LIC Jeevan Labh: An Overview
LIC Jeevan Labh is one of the best-performing plans offered by the Life Insurance Corporation of India (LICI). Established in 1956, LIC is the largest insurance company in the Indian insurance industry and is highly trusted by Indians to purchase insurance. Among the different plans served by LIC, Jeevan Labh Policy is the best-selling endowment plan. Curious to know why? Here we will provide every single Jeevan Labh Policy details to help you achieve the best financial security for your life and loved ones.
Table of Content
What is LIC Jeevan Labh Plan?
LIC Jeevan Labh is a non-linked, limited premium paying, life assurance saving plan that combines savings and investment benefits with the pinch of a participation bonus. Under this plan, a life cover is provided to the policyholder's nominee in case of the policyholder’s demise and provides maturity benefits if the insured survives the entire policy.
The LIC Jeevan Labh plan also offers participating benefits, which means that the insurance provider will declare annual bonuses upon the individual plan that will be paid along with the maturity or death benefits. Thus, purchasing a Jeevan Labh policy ensures your family is financially stable even if you are not around.
Eligibility Criteria of Jeevan Labh Policy
|Minimum Basic Sum Assured||Rs. 2,00,000|
|Maximum Basic Sum Assured||No Limit (Basic sum assured is multiples of Rs. 10,000 only)|
|Minimum Age at Entry||59 years (nearest birthday for policy term 16 years)
54 years (nearest birthday for policy term 21 years)
50 years (nearest birthday for policy term 25 years)
|Maximum Maturity Age||75 years (nearest birthday)|
|Policy Term/ Premium Paying Term||16/10 years
|Premium Payment Mode||Annually/ Half-yearly/ Quarterly/ Monthly|
Highlights of LIC Jeevan Labh
- Limited premium payment
- Long-term investment
- Death benefits
- Maturity Benefits
- Additional annual bonus
- Loan facility
- Optional add-on riders
- Flexibility in selecting the modes of payment
Key Benefits of LIC Jeevan Labh
LIC Jeevan Labh's benefits make it the first preference for the policy buyers in a number of endowment plans offered by LIC. The host of benefits is mentioned below
LIC Jeevan Labh is a life insurance plan, which means that the plan will provide life coverage. Under this plan, the nominee receives the sum assured on death in case of an unfortunate demise of the insured, along with Simple Reversionary Bonuses and a Final Additional Bonus (if any). The insured can choose the receiving mode of the death benefit as a lump sum or a regular income.
The death benefit will be in the following manner-
- No less than 105% of the total premium paid up to the date of death.
- The basic sum assured amount or 7 times the annualized premium, whichever is higher.
Suppose the life assured survives the policy till the end of the policy term. In that case, a sum assured on maturity will be provided as the maturity benefit, along with Simple Reversionary Bonuses and a Final Additional Bonus (if any). The sum assured on maturity is equal to the basic sum assured.
Participation in Profits
Since LIC plan 936 is a participating endowment plan, the plan shall participate in the profits made by the corporation (LIC), and the policyholder will receive Simple Revisionary Bonuses and a Final (Additional) Bonus. This participation profit is provided along with the maturity claim or death claim issued. The Final Additional Bonus shall not be payable if the policy stands as a paid-up policy.
How does LIC Jeevan Labh 936 Work?
Jeevan Labh LIC is the plan that provides a combination of protection and saving; moreover, you need to pay the premium for a limited period to enjoy long-term protection. If you plan to buy a LIC Jeevan Labh plan, the first question that arises is how does the plan work? Before heading to the workflow, let’s understand what factors a customer needs to consider
After calculating your financial needs, select a Sum Assured amount you need.
Select the preferable period you wish to have covered for the Policy Term (you can opt for 16 years, 21 years, or 25 years).
The annual premium depends upon the above two factors, including the age when you apply for the plan.
Let’s understand the premium amount and offered benefits with an illustration.
