A non-linked, with-profit endowment plan like LIC Jeevan Labh Plan offers savings and insurance advantages, making it ideal for long-term investors. As a restricted premium payment plan, it guarantees a payout at maturity, death benefits, and premium returns.
LIC Jeevan Labh Plan Overview
LIC’s Jeevan Labh, Plan No. 936, is a limited premium paying, non-linked, with profits endowment plan that provides a financial cover against death throughout the policy term with the provision of lump sum payment at the end of the maturity. This plan just mixes your savings with life cover ” Create a fund to ensure a child’s future need for education, marriage expenses, or any other financial requirement.” The plan is not related to stock market variations; in long-term investments, it is advisable to join where return is predictable.
Key LIC Jeevan Labh Features
A limited premium payment period is available with LIC Jeevan Labh. Under this, the life assured has to pay the premiums for a limited number of years but gets the coverage for the longer term. The policy terms available are 16, 21, or 25 years, with premium payment terms being either 10, 15, or 16 years.
This arrangement enables the policyholders to piece together their financial liabilities in keeping with their needs and time horizons. For example, a 21-year-old policyholder can pay the premiums for 15 years and get coverage for 21 years. The plan participates in simple reversionary and final bonuses. LIC shall add these bonuses to the benefits available on the maturity of the policy over time, thus vastly enhancing the returns. The sum assured and bonuses would make LIC Jeevan Labh look attractive to investment in search of long-term returns.
Death and Maturity Benefits
Maturity Benefit under LIC Jeevan Labh is the assured Maturity Sum Assured along with vested bonuses and any final additional bonus declared. The life assured will be eligible to receive this Maturity Benefit, which makes it ideal for the long-term financial requirement of a family, like buying a house at the golden phase of life or paying off a child’s education loan. The installment facility of payments ensures that the customer’s effective investment grows over the time of the policy and acquires the financial buffer on maturity.
Additionally, in the event that the life assured person dies during the term of a policy, then the nominee will receive death benefits. Death Benefit is defined to be ten times of annual premium or 105% of total premiums paid until death including riders, forming the financial stability of the family when this policyholder dies. With a dual benefit structure, Jeevan Labh becomes an optimal financial protection cum savings plan.
Tax breaks and loans
The LIC Jeevan Labh policy allows premium rebates under Section 80C of the Income Tax Act. This is designed to lower the tax burden, as well as for those who wish to create funds. Since the maturities and death benefits are exempted under section 10(10D), this proves beneficial for those who are looking to reduce their tax liability while building funds.
Other Investment Products Comparison
LIC Jeevan Labh is safer than FDs or market-linked investments. Jeevan Labh offers savings and life insurance, unlike FDs. Jeevan Labh’s 4-6% returns, including incentives, may be lower than market-linked products like mutual funds. Those who value safety and assured rewards might still choose it.
Jeevan Labh focuses on structured premium payments and maturity advantages, making it ideal for people who desire shorter premium payment commitments with long-term profits. Although Jeevan Lakshya gives greater flexibility in managing child-related financial objectives via yearly income benefits,
LIC Jeevan Labh in Practice
For instance, a 35-year-old who chooses LIC Jeevan Labh with an amount insured of INR 10 lakh for a 21-year policy term and a 15-year premium payment term will pay an annual premium for the first 15 years. After surviving the policy period, they would get the maturity amount, which includes the sum guaranteed of INR 10 lakh and earned bonuses, which might aid with retirement planning or homebuying.
If the policyholder dies during the term, their family would get a death benefit that might comprise the amount promised on death plus bonuses, providing financial security during difficult times. Jeevan Labh is trustworthy since it protects the family’s future and saves for the policyholder’s ambitions.