LIC Jeevan Labh Plan is a Simple Endowment Plan in which the LIC Policyholder has to pay a predetermined premium amount for a limited time to the Life Insurance Corporation of India. This plan includes both Saving and Insurance protection for the policyholders.
LIC Jeevan Labh Policy is a Profitable Investment and Insurance Plan. It’s a limited premium payment plan in which the policyholder has to pay a premium for a limited time, not the entire duration of the policy and after maturity, the policyholder will get a Total Paid amount including the Maturity benefits. As under the Insurance benefit, the nominee will get the Death Benefit.
| LIC Jeevan Labh Policy Launch Date | December 25, 2015 |
| Policy Details | Table no. 836 |
| Policy Type | Traditional Endowment Plan |
Eligibility Criteria for Lic Jeevan Labh
If you want to buy the LIC Jeevan Jabh Policy then you should probably check the eligibility criteria first,
| Sum Assured | Minimum Rs. 2,00,000 Maximum No Limit |
| Policy Term | 16 Years, 21 Years & 25 Years |
| Premium Payment Term | 10 Years for 16 Years Policy 15 Years for 21 Years Policy 16 Years for 25 Years Policy |
| Age at Entry | Minimum – 8 Years (Complete) & Maximum – 59 years for policy term 16 years 59 years for policy term 16 years 50 years for policy term 25 years |
| Maximum Maturity Age | 75 Years |
| Premium Paying Frequency | Annually, Half-yearly, Quarterly, Monthly |
How does LIC Jeevan Labh Policy work?
When buying the LIC Jeevan Labh Plan the Policyholder, has to decide the two important things that are:
- Assured Amount: It is a amount of cover that you want
- Policy Term: It is a period of time for which the policyholder has to pay the Premium amount. There are three Policy Term which you can select according to your wish. The Policy terms are – 16 Years, 21 Years and 25 years.
- If you want a policy term of 16 Years then you have to pay a premium for 10 Years.
- If You want a policy term of 21 years then you have to pay a premium for 15 Years.
- If you want a policy term of 25 years then you have to pay a premium for 16 years.
Based on the above two factors (Assured amount & Policy term) and the age at which you are buying the Jeevan Labh policy, your annual or monthly premium amount is determined.
Benefits offered in Lic Jeevan Labh
There are two appreciable benefits that you will get with your Jeevan Labh Policy, that are:
- Maturity benefits in Lic Jeevan Labh Plan: At the time of maturity of your Lic Jeevan Labh plan or we can say the time when the policy term gets over, the policyholder will get the Sum of following:
- Sum Assured
- Simple Reversionary Bonus which has been declared will date
- Final Addition Bonus if declared in that year
- Death Benefits in Lic Jeevan Labh Plan: In case of death of the policyholder, at anytime during the policy term, then the nominee of policyholder will will receive the sum of the following:
- Sum Assured
- Simple Reversionary Bonus which has been declared will date
- Final Addition Bonus if declared in that year
Other Benefits in the LIC Jeevan Labh Policy
There are some other benefits that are included with the Jeevan Labh Policy. That are:
- Free-look Period
- Grace Period
- Loan
- Riders
- Surrender Value
Riders Benefits
There are two extra benefits covered with the LIC Jeevan Labh Yojana for the riders. That is:
- LIC’s Accidental Death and Disability Rider
- LIC’s New Term Assurance Rider
Note: The above two Benefits can be added to your policy at extra charges while buying your LIC Policy.
