LIC’s Jeevan Labh policy offers increased returns on your investments in addition to assured returns in the form of death and maturity benefits. It is a limited premium paying, endowment policy that participates in the profits of the company. While you remain protected under a life insurance cover, this plan guarantees financial protection for your family in the event of your demise. A noteworthy feature of LIC’s Jeevan Labh is that policyholders can avail of loan facilities to address urgent liquidity needs.Read more
Important policy features are detailed below:
Policy Term - The plan comes with flexibility in choosing the policy term from 16 years, 21 years, or 25 years.
Premium Payment - The premium paying terms corresponding to the policy term of 16, 21, and 25 years are 10 years, 15 years, and 16 years, respectively.
Death Benefit - In case of the policyholder’s death under unfortunate circumstances, the assigned beneficiary is entitled to receive the sum assured on death in addition to bonuses, as declared by LIC. The sum assured on death is defined as either 7 times the annual premium or the absolute sum assured, whichever is higher. Further, the policyholder can choose for the assigned beneficiary to receive the death benefit in installments. The benefit amount can be paid over 5 years, 10 years, or 15 years as monthly, quarterly, half-yearly, or yearly installments.
Maturity Benefit - The policyholder surviving the policy term is eligible to receive the basic sum assured on maturity. The amount is payable as a lump sum amount or installments over 5 years, 10 years, or 15 years. To receive the sum assured in installments, the life assured is required to opt for the settlement option.
Eligibility Criteria - To be eligible for this LIC Jeevan Labh, the following requirements are crucial.
Minimum Entry Age - 8 years
Maximum Entry Age - 59 years (for PT of 16 years); 54 years (for PT of 21 years); 50 years (for PT of 25 years)
Maximum Maturity Age - 75 years
Minimum Sum Assured - Rs. 2,00,000
Participation in Profits - Because the policy participates in the profits of the company, the policyholders are eligible to receive simple reversionary bonuses and final additional bonuses, based on bonus rates declared by LIC. However, if premium payments have not been duly made, the policy ceases to participate in any profits made by the company.
Rider Benefits - On paying an additional premium amount, you can enjoy extra protection against accidental death and disability, critical illnesses, etc. The riders available with LIC Jeevan Labh are:
LIC’s Accidental Death and Disability Benefit Rider
LIC’s Premium Waiver Benefit Rider
LIC’s Accident Benefit Rider
LIC’s New Term Assurance Rider
LIC’s New Critical Illness Benefit Rider
Please note that between LIC’s Accidental Death and Disability Benefit Rider and LIC’s Accident Benefit Rider, you can only avail one of them.
Surrender Value - With LIC’s Jeevan Labh policy, you have the option to surrender your policy anytime during the policy term. On surrendering the policy, LIC is liable to pay the guaranteed surrender value or the special surrender value, whichever is higher. The guaranteed surrender value factor depends on the policy term and the year in which the policy was surrendered. Please note that to be eligible for the surrender value, two full years' premiums have to be paid. Further, the simple reversionary bonuses also acquire surrender value and are payable to the policyholder along with the guaranteed paid-up value.
Loan Facility - Loan can be availed under this policy (subject to the acquired surrender value) provided that a minimum of two years’ premiums payments have been made. The maximum loan amount that can be availed is:
90% of surrender value in case of in-force policies
80% of surrender value in case of paid-up policies
Grace Period - Policyholders are allowed a grace period of 30 days from the date of the first unpaid premium payment for yearly, half-yearly, and quarterly premium payments. In the case of monthly premium payments, the grace period is 15 days.
Policy Revival - LIC’s Jeevan Labh shall lapse on discontinuing premium payments, and fail to pay them even within the grace period. The life assured has the option to revive the policy before the date of maturity. One can do so after paying all arrears of premiums with interest.
Free-look Period - A free-look period of 15 days is allowed for the policyholders to review the terms and conditions of the policy. If the policyholder finds any discrepancies in their policy document, (s)he can return it, informing LIC about the reasons for doing so. The company is then liable to return the premium amount paid.
Claim Requirements - The following requirements for death, maturity, and surrender claims are detailed below:
Death Claims - LIC should be notified in writing about the life assured’s death within 90 days of occurrence. Further, the death certificate is mandatory to lodge a death claim with the company. Other documents required are proof of age, NEFT mandate, original policy document, and proof of medical treatment before death.
Surrender and Maturity Claims - To file a maturity claim or to surrender a policy, the life assured is required to furnish the discharge form, the original policy document, NEFT mandate, and proof of age.
Suicide Exclusion - Claim payments arising out of death due to suicide is subject to certain conditions as specified by the company. For instance, if death by suicide occurs within 12 months from the date of risk commencement, all benefits shall cease. However, claims for 80% of the total premiums shall be entertained by LIC. Similar conditions shall ply in case of death by suicide within 12 months of policy revival.
Considered as one of the best LIC policies, Jeevan Labh comes with a host of features. The above-mentioned details of the LIC Jeevan Labh plan should help you develop in-depth insights into the plan. With additional bonuses, policyholders are given opportunities to maximize their savings while being protected under a comprehensive cover.