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Investment Plans 8956 views February 27, 2020
It is necessary for every individual to take an insurance plan to secure his life. But some people are in the dilemma of whether to invest in a life insurance plan or not because all their premiums might get wasted if they don’t die until the maturity of the policy. Therefore, here is the LIC Jeevan Labh Policy that is a non-linked endowment plan with a limited premium paying term. The policyholder enjoys dual benefits in this plan that are the death benefits and the maturity benefits. If the policyholder survives the policy term then he is entitled to receive the maturity benefits and on the other hand, in case of unfortunate death of the policyholder, the nominee is entitled to receive the death benefits. Let’s explore more about the Jeevan Labh Plan and see how it can be fruitful for you in a long term.
Features of LIC Jeevan Labh
The features of LIC Jeevan Labh are as follows:
Table of Contents
You must go through the benefits and other details of this insurance policy and decide whether it can be a suitable investment for you or not.
In case of the unfortunate death of a policyholder the nominee is entitled to get the following benefits:-
The Sum Assured on death will be the highest of the following:-
The Death Benefit will always be more than 105% of all the premiums paid up to the time of the death.
If the policyholder survives the full policy term then he is entitled to receive the maturity benefits and it will include the following:-
The LIC Jeevan Labh Policy participates in the profits of the corporation and receives Simple Reversionary Bonuses declared by the corporation. You will get to know about the final bonus in your policy at the time of death or the maturity of the plan.
There are many riders that you can add to the LIC Jeevan Labh Plan and enhance your coverage. The rider’s you can add to this policy are as follows:-
In case the premium on the plan is not paid by the policyholder within the grace period of 15/30 days, the insurance policy will lapse. The lapsed policy can be revived by paying the outstanding amount of the premium together with interest at a rate fixed by the corporation within a period of two years from the date of the first unpaid premium.
There are multiple modes for paying the premium of this policy. You are free to choose the frequency of paying the premiums and enjoy a rebate if you choose the yearly or half-yearly mode. You can see the frequency and rebates in the following table:-
|Frequency or Mode of Paying Premium||Rebates|
|Yearly||2% of the Tabular Premium|
|Half-Yearly||1% of the Tabular Premium|
In the LIC Jeevan Labh Plan, you are allowed to take the maturity benefits or the death benefits in yearly, half-yearly, quarterly, and monthly instalments instead of claiming the lump sum amount. The minimum instalments you can make to receive the benefits are as follows:-
|Frequency of Premium Payments||Minimum Instalment Amount|
The LIC gives you a grace period of 15 days on the Jeevan Labh Policy if you are paying the monthly premium during which you can pay the premium if it is unpaid on the due date. The grace period for paying the premium increases to 30 days if you are making the yearly, quarterly, or half-yearly payment of premiums.
If you choose a high Sum Assured then you will enjoy a rebate on the premiums. You can see the percentage of rebate that will be given to you if you choose a high sum assured:-
|Sum Assured||Rebate on Premiums|
|₹2,00,000 to ₹4,90,000||NIL|
|₹5,00,000 to ₹9,90,000||1.25% of Basic Sum Assured|
|₹10,00,000 to ₹14,90,000||1.50% of Basic Sum Assured|
|₹15,00,000 and Above||1.75% of Basic Sum Assured|
|Age of the Life Assured||30 Years|
|Policy Term||25 Years|
|Premium Paying Term||16 Years|
|Basic Sum Assured||₹200,000|
|Calculated Premium||₹9134 per annum|
You are allowed to Surrender the LIC Jeevan Labh Plan and claim the surrender value only if you have paid all the premiums of the policy for 2 years. You will be entitled to a guaranteed surrender value and it will be equal to:-
You can see the Guaranteed Surrender Value Factors in the form of percentages that will depend on the policy term and policy year.
|Guaranteed Surrender Value Factor|
|Policy Term/Premium Paying Term||Policy Term/Premium Paying Term||Policy Term/Premium Paying Term|
|Surrender Year||16 Years/10 Years||21 Years/15 Years||25 Years/16 Years|
If your policy has acquired a surrender value then you can take a loan against the policy. The corporation will charge applicable interest on the loan and it is only possible to take a loan against the policy if it has acquired a surrender value.
The LIC gives you a free-look period of 15 days during which you can return the plan if you don’t find it suitable for yourself. The company will return your premium after deducting the documentation charges and other processing fees.
|Minimum Age of Entry||8 Years|
|Maximum Age of Entry||
|Maximum Age of Maturity||75 Years|
|Premium Paying Term Options||
|Policy Term Options||
|Minimum Sum Assured||₹2,00,000|
|Maximum Sum Assured||No Limit (In the Multiples of 10,000)|
|Premium Paying Frequency||Yearly, Half-Yearly, Quarterly, and Monthly|
If the life assured commits suicide within 12 months from the date of the commencement of risk then no death benefits shall be paid to the nominees. The corporation will only pay 80% of the total premiums paid. The LIC Jeevan Labh Policy will be void if the life assured commits suicide.
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