Policy Purchase:
• Application Process: Submit a duly filled application form along with the required documents such as identity proof, address proof, age proof, and income proof to purchase LIC Jeevan Labh.
• Medical Examination: Undergo a medical examination if required by LIC based on the age and sum assured of the policyholder.
Choosing the Premium Payment Term:
• Limited Premium Payment: Select a limited premium payment term of 10, 15, or 16 years, while the policy term is fixed at 16, 21, or 25 years respectively.
• Premium Amount: Calculate the premium amount based on the chosen sum assured, premium payment term, age, and other factors. Pay the premiums at regular intervals (monthly, quarterly, half-yearly, or yearly) as per the selected mode.
Accumulation of Bonuses:
• Guaranteed Additions: LIC Jeevan Labh offers guaranteed additions at the rate of Rs. 50 per thousand sum assured for the first five years of the policy.
Simple Reversionary Bonuses: Policyholders participate in the profits of LIC and are eligible to receive simple reversionary bonuses, which are declared annually and accrue to the policyholder's account.
• Final Additional Bonus: An additional one-time bonus may be declared at the time of maturity or death, providing an extra layer of returns on the investment.
Insurance Coverage:
• Death Benefit: In the event of the policyholder's demise during the policy term, the death benefit is payable to the nominee.
• Coverage Amount: The death benefit includes the higher of the sum assured on death or 10 times the annualized premium, along with vested simple reversionary bonuses and final additional bonus, if any.
• Maturity Benefit: If the policyholder survives the policy term, the maturity benefit is paid out, which includes the sum assured on maturity along with vested simple reversionary bonuses and final additional bonus, if any.
Optional Riders for Enhanced Coverage:
• Accidental Death Benefit Rider: Policyholders can opt for an accidental death benefit rider by paying an additional premium, which provides an additional sum assured in case of death due to an accident.
• Disability Benefit Rider: Policyholders can opt for a disability benefit rider by paying an extra premium, which waives off future premiums in case of permanent disability due to an accident.
Tax Benefits:
• Tax Savings: Premiums paid towards LIC Jeevan Labh are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, the death benefit and maturity benefit received under the policy are tax-free under Section 10(10D) of the Income Tax Act, making it a tax-efficient investment option.
Loan Facility and Surrender:
• Loan: After the completion of the premium payment term, policyholders can avail a loan against the policy's surrender value, providing liquidity and financial flexibility.
Surrender: Policyholders have the option to surrender the policy after the completion of the premium payment term and before the maturity to receive the surrender value, subject to applicable charges and conditions.