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LIC's Jeevan Labh Plan - 936

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LIC's Jeevan Labh Plan (Plan 936) is a non-linked, with-profit, limited premium payment endowment plan offered by the Life Insurance Corporation of India (LIC). This plan is designed to offer policyholders the benefit of both protection and savings. It is a popular choice among individuals who wish to secure their financial future and protect their loved ones in the event of an unfortunate eventuality.

Features of Jeevan Labh Plan:


  • Limited Premium Payment Term: The policyholder can choose the premium payment term, which is either 10, 15, or 16 years. After the completion of the premium payment term, the policy continues until maturity.
  • Maturity Benefit: The policyholder is entitled to receive the sum assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, on the policy's maturity.
  • Death Benefit: In case of the policyholder's untimely demise during the policy term, the nominee receives the sum assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, irrespective of the premiums paid.
  • Survival Benefit: The policyholder is eligible for survival benefits at regular intervals, provided all due premiums have been paid. The survival benefit is a percentage of the sum assured, and it increases with the duration of the policy.
  • Loan Facility: The policyholder can avail of a loan against the policy, provided it has acquired a surrender value.
  • Surrender Value: The policyholder can surrender the policy after the completion of three years and receive a surrender value, provided all due premiums have been paid.
  • Grace Period: A grace period of 30 days is allowed for premium payment. If the premium is not paid within the grace period, the policy lapses.
  • Revival Period: The policyholder can revive the lapsed policy within two years from the date of the last unpaid premium by paying the outstanding premiums along with interest.
  • Tax Benefits: The policyholder can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Benefits of Jeevan Labh Plan:

  • High Maturity Benefit: The policyholder is entitled to receive a lump sum amount on the policy's maturity, which includes the sum assured and the accumulated bonuses.
  • Death Benefit: In the unfortunate event of the policyholder's death, the nominee receives the sum assured along with the accumulated bonuses, irrespective of the premiums paid.
  • Survival Benefits: The policyholder is entitled to receive survival benefits at regular intervals during the policy term, provided all due premiums have been paid.
  • Tax Benefits: The policyholder can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
  • Loan Facility: The policyholder can avail of a loan against the policy, provided it has acquired a surrender value.

Eligibility Criteria for Jeevan Labh Plan:

  • Minimum Age: The minimum age of the policyholder must be 8 years.
  • Maximum Age: The maximum age of the policyholder must be 59 years.
  • Premium Payment Term: The premium payment term can be 10, 15, or 16 years.
  • Policy Term: The policy term can be 16, 21, or 25 years.
  • Sum Assured: The minimum sum assured is Rs. 2,00,000, and there is no maximum limit.

Premium Calculation for Jeevan Labh Plan:

The premium for the Jeevan Labh Plan depends on several factors such as the age of the policyholder, the sum assured, the premium payment term, and the policy term. The premium rates are different for male and female policyholders.

The premium can be paid annually, half-yearly, quarterly, or monthly. However, the monthly premium payment option is only available through the Electronic Clearing Service (ECS) or through Salary Deduction Scheme.

Example of Jeevan Labh Plan:

Let's take an example to understand the benefits of the Jeevan Labh Plan better. Suppose Mr. Ravi, aged 35 years, purchases a Jeevan Labh Plan for a sum assured of Rs. 10,00,000, with a premium payment term of 15 years and a policy term of 25 years. The premium payment mode chosen by him is annually.

In this case, Mr. Ravi will have to pay an annual premium of Rs. 66,238 for 15 years. The total premium paid by him over 15 years will be Rs. 9,93,570. On the completion of the premium payment term, Mr. Ravi will receive a survival benefit of Rs. 2,00,000. On maturity, he will receive the sum assured of Rs. 10,00,000 along with accumulated bonuses. Assuming a bonus rate of Rs. 50 per Rs. 1000 sum assured, the total bonus accumulated after 25 years will be Rs. 5,00,000. Therefore, the total amount received by Mr. Ravi on maturity will be Rs. 15,00,000.

In case of Mr. Ravi's unfortunate demise during the policy term, his nominee will receive the sum assured of Rs. 10,00,000 along with accumulated bonuses, irrespective of the premiums paid.

Conclusion:

LIC's Jeevan Labh Plan is a comprehensive plan that offers both protection and savings. It is an ideal plan for individuals who wish to secure their financial future and provide financial security to their loved ones. The plan offers a high maturity benefit, death benefit, and survival benefit. The policyholder can also avail of a loan against the policy, provided it has acquired a surrender value. The premium payment term is limited, and the premium rates are competitive. The policyholder can also avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Overall, LIC's Jeevan Labh Plan is an excellent choice for individuals who wish to invest in a reliable and trustworthy insurance plan.

FAQ

Q. Can I surrender my Jeevan Labh Plan before the maturity date?

Yes, you can surrender your policy before the maturity date. However, the surrender value will depend on the number of premiums paid and the duration of the policy.

Q. What happens if I miss a premium payment?

If you miss a premium payment, you will have a grace period of 30 days to make the payment. If you fail to pay the premium within the grace period, the policy will lapse, and you will lose all the benefits associated with the policy.

Q. Can I take a loan against my Jeevan Labh Plan?

Yes, you can avail of a loan against your Jeevan Labh Plan, provided it has acquired a surrender value. The loan amount will depend on the surrender value of the policy.

Q. Is there a limit on the maximum sum assured I can opt for under the Jeevan Labh Plan?

Yes, the maximum sum assured under the Jeevan Labh Plan is Rs. 1 crore.

Q. Can I surrender my policy and get back the premiums paid?

Yes, you can surrender your policy and receive the surrender value, which is the sum of all premiums paid minus any deductions.

Q. Is there any tax benefit associated with the Jeevan Labh Plan?

Yes, the premium paid towards the Jeevan Labh Plan is eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Additionally, the maturity amount and death benefit received under the policy are tax-free under Section 10(10D) of the Income Tax Act, 1961.

Q. Can I convert my Jeevan Labh Plan into a paid-up policy?

Yes, you can convert your Jeevan Labh Plan into a paid-up policy after paying premiums for at least three years. The paid-up policy will have reduced benefits proportional to the number of premiums paid.

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