LIC Jeevan Labh Policy

If you are planning your tax-saving investment now, Life  insurance Corporation of India (LIC) has launched a new limited premium paying, non-linked, with-profits endowment plan called Jeevan Labh.

The plan is having limited premium paying feature. So, although premium is paid for a limited period, policyholders can enjoy life cover for the entire term of the policy.

Minimum Age at entry: 8 years

Maximum maturity age : 75 years

Policy Term options : 16 years / 21 years / 25 years

Premium Paying Term options : 10 years / 15 years / 16 years respectively.

Minimum Sum Assured : Rs 2 Lakh

Death Benefit under Jeevan Labh : The policyholder’s nominee will receive; Sum Assured + Bonus + Final Additional Bonus (if any).

Maturity Benefit under Jeevan Labh : Sum Assured + Bonus + Final Additional Bonus (if any).

Optional riders like Term insurance rider (TR) & DAB (Double Accident Rider) are available.

  1. The policy offers guaranteed returns, but the returns are minimal. For someone who is in the higher age-bracket, due to high mortality rates, the returns will be low. But even for someone in the age of 25-30 years returns are in the range of 4-5%. It is better to go for a combination of pure term plan plus mutual funds.
  2. Since it is a participating plan, benefits will depend on the company’s performance. But usually endowment plans do not offer more than 5% returns. We advice PPF or bank fixed deposit for risk averse investors and equity mutual funds if you are willing to take some risk.
  3. Table No. 836 (LIC launched a Similar plan which was called LIC Limited Payment Endowment Plan under the Table no. 830 )


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