LIC of India Jeevan Labh Insurance Policy Overview

The LIC of India Jeevan Labh Insurance Policy is a popular savings-cum-protection plan designed to provide financial security to policyholders. This plan offers a combination of insurance cover and savings, making it an attractive option for those seeking long-term financial protection.

The policy provides a guaranteed minimum bonus of 20% of the sum assured, which is paid at the end of the policy term. This bonus is in addition to the sum assured and is a significant benefit for policyholders.

The policy can be purchased by individuals between the ages of 18 and 50 years, and the policy term ranges from 15 to 30 years. The policyholder can choose from a range of premium payment options, including annual, semi-annual, and quarterly payments.

The policy offers a death benefit to the nominee, which is the sum assured plus the accrued bonus. This benefit is paid to the nominee in case of the policyholder's death during the policy term.

The LIC Jeevan Labh plan has specific eligibility criteria to ensure it's the right fit for you. You must be between 8 years old (completed) and 75 years old at maturity.

To be eligible, you'll need to choose a policy term of 16, 21, or 25 years. The minimum basic sum assured is Rs. 2,00,000, but there's no limit on the maximum sum assured.

Here are the key eligibility criteria at a glance:

The eligibility criteria for LIC's Jeevan Labh Plan is quite straightforward. You must be at least 8 years old to buy the plan.

You can choose a policy term of 16, 21, or 25 years. The maximum age at maturity is 75 years, so make sure you're not planning to live forever.

The minimum basic sum assured is Rs. 2,00,000, but there's no limit on the maximum sum assured. You can choose any amount you want.

Here's a summary of the eligibility criteria:

The plan is suitable for those who want to save for a long-term period, create risk-free savings, and get guaranteed returns. It's also a good option for those who want to combine savings with life insurance coverage.

To buy the LIC Jeevan Labh policy, you'll need to gather some essential documents. A properly completed application or proposal form is a must-have.

You'll also need to provide proof of address, which can be a recent electricity bill, telephone bill, or even a voter's ID card. This helps the insurer verify your identity and address.

Aadhaar card, PAN card, and tax information are also required, along with additional KYC documents. This ensures that the insurer has all the necessary information to process your application.

Here's a list of the required documents:

Note that the specific documents required may vary depending on your individual circumstances. It's always a good idea to check with the insurer or consult with a financial advisor to confirm the exact requirements.

The LIC Jeevan Labh policy offers a range of benefits and features that make it an attractive option for policyholders. The policy provides a death benefit to the beneficiary in the event of the insured person's passing, which is the higher of 10 times the annual premium or the basic sum assured.

The death benefit is also guaranteed to be at least 105% of all premium payments made as of the date of death. If the policyholder survives the policy term, they will receive a lump sum payment called the 'Sum Assured on Maturity', which is equal to the basic sum assured plus vested simple reversionary bonuses and final additional bonuses, if any.

Tax benefits are available under the LIC Jeevan Labh policy, as premiums paid are tax-free under Section 80C of the Income Tax Act, 1961. The maturity amount is also tax-free under Section 10(10D) of the Income Tax Act of 1961.

Policyholders can also avail of a loan against the policy, provided they have paid at least three full years' premiums and the policy has acquired a surrender value. The loan amount is determined by the company and is subject to interest rates.

The policy also offers a free look-up period of 15 days, during which the policyholder can terminate the policy and receive a refund of the premium paid, less any applicable expenses. Policyholders can also surrender the policy at any time, provided they have paid at least three consecutive years' premiums, and receive the guaranteed surrender value.

Here are the key features of the LIC Jeevan Labh policy:

The policy also offers a range of optional benefits, including the Accidental Death and Disability Benefit Rider and the New Critical Illness Benefit Rider.

The LIC Jeevan Labh policy is a long-term investment plan that requires regular premium payments for a specified duration. You can choose a premium amount that suits your coverage needs.

To start, you'll need to pick a premium paying mode, which can be a one-time payment, monthly, quarterly, or annually. The policy term and premium payment term must match, for example, 10 years for a policy term of 16 years.

If you survive the policy term, you'll receive the Sum Assured plus Vested Simple Reversionary Bonus, making your long-term investment goals a reality. This bonus is calculated based on the sum assured and the number of years you've survived the policy term.

Let's take an example to understand this better. Mr. Akash bought a LIC Jeevan Labh policy with a sum assured of Rs. 2,00,,000, policy term of 25 years, and premium payment term of 16 years. His annual premium was Rs. 9,708.

