Combo policies that offer investment and insurance benefits in a single product are increasingly growing popular among the people in India. One such well-liked product is LIC’s Jeevan Labh Plan that gives both investments as well as insurance advantage to the people for a fixed tenure of about 16, 21 or 25 years.
Here is a quick rundown of the features and advantages of obtaining the new Jeevan Labh policy.
Top Features of LIC Jeevan Labh
- Anyone who has completed eight years can get Jeevan Labh Plan from LIC. Maximum age requirement for applying for Jeevan Labh Plan is 59 years (nearest birth date) for policy term 16 years, 54 years (NBD) for policy term 21 years and 50 years (NBD) for policy term 25 years.
- The minimum sum assured required Rs2 lakh, and then in the multiplication of Rs10,000. There is no maximum sum assurance cap.
- Maximum maturity age is 75 years (nearest birthday).
- Policy term can be for 16 years, 21 years and 25 years.
- The premium paying term ten years for a 16 years policy, 15 years for a 21 years policy and 16 years for a 25 years policy.
- The premium payment period by the buyer is six years lesser than the actual term of the policy, and hence the premium is much higher. The policyholder gets a minimum ten times insurance cover of the annual premium paid.
- Premium payments can be made in one of the following options – yearly, half-yearly, quarterly or monthly (through ECS only or salary deductions).
- The endowment policy offers payment options to be paid monthly, quarterly or half-yearly and 2% discount given to those who pay yearly.
- The LIC Jeevan Labh Plan focuses mainly on offering savings to the policy buyer, so do not expect high returns but there are some bonuses provided to the policy buyers.
- Another advantage of Jeevan Labh Plan by LIC is that the amount one gets at maturity remains tax-free, but service taxes on the insurance policy is applicable.
LIC Jeevan Labh Plan Add-Ons
- The accidental death benefit provides double of the assured amount when there is a death of the person due to the accident but limiting to a maximum payout of Rs 1 crore.
- The disability benefit on the policy provides an assured amount for ten years of tenure on a monthly instalment basis when the person becomes disabled permanently within 180 days of his accident.
- Term insurance rider provides extra term coverage for the amount specified when the person dies during this time and then the designated beneficiary gets the death proceeds.
Fine Prints of Jeevan Labh
A thorough review of the terms and conditions of any policy document is important, and the LIC Jeevan Labh Plan is no different. Hence, buyers read and understand all the fine print.
- Policy return terms: The policy can be returned within 15 days period if the insured is not satisfied with its benefits, provided the reason for return is stated in a separate letter. The amount will be paid out after the cancellation of the policy but within 15 days.
- Grace period: All premium payments whether they are paid monthly, quarterly, half-yearly or annually are entitled to offer a grace period to the policyholder.
- Rebates: Paying premium annually entitles the holder to get a rebate of 2% on the premium value whereas half-yearly payers get 1% off on the premium value. For quarterly and monthly payers no rebate is offered. Also, no rebate is offered if sum assured amount is between Rs 200,000 to Rs 490,000; 0.125% rebate on B.S.A is given for a sum assured of Rs 500,000 to Rs. 990,000; 0.150% rebate is offered for the sum assured of Rs 10, 00,000 to RS. 14, 90,000 and 0.175% for the sum assured of Rs 15, 00,000 and above.
- Revival rule: When policyholder fails to pay the premium in the grace period as well, then the policy will end. However, it is possible to revive it back within two years from the lapse date of the policy by just paying all the missed premiums along with interest. Benefits terms may slightly change so check with the provider for the new term.
- Surrender norm: To discontinue your policy, you need to complete three years, and after that, you will be paid back the money if you paid all your premiums on time.
- Loans: Policyholders can avail a loan facility against this policy value once three years of the policy period is completed and if the premiums were regularly paid.
Essential documents required for obtaining Jeevan Labh plan by LIC include correctly filled application form/ proposal form, address proof like Voter ID Card, Aadhar card etc., age proof such as 10th marksheet, Pan card, etc., medical history, medical diagnosis report along with other KYC documents.