Most searched plan of LIC Jeevan Labh.
The plan number of LIC Jeevan Labh is 936. Yes, this plan is an endowment plan. it provides risk cover to the customers and also contains saving components with a high yield of bonuses on deposited money. This plan is a with-profit plan, It means this plan participates in the profit of the company also. This plan is not linked to the equity market.
This plan is a limited period paying plan, meaning a customer has to pay for a limited time of period and maturity occurs after another additional span of time. These are the same reasons that this plan had become the first choice of the young generation.
Maturity benefit of LIC Jeevan Labh 936:
On completing the full policy term the policy is assumed as mature. then all the benefits of maturity are deposited in the account of customers. These benefits include the sum assured with a simple reversionary bonus and a final additional bonus is also added in the amount of maturity.
Participation in profit:
As mentioned above this plan is with a profit plan and it participates in the profit of the company. It means the above maturity benefits will also contain additional profit amount, and the maturity of LIC Jeevan Labh 936 policy calculated at the time of purchase will be more than that value shown by multiplying bonus rates in calculations
The death benefit of LIC Jeevan Labh 936:
In the case of death of Life assured, a Death claim is payable to the nominee. where this claim contains a sum assured( amount of risk cover or value of insurance amount ) of the policy along with a simple reversionary bonus and final additional bonus.
7 times of the annualized premium.
In case of death claim whichever of the above condition the higher amount will be payable to the nominee.
Who is eligible to buy LIC Jeevan Labh policy 936:
The minimum age of entry is 8 years of age completed
The maximum age of entry is 59 years of age Nearest birthday.
The minimum sum assured amount is Rs 200,000 and the maximum sum assured is no Limit.
Policy term available in LIC Jeevan Labh 936:
10 years premium paying term and 16 years maturity term
15 years premium paying term and 21 years maturity term
16 years premium paying term and 25 years maturity term
Riders available in LIC Jeevan Labh 936:
1: Accidental death and disability benefit rider.
2: Accidental death benefit rider.
3: Term Assurance Rider.
4: critical illness Rider.
5: premium waiver benefit rider
Modes of premium payment available in LIC Jeevan Labh 936:
Monthly mode (NACH)
Grace period available in LIC Jeevan Labh 936:
A grace period of 30 days for the payment of premium is available in modes of Yearly, half-yearly, and quarterly payments.
A grace period of 15 days is provided in monthly modes.
Revivals in LIC Jeevan Labh 936:
if a customer does not pay his premium even after a grace period then the policy is considered as a lapsed policy. it means there is no risk cover of that customer.
In such a case a customer can revive his policy anytime within a time period of 5 years. No policy can be revived after 5 years of lapsation.
if a customer paid for his policy at least for 2 years and now he is unable to pay the premiums then the policy will not be considered as null and void. it will be considered as paid-up policy.
it means the customer will get the deposited amount with a little growth at the maturity term of that policy. But, there will be no insurance cover for the paid-up policies.
Surrender in LIC Jeevan Labh 936:
The policy can be surrendered anytime after paying a premium for 2 years complete. The surrender value is reviewed by IRDA from time to time and updated by The Life Insurance Corporation of India.
The surrender value is always less than the premium paid by the customers. So, it is always a bad decision to surrender a policy.
Loan available in LIC Jeevan Labh 936:
The customer can get a loan against his policy after the policy attains the paid-up value after 2 years. The loan amount will depend upon the surrender value of that policy, the loan value will be the 80% of the surrender value calculated.
Freelook period in LIC Jeevan Labh 936:
A free look period of 15 days is available. This period is also called a cool off period and It is started from the day when the policy document is issued to the customer. If a customer is not agreed or not satisfied with the terms and conditions of the policy then he can cancel his policy and take the premiums back but within 15 days. the stamp charges and Taxes will not be returned.
The customer can claim for tax Redemption on the premium paid every year for this policy under the section of 80C of the Income Tax Department
The maturity amount is also exempted from income tax under section 10D
Conclusion and illustration:
For example, If a person buys a policy from any company of sum insured 500,000 then he has to pay a complete 500000 or more in the whole policy term.
But in this plan customer pays less than the sum assured and get the bonuses on the complete sum assured.
Here we will do three calculations with all the options on 5 lakh sum assured and keeping in the mind the age of customer’s 35 years
Calculation one with a policy term of 10 years premium payment and 16 years of maturity
here the customer will pay a total 4,32,350 in 10 years and will get 8,56,500 on the 16th year
Calculation second with a policy term of 15 years premium payment and 21 years of maturity
here the customer will pay a total 4,18,468 in 15 years and will get 10,43,500 On 21st year
Calculation third with a policy term of 16 years premium payment and 25 years of maturity
here the customer will pay a total 3,80,907 In 16 years and will get 13,50,000 on the 25th year
These above calculations are the main USP of this plan. this is the feature that made this plan the first preference of the young generation. these calculations are very near and maybe more than and the maturity amounts of PPF with additional risk covers.
Hope you all get the basic ides of the plan and about its merit and demerits. This article will make it easy to make decisions about the purchase of this plan of LIC Jeevan Labh (936)