LIC’s New Jeevan Labh policy is a simple Limited premium payment Life Assurance plan. Jeevan Labh provides maturity benefit along with life cover to the policyholder thus offer saving and insurance in one plan. It is a non linked, with profit endowment plan.
Table of Contents
LIC Jeevan Labh Plan – Key Features & Eligibility
- You pay for a certain duration
- At maturity ( after completion of policy term) you get sum assured and bonus and final additional bonus
- Higher bonus rate of Rs. 50/1000 sum Assured is paid
- Tax benefit on premium paid.
| Minimum Basic Sum Assured | Rs. 2,00,000 |
| Maximum Basic Sum Assured (The Basic Sum Assured shall be in multiples of Rs. 10,000/-) | No limit |
| Policy Term | 16,21,25 years |
| Premium Paying Term | 10 years for 16 year term 15 years for 21 year term 16 years for 25 year term |
| Maximum Policy Term | 35 years |
| Minimum Age at entry | 8 years(completed) |
| Maximum Age at entry | 59 years for 16 year term 54 years for 21 year term 50 years for 25 year term |
| Maximum Maturity Age | 75 years (nearest birthday) |
Benefits under LIC Jeevan Labh Plan
Maturity Benefit
On maturity of policy, basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional bonus, paid.
Please note, you pay premium for limited period say 10 years and policy will get matured after 16 years. Thus you will get maturity benefit after 16 years. For more maturity periods please refer table above.
Death benefit
On death of the Life Assured (During policy term) the nominee will get higher of the following
- Sum Assured on death + Simple reversionary Bonus + Final additional bonus
- or
- 10 times of annualised premium+ Simple reversionary Bonus + Final additional bonus
*At any point of time the death benefit will not be lower than 105% of annual premium paid till date.
Option to take Death Benefit in instalments:
One can choose to receive death benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum amount.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for
Different modes of payments being as under:
Jeevan Anand Death benefit Payout in installments
Riders
The policyholder has an option of availing following Rider benefit(s):
- LIC’s Accidental Death and Disability Benefit Rider –In case of Accident death -Accidental death Sum Assured will be payable in lumpsum. In case of accidental disability arising due to accident (within 180 days from the date of accident), an
- LIC’s New Term Assurance Rider – The additional term assurance rider sum assure will be given, in case of death of policyholder.
Rider sum assured cannot exceed the Basic Sum Assured.
what if you do not pay Premium -(Paid-up)
The policy acquires a paid up value if you stop paying premium and the paid up value is given at the policy maturity date.
The paid up value depends on premium payment duration.The below mentioned policy paid up value is given.
If less than TWO years’ premiums have been paid
All the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable.
If at least TWO full years’ premiums have been paid
The policy will acquire paid up value and it will be paid at maturity.
The Sum Assured on Maturity under a paid-up policy shall be reduced to a sum called “Maturity Paid-up Sum Assured” and shall be equal to
[(Number of premiums paid /Total number of premiums payable)*(Sum Assured on Maturity)].
Here, reversionary bonus and final additional bonus will also be paid.
After the expiry of Policy Term:
On death of the Life Assured after expiry of the policy term, Paid-up Sum Assured equal to Basic Sum Assured multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable shall be paid.
A paid-up policy shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses shall remain attached to the paid-up policy.
The Sum Assured on Death under a paid-up policy shall be reduced to a sum called “Death Paid-up Sum Assured” and shall be equal to
[(Number of premiums paid /Total number of premiums payable) * Sum Assured on Death]
Here, reversionary bonus and final additional bonus will also be paid.
For Example, if you paid premium for 3 years only and the policy premium paying term was 15 year than the paid up value will be
3/15* Sum Assured
Surrender Value:
The policy can be surrendered at any time provided premiums have been paid for at least two consecutive years.
On surrender of the policy, the Corporation shall pay the Surrender Value equal to the Guaranteed Surrender Value and Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered.
LIC Jeevan Labh 936 premium and Maturity Calculator
The plan details as follows
Age of Life Assured – 34 years
Sum Assured – 500000
Premium – Rs.27,725
Premium paying term 15 years
Bonus + FAB = 680000
Maturity Amount after 21 years = Rs. 11,80,000
Benefit Illustration
LIC jeevan labh Brochure
LIC Jeevan Labh Benefits
- No hassle Saving cum insurance plan
- Low premium amount and high benefits
- Premium can be paid in monthly or other mode Instalment
- Dual benefit – Take maturity and life cover still continues
- maturity amount is tax free in nature
- tax benefit under section 80C.
LIC Jeevan Labh Disadvantages
- Low returns: LIC Jeevan Anand returns are very low i.e in range of 5-6%.
- Low Liquidity: In case of you want to withdraw entire money in between, then you are eligible to take loan, but no access to your money in between.
- In case you decide to not to pay premium, your policy acquire reduced benefits, paid up status and in case of surrender you get 30% or more premium paid. Thus you have to bear huge losses in such as case.
- Compulsory payment for entire duration
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