LIC Jeevan Labh is a limited premium paying, with-profits endowment plan. It offers an optimal blend of investment and savings to the policy holder. The policy is essentially suited for young Indians studying abroad or settled abroad. LIC Jeevan Labh is also recommended for people with high-risk jobs such as Merchant Navy, Mining, Airlines, Refineries and Construction.
LIC Jeevan Labh is one of the best policies for NRIs as well as people who have migrated abroad for the short run. It is a non-market linked plan. The policy holder is eligible to get loyalty bonuses that LIC announces from time to time. The savings are maximized as the premium paying term ceases 6 years before the maturity of the policy. The policy holder thus gets the benefit of full insurance cover without having to pay a premium during the last 6 years of the policy term. Depending on the need, the policy holder may opt for 16 years, 21 years or 25 years term. Policy of a longer tenure is recommended as it maximizes returns. As an illustration, a policy holder seeking an insurance cover of 20 lakhs for 21 years will roughly pay a little over Rs. 1 lakh as premium for 16 years. The policy holder has the option of paying a premium on a monthly, quarterly, half-yearly or annual basis. Typically, a discount of 2% is offered to policy holders who opt for annual premium payments. He gets back at approx. 45 lacs after 21 years. The maturity proceeds are completely tax-free.
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|Jeevan Labh Premium Chart
Sum Assured – Rs. 1 Crore
|Maturity Benefit Illustration|
* The above figures are only for the illustration purpose considering the age of the proposer as 30 years. Premium may vary depending upon the age. Rider, if any will cost extra, GST, if applicable will also be extra. Benefits calculated as per the prevailing bonus rates
(Frequently Asked Question for Jeevan Labh Plan – Table No. 936)
Q. Can NRI buy LIC Jeevan Labh Plan?
A. Yes, NRIs are allowed to buy LIC Jeevan Labh plan. Even NRIs can buy this plan for their children aged above 8 years.
Q. Is LIC Jeevan Labh a good policy?
A. Yes, Jeevan Labh is one of the highest yield plan. The limited premium payment term make it attractive. The premium is lower and maturity is higher under this plan as compared to other LIC plans.
Q. What is the minimum and maximum amount of investment in Jeevan Labh?
A. The minimum sum assured is Rs.2,00,000/- with no upper limit. The minimum annual premium is Rs.9394/- + GST for Rs 2 Lakh sum assured plan with 16 years premium payment term.
Q. Is the maturity amount I receive from LIC under Jeevan Labh plan is taxable?
A. No, the maturity amount is 100% tax-free under Section 10(10)(D).
Q. Which Plan Term should I choose while taking Jeevan Labh?
A.You can choose any plan term among 16/10, 21/15 or 25/16 where 16,21,25 is plan term and 10,15,16 is the premium payment term. However, if your age is higher than 50, then you can choose only 16/10 or 21/15.
Q. How can I buy Jeevan Labh?
A.There are three ways an NRI can buy Jeevan Labh - 1st during his visit to India, 2nd we come to your country of residence, 3rd is Mail Order Business which is available only to NRIs, FNIOs can use this option.
Q. Can I buy Jeevan Labh for my child?
A. Yes, an NRI can buy Jeevan Labh for his/her child if the child age is above 8 years.
Q. Which LIC Plan has highest return?
A. LIC Jeevan Labh has the highest return as compared to other LIC plans as the IRR is around 7.25% without considering the tax benefits, and if we include the tax benefits the IRR is around 9.50%.
Q. What is the minimum and maximum Sum Assured in LIC Jeevan Labh plan for NRIs life insurance?
A.The minimum Sum Assured is Rs.10 Lakh if you buy LIC Jeevan Labh through Mail Order Business, otherwise it is Rs. 2 Lakh. There is no upper limit, the maximum sum assured depends upon your income.
Q. Is LIC Jeevan Labh an endowment plan?
A.Yes, Jeevan Labh is a limited premium paying, non-linked, with profit endowment plan