LIC Jeevan Labh Insurance Plan – Table no 836 – Review
Yesterday, LIC of India has launched a new endowment policy, LIC Jeevan Labh (Table no.836). LIC Jeevan Labh is a non linked endowment insurance plan. Generally LIC launches insurance plans during tax season i.e. Jan to Mar. In this season this is the first insurance plan from LIC. Many investors would get templated with such plans and start investing in Feb/Mar. This article would help them to take the decision. What are the features of LIC Jeevan Labh Insurance plan? What are the benefits of LIC Jeevan Labh Plan? Should you consider such endowment plans from LIC of India?
Features of LIC Jeevan Labh Insurance Plan
- LIC Jeevan Labh refers to “labh” i.e. profit.
- Plan is launched yesterday i.e. 4th January, 2016.
- It is non linked endowment plan.
- This is a limited period insurance plan. Means you need to pay premium for limited period and get extended life cover.
- This insurance plan comes with 3 tenure i.e. 16 years, 21 years and 25 years.
- Min age of entry is 8 years and maximum age of entry is 59 years.
- Maximum age at maturity is 50/54/59 years for policy term of 25/21/16 years.
- Minimum basic sum assured is Rs 2 Lakhs.
- Maximum basic sum assured – No upper limit
- Loan facility available in this plan.
- Like any other insurance plan, it offers various payment period options i.e. monthly, quarterly, half-yearly and yearly.
What are the limited period payment options available?
Though the tenure is 16, 21 or 25 years, you need to premiums only for limited period, but you would get life cover for the entire tenure. Here are the limited period payments to be done.
- For 16 Years tenure, you need to pay premium only for 10 years.
- For 21 Years tenure, you need to pay premium only for 15 years.
- For 25 Years tenure, you need to pay premium only for 16 years.
What are the benefits available in this plan?
a) Death Benefit: In case of death of insured before the completion of tenure of the insurance plan, nominee would get Sum Assured on Death + Vested simple reversionary Bonuses + Final Additional Bonus (if any).
Sum Assured on Death is computed as follows:
- ‘Sum Assured on Death’ is higher of basic sum assured or 10 times of annualized premium.
- Death benefit shall not be less than 105% of total premiums paid as on date of death.
- The premiums mentioned above exclude taxes, extra charges, and Rider Premiums, if any.
b) Maturity Benefit: At the maturity, policy holder would get Sum Assured + Vested simple reversionary Bonuses + Final Additional Bonus (if any).
Are there any Riders available in LIC Jeevan Labh?
Currently there are two optional benefits / riders available in this plan with additional premiums.
1) Accidental death and disability benefit rider.
2) LIC New Term Assurance rider.
What are the rebates available in LIC Jeevan Labh Insurance Plan?
There are two rebates available. Premium payment mode rebate and High Basic Sum Assured Rebate.
Should you consider LIC Jeevan Labh?
Like I indicated earlier, I am against money back plans or endowment plans. All such plans from LIC would give an approx returns of 4% to 6% per annum. You should take term insurance plan and balance savings can be invested in a bank FD or mutual fund which would yield better returns. On other hand, if you are low risk taker and does not believe in financial markets or does not willing to take risk from stock markets, it is always safe to invest in such endowment plans from LIC.
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LIC Jeevan Labh Insurance Plan
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