LIC is one of the biggest players in the insurance domain today, offers a range of the most comprehensive insurance products. The company's plans cater to the needs of people belonging to diverse age groups and income brackets. LIC's Jeevan Labh 836 is one such product that offers a lot of flexibility to the policyholders.Read more
Now withdrawn, LIC’s Jeevan Labh 836 is a type of traditional endowment insurance product that offers benefits of savings as well as protection. The plan offers financial backing to the family of the life insured in the event of her/his unfortunate demise. Further, if the policyholder survives the duration of the policy term, (s)he is eligible to receive maturity benefit as a lump sum payout.
Key features of this policy include:
It is a limited premium paying policy.
With this plan, you can take advantage of the loan facility for your liquidity needs.
The policy participates in the profits of the company, which confers bonuses to the policyholders.
Accidental death and disability can be covered through riders available on paying extra charges.
LIC Jeevan Labh 836 can be surrendered at any point during the policy tenure, in the condition that premiums for 3 full years have been paid.
If the life assured is below the age of 18, the policy shall vest on the completion of 18 years by the life assured.
The plan offers flexibility in choosing the policy term, viz. 16 years, 21 years, and 25 years.
The following table highlights the basic requirements to be eligible for this plan.
|Entry Age||8 years||59 years for PT 16 years 54 years for PT 21 years 50 years for PT 25 years|
|Maturity Age||NA||75 years|
|Sum Assured||Rs. 2 Lakhs||No limit|
|Policy Term||16 years, 21 years, 25 years|
|Premium Paying Term||10 years, 15 years, 16 years|
Death Benefit - In the event of the policyholder's unfortunate demise, (s)he is entitled to receive the SA on death with final additional bonus and simple reversionary bonus, subject to company profits. The death benefit payable is defined as the absolute sum assured or 10 times the annual premium (whichever is higher).
Maturity Benefit - Sum assured on maturity is defined as an amount equal to the basic sum assured in addition to bonuses earned through participating profits of LIC. The maturity benefit is payable as a lump sum amount to the life assured on surviving the policy term.
Vesting Benefit - Vesting is only applicable if the life assured is under the age of 18 at the time of risk commencement. If the life assured survives the vesting date and no request for policy surrender has been received by LIC, the policy shall automatically vest in the name of the life assured. In such a case, the life assured becomes the sole owner of the policy benefits and rights (if any) of the proposer shall cease to exist.
Participation in Profits - LIC Jeevan Labh 836 is a participating, with-profit insurance policy. Subject to provisions in section 28 of the LIC Act of 1956, the policy participates in the profits made by the Corporation. Consequently, policyholders will be eligible to receive a simple reversionary bonus at a rate declared by LIC annually, in addition to assured death and maturity benefits.
The riders that can be availed under this insurance plan are Accidental Death and Disability Benefit Rider and New Term Assurance Rider of LIC. Let’s understand these riders in more detail.
|LIC’s Accidental Death and Disability Benefit Rider||
|LIC’s New Term Assurance Rider||
Grace Period - One month, however, no less than 30 days shall be allowed as a grace period for yearly, half-yearly, and quarterly premium payment modes. The grace period is capped at 15 days for monthly premium payments. All due premiums payments have to be made during this period or the policy lapses.
Policy Revival - The policy can be revived after failure to pay premiums during the grace period. However, a gap of a minimum of 2 years from the first unpaid premium is mandatory to revive a lapsed policy.
Free-look Period - During this period, the policyholder has the option to go through the term and conditions of the policy. If a policyholder is not satisfied with any clause of the agreement or the policy, he/she has the authority to return it to LIC.
The policy has a suicide exclusion clause under the terms of which -
If death by suicide occurs within 12 months from the date of risk commencement, no benefits shall be payable by the insurer, except 80% of the premiums paid.
Similarly, if death occurs as a result of a suicide attempt within 12 months from policy revival, only 80% of the premiums paid are refunded back to the beneficiaries.