If you are planning your tax-saving investments now,Life Insurance Corporation of India (LIC) has launched a new limited premium paying, non-linked, with-profits endowment plan called Jeevan Labh. The plan is being sold on the basis of the limited premium paying feature. So, although premium is paid for a limited period,policyholders can enjoy life cover for the entire term of the policy. The plan is available from policy term of 16, 21 and 25 years with premium paying term of 10, 15 and 16 years respectively. The maximum age at maturity is 75 years. The minimum basic sum assured is Rs 2 lakh, while there is no limit on the maximum. On maturity of the policy and the policy holder surviving to the end of the policy term, basic sum assured along with vested simple reversionary bonuses and final additional bonus, if any, shall be payable. The highlight of the plan is that premium is payable for limited period and risk is covered for the whole policy term. The plan is suited to those who want premium commitment for short duration having life coverage and benefits for a longer period. On payment of higher premium the plan also offers two riders, as an option. These are the Accidental Death and Disability Benefit Rider and New Term Assurance Rider. The riders offer an additional sum assured, apart from the basic sum assured, in case the policyholder dies during the policy term. But there are limits with regard to the sum assured for the both riders. The policy offers guaranteed returns, but the returns are minimal.
Key Features
o High Bonus Attracting Plan
o Premiums need to be paid for less number of years than Maturity year
o Ideal Plan for planning Child’s Education and Marriage
o Options to avail accidental benefit and term riders
o Paid premiums are exempted from income tax under 80C
o Maturity amount is tax free under 10 (10D)
Plan Parameters
| Minimum Age at Entry | 8 Years (Completed) |
| Maximum Age at Entry | 59 Years for 16 Year Term |
| 54 Years for 21 Year Term | |
| 50 Years for 25 Year Term | |
| Premium Paying Mode | Yearly, Half Yearly, Quarterly, Monthly (ECS Only) |
| Policy Term (Premium Payment Term) | 16(10), 21(15), 25(16) |
| Basic Sum Assured | 2,00,000 and above (in multiple of 10,000) |
| Premium Payment Mode rebate | 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly |
| Rebate on High Sum Assured (Per 1000 of Sum Assured) |
0% up to 4,90,000 |
| 1.25% for 5,00,000 to 9,90,000 | |
| 1.50% for 10,00,000 to 14,90,000 | |
| 1.75% for 15,00,000 and above | |
| Loan | After 3 years |
| Surrender | After 3 years of full premium payment |
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