LIC Jeevan Labh Plan

LIC Jeevan Labh (Table No 836) could be a non-linked (Not keen about share market) restricted premium paying endowment assurance arrange which implies premium paying term is a smaller amount than policy term, for instance, for sixteen years policy term, premium has to be bought ten years solely and maturity can happen when completion of sixteen years. This page tries to produce complete understanding of plan’s specifications, premium, maturity, year-wise death claims etc. For a commoner understanding, associate example with latest bonus rate has additionally been illustrated. Please note, it’s not official webpage of insurance firm.

Key Features

  • 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)

Maturity & Life Cover (Death Claim) of Jeevan Labh

Maturity Benefits

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

Calculate Premium


Type Of Plan Age Term Insurence Amount Mode Service Tax Premium Amount Total Premium Amount

Table-1. New Jeevan Labh Bonus details ( per 1000 of Sum Assured)
Updated On: 31-08-2019
Year16 Years Term21 Years Term25 Years Term
2018-19434750
2017-18434750
2016-17434750
2015-16434750

To know how total bonus is calculated, please click here.

 

Plan Parameters

Minimum Age at Entry8 Years (Completed)
Maximum Age at Entry
[Calculate Age]
59 Years for 16 Year Term
54 Years for 21 Year Term
50 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 Assured2,00,000 and above (in multiple of 10,000)
Premium Mode Rebate2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
Rebate on High Sum Assured
(Per 1000 of Sum Assured)
0% up to 4,90,000
1.25% for 5,00,000 to 9,90,000
1.50% for 10,00,000 to 14,90,000
1.75% for 15,00,000 and above
LoanAfter 3 years [ Loan Calculator]
SurrenderAfter 3 years of full premium payment [ Surrender Value Calculator]

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.

Link: Jeevan Labh (836) Surrender Value Calculator

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

Tax Benefits

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
Age (Years)29
Policy Term(Years)25
Premium Paying Term16
Purchase Year2016
Yearly Premium (Rs.) (Without ST)54,385
Total Paid Premium (Rs.)8,70,160

(To know premium with prevailing service tax (ST) and benefits as per your details, please use Premium Calculator and Maturity Calculator for this plan.)

 

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).

Maturity Details

If Policy holder survives 25 years, then Maturity (Sum Assured + Bonus +FAB) will be as under.

Maturity YearAge at MaturityTotal Premium PaidMaturity Amount (Approx.)
2041548701603240000

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.

YearAgeTotal Paid PremiumNormal Life Cover (Approx.)Accidental Life Cover (Approx.)
2016295438512600002460000
20173010877013200002520000
20183116315513800002580000
20193221754014400002640000
20203327192515000002700000
20213432631015600002760000
20223538069516200002820000
20233643508016800002880000
20243748946517400002940000
20253854385018000003000000
20263959823518600003060000
20274065262019200003120000
20284170700519800003180000
20294276139020400003240000
20304381577521360003336000
20314487016022020003402000
20324522740003474000
20334623460003546000
20344724480003648000
20354825200003720000
20364926400003840000
20375027840003984000
20385129400004140000
20395230600004260000
20405332400004440000

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.

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