Jeevan Labh is one of the best endowment plans of LIC. It is a non-linked (not linked with the market), with profit and limited premium paying plan.
Jeevan Labh is a saving cum protection plan. In other words, this plan ensures the death and maturity benefits both. Hence, it is a combination of two plans. If the policyholder dies during the policy term, the policy will be closed and death sum assured with bonuses will be paid to the nominee.
On the other hand, if the policyholder survives up to the maturity date, he will get the basic sum assured with bonuses himself.
This plan is available for the age group of 8 to 59 years. Apart from the different types of benefits, there are mainly 5 good features in this policy. So, we will discuss them one by one.
1. Premium Payment For Limited Period
Jeevan Labh has a limited premium paying feature. So, you have to pay the premium for the years less than policy tenure. For example, if you choose the policy term 16 years, you will pay the premium for 10 years only.
In this case, after the payment of the last premium, your policy will continue for 6 more years up to the maturity date. And of course, it will continue to earn in between these years as before. So, this feature gives you the chance of lesser premium payment.
2. Choose Tenure As per The Requirement
Jeevan Labh has three options for Policy Tenure. 16 years, 21 years and 25 years. You can choose any one of them as per your requirement. But it will depend also on your age.
- For 16 years of tenure, your age must not be more than 59 years.
- For the tenure of 21 years, the maximum age will be 54 years.
- And if you choose the tenure of 25 years, your age must not be more than 50 years.
As I said, the premium payment tenure will be less than the tenure of the policy. So,
- For 16 years tenure, you will pay premium up to 10 years.
- Likewise, for 21 years of tenure, the premium paying term will be 15 years.
- And for 25 years of tenure, it will be 16 years.
3. Term Assurance and Disability Benefit Riders are Included
This plan gives two Rider Benefits also at your choice. You can add on your policy with the Term Assurance Benefit Rider and/or Disability Benefit Rider. Or you can carry on the policy without any rider.
Term Assurance Benefit Rider
LIC has included this rider to give the financial protection to the nominees after the death of the policyholder. So, after the death of the policyholder, during the policy term, the nominee will get an additional amount equal to the sum assured of the death benefit.
But, it will be effective if the policyholder chooses this rider at the time of commencement of the policy.
Disability Benefit Rider
This rider gives the comprehensive protection to the policyholder against any disability of him. Moreover, in case of accidental death of the policyholder, the nominees will get the protection advantage.
So, as the case may be, an additional sum assured will be paid with all dues. Again, you have to opt this at the time of taking the policy. But, for this rider, you must be above the age of 18 years.
Remember, for availing the rider benefits, you have to pay an additional premium.
4. Two Types of Bonus
As you know, Jeevan Labh is a combination of two benefits, Death benefit and maturity benefit. So, whatever is the condition the policyholder or nominee will get the sum assured with bonus and additional bonus.
Therefore, you can see there are two types of bonus in Jeevan Labh policy. The first bonus, is the Simple Reversionary Bonus. And the second bonus is Final Additional Bonus (FAB).
5. Tax Benefit
Yes, through Jeevan Labh, you can avail tax benefits as well. The amount which you invest as premium is available for tax deduction up to ₹1.5 lakh u/s 80C of the Income Tax Act.
Moreover, the maturity or death benefit will also be totally exempted from tax u/s 10 (10D).
More about Jeevan Labh
- Loan facility is available after 3 years of commencement of the policy.
- After 3 years, you may surrender your policy too.
- Minimum sum assured is ₹2 lakh. No limit of the maximum sum assured.
- It gives you the maturity benefit up to the age of 75 years.
- You can pay the premium yearly, half-yearly, quarterly or monthly.
- Jeevan Labh is providing the rebate benefits on premium payment modes and on the basis of selected sum assured amount.