Did you know that millions of Indians have opted for endowment insurance plans to secure their financial future? The LIC Jeevan Labh plan is one such popular choice, offering a combination of insurance protection and savings.
This participating, limited premium paying, non-linked, with-profit endowment plan ensures financial security and peace of mind. With its limited premium payment option, policyholders can enjoy benefits without a long-term premium commitment.
The LIC Jeevan Labh Calculator is a valuable tool for understanding the plan’s benefits, premium requirements, and maturity details. By using this calculator, potential policyholders can make informed decisions about their insurance needs.
Key Takeaways
- Understand the comprehensive benefits of the LIC Jeevan Labh plan.
- Learn how to use the LIC Jeevan Labh Calculator for premium and maturity estimations.
- Discover how the plan combines insurance protection with savings.
- Get insights into the limited premium payment options available.
- Make informed decisions about your insurance needs with the calculator.
Understanding LIC Jeevan Labh Plan
Understanding the LIC Jeevan Labh Plan is crucial for those seeking a reliable insurance and savings option. The LIC Jeevan Labh Plan is a traditional endowment policy that combines life insurance coverage with a savings component, providing financial protection while building a corpus for future needs.
What is LIC Jeevan Labh Plan?
The LIC Jeevan Labh Plan is a non-linked, with-profit endowment plan that offers guaranteed returns plus bonuses, making it an attractive option for those looking for stable investments. It is not related to market fluctuations, ensuring that policyholders’ savings are secure.
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Available Policy Terms and Premium Payment Options
The LIC Jeevan Labh Plan offers three policy terms: 16, 21, and 25 years, with corresponding premium payment terms of 10, 15, and 16 years, respectively. This limited payment feature allows policyholders to make payments for a limited period while enjoying coverage for the entire policy term. The available policy terms and premium payment options are as follows:
- Policy Term: 16 years, Premium Payment Term: 10 years
- Policy Term: 21 years, Premium Payment Term: 15 years
- Policy Term: 25 years, Premium Payment Term: 16 years
Eligibility Criteria and Age Requirements
The eligibility criteria for the LIC Jeevan Labh Plan include age requirements that vary based on the chosen policy term. The minimum age at entry is 8 years (completed), and the maximum age at entry ranges from 50 to 59 years, depending on the term selection. For instance, for a 16-year term, the maximum age at entry is 59 years, while for a 25-year term, it is 50 years. The maximum age at maturity is 75 years.
To summarize, the LIC Jeevan Labh Plan is a comprehensive insurance solution that offers flexibility in terms of policy terms and premium payments, making it suitable for a wide range of customers. The Basic Sum Assured starts from ₹2,00,000 and above, in multiples of ₹10,000 or ₹50,000.
How to Use the LIC Jeevan Labh Calculator
To get the most out of your LIC Jeevan Labh policy, it’s essential to know how to use the calculator effectively. The LIC Jeevan Labh Calculator is an essential tool that simplifies the complex process of understanding potential returns and obligations before purchasing the policy.
Step-by-Step Guide to Calculate Premiums
Using the LIC Jeevan Labh Calculator is straightforward. Here’s a step-by-step guide:
1. Enter your current age and desired policy term (16, 21, or 25 years).
2. Input the year of purchase and the basic sum assured amount you wish to secure.
3. Optionally, include riders like Accidental Death & Disability Benefit Rider, Premium Waiver Rider, and Term Rider to enhance your coverage.
4. The calculator will then display the premium amounts required, approximate maturity benefits, and year-wise death benefit details.
Required Information for Accurate Calculations
To get accurate results from the LIC Jeevan Labh Calculator, you’ll need to provide some essential information:
1. Your current age.
2. Desired policy term (16, 21, or 25 years).
3. Year of purchase.
4. Basic sum assured amount.
Having this information ready will ensure that your calculations are accurate and helpful in planning your LIC Jeevan Labh policy.
Interpreting the Calculator Results
The results from the LIC Jeevan Labh Calculator will provide you with a comprehensive financial picture. Here’s how to interpret them:
1. Premium amounts: Understand how much you need to pay and when.
2. Approximate maturity benefits: See the expected returns at the end of your policy term.
3. Year-wise death benefit details: Understand the coverage provided throughout the policy term.
By understanding these results, you can make informed decisions about your LIC Jeevan Labh policy.
