Life Insurance Corporation (LIC) of India, the country's largest insurance company, offers a variety of products such as money back plans, term insurance products and endowment policies. An endowment plan works in a slightly different manner in comparison to a term life insurance plan. An endowment insurance policy offers both investment and insurance benefits on maturity, whereas a term insurance policy only matures in the event of death of the insured. LIC's Jeevan Labh policy is one such endowment plan by the insurance major. LIC's Jeevan Labh policy is a limited premium paying, non-linked, with-profits endowment plan which offers a combination of protection and savings, according to the insurance company's website, www.licindia.in. (Also Read: All you need to know about LIC Pradhan Mantri Vaya Vandana Yojana)
Here is all you need to know about LIC's Jeevan Labh policy:
The LIC Jeevan Labh policy provides financial support for the family of the insured in case of death of the policyholder any time before maturity. It also provides a lump sum amount to the surviving policyholder on maturity of the policy, and also offers a loan facility, according to the LIC website.
The LIC Jeevan Labh policy can be purchased by an individual for a minimum sum assured of Rs 2 lakh. The policy has no upper limit for the sum assured, according to the LIC website.
The policy can be started after completion of eight years of age, and the highest entry age allowed is 59 years.
The LIC Jeevan Labh policy is a limited premium-paying insurance policy, which offers three different policy term and premium paying term options.
(Also read: How LIC Aam Aadmi Bima scheme (AABY) works)
These three options of policy terms and premium paying terms for purchasing a LIC Jeevan Labh policy are:
- Policy term of 16 years and premium paying term of 10 years
- Policy term of 21 years and premium paying term of 15 years
- Policy term of 25 years and premium paying term of 16 years
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode during the premium paying term of the policy.
Here are some of the sample annual premium rates (in Rs.) (exclusive of service tax) per Rs. 1,000 per basic sum assured, according to the LIC website for LIC Jeevan Labh:
|Policy Term/Premium Paying Term (in Years)|
|16 (10)||21 (15)||25 (16)|
If the premiums are not paid within the grace period, the policy will lapse. A lapsed policy can be revived within a period of two consecutive years from the date of first unpaid premium by paying all the arrears of premium together with interest, according to the LIC website.