LIC Jeevan Labh

About LIC Jeevan Labh

• LIC Jeevan Labh is a simple endowment plan that provides good returns on maturity
• It offers accrued bonus on maturity
• Premium paying term (10, 15 and 16) is less than the policy term (16, 21 and 25 respectively)
• Primary objective of the LIC endowment plan is investments with low risk returns
• One can choose from two riders as an additional benefit

How Does The Plan Work?

Under LIC Jeevan Labh, an individual will choose a policy term (16, 21 and 25) and pay regular premium according to the respective premium payment terms (10, 15 and 16). On completion of the policy term, the individual receives a Maturity Benefit which is a lump sum comprising of the Sum Assured and accrued bonus.

If in-case on death of the insured, during the policy term his nominee receives the Death benefit that is a lump sum amount comprising of accrued bonus and sum assured on death, which is an amount higher among;

1. 10 times of the Annualized premium
2. Absolute amount assured to be paid on death: Depending on the insured’s death year during the policy term, the increased death cover is paid;

• 100% of the Basic Sum Assured during first 5 policy years,
• 125% of the Basic Sum Assured during 6^th to 10^th policy years,
• 150% of the Basic Sum Assured during 11^th to 15^th policy years and
• 200% of the Basic Sum Assured during  16^th to 20^th policy years

Note that the death sum assured paid > 105% of the premiums paid till death

Now let us have a look at the example to understand this plan better:

Consider,

Person’s age: 35 years
Sum assured: Rs. 5 lakhs
Policy term: 25 years
Premium Paying Term: 16 years
Premium: Rs 22,601 per annum

A 35 year old individual pays a premium of Rs 22,601 per year for 16 years for a policy term of 25 years. On completion of the policy paying term, he will receive a lump sum of Rs 13,50,000 as the maturity amount which is inclusive of accrued bonus (simple and reversionary).  

In-case of death of the individual before the end of policy term, his nominee will receive death benefit lump sum which includes accrued bonus of Rs (simple reversionary and final additional bonus) along with death sum assured on death. This sum assured on death is an amount of higher value chosen from:

• Basic Sum Assured (Rs 5 lakhs)
• 10 times  of the annual premium paid till his death (Rs 2,26,010)

Why should you buy LIC Jeevan Labh Plan?

• It is low risk investment option that provides monetary gains over the years
• This plan can be used for availing loans
• Premiums paid are tax exempt under Section 80C and maturity amount is tax free under Section 10(10D)
• Offers tax rebates on premium paid if higher sum assured is chosen

Who should buy LIC Jeevan Labh plan?

• Minimum and maximum entry ages are 8 years and 59 years (for 16 years policy term), 54 years (for a policy term of 21 years) and 50 years (for a policy term of 25 years).
• Maximum maturity age is 75 years
• Minimum sum assured is Rs 2,00,000
• An individual who is looking out for a low risk investment that pays good bonus
• People planning for specific life goals like (big house, world trip, daughter’s marriage etc.)
• Individuals who want income tax benefits

Riders and Add-ons

Riders available with this plan are as follows:

• LIC’s Term Rider:  Under this rider option, an additional lump sum benefit is paid to the nominee on the unfortunate death of the policyholder.
• LIC’s Accidental Death Benefit Rider: Under this rider option, an additional lump sum benefit is paid to the nominee on the unfortunate accidental death of the policyholder.

Claim Process

Know Claim Process of LIC Jeevan Labh

Claim Process