This is a limited premium paying non-linked endowment life insurance policy that provides both savings and protection to policyholders.
Eligibility Criteria for LIC Jeevan Labh
| Minimum entry age | 8 years (completed) |
| Maximum entry age |
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| Maximum Age at maturity | 75 years (nearest birthday) |
Key Features of LIC Jeevan Labh
| Plan type | Non-linked endowment plan with limited premium paying term |
| Plan basis | Individual |
| Premium paying terms (PPT) |
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| Policy term |
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| Premium payment frequency |
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| Loan | Loans can be availed against this policy. Loans are available provided if at least 3 full years’ premiums have been paid and the policy has acquired a Surrender Value. |
| Revival | Policy can be revived any time within 2 years from the date of first unpaid premium by paying all the premium arrears along with interest and other expenses. |
| Free look period | 15 days from the date of receiving policy documents. Premium amount already deposited will be returned after deducting proportional risk premium for the cover period, medical examination expenses, reports, stamp duty etc. |
| Nominations | Nomination facility provided as per the Insurance Act |
| Basic Sum Assured |
Basic Sum Assured are in multiples of Rs.10,000 only |
| Policy coverage | Maturity Benefit, Death Benefit, Simple Reversionary Bonus and Final (Additional) Bonus (if any) |
Benefits of LIC Jeevan Labh
Major benefits of LIC Jeevan Labh policy are as follows:
- Maturity Benefit – On maturity of the policy, the policyholder will receive the Sum Assured on Maturity as lump sum, which is equal to Basic Sum Assured plus vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
- Death Benefit – Death benefits are paid out as the sum of ‘Sum Assured on Death’ plus Simple Reversionary Bonuses plus Final Additional Bonus (if any). The Sum Assured on Death is the highest of either 10 times of annual premium paid or the Basic Sum Assured. The death benefit will not be lower than 105% of the overall premium amount paid as of the date of death.
- Profit Participation – This policy is participating in nature and policyholders are entitled to get the Simple Reversionary Bonuses as declared by the company if the policy is in full force. A Final Additional Bonus may also be given when a claim has been filed for maturity or death.
- Tax Benefits – Tax benefits are available as per relevant sections of the Income Tax Act, 1961.
- Loans – Loans are available as per the table is given in the ‘Key Features’ section above.
- Rebate – In terms of premium frequency, 2% of the annual premium and 1% of half-yearly premium payments are offered as rebates. Sum assured of Rs.2 lakhs to Rs.4.9 lakhs receive a rebate of 1.25% of Basic Sum Assured, Rs.10 lakhs to Rs.14.9 lakhs receive 1.50% and Rs.15 lakhs and above receive 1.75%.
- Surrender Value – The policy can be surrendered at any point of time in the policy term subject to payment of at least 3 consecutive years’ premium. The Guaranteed Surrender Value will be equal to the total amount of premiums paid (minus any additional charges incurred such as underwriting decisions or rider premiums) multiplied by the Guaranteed Surrender Value Factor. The Guaranteed Surrender Value Factor at different points in the policy term are as follows:
| Guaranteed Surrender Value Factor | |||
| Policy Year | PPT 16 years | PPT 21 years | PPT 25 years |
| 3 | 30% | 30% | 30% |
| 4 | 50% | 50% | 50% |
| 5 | 50% | 50% | 50% |
| 6 | 50% | 50% | 50% |
| 7 | 50% | 50% | 50% |
| 8 | 53.75% | 52.30% | 51.80% |
| 9 | 57.50% | 54.60% | 53.50% |
| 10 | 61.25% | 56.90% | 55.30% |
| 11 | 66.00% | 59.20% | 57.10% |
| 12 | 68.75% | 61.50% | 58.80% |
| 13 | 72.50% | 63.80% | 60.60% |
| 14 | 76.25% | 66.20% | 62.40% |
| 15 | 80.00% | 68.50% | 64.10% |
| 16 | 80.00% | 70.80% | 65.90% |
| 17 | 73.10% | 67.60% | |
| 18 | 75.40% | 69.40% | |
| 19 | 77.70% | 71.20% | |
| 20 | 80.00% | 72.90% | |
| 21 | 80.00% | 74.70% | |
| 22 | 76.50% | ||
| 23 | 78.20% | ||
| 24 | 80.00% | ||
| 25 | 80.00% |
