This is a limited premium paying endowment plan with both savings and protection features. It provides guaranteed maturity and death benefits.
Benefits of LIC Jeevan Labh Plan Policy
- Death Benefit: In the unfortunate event of the policyholder’s demise during the policy term, the plan provides a death benefit to the nominee. This benefit typically includes the sum assured, any accrued bonuses, and final additional bonuses, if applicable.
- Maturity Benefit: If the policyholder survives the entire policy term, they receive the maturity benefit, which consists of the sum assured, vested bonuses, and final additional bonuses, if any.
- Guaranteed Additions: The plan offers guaranteed additions of the sum assured for the first five years of the policy.
- Participation in Profits: The LIC Jeevan Labh policy participates in the profits of LIC and is eligible for bonuses declared by the corporation. These bonuses are added to the policy’s cash value and enhance the overall returns.
- Loan Facility: After a certain period, policyholders can avail of a loan against the policy’s cash value. This can provide liquidity in times of need.
- Surrender Value: If the policyholder decides to surrender the policy before maturity, a surrender value is paid out. This value includes the cash value and accrued bonuses. However, the surrender value may be lower than the maturity benefit.
- Flexible Premium Payment: The policy has a limited premium payment term, which is shorter than the policy term, making it easier for policyholders to plan their premium payments.
- Income Tax Benefits: Premiums paid for the LIC Jeevan Labh plan are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity amount is usually tax-exempt under Section 10(10D), subject to certain conditions.
- Riders: Policyholders can enhance their coverage by adding riders such as accidental death benefit riders or disability benefit riders for an additional premium.
- Financial Security: The policy provides financial security to the policyholder’s family in case of the insured’s untimely demise and helps meet long-term financial goals if the policyholder survives the policy term.
- Long-Term Savings: It encourages disciplined savings over the limited premium payment term, which can be used for various financial needs, such as education, marriage, or retirement planning.