Financial planning becomes more effective when life insurance combines protection with disciplined long-term savings. For individuals who want life cover along with a maturity-oriented savings component, an endowment policy can be worth considering. LIC Jeevan Labh Plan is a participating, non-linked, individual savings plan designed to provide life insurance protection during the policy term along with a maturity benefit if the policyholder survives the term. The current version is LIC’s Jeevan Labh Plan, Plan No. 736, UIN 512N304V03. LIC’s official product page lists the plan under its endowment plans.
What Is LIC Jeevan Labh Plan?
LIC Jeevan Labh is a limited-premium-paying endowment plan. This means the policyholder pays premiums for a specified period, while the life cover continues for the selected policy term. The plan is non-linked, so it is not directly connected to market-linked funds such as those used in ULIPs.
As a participating plan, it can receive Simple Reversionary Bonuses declared by LIC, subject to the applicable policy terms and the Corporation's experience. A Final Additional Bonus may also be declared when the policy becomes a death or maturity claim. Therefore, bonuses should not be treated as fixed returns at the time of purchase.
Key Features of LIC Jeevan Labh Plan
Several features make this plan relevant for people looking for structured long-term financial protection.
1. Limited Premium Payment
One of the notable features is the limited premium payment structure. The current plan provides three policy term and premium-paying-term combinations:
- 16-year policy term with a 10-year premium-paying term
- 21-year policy term with a 15-year premium-paying term
- 25-year policy term with a 16-year premium-paying term
This allows policyholders to complete premium payments before the end of the selected policy term.
2. Life Insurance Protection
The plan provides financial support to the nominee if the life assured dies during the policy term, subject to the policy being in force and applicable conditions.
Under the current version, the Death Benefit includes the Sum Assured on Death along with vested Simple Reversionary Bonuses and Final Additional Bonus, if declared. The Sum Assured on Death is defined as the higher of the Basic Sum Assured or seven times the annualised premium. The death benefit is also subject to a minimum of 105% of the total premiums paid up to the date of death, as specified in the policy terms.
3. Maturity Benefit
If the life assured survives until the end of the selected policy term and the policy remains eligible for the benefit, the policy provides the Sum Assured on Maturity along with applicable vested bonuses and Final Additional Bonus, if declared.
This can help policyholders build a corpus for long-term goals such as children's education, marriage expenses, retirement planning or other planned financial commitments.
4. Participation in Profits
LIC Jeevan Labh participates in the profits of the Corporation according to the terms of the plan. Simple Reversionary Bonuses may be declared annually, and once declared, they become attached to the policy according to the applicable conditions.
A Final Additional Bonus may also be declared when a policy results in a death or maturity claim. Since future bonuses depend on LIC's experience and declarations, they should not be assumed to be guaranteed from the beginning.
5. Loan Facility
A policyholder may be able to use the policy for liquidity needs through the loan facility, subject to the policy acquiring the required surrender value and the applicable terms.
This can be useful when a policyholder faces a temporary financial requirement and does not want to immediately terminate the policy.
6. Optional Rider Benefits
Additional protection can be enhanced through eligible rider options by paying an additional premium. Rider availability and conditions depend on the terms applicable to the policy.
Depending on the version and eligibility, available rider options can include accident-related protection and term assurance benefits. Policyholders should check the current rider conditions before selecting an option.
7. Settlement Option
The policy provides an option to receive eligible death benefits in instalments instead of taking the entire amount as a lump sum. The policy document provides instalment periods of 5, 10 or 15 years.
Such an option may help nominees manage a large insurance benefit more systematically instead of receiving and managing the entire amount at once.
LIC Jeevan Labh Plan Eligibility
Eligibility is an important factor to check before applying. The current plan provides the following broad conditions:
- Minimum entry age: 8 years completed
- Maximum entry age: 59 years for a 16-year policy term, 54 years for a 21-year term and 50 years for a 25-year term
- Maximum maturity age: 75 years
- Minimum Basic Sum Assured: Rs. 2 lakh
- Maximum Basic Sum Assured: No specified upper limit, subject to applicable underwriting
- Policy terms: 16, 21 and 25 years
- Premium-paying terms: 10, 15 and 16 years respectively
The Basic Sum Assured is available in specified multiples depending on the chosen sum assured range. Final eligibility and premium can depend on factors such as age, sum assured, policy term, medical requirements and underwriting.
Who May Consider LIC Jeevan Labh?
LIC Jeevan Labh may be considered by individuals who want a combination of life insurance protection and long-term savings. It can particularly appeal to those who prefer a traditional participating endowment structure rather than market-linked investments.
For example, a parent planning for a future financial goal may choose a policy term that aligns with the expected timing of the goal. Similarly, an earning individual may use the plan as one component of a broader financial strategy that includes emergency savings, health insurance, retirement investments and adequate term insurance.
However, choosing an insurance plan only because of its maturity value may not be appropriate. The premium should comfortably fit within the household budget, and the policy's protection should be evaluated alongside other financial needs.
Important Points to Check Before Buying
Before purchasing the plan, consider the following:
- Compare the premium with your long-term income and expenses.
- Understand the difference between guaranteed benefits and bonuses.
- Check the death benefit calculation carefully.
- Review the premium-paying term and overall policy term.
- Understand surrender and paid-up rules before committing.
- Examine available riders and their additional costs.
- Check applicable tax provisions at the time of purchase and claim, as tax laws can change.
- Read the policy document and benefit illustration instead of relying only on estimated maturity figures.
The current policy document also provides a 30-day free-look period from receipt of the electronic or physical policy document, subject to the applicable terms and permitted deductions.
Frequently Asked Questions (FAQs)
Q1. What is LIC Jeevan Labh Plan?
LIC Jeevan Labh is a participating, non-linked, individual savings and life insurance plan that combines life protection with long-term savings and maturity benefits.
Q2. What is the current plan number of LIC Jeevan Labh?
The current LIC Jeevan Labh Plan is Plan No. 736 with UIN 512N304V03. LIC's product page identifies it as an endowment plan.
Q3. What are the policy terms available under LIC Jeevan Labh?
The plan offers policy terms of 16, 21 and 25 years, with corresponding premium-paying terms of 10, 15 and 16 years.
Q4. What is the minimum Basic Sum Assured under LIC Jeevan Labh?
The minimum Basic Sum Assured is Rs. 2 lakh, subject to the applicable plan conditions and underwriting requirements.
Q5. Does LIC Jeevan Labh provide a maturity benefit?
Yes. On survival to the end of the policy term, the policy can provide the applicable Sum Assured on Maturity along with vested bonuses and Final Additional Bonus, if declared and applicable.
Conclusion
LIC Jeevan Labh can be considered by individuals looking for a traditional life insurance plan that brings together protection, limited premium payment and long-term savings. Its participating structure, maturity benefit, loan facility and optional rider features can make it useful as part of a broader financial plan.
Before purchasing, assess your insurance requirement, affordability, policy duration and expected financial goals. Carefully distinguish guaranteed benefits from bonuses and review the latest policy terms. For a more informed insurance decision, Square Insurance can help you evaluate your insurance requirements and manage policies with greater convenience.
