Why LIC Jeevan Labh is a Preferred Choice Among Young Indians?

LIC, one of the largest insurers of India offers a wide range of life insurance products and services, ranging from term plans to savings and investments. When it comes to a young population, LIC’s Jeevan Labh plan is one of the right choices. The endowment plan offered by LIC fulfills the requirements for life cover and savings as a lump sum in this investment policy. To save money systematically or randomly, numbers of options are available in the form of FD, equity, or bond, and mutual funds. Moreover, tax benefits are an important saving parameter to check under LIC policies.

Read more
Best Investment Options
  • 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

Get Guaranteed returns along with life cover
invest in 100% Guaranteed Return Plans Tax benefits under sec 80C & No Tax on returns*
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

So, Let’s discuss why LIC Jeevan Labh plan is a popular choice among young Indians: 

LIC Jeevan Labh Policy – Is It a Preferred Choice of Young Indians? 

The LIC Jeevan Labh, a non-linked and participating investment plan is a popular option among young Indians because of the flexibility of premium payments. It provides long-time coverage. The plan offers a limited premium payment option and also, the dual benefits of savings and protection. LIC Jeevan Labh policy not only provides financial help to the policyholder’s family in case of an unfortunate event but also takes care of the future financial requirements of the family even in the absence of the policyholder. 

The Premium Payment Term (PPT) is divided into three options – 10, 15, and 16 years for a complete term of 16, 21, 25 years correspondingly. In other words, this simply means that if one pays the premium for 10 years, then the total time with the insurance cover will be in force for PPT 16 years. Likewise, with the PPT of 15 years, the plan will be in force for 21 years, and for 16 years of the Premium payment term, the plan will be in force for 25 years. It is suggested to pay a complete premium on time if you want utmost returns from LIC Jeevan Labh Policy. 

The minimum age for entry under this plan is of eight years and the maximum age for entry is of 59 years. The maximum maturity/vesting age is of 75 years. The minimum SA (sum assured) is Rs. 2 Lakh without any upper age limit, dependent on the levels of income. This plan also ensures liquidity requirements through the availability of its loan service.

  1. Death Benefits 

    If the policyholder dies during the policy tenure, the nominee/beneficiary will receive the paid amount of premium with the coverage amount. The coverage of the insurance plan doubles the amount of natural death cover, is payable in case of accidental death. Under this LIC Jeevan Labh Plan, if the policyholder dies within the policy tenure, then all the due premium amounts should be payable as a death benefit (called the Sum Assured amount on death), along with bonuses such as simple vested reversionary and additional final bonuses, if any. 

    Sum Assured amount on demise: The nominee will receive the highest of,

    • 7X of annualized amount premium 
    • Absolute assured amount paid at the time of death

    The death benefit should be lower than 105 percent of the paid premiums till the death date. These premiums are free of taxes. 

  2. Maturity Benefits 

    The maturity benefits of LIC Jeevan are quite profitable in comparison to any other policy obtainable by the Life Insurance Corporation of India (LIC). Sum Assured (SA) received on the date of maturity (equivalent to the SA (basic)), along with the certain type of bonuses simple vested reversionary and additional final bonuses, if any, will be payable by the insurer in a lump sum amount upon the survival after the plan tenure. However, all the due amount of premium is required to be paid in the premium payment term (PPT).  4.5% of tax is allowed on premium in the first year and from the 2nd year, 2.25% of tax on the premium is allowed. 

Sample Premium Rates 

Below is the table illustrating the annual premium amount for Rs. 2 Lakh basic sum assured for standard lives. 

Age (in years)

Premium Paying Term/Policy Term (in years)

16 Years Term, 10 years PPT

21 years term, 15 years PPT

25 years term, 16 years PPT

















Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. 


  • 2 percent of tabular premium in annual mode 
  • 1 percent of tabular premium in half-yearly mode 
  • No tabular premium in monthly and quarterly mode 

Basic Sum Assured: 

  • 2,00,000 – 4,90,000 – Nil 
  • 5,00,000 – 9,90,000 – 1.25 percent of basic sum assured 
  • 10,00,000 – 14,90,000 – 1.50 percent of basic sum assured 
  • 15,00,000 and above – 1.75 percent of basic sum assured 

The above premium rates indicate why LIC Jeevan Labh is a preferred choice for young individuals. This is because it provides a profitable lump sum at maturity. Tax rebates are available on paid premiums u/s 80C of the Income Tax Act, 1961. If the policyholder is of 30 years of age, the policy of 25 years will be ended at 55 years of age. So, at later ages, the lump sum money will stabilize the future. Also, after the completion of the Premium Payment Term (PPT), the insurance cover will be in force. In case of the insured’s demise, the nominee/beneficiary will get the lump sum and life coverage amount.

Wrapping It Up! 

Determine your insurance requirements before purchasing the LIC plans. It is always advisable to buy insurance at an early age because the chances of death are lesser and hence the premiums are lower. Accordingly, the lump sum amount will be a good orderly saving plan for the policyholder. Under this plan, the maturity amount is free from any taxes u/s 10(10D) of the Income Tax Act. LIC Jeevan Labh is a preferred choice for young Indians but it depends solely on their financial requirements. As discussed above, policyholders have the option to choose 25 years term with 16 years PPT, 16 years term with 10 years PPT, and 21 years term, 15 years PPT under LIC Jeevan Labh Plan.

Written By: PolicyBazaar - Updated: 30 September 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Sign up for newsletter
Sign up our newsletter and get email about LIC India.

Investment plans articles

Recent Articles
Popular Articles
How to Invest Money

25 Nov 2021

The investment made today is the asset created for tomorrow...
Read more
Gold Bonds in India for NRIs

24 Nov 2021

Gold is an asset whose value increases over time that may be...
Read more
PIS Account for NRI

24 Nov 2021

Non-Resident Indians can operate in the recognized stock...
Read more
Process to Fill SSY Form in Post Office?

20 Nov 2021

The Sukanya Samriddhi Yojana (SSY) is a post office scheme...
Read more
How to Fill a Post Office Savings Bank Form?

20 Nov 2021

Post Office Savings Bank Account is a deposit scheme with easy...
Read more
Best LIC Policies For Investment in 2022
When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC...
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily...
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2022
Are you looking for an investment avenue which is safe and secure, earns substantial returns with a short locking...
Read more
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides...
Read more
State Bank Of India Investment Plans
Monthly investments plan is a popular investment options for individuals who wants to gain a profitable investment...
Read more
Download the Policybazaar app
to manage all your insurance needs.