LIC Jeevan Labh Plan (plan no. 936) details, eligibility, features, benefits, surrender value, riders, grace period.
India’s largest insurance company LIC keeps launching various types of insurance plans according to the needs of different people. Many insurance policies of this company are very popular among the people. In this, LIC’s Jeevan Labh Insurance Policy (LIC Jeevan Labh Plan) is also included. This is an endowment policy. Let us know in detail about this policy.
What is LIC Jeevan Labh Plan?
LIC Jeevan Labh is a simple endowment plan. LIC Jeevan Labh is a participating, non-linked, limited premium paying individual savings plan, which offers a combination of savings and protection. This policy not only provides financial support to the family of the insured but also takes care of the future financial needs of the family in his absence.
This is a Limited Premium Paying Plan – You do not have to pay premiums for the entire term of the policy.
LIC Jeevan Labh Plan Eligibility Criteria
| Name of Insurance: | LIC Jeevan Labh Plan (Table No. 936) |
| Entry Age (Minimum): | 8 years |
| Entry Age (Maximum): | 59 years for a policy term of 16 years 54 years for a policy term of 21 years 50 years for a policy term of 25 years |
| Coverage (Basic Sum Assured): | Minimum:- Rs.2,00,000 Maximum:- No limit (Subject to Board approval) |
| Premium Paying Term: | 10 years for a policy term of 16 years 15 years for a policy term of 21 years 16 years for a policy term of 25 years |
| Policy Term: | 16, 21 and 25 years |
| Maturity Age: | Maximum: 75 Years |
| Official website: | www.licindia.in |
Features of LIC Jeevan Labh Plan
- LIC Jeevan Labh is a simple endowment plan.
- This plan offers limited premium payment option.
- Tax benefits can be availed under section 80C and 10(10D) of the Income Tax Act.
- The insured can avail the loan facility on this insurance plan after paying regular premiums for three years.
- This insurance plan provides an option to receive the death benefit in instalments.
- This non-linked profit plan offers both comprehensive protection and assured returns in the form of death benefit and maturity benefit for the investors.
Benefits of LIC Jeevan Labh Plan
Death Benefit
If there is an unfortunate death of the life assured during the policy term then the death benefit is paid to the beneficiary of the policyholder. The death benefit payable to the nominee of the policy is Sum Assured plus vested Simple Reversionary Bonuses and Final Additional Bonus (if any). Sum Assured on Death is defined as:
- More than 7 times of annualized premium
- Basic Sum Assured
The death benefit paid to the nominee of the policy shall not be less than 105% of the total premiums paid.
Maturity Benefit
If the life assured survives the entire policy term, and the policy is in force and all premiums have been paid. Maturity Benefit is paid to the Life Assured as Sum Assured on Maturity along with a vested Simple Reversionary Bonus and Final Additional Bonus (if any). On maturity, the Sum Assured is equal to the Basic Sum Assured of the policy.
Participation in Profits
The policy participates in the profits of the Corporation and is entitled to receive a simple reversionary bonus declared as per the experience of the Corporation, provided the policy is in force. Final Additional Bonus is also declared under the policy in the year when the claim is made either on death or maturity.
Tex Benefits
The insured can avail of the tax benefits offered under the policy. The maximum limit of premium paid for the policy in a financial year is Rs 1.5 lakh and on maturity is tax exempt under section 80C and 10(10D) of the Income Tax Act.
Riders of LIC Jeevan Labh Plan
The following types of riders are available in LIC Jeevan Labh plan:
- LIC Accidental Death & Disability Benefit Rider
- LIC Accident Benefit Rider
- LIC New Term Assurance Rider
- LIC New Critical Illness Rider
- LIC Premium Waiver Benefit Rider
Grace Period
A grace period of 30 days is available for quarterly, half-yearly, and annual premium payments. Same if you pay monthly premium then you get 15 days discount. If the premium is not paid before the end date of the grace period, the policy will lapse.
Surrender Benefit
In this insurance plan, an option to surrender the policy is provided at any time after the policy has been continued for two consecutive years. In such situations, the insurer pays the higher of the Special Surrender Value or a surrender value equal to the Guaranteed Surrender Value.
Revival
If the premium is not paid within the grace period, the policy lapses. LIC Jeevan Labh provides an option to revive the policy but within 5 consecutive years. It means from the date of your first unpaid premium and it can be revived only before the maturity date.
Free look period
If the insured is not satisfied with the terms and conditions of the policy, it may be returned to the insurance company within 15 days from the date of receipt of the policy documents stating the reasons for objection. In case of digital policies through distance marketing, a free look period of 30 days is allowed.