A new plan launched by the LIC, the Jeevan Labh insurance plan not only provides the policyholder with comprehensive life insurance cover but also has a maturity benefit if the life insured survives till planning maturity.
Eligibility Criteria:
| Entry Age | Minimum:
Maximum:
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| Maturity Age | Maximum – 75 years. |
| Sum Assured | Minimum: Rs.2,00,000.
Maximum: No limit on the maximum sum assured. |
Key Features:
| Basis | Single. |
| Coverage | Death Benefit – In the unfortunate event that the life insured dies, his / her nominees will be entitled to:
Death Sum Assured will not be less than 105% of all premiums paid. Maturity Benefit – On completing the policy term by surviving till the maturity date, the policyholder will be entitled to get the Sum Assured on Maturity (= Basic sum assured) plus Vested Simple Reversionary Bonus plus Final Additional Bonus (if any). The Simple Reversionary Bonus will be declared based on the experience of LIC. |
| Rebates | The plan offers rebates in the following ways:
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| Policy term | There are 3 policy term options:
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| Premium paying Term Options |
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| Premium paying mode |
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| Surrender Value | If the premiums are paid for 3 full policy years and the policy has been in force for 3 full policy years, the policy will acquire a surrender value.
The Guaranteed Surrender Value is based on the percentage of the total premiums paid (net of taxes, excluding rider premiums and extra premiums). The percentage will depend on the chosen policy term and the policy year in which the plan has been surrendered. The surrender value of simple reversionary bonuses will also be payable (if applicable). This is equal to the vested bonuses, multiplied by the applicable surrender value factor. Special Surrender Value will be paid out to the life insured on surrendering the policy if the special surrender value is higher than the guaranteed surrender value. This will be the discounted value of the sum of the vested simple reversionary bonuses and the maturity paid-up sum assured. |
| Loans |
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| Tax benefits | Tax benefits are applicable as per applicable taxation laws.
You can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. |
| Grace Period | There is a grace period of 30 days on non-payment of the unpaid premium for annual, semi-annual, and quarterly modes. 15 days in the case of monthly mode. |
| Free Look Period | There is a free look period of 15 days from the date of receipt of policy documents. |
| Exclusion | In the event that the policyholder commits suicide within one year from the commencement of insurance coverage, the insurance cover will be void and the company will not be liable to pay any benefits (including but not limited to the Sum Assured) except refunding 80% of the premiums received without any interest. |
Advantages:
- Comprehensive life insurance cover.
- Death benefit payable to surviving dependants/nominees on the policyholder’s death, and maturity benefits payable if the policyholder survives the term of the policy.
- Premiums are very affordable, and the policy offers comprehensive coverage.
- Multiple Sum Assured options.
- Flexibility to choose premium paying term.
- Flexibility to choose policy term.
- Flexibility to choose premium paying mode.
- Rebates based on premium paying mode and sum assured chosen.
- Tax Benefits under Section 80C and Section 10(10D).
