The Buyt Desk
LIC Jeevan Labh is a limited premium paying insurance plan. It fulfils the dual purpose of investment and insurance. Jeevan Labh is an endowment plan which helps you to buy a life cover as well as efficiently save money. You pay a premium for a specified period of time and at the end of the policy term, you receive a maturity benefit. In the event of the death of the policyholder his/her family receives a sum assured. The policy fulfils the financial needs of policyholders and their heirs and also takes care of the future financial requirements of policyholders and heirs in an unforeseen situation. It is a non-linked plan which means that the policyholder’s money is not invested in equity or market-related funds. The minimum sum assured of Jeevan Labh is Rs 2 lakh and the maximum limit will depend upon the size of the premium which the individual chooses.
Death Benefit
In case the policyholder dies during the policy tenure, the nominee in that policy would receive the entire premium amount along with the coverage amount. If the policyholder dies due to an accident, then the insurance plan coverage will double. The beneficiary will not only receive the entire premium amount paid by the policyholder as a sum assured along with bonuses like simple vested reversionary and additional final bonus if there is any.
Maturity Benefit
The Jeevan Labh has a premium payment term(PPT). When policy completes the term the unitholder is eligible to receive the maturity benefit. There are three terms available in the policy, 16 years, 21 Years and 25 years. For a 16 years plan, the premium paying term is ten years. In the 21 years plan, the premium paying term is 15 years, and for the 21 years plan, the premium paying term is 16 years.
Taxation
A policyholder can take a tax deduction under Section 80C of the Income Tax Act 1961. On premium paid towards the policy up to 1.5 lakh is tax exempted. The maturity proceeds are also exempted under section 10(10)D of the Income Tax Act. In the first year of the policy, 4.5% tax is payable on the premium and from the second and third years, 2.25% tax is payable on the premium.
Rebates
LIC plans are known for offering multiple rebates to policyholders. LIC Jeevan Labh Scheme also comprises that. The rebates include:
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Yearly mode: 2% of the annual premium is offered as rebates.
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Half-yearly mode: 1% of the annual premium is offered as rebates.
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The amount assured between Rs.2 lakhs to Rs.4.9 lakhs get a rebate of 1.25% of Basic Sum Assured.
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The amount assured between Rs.10 lakhs to Rs.14.9 lakhs gets a rebate of 1.50% and Rs.15 lakhs. Sum assured more than Rs. 15 Lakhs gets a rebate of 1.75%.
Surrender Value
The policyholder can surrender the policy at any point in time after paying a premium for three consecutive years.
Eligibility Criteria For the Jeevan Labh Scheme
The minimum age for entry in this policy is eight years, and the maximum entry age is 59 years for the policy terms of 16 years, 54 years for the policy term of 21 years, 50 years for the policy term of 25 years.
