What is Jeevan Labh Policy? What are the Labh Advantages?

Jeevan Labh is a popular life insurance policy offered by Life Insurance Corporation of India (LIC). It is a non-linked, participating, limited premium payment endowment plan that provides both protection and savings benefits. Here are some key features of the Jeevan Labh policy:

Death Benefit: In the unfortunate event of the policyholder’s death during the policy term, the death benefit is payable to the nominee. The death benefit consists of the sum assured on death, vested simple reversionary bonuses, and final additional bonus (if any). The sum assured on death is higher of the basic sum assured or a certain multiple of the annual premium, as specified in the policy.

Maturity Benefit: If the policyholder survives until the end of the policy term, they receive the maturity benefit. The maturity benefit includes the sum assured on maturity, vested simple reversionary bonuses, and final additional bonus (if any). The sum assured on maturity is equal to the basic sum assured.

Premium Payment Term: Jeevan Labh has a limited premium payment term, which is shorter than the policy term. The premium payment term options are 16, 21, and 25 years.

Policy Term: The policy term for Jeevan Labh can be 16, 21, or 25 years, depending on the chosen premium payment term.

Participation in Profits: The policy participates in the profits of the LIC and is eligible to receive simple reversionary bonuses, which are declared annually by the corporation. Additionally, a final additional bonus may be payable on maturity or death, depending on the policy’s performance.

Optional Riders: Jeevan Labh policy offers riders that can be added for additional coverage. These riders include Accidental Death and Disability Benefit Rider, New Term Assurance Rider, and Critical Illness Rider.

It’s important to note that the specific terms, conditions, and benefits of the Jeevan Labh policy may vary based on the individual’s age, premium amount, and other factors. It is recommended to review the policy brochure, consult with LIC agents, or visit the official LIC website to obtain detailed and up-to-date information about the Jeevan Labh policy before making any decisions.

The Jeevan Labh policy offered by LIC comes with several advantages that make it a popular choice among individuals seeking life insurance coverage and savings benefits.

Here are some key advantages of the Jeevan Labh policy:

Life Coverage: Jeevan Labh provides life coverage, ensuring financial protection for the policyholder’s family in case of their unfortunate demise during the policy term. The death benefit payable to the nominee can help replace the insured individual’s income and provide a financial safety net for their loved ones.

Maturity Benefit: If the policyholder survives until the end of the policy term, they receive the maturity benefit. This includes the sum assured on maturity along with vested simple reversionary bonuses and final additional bonus (if any). The maturity benefit can be used to meet various financial goals, such as funding children’s education, retirement planning, or any other planned expenses.

Limited Premium Payment: Jeevan Labh has a limited premium payment term, which is shorter than the policy term. Premiums are paid only for a specified number of years, making it more convenient for individuals who prefer shorter premium payment commitments.

Participating Policy: Jeevan Labh is a participating policy, which means it participates in the profits of LIC. The policyholder is eligible to receive simple reversionary bonuses declared by LIC annually. These bonuses, once vested, become guaranteed additions to the policy and enhance the overall maturity benefit.

Flexibility: The Jeevan Labh policy offers flexibility in terms of policy term and premium payment term. Policyholders can choose from multiple policy term options (16, 21, or 25 years) and premium payment term options (16, 21, or 25 years). This allows individuals to align the policy’s duration with their specific financial goals and needs.

Additional Riders: Jeevan Labh offers optional riders that can be added to enhance the coverage. These riders include Accidental Death and Disability Benefit Rider, New Term Assurance Rider, and Critical Illness Rider. Adding these riders provides extra protection against specific risks, such as accidents, disabilities, or critical illnesses.

Tax Benefits: Premiums paid towards the Jeevan Labh policy are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the death benefit and maturity benefit received are generally tax-exempt under Section 10(10D) of the Income Tax Act, subject to certain conditions.

It’s important to note that the advantages and specific details of the Jeevan Labh policy may vary based on individual circumstances and the terms and conditions set by LIC. It is recommended to carefully review the policy brochure, consult with LIC agents, or visit the official LIC website to get accurate and up-to-date information before making a decision.