LIC Jeevan Labh is a participating, non-linked limited premium paying individual savings plan, which offers the combined benefit of savings and protection. LIC Jeevan Labh not only provides financial aid to the family of the insured in the event of any eventuality but also takes care of the future financial needs of the family even in the absence of the insured person.
LIC Jeevan Labh
As one of the leading insurance provider in India, LIC policies are a popular choice for customers when it comes to buying insurance cover. Along with the extensive range of policies offered by LIC, LIC Jeevan Labh is one of the bestselling endowment insurance plan offered by the LIC of India. LIC Jeevan labh comes with a host of benefits for the insurance buyers. Let’s read further to know in detail about LIC Jeevan Labh Policy.
LIC Jeevan Labh Plan Features
Here are some of the salient features of the LIC Jeevan Labh Plan.
- The plan offers the option of limited premium payment.
- This plan is available for a policy term of 16, 21, and 25 years making goal-based investment easier for investors.
- This non-linked, with profit plan, ensures both comprehensive protection plus assured returns for the investors in the form of death and maturity benefits.
- Policyholders can avail loan facilities on this plan, after paying a regular premium for three years.
- Tax benefits can be availed under Section 80C and 10(10D) of the Income Tax Act.
- The plan offers the option to the avail death benefit in installments.
- LIC Jeevan Labh Benefits
- The following are the benefits offered by LIC Jeevan Labh Plan.
The death benefit is paid by the insurer to the beneficiary of the policy if the insured person dies an unfortunate death during the tenure of the policy. The death benefit payable to the nominee of the policy is the sum assured on death plus vested simple reversionary bonus and final additional bonus (if any). The sum assured on death is defined as:
- Higher of 7 times the annualized premium or;
- Basic sum assured amount
The death benefit paid to the nominee of the policy should not be less than 105% of the total premium paid.
If the life insured survives the entire policy tenure, provided all the premiums of the policy are dully paid and the policy is in force. Maturity benefit is offered to the insured person as a sum assured on maturity along with vested simple reversionary bonus and final additional bonus (if any). The sum assured on maturity is equal to the basic sum assured amount of the policy.
Participation in Profits
The policy participates in the profits of the corporation and is entitles to receive a simple reversionary bonus declared as per the experience of the corporation, provided the policy is in force. The final additional bonus is also declared under the policy in the year the claim is made either as death or maturity.
The policyholder can take advantage of the tax benefits offered under the policy. the premium paid towards the policy up to the maximum limit of Rs.1.5 lakh in a financial year and the maturity proceeds are tax exempted under Section 80C and 10(10D) of the Income Tax Act.
LIC Jeevan Labh Plan Eligibility Criteria
Criteria Minimum Maximum
Entry Age 8 years 59 years for PT 16 years
54 years for PT 21 years
50 years for PT 25 years
Sum Assured Rs.2,00,000 No upper limit
Maturity Age N/A 75 years
Policy Term 16, 21& 25 years
Premium Paying Term 10, 15 & 16 years
Sample illustration of Premium
Here we have shown a sample illustration of the annual premium rate for Rs.2 lakh basic sum assured amount for standard lives.
Age Policy Tenure/ Premium Paying Tenure (in years)
16(10) 21(15) 25(16)
20 16,699 /- 10, 682/- 9,006/-
30 16,758/- 10,770 /- 9,134/-
40 17,013/- 11,133/- 9,584/-
50 17,826/- 12,123 /- 10,741/-
Required Documents for LIC Jeevan Labh Plan
To avail of the benefits offered by the LIC Jeevan Labh plan, there are certain documents that should be kept hand. Let’s take a look at it.
- Address Proof
- Other KYC documents: Adhaar Card, PAN Card, Tax Details, etc.
- Age Proof
- Properly filled Proposal form/ Application form
- Medical Diagnosis Reports as required
- Medical History
Policy Exclusions of LIC Jeevan Labh
The policy rejects the claim filed in case of the suicide of the life assured.
If the life assured commits suicide within 1 year of the policy’s initiation, 80 % of the premiums paid to date are returned to the beneficiary of the policy, provided the policy is in force.
Also Read : LIC Aadhaar Shila – Features and Benefits
If the life assured commits suicide after completion of 1 year from the date of policy revival, higher of acquired surrender value or 80% premiums paid to date will be paid.