Premium Structure and Payment Options
Understanding the premium structure is crucial for LIC Jeevan Labh policyholders. The premium calculation is based on several factors including age, sum assured, policy term, and premium payment term.
Premium Calculation Formula
The premium calculation formula for LIC Jeevan Labh takes into account various parameters such as the policyholder’s age, the sum assured, the policy term, and the premium payment term. This formula helps in determining the premium amount to be paid at regular intervals.
Available Payment Modes and Frequencies
LIC Jeevan Labh offers flexible payment modes, including Yearly, Half-Yearly, Quarterly, and Monthly (through NACH). Policyholders can choose a payment frequency that suits their financial planning needs.
Rebates and Discounts on Premiums
The plan offers attractive rebates and discounts on premiums. Policyholders can avail of mode rebates, such as 2% discount on yearly payments and 1% on half-yearly payments. Additionally, high sum assured rebates are available, ranging from 1.25% to 3.5% based on the policy value.
For instance, policies with a sum assured of ₹15,00,000 and above can benefit from a 3.5% rebate. Understanding these rebates can help policyholders make informed decisions about their premium payments every year.
Comprehensive Benefits of LIC Jeevan Labh
The LIC Jeevan Labh plan is a versatile insurance solution that offers a range of benefits, making it an attractive option for policyholders. This plan is designed to provide both protection and investment returns, catering to the diverse needs of individuals seeking financial security.
Maturity Benefits Explained
The maturity benefit is a significant component of the LIC Jeevan Labh plan. Upon survival to the end of the policy term, policyholders receive the Sum Assured on Maturity along with the Vested Simple Reversionary Bonuses and any Final Additional Bonus (FAB) that may be declared. The maturity benefit is calculated as the sum of the Sum Assured on Maturity, accumulated simple reversionary bonuses declared annually throughout the policy term, and a potential final additional bonus.
Death Benefits and Coverage
In the event of the policyholder’s death during the policy term, the death benefit provides substantial financial protection for nominees. The death benefit is calculated as the Sum Assured on death plus the Vested Simple Reversionary Bonuses and any Final Additional Bonus. Notably, the Sum Assured on Death is 7 times the annualized premium, ensuring a significant payout to the beneficiaries. Moreover, the Death Benefit is guaranteed to be at least 105% of the total premium paid as on the date of death, providing a safety net for the policyholder’s family.
Bonus Structure and Additional Benefits
The LIC Jeevan Labh plan features a robust bonus structure that includes Simple Reversionary Bonuses declared annually and a potential Final Additional Bonus at maturity. The simple reversionary bonuses are declared each financial year, providing a steady accumulation of benefits over the policy term. The final additional bonus, if declared, is paid out along with the maturity benefit, enhancing the overall payout. This bonus structure, combined with the guaranteed death benefit, makes the LIC Jeevan Labh plan an attractive option for those seeking both protection and investment returns.
Practical Examples with the LIC Jeevan Labh Calculator
The LIC Jeevan Labh Calculator is a valuable tool; let’s explore how it works through specific examples. By examining different policy terms, we can understand how the LIC Jeevan Labh policy performs under various scenarios.
Example 1: 16-Year Policy Term Calculation
For a 30-year-old policyholder with a Sum Assured of Rs. 5,00,000 and a policy term of 16 years, the premium paying term is 12 years. Using the LIC Jeevan Labh Calculator, the yearly premium for the first year would be Rs. 34,411, and Rs. 33,831 from the second year onwards. The total premium paid over 12 years amounts to Rs. 4,07,783. At maturity, after 16 years, the approximate maturity amount would be Rs. 9,45,000.
In the event of death during the policy term, the death benefit includes the Sum Assured plus accrued bonuses and final addition bonus. For instance, if death occurs at age 42, the nominee would receive Rs. 7,42,000 for normal death or Rs. 12,42,000 for accidental death.
