LIC Jeevan Labh is a participating, non-linked limited premium paying individual savings plan,which offers the combined benefit of savings and protection. Jeevan Labh LIC policy not only provides financial aid to the family of the insured person but also takes care of the future financial needs of the family in his/her absence.Read more
Save upto ₹46,800 in tax under Sec 80C
Inbuilt Life Cover
Tax Free Returns Unlike FD
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
As one of the leading insurance providers in India, LIC policies are a popular choice for customers when it comes to buying insurance cover. Along with the extensive range of policies offered by LIC, LIC Jeevan Labh is one of the bestselling endowment insurance plans offered by the LIC of India. LIC Jeevan Labh's policy comes with a host of benefits for insurance buyers. Let's read further to know in detail about LIC Jeevan Labh Policy.
Here are some of the salient features of the LIC Jeevan Labh Policy.
The plan offers the option of limited premium payment.
This plan is available for a policy term of 16, 21, and 25 years making goal-based investment easier for investors.
This non-linked profit plan ensures both comprehensive protection plus assured returns for the investors in the form of death and maturity benefits.
Policyholders can avail of loan facilities on this plan, after paying a regular premium for three years.
Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.
The plan offers the option to avail of the death benefit in installments.
The following are the benefits offered by LIC Jeevan Labh Plan.
The death benefit is paid by the insurer to the beneficiary of the policy if the insured person dies an unfortunate death during the tenure of the policy. The death benefit payable to the nominee of the policy is the sum assured on death plus vested simple reversionary bonus and final additional bonus (if any). The sum assured on death is defined as:
Higher of 7 times the annualized premium or;
Basic sum assured amount
The death benefit paid to the nominee of the policy should not be less than 105% of the total premium paid.
If the life insured survives the entire policy tenure, provided all the premiums of the policy are dully paid and the policy is in force. Maturity benefit is offered to the insured person as a sum assured on maturity along with a vested simple reversionary bonus and final additional bonus (if any). The sum assured on maturity is equal to the basic sum assured amount of the policy.
The policy participates in the profits of the corporation and is entitled to receive a simple reversionary bonus declared as per the experience of the corporation, provided the policy is in force. The final additional bonus is also declared under the policy in the year the claim is made either as death or maturity.
The policyholder can take advantage of the tax benefits offered under the policy. the premium paid towards the policy up to the maximum limit of Rs.1.5 lakh in a financial year and the maturity proceeds are tax exempted under Section 80C and 10(10D) of the Income Tax Act.
Let’s take a look at the eligibility criteria of the policy.
|Entry Age||8 years||59 years for PT 16 years
54 years for PT 21 years
50 years for PT 25 years
|Sum Assured||Rs.2,00,000||No upper limit|
|Maturity Age||N/A||75 years|
|Policy Term||16, 21& 25 years|
|Premium Paying Term||10, 15 & 16 years|
Under LIC Jeevan Labh Policy, there are five optional riders, which can be availed by the policyholder by paying an additional premium. Rider benefits can be purchased along with the base plan to increase the coverage of the policy. Let’s take a look at these 5 optional rider benefits in detail.
The policyholder can opt for this rider anytime within the premium paying tenure of the base plan provided the outstanding PPT of the base plan is at least 5 years. This rider can be purchased along with the base plans to enhance the coverage of the policy. In this rider option, the accidental death benefit sum assured amount is paid to the nominee of the plan along with the death benefit offered under the base plan. Moreover, this rider option also provides coverage in case of accidental disability to the insured. The accidental disability sum assured amount is paid to the insured in equal monthly installments for a tenure of 10 years. Also, the future premiums of the policy are waived off.
The policyholder can opt for this rider anytime within the premium paying tenure of the base plan provided the outstanding PPT of the base plan is at least 5 years. In this rider option, the accidental death benefit sum assured is paid to the nominee of the policy in the event of the accidental death of the life assured within 180 days from the date of the accident.
This rider option can be availed at the time of policy initiation. This rider offers the benefit of extra sum assured as additional term assurance to the beneficiary of the policy in case of unfortunate death of the insured person during the tenure of the policy. the term assurance rider benefit is offered along with the basic death benefit offered by the policy.
Critical illness rider benefits can be purchased at the initiation of the policy. The benefits offered under this rider option can be availed by the insured person during the policy tenure if he/she is diagnosed with any one of the 15 critical illnesses mentioned under the rider.
Under this rider option, all the future premiums of the plan are waived off in case of the unfortunate demise of the insured person. However, if the tenure of premium payment of the base plan surpasses the rider tenure, then all the due future premiums under the base plan from the date of expiry of the rider will be payable to the life assured. In case, the policyholder fails to pay the policy premium, it will become a paid-up policy.
