The LIC Jeevan Labh Plan 936 is a standard insurance plan that allows premium payment for a limited period and after the policy term expires, you get a maturity benefit. Should the policyholder pass away, the assured gets a death benefit. It is a non-linked traditional plan that is quite simple.
It doesn’t require you to pay the premiums for the whole policy term. Being an endowment plan it offers investment and insurance at the same time.
Key Features of the LIC Jeevan Labh Plan:
- We have listed several key features to help you understand better about the policy and make informed decisions
- A non-linked endowment plan where there is a limited period to pay your premiums and then when the term expires, you get the maturity benefit
- The coverage provides Maturity benefits, death benefits, Simple revisionary bonus, and final additional bonus (if any)
- The company adheres to Section 80C and 10D under the Income Tax Act 1961
Benefits for the Jeevan Labh Plan
Benefits under the policy are mentioned as follows:
Death Benefits- In case of demise of the policyholder, the nominee will be eligible for the following:
- Sum Assured which will not be more than 105% of all the paid premiums.
- Simple revolutionary Bonuses (if any)– higher than 10 times the annual premium or the Basic Sum Assured
- Additional bonuses (if any) – Bonuses like loyalty additional etc will be applied
Maturity Benefits- When the policy is termed, and the policyholder survives the policy term, then he or she will be eligible to receive maturity benefits like:
- The Sum Assured on Maturity
- Simple Revolutionary Bonuses depends on the experience of the company
- Final additional bonuses
Life Cover benefits or Death Claim
Should the policyholder suffers a death within the policy term, the nominees will be eligible for a death claim where Death Claim= Basic Sum Assured+Accumulated Simple Revisionary Bonus + Final Additional Bonus. This will only be provided only when all the premiums have been paid and the policy is still active.
For your understanding, there is a table below:
|Policy year||16-year term||21-year term||25-year term|
Parameters for the Jeevan Labh Plan
|Policy Coverage||Maturity benefit
Simple revisionary bonus
Final additional bonus
|Policy term||16 years
|Premium paying term||10 years
|Free-look period||15 days from the date of issuance of the insurance.|
|Minimum Basic sum assured||2 lakh|
|Maximum Basic sum assured||No-limit|
|Premium paying mode||Yearly, half-yearly, quarterly, and monthly|
|Loan||The loan will be provided against the policy after three years of paying premiums for at least 3 years|
|Revival||A policy can be revived within 2 years from the date of the first unpaid premium. To revive the plan you need to pay all the interest with premiums along with other expenses.|
To secure this plan, an individual has to meet the following criteria.
|Minimum Age of Entry||8 years|
|Maximum Age of Entry||66 years|
|Maximum Age of Maturity||75 years|
|Minimum age of maturity||nil|
The rebate allowed by the company is based on the premium paying mode. They are explained as follows:
- Yearly- 2% of the premium
- Half-yearly- 1% of the premium
- 5 lakh to Rs. 9 lakh- 1.25% of the basic sum assured
- 5 lakhs to 9.95 lakhs- 1.50% of the basic sum assured
- 15 lakh and above – 1.75% of the basic sum assured
Rebate based on Basic Sum Assured will be per Rs. 10,000 of the Basic Sum Assured
Along with the attractive benefits provided by the company, an insured is eligible to choose from the optional riders:
- LIC’s Accidental Benefit rider and Disability Benefit Rider– If the policyholder dies due to an accident during the policy term, then the insured will be allowed with an additional sum of over the basic sum assured. This is allowed if the policyholder suffers a disability due to an accident
- LIC’s New Term Assurance – This is an additional rider which one needs to buy at the time of purchasing the insurance. The payable term is the same as the basic plan. The minimum sum assured under is rider is Rs. 1 lakh
Under the ‘Terms and Conditions of the company, if the policyholder is unable to pay a premium, he or she is allowed a grace period of 15 days. If he or she fails to pay within 15 days, then the policy terminates and has 2 years of the revival period.
- What if I pay a premium and decide to cancel my policy during the free look period?
Any premium paid during the free-look period, along with other expenses will be returned upon cancellation
- How will I be paid my Basic Sum Assured?
Sum assured will be a minimum of Rs. 2,00,000 along with additional rider sum assured
- Is there any exclusion under this plan?
The only exclusion applicable is the suicide clause. That is if the policyholder commits suicide within 12 months from the date of issuance, then the company will not be liable to claim. The premiums paid until then will be returned up to 80%
- What is paid-up value?
The policyholder who has paid for three years, and then fails to pay after that, the policy will continue as a paid-up value.
- How does GST play a role under this policy?
18% of GST applies to the policies under the government of India.
- How much surrender value will I be offered?
The guaranteed surrender value will be equal to the amount of the basic premium paid.
- Is there a minimum age to avail of the additional riders?
Over the riders, there is a minimum age of 18 years for entry upon the riders.
- What are the tax implications under this policy?
Premiums based on maturity and death benefit adhere to section 80D and 10C
- Is there a maximum sum assured?
The surrender value is dependent upon the surrender value rate and the total number of premiums paid so far.
- After paying my premiums for three years, will my policy be canceled if I don’t pay after that?
Yes, but it will vaguely continue as paid-up value