Sample Premium of LIC Jeevan Labh
To give a clear view, we have mentioned the sample of LIC Jeevan Labh plan premium for a sum assured of INR 2 lakhs. The sample illustration of premium payments will be as follows
|Age (in years)||Policy Term/ Premium Paying Term (in years)|
|20||Rs. 16,699||Rs. 10,682||Rs. 9,006|
|30||Rs. 16,758||Rs. 10,770||Rs. 9,134|
|40||Rs. 17,013||Rs. 11,133||Rs. 9,584|
|50||Rs. 17,826||Rs. 12,123||Rs. 10,741|
Benefits of LIC Jeevan Labh 936 available under different scenarios
|Age of Life Assured||30 years (nearer birthday)|
|Policy Term (years)||25 years|
|Premium Payment Term||16 years|
|Premium Payment Mode||Yearly|
|Basic Sum Assured||Rs. 2,00,000|
|Premium (exclusive taxes)||Rs. 9,134|
|End of Year||Total Premium Paid (till the end of the year)|
|Guaranteed Benefits||Non-Guaranteed Benefits||Total Death Benefit Inclusive of Final Additional Bonus (if any)||Total Maturity Benefit Inclusive of Final Additional Bonus (if any)|
|Sum assured on Death||Sum assured on Maturity||(Simple Reversionary Bonus)|
|Scenario 1||Scenario 2||Scenario 1||Scenario 2||Scenario 1||Scenario 2|
|5||Rs. 45,670||Rs. 2,00,000||-||Rs. 4,000||Rs. 30,000||Rs. 2,04,000||Rs. 2,30,000||-||-|
|10||Rs. 91,340||Rs. 2,00,000||-||Rs. 8,000||Rs. 60,000||Rs. 2,08,000||Rs. 2,60,000||-||-|
|15||Rs. 1,37,010||Rs. 2,00,000||-||Rs. 12,000||Rs. 90,000||Rs. 2,12,000||Rs. 2,91,000||-||-|
|20||Rs. 1,46,144||Rs. 2,00,000||-||Rs. 16,000||Rs. 1,20,000||Rs. 2,16,000||Rs. 3,25,000||-||-|
|25||Rs. 1,46,144||Rs. 2,00,000||Rs. 2,00,000||Rs. 20,000||Rs. 1,70,000||Rs. 2,20,000||Rs. 3,70,000||Rs. 2,20,000||Rs. 3,70,000|
- The main objective of the illustration is to make the policy buyer understand the flow of LIC Jeevan Labh Plan, the features, and the flow of benefits in different circumstances.
- The illustration applies to a standard life wherein riders do not opt.
- Benefits are subject to change as per future performance
- The chart is based on the illustration stated by LIC and approved by IRDAI.
Additional Features of LIC Jeevan Labh 936
The plan is specially designed to provide individuals with the special benefits of life cover and investment. Your financial goals may change at different milestones of life, to provide maximum benefits, LIC Jeevan Labh comes up with additional features. Some of the major features are mentioned below
|Yearly||2% of Tabular Premium|
|Half-yearly||1% of Tabular Premium|
|Monthly & Salary Deductions||NIL|
Rebates are also offered based on the sum assured.
|Basic Sum Assured (B.S.A.)||Rebates|
|Rs. 2,00,000 to Rs. 4,90,000||NIL|
|Rs. 5,00,000 to Rs. 9,90,000||1.25% of B.S.A.|
|Rs. 10,00,000 to Rs. 14,90,000||1.50% of B.S.A.|
|Rs. 15,00,000 to and above||1.75% of B.S.A.|
- Policy Loan: Loans can be availed against Jeevan Labh policy if you have paid at least two full years’ premium and the policy has acquired a surrender value. The policyholder can avail of the maximum loan as a percentage of surrender value in the following conditions
For in-force policies– upto 90%
For paid-up policies– upto 80%
- Rider customization: Five additional riders can be availed under LIC’s Jeevan Labh by paying the additional premium. These rider benefits help to increase the life cover amount as well as cover the possible risks. You can select from the following LIC Jeevan Labh riders
1. Accidental death and disability benefit rider
2. Accidental benefit rider
3. Term assurance rider
4. Critical illness rider
5. Premium waiver benefit
- Tax Benefits: A maximum limit of Rs. 1.5 lakh in a financial year, and the maturity amount proceeds are exempted from tax under Section 80 C and Section 10 (10 D) of the Income Tax Act.
- Free-look period: LIC Jeevan Labh 936 allows a freelook period of 15 days from the policy buying date. If the policyholder is unsatisfied with the terms and conditions of the policy, they can cancel it within 15 days.
- Grace period:The policy offers a grace period of 30 days for payments in yearly, half-yearly, quarterly modes and 15 days for monthly payment modes from the date of the first unpaid premium. During this period, the policy will remain in force, and if the policyholder misses paying the premium, the policy lapses.
