Investment Plans 7520 views February 27, 2020

LIC Jeevan Labh

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.

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Features of LIC Jeevan Labh

The features of LIC Jeevan Labh are as follows:

  • It is an endowment plan with a limited premium paying term.
  • You will get both maturity benefits and death benefits in this policy.
  • The policyholder is free to choose the frequency of paying the premium whether monthly, quarterly, half-yearly, or yearly.
  • You will also get a grace period of 15 days if you are paying monthly premiums and a grace period of 30 days if you are paying yearly, half-yearly, or quarterly premiums.
  • You will also get a free-look period of 15 days during which you can return the policy.
  • In case of an emergency, you can even surrender the policy after fulfilling certain terms and conditions.

Details of LIC Jeevan Labh 836 Policy

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.

Death Benefits

In case of the unfortunate death of a policyholder the nominee is entitled to get the following benefits:-

  • Sum Assured On Death
  • Simple Reversionary Bonus
  • Final Additional Bonus

The Sum Assured on death will be the highest of the following:-

  • Basic Sum Assured
  • 7 Times of the Annualised Premium

The Death Benefit will always be more than 105% of all the premiums paid up to the time of the death.

Maturity Benefits

If the policyholder survives the full policy term then he is entitled to receive the maturity benefits and it will include the following:-

  • Sum Assured on Maturity that is the Basic Sum Assured
  • Simple Reversionary Bonus
  • Final Additional Bonus

Bonus

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.

Rider Benefits

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:-

  • Accidental Death and Disability Benefit Rider
  • Accident Benefit Rider
  • Premium Waiver Benefit Rider
  • New Critical Illness Benefit Rider
  • New Term Assurance Rider

Revival Benefits

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.

Multiple Modes for Paying Premiums

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 PremiumRebates
Yearly2% of the Tabular Premium
Half-Yearly1% of the Tabular Premium
QuarterlyNIL
MonthlyNIL

Option to Take Death or Maturity Benefits in Instalments

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 PaymentsMinimum Instalment Amount
Monthly₹5000
Quarterly₹15000
Half-Yearly₹25000
Yearly₹50000

Grace Period

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.

Rebates on 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 AssuredRebate on Premiums
₹2,00,000 to ₹4,90,000NIL
₹5,00,000 to ₹9,90,0001.25% of Basic Sum Assured
₹10,00,000 to ₹14,90,0001.50% of Basic Sum Assured
₹15,00,000 and Above1.75% of Basic Sum Assured

LIC Jeevan Labh Premium Chart

ParticularsDetails
Age of the Life Assured30 Years
Policy Term25 Years
Premium Paying Term16 Years
Basic Sum Assured₹200,000
Calculated Premium₹9134 per annum

Surrender the Policy

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:-

  • Guaranteed Surrender Value = Total Premiums Paid-(Extra Premiums + Premium for Riders + Taxes) X Guaranteed Surrender Value Factors

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 TermPolicy Term/Premium Paying TermPolicy Term/Premium Paying Term
Surrender Year16 Years/10 Years21 Years/15 Years25 Years/16 Years
1st Year0.00%0.00%0.00%
2nd Year30.00%30.00%30.00%
3rd Year35.00%35.00%35.00%
4th Year50.00%50.00%50.00%
5th Year50.00%50.00%50.00%
6th Year50.00%50.00%50.00%
7th Year50.00%50.00%50.00%
8th Year53.75%52.30%51.80%
9th Year57.50%54.60%53.50%
10th Year61.25%56.90%55.30%
11th Year65.00%59.20%57.10%
12th Year68.75%61.50%58.80%
13th Year72.50%63.80%60.60%
14th Year76.25%66.20%62.40%
15th Year90.00%68.50%64.10%
16th Year90.00%70.80%65.90%
17th Year-73.10%67.60%
18th Year-75.40%69.40%
19th Year-77.70%71.20%
20th Year-90.00%72.90%
21st Year-90.00%74.70%
22nd Year--76.50%
23rd Year--78.20%
24th Year--90.00%
25th Year--90.00%

Policy Loan

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.

Free-Look Period

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.

LIC Jeevan Labh Policy Eligibility Criteria

Particulars
Minimum Age of Entry8 Years
Maximum Age of Entry

  • 59 years for the policy term of 16 years.

  • 54 years for the policy term of 21 years.

  • 50 years for the policy term of 25 years

Maximum Age of Maturity75 Years
Premium Paying Term Options

  • 10 Years

  • 15 Years

  • 16 Years

Policy Term Options

  • 16 Years

  • 21 Years

  • 25 Years

Minimum Sum Assured₹2,00,000
Maximum Sum AssuredNo Limit (In the Multiples of 10,000)
Premium Paying FrequencyYearly, Half-Yearly, Quarterly, and Monthly

Exclusions of the Policy

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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