Example 2: 21-Year Policy Term Calculation
Consider a 29-year-old policyholder with the same Sum Assured of Rs. 5,00,000 but with a policy term of 21 years and a premium paying term of 15 years. The yearly premium for the first year is Rs. 27,749, decreasing to Rs. 27,263 from the second year onwards. The total premium paid over 15 years is Rs. 4,09,431. The approximate maturity amount after 21 years would be Rs. 10,85,500.
For death benefits, if the policyholder dies during the term, the nominee would receive the Sum Assured plus bonuses. For example, at age 43, the death benefit would be Rs. 8,92,500 for normal death or Rs. 13,92,500 for accidental death.
Example 3: 25-Year Policy Term Calculation
For a 25-year-old with a Sum Assured of Rs. 5,00,000 and a policy term of 25 years, the premium paying term is 18 years. The yearly premium is Rs. 24,119 for the first year and Rs. 23,671 from the second year onwards. The total premium paid over 18 years is Rs. 4,26,511. The maturity amount after 25 years would be approximately Rs. 13,45,000.
| Policy Term | Yearly Premium | Total Premium Paid | Maturity Amount |
|---|---|---|---|
| 16 Years | Rs. 34,411 (1st year) | Rs. 4,07,783 | Rs. 9,45,000 |
| 21 Years | Rs. 27,749 (1st year) | Rs. 4,09,431 | Rs. 10,85,500 |
| 25 Years | Rs. 24,119 (1st year) | Rs. 4,26,511 | Rs. 13,45,000 |
These examples demonstrate how the LIC Jeevan Labh policy can provide substantial maturity benefits while offering life cover. The longer the policy term, the higher the potential maturity amount, making it an attractive long-term investment option.
Additional Features and Policy Options
The LIC Jeevan Labh insurance plan is enriched with various features that provide policyholders with more flexibility and benefits. These additional features make the policy more attractive by offering financial liquidity, enhanced protection, and tax benefits.
Loan Facility and Surrender Value
The LIC Jeevan Labh policy allows policyholders to avail of a loan facility after 1-2 years of premium payments, providing financial assistance when needed. The surrender value is also available after completing the minimum premium payment period. The paid-up value can be calculated using the formula: Sum Assured * (Total number of premiums paid / Total number of premiums to be paid). This feature ensures that policyholders can access their accumulated value if they need to discontinue premium payments.
Rider Options for Enhanced Protection
The policy offers valuable rider options to enhance protection. These include the Accidental Death and Disability Benefit Rider, Critical Illness Rider, and Term Assurance Rider. By opting for these riders, policyholders can secure additional coverage against specific risks, thereby strengthening their financial safety net.
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Tax Benefits Under Section 80C and 10(10D)
The LIC Jeevan Labh policy provides tax benefits under Section 80C for premium payments and Section 10(10D) for the maturity amount, making it a tax-efficient investment. Policyholders can claim deductions on the premiums paid, and the maturity proceeds are tax-free, enhancing the overall financial appeal of the policy.
In conclusion, the LIC Jeevan Labh policy is designed to be flexible and beneficial, offering a range of features that cater to different financial needs. By understanding these additional features and policy options, policyholders can make informed decisions to maximize their benefits.
Conclusion
The LIC Jeevan Labh plan is a robust financial solution that offers a blend of protection and wealth accumulation. It is a participating limited premium paying, non-linked, with-profit endowment insurance plan that ensures financial security. By using the LIC Jeevan Labh Calculator, potential policyholders can make informed decisions by getting clear projections of premiums, maturity benefits, and death benefits.
The plan’s limited premium payment feature allows policyholders to complete their financial obligations earlier while continuing to enjoy coverage and accumulate bonuses. This makes it an attractive option for those planning for significant life events such as children’s education and marriage. Additionally, the plan offers various rider options and settlement options for benefits in installments, enhancing its flexibility.
In conclusion, the LIC Jeevan Labh plan is a comprehensive financial product that balances protection needs with wealth accumulation goals. Its unique structure, tax benefits, and comprehensive protection make it worth considering as part of your financial portfolio. With its cooling-off period and life cover, it provides a stable and secure financial solution.
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