- Revival:The lapsed policy can be revived within 5 consecutive years from the first date of unpaid premiums and before the date of maturity. The policyholder must pay all outstanding premiums, interest, and other expenses.
- Rebate:LIC is popularly known for serving the most affordable premium plans. Jeevan Labh plan offers rebates on different premium modes.
- Surrender value: A policyholder can surrender the policy anytime after paying two full years' premiums. In such cases, the Jeevan Labh LIC acquires a surrender value. The insured will receive the surrender value, termed as Guaranteed Surrender Value or Special Surrender Value, whichever is higher.
- Paid-up Value:If a policyholder has paid a premium of less than two years and subsequent premiums are not duly paid, all policy benefits cease after the grace period expires. If at least two years' premiums are duly paid, and any subsequent premiums are not paid, the policy acquires a paid-up value until the end of the term.
- Settlement option of Maturity Benefit:The policyholder gets a settlement option to receive the maturity benefit in instalments over a chosen period of 5 years, 10 years, or 15 years instead of a lump sum amount. This benefit is allowed for in-force and paid-up value policy only.
- Build a retirement fund: When planning for retirement, LIC Jeevan Labh becomes the first choice for investors as the plan offers a risk-free option to build a retirement fund in the most affordable premium payment (around Rs. 253 per day if you choose 25 years-plan tenure). Do you know the best part? When the policy matures upon your retirement, you can opt to take the monthly payments for up to 15 years.
Key Exclusions Under Jeevan Labh Policy
By now, you are well aware of all the benefits and features of Jeevan Labh Policy 936. Still, you must be aware of some key clauses under LIC Jeevan Labh exclusions. These are:
- Suppose the policyholder commits suicide within 12 months of the commencement of risk. In that case, the company will not provide any risk cover but is entitled to payout 80% of the total premium paid, excluding the rider premiums, additional premiums, and taxes other than term assurance rider, if any.
- If the policyholder commits suicide within 12 months from the revival date, the company will pay an amount higher than 80% of the total premium paid till the date of the death. Or the company is liable to pay the surrender value available as of the date of death. The amount excludes any extra premiums, taxes, or rider premiums. The policy will not bear any further claims under this policy.
The clause shall not be applicable if
- The age of the life assured is below 8 years at the time of revival.
- The policy is lapsed without acquiring paid-up value.
Riders Offered by LIC Jeevan Labh Plan
An extra premium amount needs to be paid by the policyholder to avail of the additional riders. The following five optional riders are available under this plan
- Accidental Death and Disability Benefit Rider
If this rider is opted, in case of accidental death of the policyholder, the accident benefit sum assured will be payable in lump sum along with the death benefits of the base plan. In case of accidental disability (within 180 days of the accident date), an amount equal to the accidental benefit sum assured will be paid in equal monthly instalments upto 10 years.
- Accident Benefit Rider
If this rider is opted, in case of accidental death of the policyholder, the accident benefit sum assured will be payable in lump sum along with the death benefits of the base plan. The benefits this rider covers are only payable under the premium payment term.
- New Term Assurance Rider
A policyholder can only opt for this rider during the inception of the policy. If this rider is selected, an amount equal to the term assurance rider, including the base death benefit, shall be offered.
- New Critical Illness Benefit Rider
A policyholder can only opt for this rider during the inception of the policy. The critical illness benefits are payable on the first diagnosis specified under the rider. Basically, 15 critical illnesses are covered under this rider benefit.
- Premium Waiver Benefit Rider
If opted for this rider, all the future due premium payments under the base policy will be waived off following the policyholder's death
There you have it! All the necessary information regarding the Life Insurance Corporation of India. With the mirage of facilities and benefits offered for its policyholders, partners, and development officers, no wonder why LIC is considered the giant of the insurance industry in India. With the numerous plans available for every kind of its customer, whether online or offline, urban or rural, economically advanced or below the poverty line, LIC is the first choice of Indians considering insurance. LIC has also launched e-services to make the processes easier and increase the customer satisfaction ratio.
If you are looking for any other issues not covered above, leave a comment below, and we will provide you with the most suitable solution. Or you can directly contact us regarding the latest LIC policy update on RenewBuy website.
Explore More About LIC Jeevan Labh Plan
Check the below sections to learn more about the LIC Jeevan Labh buying process and LIC Jeevan Labh claim settlement process.