Jeevan Labh

What this product is

A savings-cum-protection plan where you stop paying premiums well before the cover ends — for example, pay for just 16 years while the policy runs for 25 — with a lump sum plus bonuses at maturity.

You might need this if…

• You want your premium-paying obligation to end years before your coverage does, so you get a stretch of "paid-up but still fully covered" time near the end of the policy.
• You're planning around one of three fixed combinations (16/10, 21/15, or 25/16 years of policy term / premium term) and want predictability in when payments stop.
• You want a savings goal with a guaranteed lump sum plus participation in LIC's annual bonus declarations.
• You want the option to add riders like premium waiver (which cancels remaining premiums if the policyholder dies) alongside the base plan.

How it actually works

• Entry age starts at 8 years (completed); maximum entry age depends on which term you choose — up to 59 for the 16-year policy, 54 for 21-year, or 50 for the 25-year option.
• Minimum sum assured is ₹2,00,000 with no fixed maximum, in specified multiples.
• On maturity, you receive the basic sum assured plus vested annual bonuses and any final additional bonus.
• On death before maturity, the payout is the higher of the basic sum assured or 7× annualised premium, plus vested bonuses, with a guaranteed floor of 105% of premiums paid.
• Four optional riders are available: Accidental Death & Disability, Accident Benefit, New Term Assurance, and Premium Waiver Benefit (which cancels future premiums if the proposer dies).
• A policy loan is available after the first year, and maturity/death benefits can be spread over 5, 10, or 15 years in instalments instead of a lump sum.

Worked example

The tiers

Worth knowing before you decide

• Only three fixed policy-term/premium-term combinations are offered — you can't customise the split between paying years and coverage years beyond those three options.
• Suicide within 12 months of starting the policy limits the payout to 80% of premiums paid; within 12 months of a revival, it's the higher of 80% of premiums or the surrender value.
• Stopping premiums after at least one full year converts the policy to paid-up status with proportionally reduced benefits and no further bonus participation.
• The illustrated maturity range depends on assumed 4%/8% investment return scenarios used for illustration — actual bonuses are not guaranteed in advance.

Official source

⌟ Official product brochure

Learn about this category

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