‘Labh’ in Hindi means ‘Profit’, the LIC Jeevan Labh plan offers profit by way of combining protection and savings plan. Usually, in any policy, the amount can be claimed only after its maturity, but in this particular plan, if the policyholder dies in an unfortunate circumstance, the amount can be claimed by his/her family members even if it’s before the time of maturity. This would be a huge financial support for the family.
LIC’s Jeevan Labh is a promising and rewarding policy.
- It is ‘Pay limited premium’ policy.
- It is a non-linked policy.
In normal cases at the time of maturity, a lump sum amount can be claimed by the policyholder.
This plan also has a loan facility to help the policyholder in any emergency liquidity needs.
Benefits of LIC Jeevan Labh
Maturity Benefit
- Maturity Benefit is the benefit that we get on surviving the stipulated Date of Maturity provided the policy is in force. The maturity amount for LIC Jeevan Labh is the Sum Assured on Maturity along with vested Simple Reversionary Bonuses and Final Additional Bonus(if any) will be payable. The Sum Assured on Maturity is equal to Basic Sum Assured.
- If all the premiums are paid on time, then this lump sum amount will be received by the policyholder by the end of the policy term.
Death Benefit
One of the most important benefits is the sum assured to the family after the death of the policyholder.
- The death benefit is defined as “Sum Assured on Death”, vested Simple Reversionary Bonuses and Final Additional bonus (if any) will be payable. On condition that: The policyholder should have paid all the due premiums.
- The “Sum Assured on Death” is a sum which is 10 times more than the Annualized Premium or Absolute amount assured to be paid on death, which is the Basic Sum Assured.
- The amount payable is not less than 105% of all the premiums which are paid as on date of death.
- The premiums referred above, do not include any taxes or charged with any extra amount under the policy owing to underwriting decision and rider premium(s), if any.
Optional Benefit
This policy provides optional Rider benefits such as:
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
The rider sum assured shall not exceed the basic sum assured. For available riders in any plans, you may call LIC service care number or visit the nearest branch.
Profit Participation:
Once the policy is in full force, it can participate in the profits of the Corporation. The policy shall be entailed to receive Simple Reversionary Bonuses declared as per the experience of the Corporation. The policy can also gain a Final (additional) Bonus in the year the policyholder declares a claim due to maturity or results in payment due to any unfortunate death of the policyholder.
Loan against LIC Jeevan Labh Policy
You can also avail the Loan against this policy at a rate less than the interest rate provided by the banks. The loan can only be taken once the policy premiums are paid for a full three years. If the policy attained maturity, surrender or death claim then the loan amount will be deducted and the remaining balance will be provided.
Surrender Policy
The policy can be surrendered at any time provided that the premiums are paid for three consecutive years. The Guaranteed Surrender Value shall be equal to the total premiums paid excluding any extra amount multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered. In addition, the surrender value of vested simple reversionary bonuses (if any) will also be payable.
Under this policy, Special Surrender Value will be payable, if it is more favorable to the Policyholder. The Special Surrender Value will be the Special Surrender Value factor multiplied by the sum of Maturity Paid-up Sum Assured and vested Simple Reversionary Bonuses. The Special Surrender Value factors applicable to this policy may change from time to time with prior approval of IRDAI
Grace Period
A grace period of one month for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums is provided under the LIC Jeevan Labh Policy. If the premium is not paid before the expiry of the days of grace, the Policy will lapses
Revival
If the Policy has lapsed due to non- payment of due premium within the days of grace, it can be revived within a period of 2 consecutive years from the date of the first unpaid premium, on submission of proof of continued insurability with the payment of all the arrears of premium together with interest (compounding half-yearly) at rate fixed by the Corporation.
Free lookup Period
If the policyholder is not satisfied with the policy term and condition then you can return the policy to the corporation within the free lookup period. Full payment after deducting the documentation charges will be paid back to the policyholder.
Exclusion for LIC Jeevan Labh
Suicide: If the policyholder commits suicide then within the period of 12 months then the account will be void. Only the 80% of the premium paid along with any extra amount charged will be paid to the nominee.
