Jeevan Labh (936)

Jeevan Labh is a life insurance product of LIC (Life Insurance Corporation of India). This is an endowment or traditional plan- which means it is not linked to stock market. The return on investment will be based on the profit of LIC and thereafter the declaration of bonus rate for the particular product. This is a limited premium endowment- which means you pay less in number of years than the term of policy. To know about this policy let us start with its features:

 This policy is available in three variant:

 Premium paying term: 10,15,16 years

 Policy term (time until your policy matures): 16,21,25 years

 Minimum Sum Assured: 200000

 Maximum Sum Assured: unlimited (with special medical reports and income proof)

 Minimum Entry Level Age: 8 years completed

 Maximum Entry Level Age: 59 years in nearest birthday

 Maximum Maturity Age: 75 years

                 Due to the above clause maximum entry level age for all the three variant of this policy

Table 1: Term Vs Maximum Entry Age
Term Maximum Entry Age
(Years) (Years)
16 59
21 54
25 50

  Maximum Accidental Death and Disability benefit rider applicable up to age of 70 years

 Maturity Benefit: Sum assured + Bonus + Final Additional Bonus (for illustration keep on reading)

 Minimum years to pay premium: 2years (after paying premium for 2 years one can stop paying premium; your money will be safe to withdraw or for loan

 Loan and Surrender: after 2 years of policy period considering there is no unpaid premium in first 2 years of policy period.

 Revival: Policy can be revived within 5 years of lapsation.

 Benefit illustration:

Atul Sharma a professional in a private company has purchased Jeevan Labh of Sum assured 1000000 INR at the age of 30 years for 25 years term after considering following benefit illustration:-

Policy Term 16 21 25
Premium Paying term 10 15 16
Sum Assured 1000000 1000000 1000000

Per Day Premium

(1st Year/after 1st year)

239/234 153/150 130/127

Monthly Premium

(1st Year/after 1st year)

7437/7277 4763/4661 4041/3954

Quarterly Premium

(1st Year/after 1st year)

22311/21830 14290/13983 12122/11861

Half Yearly Premium

(1st Year/after 1st year)

44175/43224 28294/27685 24001/23484

Yearly Premium

(1st Year/after 1st year)

87456/85573 56013/54807 47514/46491

Total Premium Paid

(Based on Yearly Mode)

857613 823311 744879
Sum Assured 1000000 1000000 1000000
Bonus 688000 987000 1250000
Final Additional Bonus 25000 100000 450000
Total 1713000 2087000 2700000

All of these maturity is tax free under income tax act 10 (D)

*all maturity projection is based on current rate of bonus paid by LIC.