• LIC Jeevan Labh

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Jeevan Labh is one of the endowment policies offered by the Life Insurance Corporation of India (LIC). This is a limited-premium, non-linked policy that combines the benefits of both insurance and savings under a single policy. This is also a participating policy that is entitled to receive bonuses based on the profits made by the corporation. Policyholders also have the option of availing the loan facility to take care of their liquidity needs. Along with the base cover, policyholders can also subscribe to rider covers to enhance the level of their coverage.

    Eligibility for LIC’s Jeevan Labh Policy

    People who meet the following eligibility criteria can apply for LIC’s Jeevan Labh Policy:

    • The minimum entry age of policyholders is 8 years.
    • The maximum age at maturity must not be higher than 75 years. Hence, the maximum age at entry shall be 59 years if a policy term of 16 years is chosen.

    Features of LIC’s Jeevan Labh Policy

    Some of the notable features of LIC’s Jeevan Labh Policy can be listed as follows:

    • The minimum basic sum assured offered under this scheme is Rs.2 lakh.
    • There is no limit on the maximum sum assured amount that can be chosen by policyholders. Additional sum assured amount can be taken in multiples of Rs.10,000.
    • There are three different options available for premium paying terms and the corresponding policy terms. A maximum of 25 years of policy term (16 years of premium paying term) can be chosen by policyholders.
    • The premium for this policy can be paid in yearly, half-yearly, quarterly, and monthly installments.
    • If the monthly premium payment option is chosen, the payment can be remitted only through ECS (Electronic Clearing Service) mode.
    • A grace period of 30 days from the date of expiry is available for the payment of premiums. For monthly premium payment, the grace period is limited to 15 days. Policyholders must note that they cannot make any claims for the damages incurred during the grace period.
    • For lapsed policies, the company allows revival within a maximum of 2 years from the date of first unpaid premiums.
    • The policy will become a paid-up policy if at least three years of premiums are paid and the subsequent premiums are not paid. Here, policyholders can enjoy coverage as per the paid-up sum assured amount.
    • A free-look period of 15 days is available for policyholders to review the terms and conditions of this policy. This policy can be cancelled without incurring any charges during this free-look period.
    • The premium amount paid for this policy is eligible for income tax relief as per Section 80C of the Income Tax Act. Tax relief is also available on the maturity amount obtained from this policy.

    Benefits of LIC’s Jeevan Labh Policy

    The benefits available under this policy can be given in the following table:

    Benefits Extent of Coverage
    Death benefit The ‘sum assured on death’ mentioned in the policy schedule will be paid to policyholders. The benefit includes the reversionary bonus and additional bonus accumulated during the policy term. (This benefit shall not be less than 105% of the total premiums paid.)
    Maturity benefit The ‘sum assured on maturity’ mentioned in the policy schedule along with the vested simple reversionary bonus and final additional bonus will be paid to policyholders. (This benefit shall be payable only after the completion of the policy term.)
    Optional benefits (riders) Accidental Death and Disability Benefit - Benefits are paid upon the accidental death or disability of the policyholder. New Term Assurance - This is a term cover that provides high-value coverage at an affordable price tag.

    Exclusions of LIC’s Jeevan Labh Policy

    The company shall not provide any compensation to the insured for the following list of exclusions:

    • The policy becomes void if the insured commits suicide within 12 months from the date of inception of the coverage. In this case, the company may refund up to 80% of the premiums paid or the surrender value on condition that the policy remains active.
    • If the policyholder commits suicide within 12 months from the date of revival, the policy shall become void and the company has no legal obligation to honour any claims. Even in this case, the company shall refund up to 80% of the premiums paid or the surrender value.
    • The company may also refute claim settlement to beneficiaries in cases of fraud or misrepresentation.

    Claim settlement procedure

    The claim settlement form can be downloaded from LIC’s official website. The procedure may differ slightly for death claims and maturity claims. The following list of documents may be required to initiate claims under this policy:

    Death benefit claims

    • Original policy document
    • Death certificate
    • Claim form A (details regarding the claimant and the deceased)
    • Medical certificate (in case of accidental hospitalisation)
    • Post-mortem report copy (if applicable)
    • Copies of FIR and investigation reports

    Maturity benefit claims

    • Original policy document
    • Discharge form (if the benefit amount is over Rs.60,000)
    • Documentary proof of age
    • Bank details of the policyholder

    Upon receipt of all these documents, the company will verify the validity of these documents. Once the validity of documents is established, the settlement amount will be transferred to the policyholder or claimant. All documents regarding the claim must be submitted to the home branch where the policy was bought. If there is any delay in receiving the settlement amount, the claimant may visit the branch office and enquire about the claim.

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