Key Features of LIC Jeevan Labh Plan
| Plan Type | Traditional Endowment Plan with limited Premium Payment Period |
| Plan Basis | Individual |
| Premium Paying Term (PPT) | 10, 15 & 16 (In Years) |
| Policy Term | 16 Years (For 10 Years Premium Paying Term) 21 Years (For 15 Years Premium Paying Term) 25 Years (For 16 Years Premium Paying Term) |
| Premium Payment Frequency | Yearly, Half-Yearly, Quarterly, Monthly and SSS (Salary Saving Scheme) |
| Loan | Yes, a Loan can be avail against the Lic Jeevan Labh Plan. |
| Revival | If the Policyholder had not paid his policy for the last 2 years can reveal his policy at any time by paying the interest, amount and charges. But if the policy is not paid for the last 2.1 years then the policy can be continued. |
| Nomination | The Policyholder can have a nominee. |
| Sum Assured | Minimum – 2,00,000 / 2 lacks and Maximum- No Limit |
| Policy coverage | Maturity Benefit, Death Benefit, Simple Reversionary Bonus and Final (Additional) Bonus (if any) |
Let us understand the LIC Jeevan Plan better with the help of an example
We have a Policyholder named Rajni Rani aged 25, who is wishing to buy this LIC Jeevan Labh Plan. She chooses the plan with the following:
- Sum Assured – Rs. 2,00,000
- Policy Term – 25 Years (Based on the Premium Payment Term gets Decided)
- Premium Payment Term – 16 Years
Based on the Jeevan Labh Parameters, here annual premium charges will be Rs 9,290 + Tax = Rs 9,728.
Here We (Anandkanan. in) has assumed the Tax rate of 4.5%, we will update the amount of any change in tax applied changes occurred.
Death Benefits:
Example 1: Let a LIC Policyholder named Arun dies after paying an annual premium of 3 years. Then his nominee will receive Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
- SUM ASSURED – Rs. 2,00,000
- Total Amount Paid – Rs. 29,124
- Simple Reversionary Bonus = Rs. 50 per 1,000 Sum Assured for 3 years i.e. [Rs. 50*200*3] = Rs. 30,000. Here we had assumed Rs. 50 for every 1k Rupee or Rs 1000. This is just an assumption, this actual amount can be bit higher or lower.
- Final Addition Bonus – Rs 0 or we can say Nil. As Usually Final addition bonus is declared after a much longer premium payment term. As this is example shows the policyholder had paid premium for 3 years, so we can’t assume any Final Additional Bonus.
So the nominee will get Rs 2,00,00 + Rs 30,000 = Rs 2,30,000.
Example 2: Let a LIC Policyholder named Riya die after paying an annual premium of 15 years. Then his nominee will receive Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
- Sum Assured – Rs. 2,00,000
- Total Amount Paid – Rs. 1,45,620
- Simple Reversionary Bonus – Rs. 50 per 1,000 Sum Assured for 15 years i.e. [Rs. 50*200*15] = Rs. 1,50,000. Here we had assumed Rs. 50 for every 1k Rupee or Rs 1000. This is just an assumption, this actual amount can be bit higher or lower.
- Final Addition Bonus – Rs. 30 per 1000 sum assured that is Rs. 6000 (Rs 30*200). Here we had assumed Rs 30 per 1k or 1,000 assured. In actual it can be bit higher or lower.
So the nominee will get Rs. 2,00,000 + Rs 1,50,000 + Rs. 4,000 = Rs. 3,54,000.
Maturity Benefit:
Example 3: Let We have a LIC Policyholder named Manav Pahwa who had paid his Policy Premium till the policy term of 25 years. Then Manav Pahwa will get Sum Assured + Simple Reversionary Bonus + Final Addition Bonus.
- Sum Assured – Rs. 2,00,000
- Total Amount Paid – Rs. 1,55,328
- Simple Reversionary Bonus – Rs 50 per 1,000 Sum Assured for 15 Years that is [Rs. 50*200*25) = Rs. 2,00,000. Here we had assumed Rs. 50 for every 1k Rupee or Rs 1000. This is just an assumption, this actual amount can be bit higher or lower.
- Final Additional Bonus – Rs. 30 per 1,000 sum assured that is Rs. 6,000 (Rs 30*200). Here we had assumed Rs 30 per 1k or 1,000 assured. In actual it can be bit higher or lower.
Then after the Maturity Manav Pahwa will get Rs. 2,00,000 + Rs. 2,50,000 + Rs. 6000 = Rs. 4,56,000.
