LIC Jeevan Labh Policy: Features, Terms, Benefits, Inclusions and Exclusions

Enrolling for an insurance policy is important for every individual in today’s time. Be it high school students or working professionals, insurance can save them from lots of problems. One such insurance policy is the LIC Jeevan Labh plan, which comes with a wide array of benefits to the customers. The plan is open to enrol kids starting from 8 years of age, making it the right insurance policy that even parents can opt for their kids. 

The LIC Jeevan Labh plan has a wide range of premium paying terms (PPT) and policy terms for the insured person. Being designed for individuals by LIC, this policy plan has many things in store for its customers. 

What is the LIC Jeevan Labh Policy?

Jeevan Labh Policy is an insurance scheme started by LIC to provide the right insurance facilities to the customers. Under the LIC Jeevan Labh plan, the customers can avail of both the insurance benefits and savings benefits in one. The policy also offers bonuses to the insured person, increasing the final returns that they receive upon completing the time frame. Under this policy, the person gets the chance to secure their family’s future and even in their absence. 

LIC Jeevan Labh Details – Overview

The plan is one of the best insurance policies for individuals to avail long term benefits. LIC Jeevan Labh’s details are mentioned in the table below.

Jeevan Labh Policy LIC Required Documents

The list of documents required by LIC to avail the Jeevan Labh plans is as follows:

• Valid proof of address
• KYC-related documents, such as PAN card, Aadhaar card, etc
• Valid proof of age
• Duly filled application form
• Medical diagnosis reports as asked by LIC
• Medical history and proofs

LIC Jeevan Labh Eligibility Criteria

The LIC Jeevan Labh have a set of eligibility criteria that a person needs to fulfil before availing the benefits of this insurance. The eligibility criteria are as follows:

• The minimum age of the applicant should be 8 years. An individual below the minimum age can not be considered for the insurance policy.
• The maximum age is 59 years for the policy term of 16 years, 54 years for the policy term of 21 years, and 50 years for the policy term of 25 years.
• The minimum sum assured can be ₹ 20,000.
• There is no maximum sum assured limit by the company. 
• There is no minimum age bar for maturity age.
• The maximum maturity age can be up to 75 years.
• The premium paying terms offered are 10, 15, and 16 years. 

LIC Jeevan Labh Key Features

The Jeevan Labh policy LIC features are listed below:

• The customers/insured person has to pay the premium for a limited time frame and can enjoy the benefits of them for a long period of time. 
• LIC lets the plan holder avail loan on this policy after they completed paying their premium for 2 continuous years. The loan is limited to LIC Jeevan Labh’s surrender value.
• Under this plan, the customers can avail the maturity and death benefits across periods of 5, 10, and 15 years. 
• In case the insurance bought is for kids, the parents are given the right to add the Premium Waiver Benefit Rider by LIC along with the existing policy. In the situation, that the parents die, LIC waives off the premiums that need to be paid so that the kid does not grow up with the burden of keeping the Jeevan Labh policy LIC in force. 
• LIC lets the customers enjoy rebates on their premium amount if the total sum assured is about ₹ 5 lakhs or above. 
• This policy is designed for individuals with policy term options of 16, 21, and 25 years. 

LIC Jeevan Labh Benefits

The Jeevan Labh Policy LIC benefits are as follows:

Death Benefit

The insurer will pay the LIC Jeevan Labh plan death benefit to the beneficiary in a situation where the insured individual dies because of an unfortunate reason during the time period of the policy. The death LIC Jeevan Labh benefit can be the following:

• 7 times the amount of the annualised premium of the plan.
• Basic sum of the assured amount under the policy.

The final death benefit will include the highest amount of any of above two, in addition to the invested simple bonus of reversionary and final supplemental bonus (if it is applicable).

Tax Benefits

The LIC Jeevan Labh premium paid can reach up to the maximum limit of ₹ 1.5 lakhs in a particular financial year. The LIC Jeevan Labh maturity can be exempted from taxation under Section 80 C and Section 10 (10 D) of the Income Tax Act, 1961, in India. 

Maturity Benefits

In case the insurance holder has survived for the whole period of the LIC Jeevan Labh policy and has been continuously paying their premium till the maturity date, then, the insurer will provide them with the maturity benefits. This benefit is the sum of the assured amount plus the vested reversionary simple bonus and final surplus bonus (if it is applicable). 

LIC Jeevan Labh Surrender Value

The LIC Jeevan Labh plan surrender value solely depends upon the time period and the insurance amount. Here is the table with the policy year and PPT that the insured person gets as a surrender value.

LIC Jeevan Labh Riders

Under the Jeevan Labh policy by LIC, five riders are being offered to the customers. These are the optional riders that the customers can avail of with the policy by paying extra premiums. The rider along with the LIC Jeevan Labh policy is generally availed to increase the base jcoverage of the original policy. The riders offered by LIC are as follows:

• Accidental Benefit Rider
• Accidental Death and Disability Benefit Rider
• Term Assurance Benefit Rider
• Premium Waiver Benefit Rider
• Critical Illness Benefit Rider

Exclusion under LIC Jeevan Labh Policy

Not all deaths are included under the LIC Jeevan Labh death benefits. There is one exception- suicide. In a situation, where the insured person commits suicide within the one-year time frame of the insurance policy, then their family or the nominees automatically becomes ineligible for the death benefits of the policy. Also, the sum assured for the insured person will not be provided by the insurer. Whereas, if the insured person has committed suicide after the one-year time period, then the insurer will pay 80% of the premium amount without paying the interest amount to the nominee.

Other Crucial Details about Jeevan Labh Policy LIC

A few more important details about the Jeevan Labh policy LIC are mentioned below:

• Free Look Period – The insurer gives a time frame of 15 days as a free look period from the date the policy is insured.
• Revival Period – The insurer will give a 2-year revival period time in which the policyholder gets the chance to revive their insurance. This time frame starts from the first unpaid premium on the policy and the insured person will have to pay all the premium along with interests and other costs of the arrears.
• Grace Period – If the insured person forgets to pay their premium, the LIC Jeevan Labh policy gives them a grace time of 30 days to make the payment in situations of quarterly, semi-annual, or yearly payment modes. The grace period provided by the insurer is of 15 days if the premium payment needs to be paid monthly.
• Paid-up Value – The insurance becomes paid-up if the life assured stops paying premiums after doing so consistently for at least two years. Afterwards, dependent on the premiums paid, the sum promised decreases. The decreased paid-up sum assured is equal to the sum assured on death or maturity, times the number of premiums paid/total premiums due.
• Policy Surrender – If the premiums have been paid for at least two complete policy years, the LIC Jeevan Labh Plan obtains a surrender value. The Guaranteed Surrender Value or the Special Surrender Value, whichever is larger, will be paid to policyholders. It is based on the total amount of premiums paid, the year of surrender, and the length of the insurance. 

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