LIC Jeevan Labh
LIC Jeevan Labh (Table No 836) is a non-linked (Not dependent on share market) limited premium paying endowment assurance plan which means premium paying term is less than policy term, for example, for 16 years policy term, premium needs to be paid for 10 years only and maturity will happen after completion of 16 years. This page tries to provide complete understanding of plan's specifications, premium, maturity, year-wise death claims etc. For a layman understanding, an example with latest bonus rate has also been illustrated. Please note, it is not official webpage of insurer.
- High Bonus Attracting Plan
- Premiums need to be paid for less number of years than Maturity year
- Ideal Plan for planning Child's Education and Marriage
- Options to avail accidental benefit and term riders
- Paid premiums are exempted from income tax under 80C
- Maturity amount is tax free under 10 (10D)
|Minimum Age at Entry||8 Years (Completed)|
|Maximum Age at Entry
|59 Years for 16 Year Term54 Years for 21 Year Term50 Years for 25 Year Term|
|Premium Paying Mode
[Calculate Your Premium]
|Yearly, Half Yearly, Quarterly, Monthly (NACH)|
|Policy Term (Premium Payment Term)||16(10), 21(15), 25(16)|
|Basic Sum Assured||2,00,000 and above (in multiple of 10,000)|
|Premium Mode Rebate||2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly|
|Rebate on High Sum Assured
(Per 1000 of Sum Assured)
|0% up to 4,90,0001.25% for 5,00,000 to 9,90,0001.50% for 10,00,000 to 14,90,0001.75% for 15,00,000 and above|
|Loan||After 3 years [ Loan Calculator]|
|Surrender||After 3 years of full premium payment [ Surrender Value Calculator]|
Maturity & Life Cover (Death Claim) of Jeevan Labh
In Jeevan Labh, a policyholder needs to pay premium during Premium Paying Term (PPT) and then the policyholder has to wait for completion of Policy Term and on the completion Policy Term, Jeevan Labh provides maturity amount which is equal to Basic Sum Assured + Simple Revisionary Bonus + Final Addition Bonus (FAB), if any. LIC declares Simple Revisionary Bonus or simply Bonus for each policy year during policy term. Year-wise declared bonus for Jeevan Labh has been given in Table-1.
Life Cover (Death Claim)
In case of death during the policy term, death claim will be Basic Sum assured + Accumulated Simple Revisionary Bonus + Final Addition Bonus, provided all due premium till the time of death are paid and policy is in force. Year-wise death claim has been explained in the example section in the later part of this page.
Related Link: Jeevan Labh Maturity and Death Benefit Calculator
|Table-1. New Jeevan Labh Bonus details ( per 1000 of Sum Assured)|
|Year||16 Years Term||21 Years Term||25 Years Term|
To know how total bonus is calculated, please click here.
Surrender, Loan and Paid-up value in LIC Jeevan Labh
LIC Jeevan Labh Policy Surrender
Policy surrender is an important and critical parameter in making purchase decision. Surrender means closing a policy before its scheduled completion (maturity) date, which often incurs losses and it should be exercised in extreme situation only. Jeevan Labh plan can be surrendered, if a policy has successfully completed 3 policy years (premiums for at least 3 years are paid) which means there will not be any return in the form of surrender value if a policy is surrendered before 3 years.
Loan Facility in Jeevan Labh
Jeevan Labh plan has option to avail loan during policy term in case of cash requirement. The loan amount is based on surrender value, so loan can be availed only after 3 successful policy years. Please use Jeevan Labh Loan value calculator to know more about it.
Paid-up Feature of Jeevan Labh
Once a New Jeevan Anand policy has completed minimum 3 years with all due premiums paid and policyholder chooses to stop paying further premiums, it automatically becomes eligible for paid-up option. In case of paid-up, benefits of the policy (Maturity and Death claims) reduced by factor of total number of premiums paid/ total number of premium to be paid.
Grace Period, Lapse and Revival in Jeevan Labh
There is a grace period of 30 days for Yearly, Half-yearly & Quarterly modes and 15 days for monthly mode from due date of premium payment. For example, if yearly premium is due on 10th June, then policyholder has time till 10th July to deposit premium without policy being lapsed.
If premium is not deposited before due date including grace period, then policy lapses. A lapsed policy can be revived by paying due premiums along with late fee within 2 years from first unpaid premium.
Cooling-off Period in Jeevan Labh
Cooling-off means, a policyholder can return the purchased policy(s) within 15 days from receipt of policy document(s), if he is not satisfies with Terms & conditions of the policy(s). On cooling-off request, policy is cancelled and paid premium is returned after deduction of proportionate premium, medical test cost, clerical charges etc.
Optional Riders with Jeevan Labh
Following riders are available with Jeevan Labh on payment of additional premium.
- Accidental Death and Disability Benefit Rider
- Term Rider
Paid premium under Jeevan Labh is exempted under section 80c and received maturity or death claim is tax free under section 10(10D) of Income Tax act.
Jeevan Labh (836) with an Example
|Sum Assured (Rs.)||12,00,000|
|Premium Paying Term||16|
|Yearly Premium (Rs.) (Without ST)||54,385|
|Total Paid Premium (Rs.)||8,70,160|
So, as per above example, policy holder needs to pay the premium of Rs. 54,385 per year for 16 years (Premium Paying Term) and after completion of 25 years (Policy Term). The benefits (maturity & Year-wise death claims) related to this plan is given below. The following illustration has been prepared as per 2015-16 bonus rate(Latest).
If Policy holder survives 25 years, then Maturity (Sum Assured + Bonus +FAB) will be as under.
|Maturity Year||Age at Maturity||Total Premium Paid||Maturity Amount (Approx.)|
Death Claim Details
In case of death during policy term ( Before 25 years ), Sum Assured + Bonus + Final Addition Bonus (Normal Life Cover) will be paid to nominee. In case of accidental death, additional amount equal to Sum Assured along with Sum Assured + Bonus + Final Addition Bonus (Accidental Life Cover) will be paid to nominee. Year-wise and Age-wise Normal Life Cover and Accidental Life Covers will be as follows.
How to Understand Following Table
Suppose if, unfortunate death of policy holder happens in year 2027 (at age 40), then by that time total premium paid will be Rs. 6,52,620 and nominee will get death claim as Rs. 19,20,000 in case of normal death or Rs. 31,20,000 as accidental death claim in case of death due to accident and policy will stop.
|Year||Age||Total Paid Premium||Normal Life Cover (Approx.)||Accidental Life Cover (Approx.)|
Above example has been prepared for illustration purpose only. The Bonus rate has been taken as Rs. 50 per thousand of sum assured which is as per last declared and FAB rate as Rs. 450 per thousand of sum assured. for More details, please refer to LIC Website and in case of any query please write your comment below.