LIC Jeevan Labh can be availed by individuals between the age group of 8 years-59 years, this limited premium paying endowment plan ensures death benefit to the nominee in case of an emergency and also offers maturity benefit to the insured in case he/she survives the entire tenure of the policy. The policy also takes care of the liquidity requirements of the family through the loan facility.
Here we have shown a sample illustration of the annual premium rate for Rs.2 lakh basic sum assured amount for standard lives.
|Age||Policy Tenure/ Premium Paying Tenure (in years)|
|16 (10)||21 (15)||25 (16)|
|20||16,699 /-||10, 682/-||9,006/-|
Annual Mode- 2% of tabular premium
Half-yearly mode- 1% of tabular premium
Quarterly, monthly mode- Nil
Basic Sum Assured (B.S.A)
Rs. 2,00,000- Rs. 4,90,000- Nil
Rs.5,00,000-Rs.9,90,000- 1.25% of BSA
Rs.10,00,000- Rs.14,90,000- 1.50% of BSA
Rs. 15,00,000 and above- 1.75% of BSA
A grace period of 30 days is offered by the insurer to the insured to pay the due premiums, in case the policyholder fails to pay the premium of the plan within the premium paying tenure. Policyholders are granted a grace period of 30 days on non-payment of the unpaid premium for those with yearly, half-yearly, and quarterly premium payment modes. However, the grace period is cut short to 15 days in case a policyholder has selected a monthly premium payment mode.
In case the policyholder is not satisfied with the terms and conditions of the policy then they cancel the policy within a free-look period of 15 days offered by the insurer from the date of policy initiation.
LIC Jeevan Labh Plan acquires a surrender value if the premiums are paid for three full policy years and the policy stays in effect for these 3 years. Here’s what paid out as the surrender value:
The guaranteed surrender value is equal to the percentage of the total premium payments. The percentage of total premium is calculated excluding the net of taxes, extra premiums paid and any extra rider premiums paid. This percentage depends upon the policy term selected by the policyholder and the policy year when the plan is being surrendered.
Guaranteed surrender value also includes the surrender value of the simple reversionary bonuses, if any. Here the surrender value is equal to the vested bonuses multiplied by the related surrender value factors.
Special surrender value is paid out to the life insured upon surrender of the policy, only if the special surrender value is more than the guaranteed surrender value. It is calculated as the discounted value of the sum of the vested bonuses and the maturity paid-up sum assured.
In case the life assured fails to pay the premium for at least 2 years of the policy and the plan is not revived then all the benefits offered by the policy are ceased after the completion of the grace period and no benefits will be offered to the policyholder.
If two full-year policy premiums are dully paid and subsequent premiums are not dully paid then the policy will continue as a paid-up policy. Under the paid-up policy the sum assured offered as the death benefit is known as Death Paid-up Sum Assured. The paid-up sum assured is equal to:
Number of premium paid/ total number of premium to be paid X sum assured on death
Similarly, the maturity benefit offered is equal to
Number of paid premium/ total number of premium to be paid X sum assured on maturity
To avail of the benefits offered by the LIC Jeevan Labh plan, certain documents should be kept in hand. Let’s take a look at it.
Other KYC documents: Adhaar Card, PAN Card, Tax Details, etc.
Properly filled Proposal form/ Application form
Medical Diagnosis Reports as required
The LIC Jeevan Labh policy rejects the claim filed in case of the suicide of the life assured.
If the life assured commits suicide within 1 year of the policy's initiation, 80 % of the premiums paid to date are returned to the beneficiary of the policy, provided the policy is in force.
If the life assured commits suicide after completion of 1 year from the date of policy revival, higher acquired surrender value or 80% premiums paid to date will be paid.
More Useful Resources
LIC Online Services
LIC Investment Plans
LIC Other Plans
LIC Jeevan Labh maturity is calculated only after the completion of the policy term. LIC Jeevan Labh 936 premium works as follows:
Basic sum assured + Accumulated Simple Reversionary Bonus during policy term + Final Additional Bonus (FAB)
Simple Reversionary Bonus is declared each financial year during the policy term and keeps on adding in the policy. FAB is a one-time bonus declared for the year in which policy is getting matured.
LIC Jeevan Labh 936 premium and maturity calculator works as follows:
|Policy term (premium paying term)||16(10), 21(15), 25(16)|
|Selection criteria||Enter sum assured
enter premium you can pay
|Sum assured(in Rs.)||Above 2,00,000|
|Accidental death & disability benefit rider||Yes/no|
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
“Tax benefit is subject to changes in tax laws. Standard T&C apply.”
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