Investing small amounts daily in LIC Jeevan Labh can earn you a huge sum in the future. Not only will you get the assured benefit of maturity, but also enjoy a risk cover on your life. These combined benefits make LIC Jeevan Labh an ideal investment for many conservative investors in India.Read more
LIC Jeevan Labh is an endowment plan that offers a sum on maturity. Further, it offers financial support to the family of the life assured (death benefit) in case of death.
You will have to pay premiums only for a limited period.
The final sum assured on maturity comes with additions in the form of bonuses. These are added by the LIC of India based on the profits earned.
The extra bonuses increase the final payouts on death and maturity.
You can also buy this policy in the name of your child to save for his future. The minimum entry age is 8 years.
You can enjoy income tax benefits on the premium amount and the maturity proceeds under the Income Tax Act of India, 1969.
The Life Insurance Corporation of India LIC is a trusted insurer and is backed by the Government of India.
There are several ways to enjoy Rs.50 Lakhs on maturity with LIC Jeevan Labh. Let’s help you understand with an example.
Say you are a 30-year-old male looking to create a corpus of Rs.50 lakhs in the next 25 years.
The first way to guarantee this amount would be to choose Rs.50 lakhs as the basic sum assured. The monthly premium required over the next 16 years comes to be Rs.18,688 plus taxes.
So every day, if you keep aside Rs.623 to invest in LIC Jeevan Labh, you will have assured a sum of Rs.50 lakhs.
The final maturity amount will be more than 50 lakhs if we include the bonus as well. The LIC bonus rate 2021-22 for Jeevan Labh is Rs.47 per Rs.1000 sum assured for a policy term of 25 years. This brings your total bonus amount to Rs (47 x 50,00,000/1000) x 25 = Rs.58,75,000.
Please note that the bonus amount is not guaranteed and may change every year as per LIC’s valuation in a year.
Another way would be to choose a lesser sum assured - Rs.25 Lakhs. This brings your monthly premium payable over 16 years to Rs.9,344. In this case, you will have to invest a daily sum of Rs.311 only.
Including the above bonus amount, your final maturity benefit will be around Rs.84 lakhs. However, remember that bonuses are not guaranteed or constant. So the final corpus will vary.
You can either choose to receive the final maturity value of Rs.50 lakhs in a lump sum on the date of maturity, or you can consider the settlement option. Under the settlement option, you can choose to receive the 50 lakhs plus bonuses in monthly, quarterly, half-yearly, or yearly installments throughout 5, 10, or 15 years.
The minimum installments guaranteed under LIC Jeevan Labh are -
Monthly installments – Rs.5,000
Quarterly installments – Rs.15,000
Half-yearly installments – Rs.25,000
Yearly installments – Rs.50,000
Since there is no cap on the maximum sum assured, you should not limit yourself to just Rs.50 lakhs. If you have the means to fund it, consider going bigger to keep up with growing inflation. But as long as you are covered under LIC Jeevan Labh, you and your family will be financially secure to face any emergencies in the future.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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