LIC Jeevan Labh: How at Rs 118 premium/day, this policy provides Rs 5 lakh insurance, approx Rs 8.33 lakh return on maturity

For those seeking dual benefits of life insurance cover and good returns on their savings, LIC’s Jeevan Labh plan can be a good option. The endowment plan offered by the country’s most trusted life insurer is a limited-premium paying, non-linked, participating, life assurance savings plan.

Typically, the plan offers financial security to the family against the death of the policyholder during the policy term, with the option of lump sum payment at the end of the policy term in case of survival. 

Eligibility and other restrictions:

Minimum basic sum assured: Rs 2 lakh

Maximum basic sum assured: No upper limit

Policy term and premium paying term: Policyholders are provided with 3 options, including 16/10 years, 21/15 years and 25/16 years, i.e., herein the policyholders do not have to pay premiums throughout the policy term.

Minimum age at entry: 8 years completed

Maximum age at entry: 59 years nearest birthday for 16 years policy term

                                        54 years nearest birthday for 21 years policy term

                                        50 years nearest birthday for 25 years policy term

Maximum maturity age: 75 years (nearest birthday)

Benefits:

Death benefit: In case of death of the policyholder during the policy term, the nominee is entitled to receive the basic sum assured and bonus as a lump sum amount. 

Maturity benefit: In case the policyholder outlives the policy term and if the policy is in force, then he or she will receive the ‘sum assured on maturity’ along with vested simple reversionary bonuses and the final additional bonus, if any, shall be payable. Note sum assured on maturity is equivalent to the basic sum assured.

Also, here the policyholder is given the option to choose a settlement option for receiving maturity benefit in installments over the period of 5 years, 10 years or 15 years instead of lump sum amount under an in-force as well as the paid-up policy.

Participation in profits: The policy will participate in the Corporation’s profits and be eligible to receive simple reversionary bonuses along with Final Additional Bonus (FAB). FAB is declared in the year when the policy results in a claim, either by death or maturity.

In addition, there are a couple of riders which the Life Assured can choose for added advantages including Accidental Death rider, Accidental death and disability benefit rider, Critical Illness benefit rider and LIC's new term assurance rider among others.

Illustration explaining LIC’s Jeevan Labh benefit and return:

Supposing one opts for this LIC Jeevan Labh plan at 30 years of age and chooses Rs 5 lakh as the sum assured value and policy term of 16 years, Under this

criteria, he/she will be required to pay premiums for 10 years, and thus, by paying an annual premium of Rs 43,127 that comes around Rs 118 per day, including 4.5 per GST in the first policy year, the policyholder on maturity will get a nearly Rs 8.33 lakh return that includes a basic sum assured value of Rs 5 lakh and bonus and FAB of around Rs 3,32,500.