LIC’s Jeevan Labh 736

Description

 

Features of LIC Jeevan Labh Policy

The LIC Jeevan Labh policy offers several key features, including:

1. Tax advantages: In accordance with the applicable provisions of the Income Tax Act of 1961, premiums paid for LIC’s Jeevan Labh insurance are eligible for tax advantages. Section 80C allows for the tax deduction of premiums, while Section 10(10D) exempts the maturity amount from taxes. This indicates that there is no tax on the maturity amount received and that the premiums paid are deductible.
2. Loan Facility: After paying premiums for a minimum of two years, policyholders are eligible to receive a loan against their insurance. For the duration of the loan, the policy loan’s interest rate is fixed at regular intervals.
3. Free Look Period: Starting on the day the policy is issued, there is a 15-day “Free Look Period” available. The policyholder has the right to terminate the plan during this time if they are unhappy with it. In the event of a cancellation, the premium paid, less any relevant fees, will be reimbursed.
4. Grace Period: If policyholders pay their premiums annually, half-yearly, or quarterly, they will receive a grace period of thirty days from the premium due date. The grace period for premium payers who pay monthly is fifteen days.
5. Payment of Premium: To allow for flexibility in premium payment, premiums can be paid annually, half-yearly, quarterly, or monthly.
6. Surrender Value: After paying premiums for a full two years, the policy can be given up at any moment. When the policy is surrendered, the surrender value is established by taking the higher of the “Special Surrender Value” or the “Guaranteed Surrender Value.”

 

Benefits Available Under the LIC Jeevan Labh Policy

The LIC Jeevan Labh policy offers three major benefits to policyholders:

1. Death Benefit: In the event of the policyholder’s demise, the following components are provided as death benefits (if applicable):
   • “Sum Assured on Death,” which is the higher of 7 times the annual premium paid or the basic sum assured. The death benefit will not be less than 105% of the premiums paid as of the date of death.
   • “Simple Reversionary Bonuses.”
   • “Final Additional Bonus.”
2. Benefit of Maturity: The policyholder gets a lump sum payout at the policy’s maturity, which is equal to the “Basic Sum Assured” plus any vested “Final Additional Bonuses” and “Simple Reversionary Bonuses.”
3. Profit Participation: If the insurance is in full force, policyholders are entitled for “Simple Reversionary Bonuses”. In addition, if a claim for maturity or death is made, a “Final Additional Bonus” can be given.

 

Eligibility Conditions:

Minimum Basic Sum Assured per life	2,00,000
Maximum Basic Sum Assured per life	No Limit
Minimum entry age	8 years (completed)
Maximum entry age	59 years (nearer birthday) for Policy term 16 years 54 years (nearer birthday) for Policy term 21 years 50 years (nearer birthday) for Policy term 25 years
Policy Term / PPT	(16/10), (21/15) & (25/16)
Minimum Age at entry	8 years (completed)
Minimum Age at Maturity	18 years (completed)
Maximum Age at Maturity	75 years (nearest birthday)

 

The Basic Sum Assured shall be in multiples of  10000/- from Basic Sum Assured.

Out of the excess that results from the actuarial examination, the actual distribution to policyholders will be determined by the Central Government in compliance with the relevant provisions of the LIC Act, 1956.