If you die during the policy term, your family will receive financial assistance in the form of Sum Assured plus Vested Simple Reversionary Bonuses. This includes Simple Reversionary Bonus and Final Addition Bonus, which are calculated based on the sum assured and the number of years you've survived the policy term.

For instance, if Mr. Akash dies after 2 policy years, the nominee will get Rs. 2,00,000 (Sum Assured) plus Rs. 16,000 (Simple Reversionary Bonus). The Simple Reversionary Bonus is calculated as Rs. 40 per 1,000 Sum Assured, multiplied by the number of years survived.

The Lic of India Jeevan Labh policy can be purchased online, through the LIC website, or offline, through a LIC agent.

You can pay the premium annually or monthly, depending on your preference.

The premium for the Lic of India Jeevan Labh policy is calculated based on the age of the policyholder at the time of purchase, the term of the policy, and the sum assured.

Before making a purchase, it's essential to research the premium features and benefits of a product or service.

Consider the costs of ownership, as highlighted in the "Cost of Ownership" section, which can help you make an informed decision.

Premium products often come with a higher price tag, but they can also provide long-term savings, as shown in the "Long-term Savings" section.

Be wary of hidden fees or charges that may not be immediately apparent, as discussed in the "Hidden Fees" section.

Carefully review the product's warranty or guarantee, as detailed in the "Warranty and Guarantee" section, to understand what's covered and for how long.

Finally, consider purchasing from a reputable seller, as recommended in the "Reputable Sellers" section, to ensure a smooth and hassle-free transaction.

The premium payable for LIC Jeevan Labh plan depends on several factors, including the sum assured, age of the insured, mode of paying premium, premium paying term, and policy term.

The premium rates for LIC Jeevan Labh plan are as follows: for a 30-year-old, the premium is 85.50 per 1000 sum assured for a policy term of 16 years with a premium paying term of 10 years.

For a 40-year-old, the premium is 86.80 per 1000 sum assured for a policy term of 16 years with a premium paying term of 10 years, and 56.81 per 1000 sum assured for a policy term of 21 years with a premium paying term of 15 years.

The premium paying term and policy term also play a significant role in determining the premium payable. For instance, if you choose a sum assured of INR 2 lakhs, your age is 30 years, and you choose a policy term of 25 years, you would have to pay a premium of INR 9320.

Here's a breakdown of the premium rates for different ages and policy terms:

The LIC Jeevan Labh plan has some important exclusions to be aware of. If the life assured commits suicide, any claim made under the policy will be rejected.

The policy will only consider 80% of the premiums paid if the insured commits suicide within 12 months of the policy's inception or revival. This is a crucial point to note, as it may affect the payout to the beneficiary.

Here are the specific details of the payout in case of suicide: ScenarioPayoutInsured commits suicide within 12 months of policy inception80% of premiums paidInsured commits suicide within 12 months of policy revivalHigher of 80% of premiums paid or surrender value

This is a standard exclusion in most life insurance policies, so it's essential to be aware of it when purchasing the LIC Jeevan Labh plan.

To initiate a claim, you'll need to submit a filled-up claim form, which is usually provided by the insurance company. The claim form should be filled in carefully and accurately.

In case of maturity claims, the company will start preparing to pay the maturity benefit as the maturity date approaches. You just need to submit the claim form and an identity proof, and the policy proceeds will be paid.

For death claims, you'll need to intimate the insurance company about the death and submit the relevant documents. The documents required for death claims include a claim form, identity proof of the nominee, and a death certificate.

If the death is due to an accident, additional documents may be required, such as a police FIR, coroner's report, police inquest report, post-mortem report, and punchnama.

Here are the documents required for death claims:

If the death is accidental, you'll need to submit the following additional documents:

Suicides are excluded from the coverage of the LIC Jeevan Labh policy, and the death benefit would be as follows: 80% of the premiums paid if the insured dies due to suicide within the first 12 months of buying the policy.

If the insured dies due to suicide within 12 months of revival of the policy, the higher of 80% of the premiums paid or the surrender value applicable under the plan will be provided.

The LIC Jeevan Labh policy will not consider any claim other than for 80% of the premiums paid if the insured (whether sane or insane) commits suicide during any time within 12 months of the date the risk commenced during the policy period.

If the insured commits suicide after one year from the date of policy revival, the higher of the acquired surrender value or 80% of the total premiums paid up to that point is provided.

The policy will deny any claim submitted in the event of the insured’s suicide, and the beneficiary receives 80% of the premiums that were paid to date if the insured commits suicide within one year of the policy's inception.

Here is a summary of the death benefit in case of suicide:

GST of 18% is applicable on life insurance effective from the 1st of July, 2017, which may affect the premiums paid.