Life Insurance Corporation of India (LIC) is providing a policy named Jeevan Labh. It is a non-linked, limited premium paying, and with-profits endowment plan, which provides financial support to the family in case the policyholder passes away at any point of time before maturity. The plan offers a lump sum amount to the surviving policyholder at the time of maturity. The “Basic Sum Assured” stands at a minimum of Rs 2 lakh. There is no maximum limit. Jeevan Labh policy also provides nomination facilities according to the Insurance Act. The plan comes with a premium paying term (PPT) of a minimum of 10 years. This policy also takes care of the liquidity requirements via its loan facility.
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It should be noted that the minimum age for subscribing to this scheme is 8 years. The maximum age for subscribing is 59 years for a policy term of 16 years, while it is 54 years for the 21-year policy term. In case of a policy term of 25 years, the age of the subscriber should be 25 years. The maximum age at maturity has been set at 75 years.
Here are some of the benefits you get under this plan:
Maturity benefit
The policyholder earns “Sum Assured on Maturity” as a lump sum when the policy matures. The sum assured is equal to the “Basic Sum Assured” plus vested “Simple Reversionary Bonuses” along with “Final Additional Bonus”, if any.
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Death benefit
The death benefits are provided as the “Sum Assured on Death” plus “Simple Reversionary Bonuses” along with “Final Additional Bonus”, if any. The “Sum Assured on Death” equals the highest of either the “Basic Sum Assured” or the annual premium paid. The death benefit is not going to be less than 105 per cent of the overall premium amount paid as of date of policyholder’s death.
Tax benefits
Tax benefits are provided to the policyholders under this policy as per the Income Tax Act, 1961.
Rebate
Two per cent of annual premium and 1 per cent of the half-yearly payment premium payments are provided as rebates in terms of premium frequency.
