LIC's Jeevan Labh Plan

LIC’s Jeevan Labh Plan is a limited premium paying, non-linked, with-profits Simple Endowment plan. This is a best  combination of  protection and savings. Policy holder pays  premiums for a limited period of time and at the end of the policy term, you will get the Maturity Benefits. If death happens during the policy term in this case, the nominee will get the Death Benefit. 
LIC’s Jeevan Labh Plan policy holder  don’t have to pay the premiums for the entire duration of the term of the policy. This is one of the most popular and best-selling simple endowment policies of Life Insurance Corporation (LIC of India). This plan is offer’s both death benefits as well as maturity benefits which are increased by the bonus out of profit participation. One can enter this plan anytime between 8 to 59 years.

LIC’s Jeevan labh Plan Benefits :

 

Maturity Benefits :

If the policyholder survives till the date of maturity of LIC Jeevan Labh Plan, he would receive :

  • Sum Assured on Maturity i.e. Basic Sum Assured

  • Simple Reversionary Bonus and Final Additional Bonus, if any.

 

Death Benefits :

If the policyholder dies within the period of policy term but before the date of maturity, the nominee would receive :

  • Sum Assured on Death

  • Simple Reversionary Bonus and Final Additional Bonus, if any.

The Sum Assured on Death will be the highest of these :

  • Basic Sum Assured

  • 10 times the Annualised Premium

The Death Benefits can not be less than 105% of all the premiums paid as on the date of death of insured.

The Premiums mentioned above can not include any taxes.


Profits Included :

  • The Simple Reversionary Bonus and Final Additional Bonus, Di any would be provided by the corporation to the policyholders and their families under LIC Jeevan Labh Plan which will be declared by the corporation only at time of the payment.

Key Features of LIC'S Jeevan Labh Plan / Policy

Eligibility Criteria for Policy

We’ll understand this through the help of an example  :

We assume that there’s a man, Anubhav wo wants to buy LIC Jeevan Labh Plan. Here are the details :

 

Name : Anubhav 

Age : 40 Years

Sum Assured : Rs. 3,00,000

Policy Term : 21 Years

Premium Payment Term : 15 Years

Premium Payment Mode : Yearly

Annual Premium paid : Rs. 15,500 + Taxes = Rs. 16,197

 

Case 1.   Death Benefits

If Anubhav dies after 8 years of the policy, 

The Total Premiums paid = Rs. 1,29,576

The nominee will receive :

Sum Assured  = Rs. 3,00,000

                   +

The Simple Reversionary Bonus = Rs. 45 per 1,000 Sum Assured for 8 years i.e. Rs. 45 × 300 × 8 = Rs. 1,08,000

                  +

The Final Additional Bonus = Rs. 15 per 1,000 Sum Assured i.e. Rs. 15 × 300 = Rs. 4,500

                  =

The Total Amount at the Time of Death ( Rs. 3,00,000 + Rs. 1,08,000 + Rs. 4,500)  = Rs. 4,12,500

 

Case 2.  Maturity Benefits :

 

If Anubhav Survives till the maturity of the policy, 

The Total Premiums Paid = Rs. 2,42,955

He will receive :

Sum Assured = Rs. 3,00,000

               +

The Simple Reversionary Bonus = Rs. 45 per 1,000 Sum Assured for 21 Years i.e. Rs. 45 × 300 × 21 = Rs. 2,83,500

              +

The Final Additional Bonus = Rs. 20 per 1,000 Sum Assured i.e.

 Rs. 15 × 300 = Rs. 4,500

              =

The Total Amount at the time of Maturity ( Rs. 3,00,000 + Rs. 2,83,500 + Rs. 4,500) = Rs. 5,88,000.

 

*( The Simple Reversionary Bonus and Final Additional Bonus mentioned above are totally our assumptions to get better understanding of the LIC’s Jeevan Labh Plan )

Other Benefits :

Rider Benefits :

  • LIC’s Accidental Death and Disability Benefits Rider
  • LIC’s New Term Assurance Rider 

The Rider Sum Assured shall be less than the Basic Sum Assured.

Loan Benefits :

LIC Jeevan Labh Plan avails loan facility to the insured, once the Surrender Value has acquired under the terms and conditions of the corporation. 

Tax Benefits : 

  • Under Section 80C of the Income Tax Act, the premiums paid by the insure in this plan are exempted form taxation.
  • Under Section 10D of the Income Tax Act, the Maturity Amount is exempted from taxation.
  • Under Section 10D of the Income Tax Act, the Death Benefits received by the family of insured in this plan are free from taxation.

Reviewal Benefits :

  • If the plan has been lapsed, within the period of 2 years from the date of first unpaid premium, the plan can be Revived by paying all the arrears of premium together and interest (Compounding Half-yearly) on such rates that would be decided by the corporation at the time of payment.

Maturity Benefits :

  •  Maturity Paid-up Sum Assured i.e. equal to [Sum Assured on Maturity* (No. Of Premiums Paid / No. Of Premiums Payable)].

The Simple Reversionary Bonus and Final Additional Bonus, if any, will also be provided under paid up policy.

Calculate your lic’s jeevan labh premium as per your requirement :- https://ebiz.licindia.in/D2CPM/#qni/basicinfo

Free-look Period :

LIC Jeevan Labh Plan also provides you Free-look Period to satisfy your needs. If the insured finds any problem with the plan or is not satisfied with this plan, he can cancel the policy within the 15 days starting from the date of receipt of the policy bond. The corporation would return the amount of premium deposited after deducting the expanses.

Grace Period :

  • 15 days Grace Period provided in case of Monthly Premium Payment Mode.
  • 30 days Grace Period provided in case of Quarterly, Half-yearly and  Yearly Premium Payment Mode.

Surrender Value :

  • The Guaranteed Surrender Value has been payable to the insured if the insured wants to surrender the policy but only after the 3 full years’ premium have been paid by the insured.
  • The Surrender Value will be the percentage of total Premiums Paid.
  • The Simple Reversionary Bonus and Final Additional Bonus will also be provided, if any.

Paid-up Value :

  • If one has paid 3 years’ premium on time but stopped paying after that, the insured under LIC’s Jeevan Labh Plan would be applicable for :

Death Benefits :

  • Death Paid-up Sum Assured i.e. equal to [Sum Assured on Death* (No. Of Premiums Paid / No. Of Premiums Payable)].

LIC’s aadhar shila plan benefits, maturity :- lics-aadhar-shila-plan-no-944

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AnsweredMahesh Kondawar asked 8 months ago • 
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