LIC Jeevan Labh – Check Features, Benefits and Eligibility Criteria

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LIC Jeevan Labh is a non-linked endowment plan (No. 936) available with limited premium payment options offered by one of the most reliable insurers, the Life Insurance Corporation (LIC) of India. Let’s take a look at the details of the plan in this post.

LIC Jeevan Labh plan 936 is a non-linked endowment plan, which is not linked with the market conditions for returns/profits. The plan is available with several benefits and it serves as a combination of savings and protection plan. Hence, you can accumulate money under this plan while staying protected. The plan also pays your family member’s death benefit in case of the unfortunate demise of the policyholder.

Under this basic endowment plan, you are required to pay premiums for a limited duration of time to receive maturity benefits at the end of the policy term. Also, if the policyholder dies during the term of the policy, the nominee of the plan receives a death benefit as the sum assured along with bonuses.

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Features of LIC Jeevan Labh Plan      

Features 

LIC Jeevan Labh Policy Details 

Plan type 

It is an endowment plan, non-linked with limited PPT

Plan basis

Individual plan

Benefits 

Death and maturity benefit, bonus, FAB, etc.

Policy tenure

16/21/25 years

PPT or Premium Paying Term

10/15/16 years PPT

Loans 

Yes, can avail loan against this policy if the policyholder has paid the premium for 3 full years

Free-look period 

15 days from the date of buying the policy

Nominations

A nomination facility is available

Basic Sum Assured 

Min – 2 lakh, Max – No Limit

Frequency of premium payment 

Yearly/Half-Yearly/Quarterly/Monthly

Revival 

Can be revived within 2 years of the first unpaid premium

Benefits of LIC Jeevan Labh Plan

Here are some LIC Jeevan Labh benefits:

1. Death benefit:

If the policyholder dies during the term of the plan, the nominee will receive a sum assured of 105% of the premiums paid. Together with that, they would receive the simple reversionary bonus along with FAB or the final additional bonus (if any).

 2.Maturity benefit:

If the policyholder outlives the policy term, the person is eligible to receive the maturity benefit in the form of sum assured, reversionary bonus, and FAB.

3. Rebate:

LIC also offers various rebates based on premium paying modes such as; a 2% rebate if the premium is paid every year as a one-time payment, a 1% rebate in half-yearly, etc.

4. Loans :

The policy offers a loan facility of up to 90 % of the surrender value to its policyholders if they pay the premiums regularly for the first three years of the plan. LIC decides the LIC Jeevan Labh interest rates for such loans.

5. Additional Profit:

The policyholder or nominee might also receive an additional bonus if it is declared during the policy term by the insurer.

6. Suits for long-term goals:

If you want to save enough for the wedding or education of your children, this plan will suit you aptly.

7. Income tax benefit:

The policy premiums paid as well as the maturity amount are all available with LIC Jeevan Labh tax benefits under various sections of the income tax act.

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Eligibility Required for LIC Jeevan Labh Plan

Criteria of eligibility 

Minimum 

Maximum 

Sum assured 

INR 2 lakh

No limit

Policy tenure (in years)

16/21/25

PPT (in years)

10/15/16 years

Entry age 

8 years

59 years

Maturity age 

75 years

Premium paying frequency 

Annual, semi-annual, quarterly, and monthly

Riders of LIC Jeevan Labh Plan

Below are some riders available with LIC Jeevan Labh Policy:

1. Accidental Death and Disability Rider:

With this rider the nominee of the plan receives an additional sum assured in the event of accidental death of the nominee during the policy period. However, if the policyholder survives the accident and becomes disabled for life, the insurance company will pay for the sum assured in 10 equal installments over the next 10 years.

2. New Term Assurance Rider:

This rider enhances the death benefit to be received by the nominee in the event of the death of the policyholder. The insured can buy this rider by paying an additional cost at the time of buying the plan.

3. Accidental Benefit Rider:

Under this rider, the nominee of the policy is paid a sum assured in the event of accidental death of the insured within 180 days from the date of an accident.

4. Critical Illness Benefit Rider:

If the policyholder is diagnosed with any critical disease among the 15 mentioned under the rider, he/she can avail of a lump sum amount for treatment of the illness.

5. Premium Waiver Benefit Rider:

This rider allows the premiums to be waived in case of the sudden demise of the policyholder.

Policy Exclusion of Jeevan Labh 

Among the various LIC Jeevan Labh 936 plan details, one point to note is related to suicide exclusion. In this case, the insurer will not pay any benefit to the policy nominee if the policyholder commits suicide within one year of the policy tenure. However, if the policyholder commits suicide after 1 year of the policy period, the nominee will receive 80% of the premiums without any interest.

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To Conclude

The Jeevan Labh policy is available with a free-look period of 15 days within which the insured is permitted to cancel the plan. The plan comes with several benefits and is regarded as one of the best plans offered by LIC. You can use the LIC Jeevan Labh calculator to evaluate the benefits and returns that you can receive from this policy.
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FAQs: LIC Jeevan Labh Features, Benefits and Eligibility Criteria

Am I eligible for any benefits if I surrender my LIC Jeevan Labh plan?

Yes. You can receive a surrender value of the policy if you have been regular in paying premiums for the last three years of the policy since buying the plan.

What happens if I can’t pay the plan premium within the grace period?

If you are unable to pay the premium within the grace period your policy will lapse and you will not be able to take any benefit of the plan. However, you still have the option to renew the plan within 2 consecutive years by making payments of the unpaid premiums. You may note that interest under LIC is compounded semi-annually.

If I stop paying the premiums after three years of buying the plan, will my plan continue or will it be cancelled?

The policy will be cancelled if you stop paying the premium after three years. But it will continue as a paid-up plan and the death benefit and maturity amount will be reduced accordingly under the plan.

How is the maturity benefit calculated under the LIC Jeevan Labh Policy?

The LIC Jeevan Labh policy maturity is calculated once the term of the policy is completed. Here’s the formula:
Sum Assured (basic) + accumulated bonus (simple reversionary accumulated during the policy term) + FAB or final additional bonus

Which is better – LIC or FD?

LIC is best for long-term investments, whereas FDs or fixed deposits are most suitable for short or medium-term investments.

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Jul 09, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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