimum assured amount that you can have for this rider is Rs. 1 lakh.
LIC is one of the most trusted policy companies in India and hence everyone thinks it safe to invest in it. But it is always needed to take care of the important terms and conditions properly before investing. Here are the terms and conditions offered by the LIC Jeevan Labh Plan.
Return Of Policy: If you are not satisfied with the benefits of the policy or maybe some other reasons, you can return back the policy within 15 days time period. For this, you need to address the reason for your return in a separate letter. The amount will be returned back to you after the cancellation of the policy within 15 days.
Grace Payment period: For the premium payment, a grace period is provided for all monthly, quarterly, half-yearly or annual payment plans.
- Rebate On The Policy: There is rebate depending on the mode of payment such as yearly, half-yearly or quarterly. For yearly mode, there is a rebate of 2% on the tabular premium while for the half yearly mode there is a rebate of about 1% on the tabular premium. For quarterly and monthly mode there is no such rebate.
For a sum assured of Rs. 2, 00,000 to Rs. 4, 90,000 there is no rebate. For a sum assured of Rs. 5, 00,000 to Rs. 9, 90,000, there is a rebate of about 0.125% on B.S.A. Again for the sum assured of Rs. 10, 00,000 to RS. 14, 90,000, there is a rebate of about 0.150% on B.S.A. There is a rebate of about 0.175% on B.S.A for the sum assured of Rs. 15, 00,000 and above.
- Policy Revival: If you fail to pay the premium within the grace period, then the policy will lapse. Whereas, you can revive back the policy within 2 years from the lapse date of the policy. To do so, you need to pay all the missed premiums along with interest. There can be slight changes in the benefits such as you will be getting the lesser benefit of death insurance and others.
- Policy Surrender: You can also surrender the policy if you wish to discontinue it but only after a time period of 3 years. After three years, on your surrendering of the policy, you will get back a sum of the money, provided you have dedicatedly paid all the premiums.
- Loan: You can take a loan with the help of this endowment policy. But the amount of the loan will depend on a number of factors such as surrender value and others.
LIC Jeevan Labh Plan is one of the various endowment policies that are based on investments. Though it may not offer you good returns, but it is a great choice if you are looking forward to saving tax and having a good amount of savings.