LIC Jeevan Labh Plan (Table No. 936)

LIC Jeevan Labh Key Features

LIC Jeevan Labh Plan Benefits 

The benefits offered under the LIC Jeevan Labh Plan are listed below:

Death Benefit:

1. In the event that the insured person passes away during the policy period, the insurer will pay the beneficiary the death benefit.

1. The definition of ‘Sum Assured on Death’ is the higher of 10 times the annualised premium or the Basic Sum Assured, which is the amount guaranteed to be paid upon death.

1. This death benefit must equal at least 105% of all premium payments made as of the date of death.

Maturity Benefit:

1. If you live to the end of the policy term, you will receive a lump sum payment called ‘Sum Assured on Maturity’ that is equal to your basic sum assured as well as vested simple reversionary bonuses and final additional bonuses, if any.

1. This is only possible if all required premiums have been paid.

Optional Benefit:

The following Rider benefits are available to policyholders as an option:

1. LIC’s Accidental Death and Disability Benefit Rider

1. LIC’s New Term Assurance Rider

Advantages of LIC Jeevan Labh Plan

1. Comprehensive life insurance cover.
2. 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.
3. Premiums are very affordable, and the policy offers comprehensive coverage.
4. Multiple Sum Assured options.
5. Flexibility to choose premium paying term.
6. Flexibility to choose policy term.
7. Flexibility to choose premium paying mode.
8. Rebates based on premium paying mode, and sum assured chosen.
9. Tax Benefits under Section 80C and Section 10(10D).

Documents Required for LIC Jeevan Labh Plan

The documents required to avail the benefits of the LIC Jeevan Labh Plan are as follows

1. Proof of address

1. Proof of age

1. Properly completed application or proposal form

1. Medical history

1. Reports on medical diagnosis as necessary

1. Aadhaar card, PAN card, tax information, and additional KYC documents, etc.

How Does LIC Jeevan Labh Plan Work?

Step 1: Pick a premium amount to pay, depending on the coverage you require.

Step 2: Choose a premium paying mode.

Step 3: Pay regular premiums for the appropriate duration, based on the Sum Assured option chosen:

- 10 years for a policy term of 16 years.

- 15 years for a policy term of 21 years.

- 16 years for a policy term of 25 years.

Step 4: On surviving till the maturity date you will receive the Sum Assured + Vested Simple Reversionary Bonus – making your long-term investment goals a reality.

Step 5: In the event of your death during the policy term, your family will receive financial assistance in the form of Sum Assured + Vested Simple Reversionary Bonuses.

LIC Jeevan Labh Plan Riders

LIC Jeevan Labh Rider Benefit :

The LIC Jeevan Labh Policy offers five optional riders that policyholders can add to their plan by paying an extra premium. These riders enhance the coverage of the base policy and provide additional benefits. 

1. Accidental Death and Disability Benefit Rider 

1. Accidental Benefit Rider 

1. Term Assurance Rider 

1. Critical Illness Rider 

1. Premium Waiver Benefit 

Accidental Death and Disability Benefit rider:

1. Entry age:
   1. Minimum: 18 years.
   2. Maximum: 65 years.
2. Cover ceases at the age of 70.
3. Minimum accident benefit sum assured: Rs.10,000.
4. Maximum accident benefit sum assured is the Basic Sum Assured (subject to a ceiling of Rs.100 lakh).
5. The benefit will be paid in multiples of Rs.10,000.

New Term Assurance rider:

1. Entry age:
   1. Minimum: 18 years.
   2. Maximum:
      1. 59 years for a 16 year policy term.
      2. 54 years for a 21 year policy term.
      3. 50 years for a 25 year policy term.
   3. Policy term will be the same as the base plan.
   4. Premium paying term will be the same as the base plan.
   5. Minimum sum assured under this rider: Rs.1,00,000.

*Please note that all amounts, tenures, repayment requirements, time frames, interest rates, other rates, charges, fees, ceilings, requirements, criteria, exclusions, calculations, ratings, terms and conditions mentioned above are as of January, 2016, and are subject to change at any time. All banks, NBFCs, insurance providers, financial service providers, companies, etc. mentioned above retain all rights to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at their own discretion. You are requested to reconfirm the same with your chosen bank, company, NBFC, financial service provider before making any financial commitments.

Exclusions of LIC Jeevan Labh Plan

Any claim made in the event that the life assured commits suicide is rejected by the LIC Jeevan Labh policy.

1. The Corporation will not consider any claim other than for 80% of the premiums paid if the insured (whether sane or insane) commits suicide during any time within 12 months of the date the risk commenced during the policy period.

1. The higher of 80% of the premiums paid up to the date of death or the surrender value will be paid if the insured person (whether sane or insane) commits suicide within 12 months of the date of revival.

Sample Illustration of LIC Jeevan Labh 936 Premium 

Below listed is a sample illustration of the annual premium rates for a basic sum assured of Rs.2 lakhs for standard lives. For precise calculations, consider using the LIC Jeevan Labh Premium Calculator. 

Refer to the LIC Jeevan Labh premium chart for a better understanding of the premiums payable under this plan. 

Other Details about LIC Jeevan Labh Plan

Other important details about the LIC Jeevan Labh Plan are listed below:

1. Free-look period: If the policyholder has objections to the terms and conditions of the policy, they have 15 days from the date they received the policy bond to return the policy to the corporation with their reasons.

1.  Surrender Value: The policyholder can surrender the policy if they have paid premiums for at least three full years. The Guaranteed Surrender value will be expressed as a percentage of the total premium payments made. This percentage is determined by the policy term and the year in which the policy is surrendered.

1. Grace period: For payments made annually, semi-annually, or quarterly, a grace period of one month, but no less than 30 days, will be permitted. The grace period for payments made monthly is 15 days.

1. Paid-up value: If premiums for at least three full years are paid and any subsequent premiums have not been paid, the policy will remain in effect as a paid-up policy.

1. Revival: If the policyholder fails to pay premiums within the grace period, the policy will expire. The lapsed policy may be restored within two years of the date of the first unpaid premium by paying all arrears of premium and interest at the rate set by the insurer at the time of payment, provided that sufficient proof of continued insurability is provided.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017