Lic jeevan labh Review and benefits
Lic jeevan labh Review and benefits
LIC Jeevan Labh is a participating non-linked Limited Premium Paying Individual Savings Plan, which provides the benefit of savings and protection together. Takes care of the financial needs of the family in the future even if you are not there
LIC policies are a popular choice for customers to buy insurance cover.
The widest range of policies offered by LIC, LIC Jeevan Labh is one of the best-selling endowment insurance plans offered by LIC of India. To know in detail, let’s read about it.
LIC Jeevan Labh Plan- Features
Following are some of the salient features of the LIC Jeevan Labh Plan:
- This plan offers a limited premium payment option.
- This plan is available with a policy term of 16 to 25 years, which is invested keeping in mind the specific goal of the policyholder.
- This non-linked, for-profit plan ensures both assured returns along with comprehensive protection to investors in the form of death and maturity benefits.
- The policyholder can avail loan facility on this plan after paying a regular premium for three years.
- The tax benefit is availed under Rule 80C and 10(10D) of the Income Tax Act, 1961.
- The death benefit is availed in installments from this plan.
LIC Jeevan Labh Benefit
Following are the benefits offered by LIC Jeevan Labh Plan
If the insured becomes a victim of any untoward incident during the policy term, the insurer pays the death benefit to the beneficiary of the policy as the sum assured along with a vested reversionary bonus and a final additional bonus to the beneficiary of the policy. The death benefit is paid in The sum assured on death is defined in the following way:
- 7 times the annual premium
- Basic Sum Assured Amount
The death benefit payable to the nominee of the policy should not be less than 105% of the total premiums paid.
Maturity Benefit Final Additional Bonus along with Sum Assured on Maturity is provided to a policyholder who survives and has paid the full premium. The Sum Assured payable on maturity is equal to the Basic Sum Assured of the policy.
The policy participates in the profits of the Corporation and is entitled to a Simple Reversionary Bonus as per the experience of the Corporation, but this requires the policy to be in force in the year in which the claim is made, whether in the form of death or maturity, in that year Final Additional Bonus is declared under.
The policyholder can avail of tax benefits under the policy. The maximum limit for premium payment in a financial year is Rs 1.5 lakh, and the income is exempt from tax under Section 80C and (10D) of the Income Tax Act.
Criteria Minimum Maximum
Entry age 8 years 59 years for PT16
54 years for PT 21
50 years for PT 25
Sum assured Rs.2,00,000 No upper limit
Maturity age N/A /Not Applicable 75 years
Policy terms 16, 21, and 25 years
Premium payment term 10, 15 & 16 Years
LIC Jeevan Labh Riders
Under LIC Jeevan Labh policy, there are five optional riders that the policyholder can avail of by paying an additional premium. Riders’ benefits are purchased along with the base plan to enhance the coverage of the policy. Let us look at these 5 optional rider benefits in detail.
Accidental Death and Disability Benefit Rider
The policyholder can opt for this rider anytime during the premium paying term of the base plan, provided the base plan has an outstanding PPT of at least 5 years, plus the additional premium paid along with the base plan to enhance the coverage of the policy This rider benefit can be purchased by
LIC Accident Benefit Rider
The policyholder can opt for this rider anytime during the premium paying term of the base plan, provided the base plan has an outstanding PPT of at least 5 years. In this rider option, the insured dies within 180 days from the accident Accidental Death Benefit Sum Assured is paid to the policy nominee in the event of
Term assurance rider
This rider option is availed at the time of inception of the policy. This rider entitles the beneficiary of the policy to the benefit of an additional sum assured in the form of additional term assurance in case of unfortunate death of the insured during the term of the policy. Term Assurance Rider Benefit is available along with the Basic Death Benefit offered by the policy
Critical illness rider
The Critical Illness Rider Benefit purchased at the time of inception of the policy if the insured is found to be suffering from any one of the 15 Critical Illnesses mentioned under this rider, during the policy term, to receive the benefits offered under this rider option. could
Premium waiver benefit
Under this rider option, all future premiums to be paid in the plan are waived off on the unfortunate death of the insured, However, if the premium paying term of the base plan exceeds the term of the rider, the rider All further premiums under the base policy from the date of expiry will be payable to Life Assured If the policyholder fails to pay the policy premium it will become a paid-up policy.
How LIC Jeevan Labh works
LIC Jeevan Labh can be availed by people between the age group of 8 to 58 years. This Limited Premium Paying Endowment Plan ensures death benefit to the nominee in case of an emergency and also provides maturity benefit if the insured survives after the entire term of the policy. also takes care of the needs
Simple illustration of premium
We have shown here a sample annual premium for Standard Lives for Basic Sum Assured amount of Rs.2 Lakh.
Documents Required for LIC Jeevan Labh
Some documents should be kept ready to avail of the benefits offered by LIC Jeevan Labh Plan. Let’s have a look.
- Address proof
- Other KYC documents: Aadhar card, PAN card, tax details, etc.
- Age proof
- Correctly filled proposal form/application form
- Medical diagnosis reports as required
- Medical history
Not covered in LIC Jeevan Labh Policy
LIC Jeevan Labh Policy Claims Rejects in case of Suicide of Life Assured
- If the Life Assured commits suicide within 1 year of policy commencement, 80% of the premium paid till that date is returned to the beneficiary of the policy, provided the policy is in force.
If the insured commits suicide within 1 year from the date of revival of the policy, the higher surrender value received or 80% of the premiums paid to date will be paid.